Financial Code section 7505

(a)

Notwithstanding any other provision of law, an association may originate, invest in, sell, purchase, service, participate, or otherwise deal in loans (including construction loans) on the security of real property for primarily residential (other than a one- to four-unit dwelling) or nonresidential use, subject to the limitations of this article.

(b)

An association’s aggregate investment in real property loans for primarily nonresidential use under this section shall not exceed 40 percent of assets.

Source: Section 7505, https://leginfo.­legislature.­ca.­gov/faces/codes_displaySection.­xhtml?lawCode=FIN§ionNum=7505.­ (updated Jan. 1, 1987; accessed Jun. 25, 2025).

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Verified:
Jun. 25, 2025

§ 7505's source at ca​.gov