Section 7. Section 504(b)(xiii) of the act, amended December 21, 1988 (P.L.1416, No.173), is amended to read:
Section 504. Investments
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(b) Authority under this act or other statutes--Except as otherwise provided in its articles, a savings bank may, in addition to investments authorized by its articles, other provisions of this act or other statutes, make investments in:
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(xiii) in the case of a savings bank which has elected
to exercise the conditional powers provided in section 513,
capital stock, securities or other obligations of any service
corporation, subject to the following limitations:
(A) the entire capital stock of the service
corporation shall be available for purchase by, or be
transferable to, only savings banks, savings and loan
associations organized under the laws of this
Commonwealth, Federal savings banks and savings and loan
associations having their home offices in this
Commonwealth, [or] regional thrift institutions, as that
term is defined in section 117, or, after March 4, 1990,
foreign thrift institutions, as that term is defined in
section 117,
(B) unless authorized by the department a savings
bank shall not have an aggregate outstanding investment
in the capital stock, securities or obligations of
service corporations the cost of which exceeds three
percent of the assets of the savings bank at the time of
acquisition of such stock, securities or obligations,
(C) a service corporation qualifying for investment
under this subsection may engage in the following
activities:
(1) originating, purchasing, selling and
servicing loans upon real estate and participating
interests therein,
(2) performing clerical, bookkeeping,
accounting, statistical or similar functions,
primarily for financial institutions,
(3) acquisition and development of real estate,
principally for construction of housing or for resale
to others for such construction or for use as mobile
home sites, either separately or in conjunction with
others provided that such development shall be
completed within five years of the commencement of
development, unless that period is extended by the
department,
(4) acquiring interests in improved residential
real estate and mobile homes to be held for rental,
and
(5) any other activity authorized by the
department by regulation; and