Section 5.4. Rules and Regulations.--The rules and regulations of the agency under section 4(6) relating to the making of loans to lending institutions shall require that such loans:
(1) be evidenced by instruments delivered by each lending institution to the agency constituting such loan indebtedness a general obligation of such lending institution or other form of collateral acceptable to the board of directors; and
(2) be secured as to payment by a pledge of a lien upon collateral security.
The agency may require that any such security be lodged with a bank or trust company, located within or outside the Commonwealth, designated by the agency as custodian therefor.
(5.4 added Dec. 29, 1982, P.L.1450, No.330)