SECTIONS 7520 - California Statutes

GOVERNMENT CODE

SECTION 7520

7520. (a) Notwithstanding any other provision of law, any public
pension fund or retirement system of this state or local agency of
this state may contract with a savings and loan association doing
business in this state under terms by which the association shall
receive deposits of money from the fund or system for a term of 12
months or longer upon the association's agreement to offer loans for
the construction of new residential structures and related
improvements, including apartment buildings or other multiple-unit
structures, in an amount equal to the amount of the deposit, at a
rate of interest equal to the rate of interest on the deposit plus
200 basis points. The savings and loan association may require
additionally an origination fee not exceeding the amount required by
the savings and loan association for comparable loans not subject to
this section, but in no case exceeding 5 percent of the loan amount.
This fee shall not be deemed to include any expenses of the
association directly related to approving, processing, or recording
loans made pursuant to this section. Reasonable charges to cover
those expenses may be imposed in connection with the loans.
(b) Nothing in this section shall authorize a pension fund or
retirement system to make deposits at less than the otherwise
applicable rate of interest nor prohibit the fund or system from
depositing funds with other financial institutions or under other
conditions.