CONFLICTS OF INTEREST

(a) Except as the finance commission by rule provides, a director or officer may not: (1) receive directly or indirectly a commission on or benefit from a loan made by the savings bank; (2) pay for services rendered to a borrower from the savings bank in connection with a loan; (3) direct or require a borrower on a mortgage to negotiate an insurance policy on the mortgage property through a particular insurance company; (4) attempt to divert to a particular insurance broker the business of borrowers from the savings bank; (5) refuse to accept an insurance policy on the mortgaged property because the policy was not negotiated through a particular insurance broker; (6) become an obligor, including an endorser, surety, or guarantor, on a loan made by the savings bank; (7) borrow or use, individually or as agent or partner of another, directly or indirectly, money of the savings bank; (8) become the owner of real property on which the savings bank holds a mortgage unless the loan is fully secured by: (A) a first-lien mortgage on property that: (i) is to be occupied as the director's or officer's primary residence; and (ii) is specifically approved in writing by the board; or (B) a deposit maintained by the officer or director with the savings bank; or (9) engage in any other activity the finance commission by rule prohibits. (b) Except as the finance commission by rule provides, a savings bank may not make a loan to a corporation in which: (1) a director or officer of the savings bank holds stock, options, or warrants to purchase stock in the amount of five percent or more of the outstanding stock; or (2) the directors of the savings bank together hold stock, options, or warrants to purchase stock in the amount of five percent or more of the outstanding stock. (c) A deposit with a banking corporation is a loan for purposes of this section. (d) This section does not prohibit a savings bank from: (1) making a loan to a religious corporation, club, or other membership corporation of which one or more directors or officers are members but in which they have no financial interest; or (2) making a loan to or purchasing a guaranteed mortgage from a stock corporation if: (A) a director does not own more than 15 percent of the corporation's capital stock; and (B) the total amount of the corporation's capital stock owned by all directors of the savings bank is less than 25 percent.