Section 6503 - Purposes and powers(a) Purposes.--The purposes of the corporation are to promote the elasticity and flexibility of the resources of member associations, to provide for the liquidity of such associations through a central reserve fund and to insure the savings accounts in such associations.(b) Powers.--In furtherance of these purposes the corporation has the following powers: (1) To provide for the liquidity of member associations through the creation of a central reserve fund for the purpose of making loans to member associations. The central reserve fund shall not be subject to payment of insurance claims against the corporation by member associations or their account holders or otherwise.(2) To insure the savings accounts in member associations through the creation of a central insurance fund, which fund shall consist of capital contributions by each member in an amount equal to not less than 2% of the total savings on deposit with each member.(3) To borrow money and otherwise incur indebtedness for any of its purposes; to issue its bond, debentures, notes or other evidences of indebtedness, whether secured or unsecured, therefor; and to secure the same by mortgage, pledge, deed of trust or other lien on its property, rights and privileges of every kind and nature or any part thereof.(4) To lend money to, and to guarantee, endorse or act as surety on the bonds, notes, contracts or other obligations of or otherwise assist financially, any member association; and to establish and regulate the terms and conditions with respect to any such loans or financial assistance and the charges for interest and service connected therewith.(5) To purchase, receive, hold, lease or otherwise acquire and to sell, convey, mortgage, lease, pledge or otherwise dispose of, upon such terms and conditions as its board of directors may deem advisable, real and personal property, together with such rights and privileges as may be incidental and appurtenant thereto and the use thereof, including, but not restricted to, any real or personal property acquired by the corporation from time to time in the satisfaction of debts or enforcement of obligations.(6) To invest any of its funds, upon proper authorization thereof by the board of directors, in any of the following:(i) Cash or deposits in checking or savings accounts, or under certificates of deposit in National or State banking institutions, to the extent that such accounts are insured by the Federal Deposit Insurance Corporation. This condition regarding Federal insurance shall not apply to investments in certificates of deposit when such condition would result in a lower interest rate than would otherwise be available.(ii) Savings accounts in associations to the extent that such accounts are insured by the Federal Savings and Loan Insurance Corporation.(iii) Interest bearing bonds, notes, certificates of indebtedness, bills or other obligations of the United States, any state or the District of Columbia, or of any commission, instrumentality, agency, authority or political subdivision of the United States, any state or the District of Columbia, having legal authority to issue the same.(iv) Interest bearing bonds, notes or other interest bearing obligations of any corporation created or existing under the laws of the United States, any state or the District of Columbia.(v) Dividend paying stocks or shares having readily marketable values of any corporation created or existing under the laws of the United States or of any state. The board of directors may not invest more than 10% of its total assets in such stocks, nor more than 3% of its total assets in the stock of any one corporation.(vi) Loans secured by first mortgages or deeds of trust on otherwise unencumbered fee simple real estate or improved leasehold property in this Commonwealth.(vii) Ground rents in this Commonwealth.(viii) Collateral loans secured by pledge of any security hereinabove named.(ix) Direct loans to member associations under the terms and conditions established therefor by the board of directors.(6.1) To approve any association insured by the corporation to pay any earnings on savings accounts except when the Pennsylvania Department of Banking finds that such payment of earnings would be excessive in light of the financial condition of the association or would constitute an unsafe or unsound business practice.(7) To exercise all other corporate powers granted by general law to corporations in this Commonwealth which are not inconsistent herewith and which are necessary or appropriate to the purposes hereof.(c) Accumulated earnings.--The earnings shall be accumulated by the corporation and no part thereof shall be returned to member associations. The provisions of this subsection shall not prohibit the payment of interest by the corporation to member associations which have made deposits, loans or advances to the central reserve fund.1979, April 6, P.L. 17, No. 5, § 3, effective in 60 days. Amended 1983, June 15, P.L. 25, No. 13, § 1, imd. effective.