Section 7507 Of Article 6. Real Estate Loans From California Financial Code >> Division 2. >> Chapter 6. >> Article 6.

. (a) An association may make loans or advances of credit, or invest in interests therein, on the security of real property, which loans, advances of credit, or investments are not otherwise authorized under the law because of the following reasons:
  (1) The loan-to-value ratio, stated maturity, or loan amount is in excess of the maximum allowable limits.
  (2) Lack of any required borrower certification or required private mortgage insurance.
  (3) The loan would cause an applicable percentage-of-assets category to be exceeded.
  (4) A combination of the foregoing factors.
  (b) Investments made under the authority of this section are subject to the following restrictions:
  (1) No association shall have investments under this section aggregating at any one time more than 5 percent of its total assets.
  (2) Each investment made under this section shall be fully documented to support the conclusion that it was made on a prudent basis.
  (3) Loans made pursuant to this section shall comply with subparagraph (D) of paragraph (5), and paragraph (6), of subdivision (b), of Section 7504, where applicable.