Direct-reduction loans authorized; obligor to be member of lending association. Any building association, building and loan association, or savings and loan association organized and operating under the laws of the District of Columbia is authorized to lend money to veterans of World War II and others upon the security of a first deed of trust or first mortgage upon real estate, to be repaid in monthly or quarterly payments to be applied first to interest and the balance to principal until the indebtedness is paid in full, and without subscription to, or ownership of any shares, and such loans shall be known as direct-reduction loans. Direct-reduction-loan borrowers, and all persons assuming or obligated under direct-reduction loans made or held by such association shall be members of the association, and at all meetings of the members of the association, each borrower or each obligor upon a direct-reduction loan shall be entitled to 1 vote as such member. (May 1, 1946, 60 Stat. 159, ch. 245, § 3.) Prior Codifications 1981 Ed., § 45-2302. 1973 Ed., § 45-1702.
District of Columbia Legal Code