Subject to § 9-420 of this subtitle and the regulations of the Division Director, a savings and loan association may invest in any of the following types of investments: Any mortgage on real property that is a first or second lien on property, but only if the requirements of § 9-420 of this subtitle are satisfied in the case of an acquisition, development, or construction loan; Any participation interest in a mortgage, but only if the requirements of § 9-420 of this subtitle are satisfied; Any loan that is secured by any savings accounts in the association to the extent of the withdrawal value of the respective account; Any ground rent in this State; Any general obligation of, or obligation guaranteed as to principal and interest by, or other instrument of: This State or any of its political subdivisions or agencies; or The federal government or any of its agencies or instrumentalities; Any general obligation of, or obligation guaranteed as to principal and interest by, any other state if: The Division Director approves; and The investment is not more than 5 percent of the association’s savings liability; Real property that is: Reasonably anticipated to be necessary or convenient to conduct its business, whether or not the property is also income producing in part. Unless the Division Director has given his prior written approval, an investment enumerated in this subparagraph may not be made by the association in real property that the association occupies for its offices and transaction of its business; Bought at auction sale if the association has any lien or claim on the property; Accepted in satisfaction of an obligation; Acquired by the association in an exchange for any other interest in real property owned by the association; or Acquired in connection with salvaging the value of an investment by the association; Furnishings and equipment necessary to conduct its business; Any loan to members of cooperative housing projects if the loan is secured by the assignment of the member’s interest in a unit of the project, notwithstanding a prior lien on the project; Deposits, including unsecured days funds, in any financial institution insured by the Federal Deposit Insurance Corporation or the Federal Savings and Loan Insurance Corporation to the same extent and subject to the same conditions as a federal savings and loan association; Securities, obligations, or other instruments, including participations, of: The Federal National Mortgage Association; The Student Loan Marketing Association; The Federal Savings and Loan Insurance Corporation; The State of Maryland Deposit Insurance Fund Corporation; The Federal Home Loan Bank; The Government National Mortgage Association; The Federal Home Loan Mortgage Corporation; or Any other agency that the Division Director approves; Stock or obligations of a corporation if: One or more financial institutions own all the corporation’s stock; and The corporation’s activities substantially consist of: Originating, buying, selling, or servicing loans on real property or any participating interest in loans on real property; Clerical functions primarily for financial institutions; or Any other activity the Division Director approves; Any secured or unsecured education loan; Any secured or unsecured home improvement loans; Any secured or unsecured consumer loan but only if the loan complies with § 9-420 of this subtitle; and Any mobile home financing loan. The Division Director may provide by regulation that specific investments permissible for a federally-chartered savings and loan association are permitted for a State-chartered savings and loan association. Savings and loan associations may make commercial loans, but only if the loans comply with § 9-420 of this subtitle and regulations adopted by the Division Director. A savings and loan association may accept any additional security on any investment authorized by this section. A savings and loan association shall make investments in first and second mortgages for owner-occupied residences equal to not less than 25 percent of the assets of the association, unless the Division Director approves in writing otherwise, upon a determination that another percentage does not affect the safety and soundness of the association. Except for investments authorized under subsection (a)(11) of this section, an association that is insured by the Maryland Deposit Insurance Fund may invest directly or indirectly under this section in real estate located in this State, the Commonwealth of Pennsylvania, the Commonwealth of Virginia, the State of Delaware, the State of West Virginia, and the District of Columbia. An association that is insured by the Federal Savings and Loan Insurance Corporation may invest, directly or indirectly, in real estate located in this State and no more than 20 percent of their assets in real estate located in the states of Alabama, Arkansas, Delaware, Florida, Georgia, Kentucky, Louisiana, Mississippi, North Carolina, South Carolina, Tennessee, and West Virginia, the Commonwealths of Pennsylvania and Virginia, and the District of Columbia. Except as to those states and jurisdictions enumerated in paragraphs (1) and (2) of this subsection, an association that is insured by the Federal Savings and Loan Insurance Corporation may invest, directly or indirectly, no more than 10 percent of their assets in real estate located in states within the United States. Nothing in this section may be construed to affect the validity of any investment made by a savings and loan association before June 1, 1986, in accordance with the provisions of this section as they existed before June 1, 1986.