An association may not, directly or indirectly, grant loans to any one individual or business entity in a total amount in excess of 5 percent of its assets. In computing the total amount of loans made by an association to an individual, all loans made by the association to any entity in which that individual is a controlling person shall be included. In computing the total amount of loans made by an association to a partnership or other unincorporated association, the following loans shall be included: All loans to the association’s individual members; All loans made for the benefit of the partnership or other unincorporated association; and All loans to or for the benefit of any entity of which the partnership or unincorporated association, or any member of the partnership or unincorporated association, is a controlling person. In computing the total amount of loans made by an association to a corporation, the following loans shall be included: All loans made for the benefit of the corporation; All loans to or for the benefit of any person or entity who is a controlling person of the corporation; and All loans to or for the benefit of any entity of which the corporation is a controlling person. An association may make secured or unsecured loans for personal, family, or household purposes, and may invest in, sell, or hold commercial paper and corporate debt securities subject to regulations promulgated by the Division Director. The total of these loans and investments may not exceed 20 percent of the assets of the association. Loans to dealers in consumer goods to finance inventory and floor planning shall be treated as commercial loans. An association may invest in, sell, purchase, participate in, or otherwise deal in loans for commercial, corporate, business, or agricultural purposes, but only if at any one time the total investment made under this section does not exceed 10 percent of the association’s assets. An association may participate in mortgages and participate with other lenders in originating and making any type of mortgage loan that the association is authorized to make under the provisions of § 9–419 of this subtitle. The amount that an association may have invested in privately placed mortgage backed securities cannot exceed 10 percent of the association’s assets. Except as provided in paragraph (2) of this subsection, a loan made for the purpose of acquiring real estate, financing the development of real estate, the construction of structures on real estate, or the rehabilitation of real estate is subject to the provisions of this section and regulations adopted by the Division Director. This subsection does not apply to a loan made for the purchase of real estate that has or will have not more than one dwelling designed principally as a residence with accommodations for not more than 4 families. The loans may not exceed the loan–to–value ratios provided by regulation. The Division Director shall adopt regulations establishing terms for the repayment of loans authorized by this subsection. The regulations adopted by the Division Director may not be less restrictive than those applicable to federally–chartered savings and loan associations. Unless otherwise provided by regulations adopted by the Division Director, the loans shall be repayable within a term that is applicable to federally–chartered savings and loan associations. Loan documentation for development loans shall contain: A preliminary development plan that is satisfactory to the association; and A projection that not less than the investment in the loan will be recovered. The recognition of income and the amortization method used by the association originating the loans shall be in accordance with generally accepted accounting principles. The total amount of loans for acquisition, development, or construction cannot exceed 10 percent of the assets of the association. Loans to one borrower made under this subsection for any one development project may not exceed 50 percent of an association’s net worth or 2 percent of its assets, whichever is less. Nothing in this section may be construed to affect the validity of any loans made before June 1, 1986, by any savings and loan association in accordance with the provisions of law relating to loans by savings and loan associations in effect before June 1, 1986.