---
kind: "section"
citation: "12 C.F.R. § 160.31"
title: "12"
number: "160.31"
heading: "Election regarding categorization of loans or investments and related calculations."
url: "https://uscodex.org/cfr/12/160.31"
---

# §160.31. Election regarding categorization of loans or investments and related calculations.

- (a) If a loan or other investment is authorized under more than one section of the HOLA, as amended, or this part, a Federal savings association may designate under which section the loan or investment has been made. Such a loan or investment may be apportioned among appropriate categories, and may be moved, in whole or part, from one category to another. A loan commitment shall be counted as an investment and included in total assets of a Federal savings association for purposes of calculating compliance with HOLA [section 5(c)](/cfr/12/5.md?p=c)'s investment limitations only to the extent that funds have been advanced and not repaid pursuant to the commitment.
- (b) Loans or portions of loans sold to a third party shall be included in the calculation of a percentage-of-assets or percentage-of-capital investment limitation only to the extent they are sold with recourse.
- (c) A Federal savings association may make a loan secured by an assignment of loans to the extent that it could, under applicable law and regulations, make or purchase the underlying assigned loans.

## Notes

### Authority

Authority: 12 U.S.C. 1462a, 1463, 1464, 1467a, 1701j-3, 1828, 3803, 3806, 5412(b)(2)(B); 42 U.S.C. 4106.

### Source

Source: 76 FR 49030, Aug. 9, 2011, unless otherwise noted.