(a) Except as provided in subsection (b) of this Code section, a bank shall make a loan secured by improved or unimproved real estate (including a leasehold) only where such loan is:

(1) Secured by a mortgage, deed of trust, security deed, or similar instrument providing a first lien or a first security title or is otherwise secured in accordance with regulations prescribed by the department;

(2) For not more than 75 percent of the fair market value of the real estate in the case of a single maturity loan or for not more than 95 percent of the fair market value of the real estate in the case of loans that must be regularly amortized; provided, however, that these limitations shall not apply to:

(A) Any loan secured by real estate made to finance construction of an improvement or development, in which case the amount of the loan shall not exceed 100 percent of the estimated completed value of the improvements;

(B) Any loan which the federal housing administrator insures or makes a commitment to insure;

(C) Any loan which the secretary of veterans affairs guarantees or makes a commitment to guarantee;

(D) Any loan secured by a mortgage, deed of trust, security deed, or similar instrument providing for a nonpurchase money lien on residential real property owned and occupied by the borrower, provided that such loan may not exceed 100 percent of the fair market value of the real estate after deducting all outstanding liens on the property; or

(E) Any other type of loan or a portion thereof with respect to which the department determines that banks may safely extend loans in excess of the foregoing limitations;

(3) Conforms with requirements as to duration, amortization, appraisal, insurance, and documentation, as may be prescribed by regulation of the department.

(b) The limitations of subsection (a) of this Code section shall not apply to:

(1) An investment security acquired pursuant to Code Section 7-1-287;

(2) A loan in connection with which the bank takes a real estate lien as security in the exercise of banking prudence but as to which it is relying for repayment on:

(A) The general credit of the obligor or of an installment buyer or of a lessee of the real estate;

(B) Collateral other than the real estate lien;

(C) A guaranty or an agreement to take over or purchase the loan, in the event of default, by a financially responsible person other than a person engaged in the business of guaranteeing real estate loans; or

(D) An agreement by a financially responsible person to take over or purchase the loan, or to provide funds for payment thereof, within a period of two years from the date of the loan;

and there is documentation in the file setting forth the applicable facts to support reliance on this paragraph.

(c) For the purpose of this Code section, a "leasehold" shall mean the interest, which is security for a loan, of a lessee of real estate under a lease which on the date of the loan has an unexpired term extending at least ten years beyond the maturity of the loan or contains a right of renewal, which may be exercised by the bank, extending at least ten years beyond the maturity of the loan.

(d) Notwithstanding any other provisions of this chapter and otherwise subject to regulations of the department, a bank or trust company may acquire, directly or indirectly, an ownership interest in real estate incidental to the financing of the purchase, development, or improvement of such real estate, provided:

(1) The amount of such ownership interest shall not exceed 25 percent of the appraised value of the real estate;

(2) The amount of such ownership interest when aggregated with the amount financed shall not exceed the limitations prescribed by this Code section and Code Section 7-1-285;

(3) The ownership interest shall be terminated upon substantial repayment of the financing in the manner prescribed in Code Section 7-1-263, relating to the divestiture of real estate interest; and

(4) Any time real estate owned by a bank or trust company pursuant to this subsection is held or disposed of pursuant to the provisions of Code Section 7-1-263, said action to hold or dispose shall be reported in writing annually to the stockholders. Said report shall include disclosure of any real estate acquired by foreclosure or the taking by a deed in lieu of foreclosure and the name or names of the corporation or individuals from whom title was taken.