Peterborough Savings Bank v. King

The single question before us is whether the plaintiff savings banks, making loans on the credit of two-name paper which satisfy the legal requirements of RSA 387:5 IV (supp), may also take as additional security non-legal collateral without invalidating the loan. The issue is one of statutory interpretation of RSA 387:2 and 5 IV (supp), which in establishing the standards for making loans in the above category provide in part as follows: “2. Requirements. Savings banks . . . shall make investment . . . of their funds only in the . . . loans authorized by this chapter . . . . ” “5. Collateral…