ans may be made by any association secured by the pledge of notes or other obligations evidencing loans which are secured by property or securities upon which the association might make a direct loan, if such collateral loans do not exceed 90 per cent of whichever of the following is the lessor: (a) the unpaid principal of the notes or other obligations pledged as collateral security or (b) the amount which the association would be permitted to make as a direct loan on the same property or securities. Loans secured by the pledge of bonds, treasury certificates, notes, mortgage participation certificates or other securities referred to in subdivisions (3), (4), (5), (6) and (7) of Section 130102 may be made by any association to the extent of not more than 90 per cent of the unpaid principal amount or market value thereof, whichever is less, if at the time of such collateral loans thereon such association would be authorized pursuant to this act to invest in such bonds, treasury certificates, notes, mortgage participation certificates or other securities in an amount at least equal to such unpaid principal amount or market value, whichever is less.

SOURCE: GC §41461.