SAVINGS-AND-LOAN ASSOCIATION
savings-and-loan association.A financial institution — often organized and chartered like a
bank — that primarily makes home-mortgage loans but also usu. maintains checking accounts and
provides other banking services. — Often shortened to S & L. — Also termed loan association;
thrift institution; thrift. Cf. BUILDING-AND-LOAN ASSOCIATION. [Cases: Building and Loan
Associations 1, 24–40. C.J.S. Building and Loan Associations, Savings and Loan Associations,
and Credit Unions §§ 2–4, 11, 18–19, 66–113, 115.]
“The thrift institutions, mutual savings banks, savings and loan associations, and credit
unions, originally were created to meet needs for saving, credit and loans of people whose
resources and income were modest. Commercial banks, merchants, money lenders, and pawn
shops often did not serve this demand for loans or savings as well, or with interest rates as
favorable to poor individuals, and families. During the last two centuries, thrift institutions were
gradually developed, therefore, by social reformers, philanthropic benefactors, religious and
fraternal organizations, trade unions, employers, and thrift entrepreneurs (in most countries of the
world) as a collateral type of banking or financial intermediation.” William A. Lovett, Banking
and Financial Institutions Law in a Nutshell 236 (1997). [Blacks Law 8th]