Savings and loan association Definition
An association of savers and borrowers formally established to accept deposits and make loans, primarily on residential real estate. An association may be organized as a mutual or a stock association. A mutual association is owned by its depositors and, in some cases, its borrowers. A stock association is owned by its shareholders. A savings and loan association may be chartered by a state or receive a federal charter from the Office of Thrift Supervision. Savings and loan associations are also called S&Ls, savings associations, building and loan associations, cooperative banks, or homestead societies.