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A savings and loan association is a financial institution which specializes in accepting deposits of money for savings, and making mortgage loans. They are often mutually held, in which case they are referred to as mutual savings banks. This means that the depositors and borrowers are members with voting rights and have the ability to direct the financial and managerial goals of the organization. The traditional definition of a savings and loan association precludes it from being stock-based or publicly traded, as this would mean that it is not an association, and depositors and borrowers do not have any managerial control. However, the term is still widely used to describe these organizations.
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