Chapter LXXXIII: Section 119: That no loan shall be made by any State association unless

the same has been approved in writing by at least five members of the board of managers in a record of loans kept especially for that purpose by the State association; nor until such approval shall also be signed by the attorney of the State association stating that he has examined the title to the property and that it is free and clear and that the loan is a first lien upon the property described in the conveyance.