Abstract: Paint binders having an intrinsic viscosity of from 8-15 ml/g which are water soluble upon neutralization with bases comprising the condensation reaction product of(A) 50-85% by weight of a polyester resin modified with 5-40% by weight of a polysiloxane of the general formula ##STR1## wherein R is an alkyl, cycloalkyl, aryl or alkoxy radical,R.sub.1 is hydrogen or an alkyl radical andn is an integer of from 0-40;said modified polyester having a hydroxyl number of from about 50-400 mg KOH/g, an acid value of below about 10 mg KOH/g, and an intrinsic viscosity of from about 6-11 ml/g, measured in dimethylformamide at 20.degree. C.; and(B) 15-50% by weight of a film forming resin containing carboxyl groups to provide an acid value of from about 100-300 mg KOH/g and an intrinsic viscosity of from about 5-9 ml/g, measured in dimethylformamide at 20.degree. C.; the ratio of the intrinsic viscosity values of components (A) and (B) being governed by the relation.eta.A/.eta.B=1.2 to 2.2.

Abstract: Use of low molecular weight oxazolines as neutralizing agents for anionic water-dilutable resins is described. Advantages obtained over use of the conventional amines as neutralizers include greater permissible film build-up without adverse results and films having improved water and alkali resistance without detriment to other advantageous properties.