412:10-409 Real estate mortgage loans. (a) The amount of any credit union loan secured by a mortgage on real property shall be limited to the following percentages of the appraised value of the property:

(1) Ninety per cent of the value of any residential real property; and

(2) Eighty per cent of the value of any nonresidential real property.

The principal amount of the loan shall be added together with the outstanding balances of all prior liens on the real property to determine the loan to value ratio.

(b) The amount of a loan secured by residential real property may be increased by the unencumbered share or deposit balances of the borrowing member that are pledged to the loan.

(c) Loans secured by real property other than residential real property shall provide for the regular reduction of principal.

(d) For loans secured by real property, the credit union may require the borrower to make regular deposits for the payment of insurance, taxes and other expenses assessed against the property. [L 1993, c 350, pt of 1]


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