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

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

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

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

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

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

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