§412:9-405  Loans and extensions of creditfully secured by real property.  (a)  For loans and extensions of creditfully secured by real property other than unimproved raw land, a depositoryfinancial services loan company may advance, directly or indirectly, up to andincluding ninety-five per cent of the appraised value or real propertyevaluation required under the Federal Deposit Insurance Act and the rules andregulations of the Federal Deposit Insurance Corporation of the real propertysecuring the loan and extension of credit.  The principal amount of the loanand extension of credit shall be added together with the outstanding balancesof all prior liens on the real property to determine the ninety-five per centloan-to-value ratio.

(b)  For loans and extensions of credit fullysecured by mortgages on unimproved raw land, the maximum loan-to-value ratioshall not exceed seventy per cent of the appraised value or real propertyevaluation required under the Federal Deposit Insurance Act and the rules andregulations of the Federal Deposit Insurance Corporation of the unimproved rawland.  Parcels of land with direct access by road and served by electric powershall not be deemed unimproved raw land.

(c)  Notwithstanding the provisions ofsubsections (a) and (b), depository financial services loan companies, whichmake loans fully secured by real property in excess of twenty per cent of theircapital and surplus, shall obtain appraisals of the real property securingthose loans. [L 1993, c 350, pt of §1; am L 1995, c 17, §1]