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



(b)  For loans and extensions of credit fully
secured by mortgages on unimproved raw land, the maximum loan-to-value ratio
shall not exceed seventy per cent of the appraised value or real property
evaluation required under the Federal Deposit Insurance Act and the rules and
regulations of the Federal Deposit Insurance Corporation of the unimproved raw
land.  Parcels of land with direct access by road and served by electric power
shall not be deemed unimproved raw land.



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