§431:6-308  Encumbrance defined.  (a) 
Real property shall not be deemed to be encumbered within the meaning of
section 431:6-306 by reason of the existence of instruments reserving mineral,
oil, timber, or similar rights, rights of way, sewer rights, rights in walls,
nor by reason of any liens for taxes or assessments not yet due, or on account
of liens not delinquent for community recreational facilities or for the
maintenance of community facilities, nor by reason of building restrictions or
other restrictive covenants common to the community in which the property is
located, nor by liens for service and maintenance of water rights where not
delinquent, nor when such real property is subject to lease under which rents
or profits are reserved to the owner if in any event the security for the loan
or investment is a first lien upon the real property.



(b)  If under any of the exceptions set forth
in subsection (a) there is any sum owing but not due or delinquent, the total
amount of such sum shall be deducted from the amount which otherwise might be
loaned on the property.



The value of any mineral, oil, timber, or
similar right reserved shall not be included in the fair value of the property.
[L 1987, c 347, pt of §2]