§431:6-310  Security agreements.  (a) 
In connection with a mortgage loan on the security of real property designed
and used primarily for residential purposes only acquired pursuant to section
431:6-306, an insurer may loan or invest an amount not exceeding twenty per
cent of the amount loaned or invested in the real property mortgage, on the
security of a security agreement for a term of not more than five years
representing a first and prior lien, except for taxes not then delinquent, on
personal property constituting durable equipment owned by the mortgagor and
kept and used in the mortgaged premises.



(b)  The term durable equipment shall include
only mechanical refrigerators, mechanical laundering machines, heating and
cooking stoves and ranges, mechanical kitchen aids, vacuum cleaners, and fire
extinguishing devices; and in addition, in the case of apartment houses and
hotels, room furniture and furnishings.



(c)  Prior to acquisition of a security
agreement, items of property to be included shall be separately appraised by a
competent appraiser and the fair market value thereof determined.  No such
security agreement shall exceed in amount the same ratio of loan to the value
of the property as is applicable to the companion mortgage loan on the real property.
[L 1987, c 347, pt of §2; am L 2004, c 122, §19]