§431:6-310  Security agreements.  (a) In connection with a mortgage loan on the security of real property designedand used primarily for residential purposes only acquired pursuant to section431:6-306, an insurer may loan or invest an amount not exceeding twenty percent of the amount loaned or invested in the real property mortgage, on thesecurity of a security agreement for a term of not more than five yearsrepresenting a first and prior lien, except for taxes not then delinquent, onpersonal property constituting durable equipment owned by the mortgagor andkept and used in the mortgaged premises.

(b)  The term durable equipment shall includeonly mechanical refrigerators, mechanical laundering machines, heating andcooking stoves and ranges, mechanical kitchen aids, vacuum cleaners, and fireextinguishing devices; and in addition, in the case of apartment houses andhotels, room furniture and furnishings.

(c)  Prior to acquisition of a securityagreement, items of property to be included shall be separately appraised by acompetent appraiser and the fair market value thereof determined.  No suchsecurity agreement shall exceed in amount the same ratio of loan to the valueof 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]