Participating loans as defined in RSA 387:1, paragraph XIV, shall be legal investments subject to the provisions of this section. I. Mortgage Loans. Whenever the loan constitutes an interest in a legal investment as described in RSA 387:4, I, III, IV, and VI, the following requirements shall be complied with: (a) Application and Appraisal. The participating lender shall obtain and retain a written loan application by the borrower or a copy or summary of borrower's written application to the originating lender, which application or copy or summary thereof shall bear the certification of 2 members of the board of trustees or board of directors of the participating lender of the value of the premises to be mortgaged according to their best judgment, on the basis of an appraisal made by one of their members, or by some officer of the bank or some appraiser employed by the bank for the purpose of appraising. (b) Participation Agreement. The originating lender and all participating lenders shall execute a participation agreement which shall incorporate: the extent of participation by the originating and participating lenders; provision that if legal right therefor exists, foreclosure proceedings shall be instituted by the originating lender upon written request by participating lenders representing a majority of the amount of the total outstanding loan; provision that if legal right to foreclose exists the originating lender, within 60 days of written notice of desire to withdraw by any participating lender shall institute foreclosure proceedings or pay to such participating lender the amount then currently due such lender. In case of any change in the names of or the extent of the participation of participating lenders, the participation agreement shall be amended accordingly. Each participating lender shall obtain and retain an executed original or a certified or photostatic copy of the participation agreement and any amendment thereof. (c) Participation Certificates. Each participating lender shall obtain and retain a participation certificate from the originating lender. Such participation certificate shall set forth the full amount of the loan, the name and extent of participation of each participating lender, the date and terms of amortization of the loan, and that the originating lender holds a note and mortgage duly executed by the borrowers for the full amount of the loan. In case of any change in the names or of the extent of the participation of participating lenders, the participation certificates shall be amended accordingly by issuance of a supplement to each participating lender. (d) Insurance Statement. The originating lender shall submit to and each participating lender shall retain a certified statement signed by one of the officers of the originating lender showing the amount and type of insurance on the mortgaged premises. (e) Federal Housing Administration Construction Mortgage Loans. In the case of construction mortgage loans insured by Federal Housing Administration, which otherwise are legal investments, savings banks may lawfully participate therein without requiring the participation agreement to include the provisions relating to foreclosure and purchase of a dissenting participant's interest, as set forth in (b) above. II. Collateral and Unsecured Loans. Wherever the loan constituted an interest in a legal investment as described in RSA 387:5, the following requirements shall be complied with: (a) Participation Agreement. The originating lender and all participating lenders shall execute a participation agreement which shall incorporate: the extent of participation by the originating and participating lenders; and provision that, if the loan shall be in default as to principal or interest, the originating lender, upon receipt of written notice of desire to withdraw by any participating lender, shall forthwith exercise all rights available to realize on any collateral held as security for the loan and to collect the loan from the borrower or borrowers or pay to such participating lender the amount then currently due such lender. (b) Participation Certificate. Each participating lender shall obtain and retain a participation certificate from the originating lender setting forth the full amount of the loan, the name and extent of participation of each participating lender, the date and terms of amortization of the loan and that the originating lender holds a note duly executed by the borrower for the full amount of the loan. In case of any change in the names of or the extent of the participation of participating lenders, a new and substituted participation certificate shall be issued to each participating lender. (c) Statement of Collateral. The originating lender shall submit to and each participating lender shall retain a certified statement signed by one of the officers of the originating lender showing the amount and nature of any collateral held by the originating lender as security for the loan. In case of any change in the amount or nature of the collateral, an amended statement shall be submitted by the originating lender and retained by the participating lenders.
Participating loans as defined in RSA 387:1, paragraph XIV, shall be legal investments subject to the provisions of this section. I. Mortgage Loans. Whenever the loan constitutes an interest in a legal investment as described in RSA 387:4, I, III, IV, and VI, the following requirements shall be complied with: (a) Application and Appraisal. The participating lender shall obtain and retain a written loan application by the borrower or a copy or summary of borrower's written application to the originating lender, which application or copy or summary thereof shall bear the certification of 2 members of the board of trustees or board of directors of the participating lender of the value of the premises to be mortgaged according to their best judgment, on the basis of an appraisal made by one of their members, or by some officer of the bank or some appraiser employed by the bank for the purpose of appraising. (b) Participation Agreement. The originating lender and all participating lenders shall execute a participation agreement which shall incorporate: the extent of participation by the originating and participating lenders; provision that if legal right therefor exists, foreclosure proceedings shall be instituted by the originating lender upon written request by participating lenders representing a majority of the amount of the total outstanding loan; provision that if legal right to foreclose exists the originating lender, within 60 days of written notice of desire to withdraw by any participating lender shall institute foreclosure proceedings or pay to such participating lender the amount then currently due such lender. In case of any change in the names of or the extent of the participation of participating lenders, the participation agreement shall be amended accordingly. Each participating lender shall obtain and retain an executed original or a certified or photostatic copy of the participation agreement and any amendment thereof. (c) Participation Certificates. Each participating lender shall obtain and retain a participation certificate from the originating lender. Such participation certificate shall set forth the full amount of the loan, the name and extent of participation of each participating lender, the date and terms of amortization of the loan, and that the originating lender holds a note and mortgage duly executed by the borrowers for the full amount of the loan. In case of any change in the names or of the extent of the participation of participating lenders, the participation certificates shall be amended accordingly by issuance of a supplement to each participating lender. (d) Insurance Statement. The originating lender shall submit to and each participating lender shall retain a certified statement signed by one of the officers of the originating lender showing the amount and type of insurance on the mortgaged premises. (e) Federal Housing Administration Construction Mortgage Loans. In the case of construction mortgage loans insured by Federal Housing Administration, which otherwise are legal investments, savings banks may lawfully participate therein without requiring the participation agreement to include the provisions relating to foreclosure and purchase of a dissenting participant's interest, as set forth in (b) above. II. Collateral and Unsecured Loans. Wherever the loan constituted an interest in a legal investment as described in RSA 387:5, the following requirements shall be complied with: (a) Participation Agreement. The originating lender and all participating lenders shall execute a participation agreement which shall incorporate: the extent of participation by the originating and participating lenders; and provision that, if the loan shall be in default as to principal or interest, the originating lender, upon receipt of written notice of desire to withdraw by any participating lender, shall forthwith exercise all rights available to realize on any collateral held as security for the loan and to collect the loan from the borrower or borrowers or pay to such participating lender the amount then currently due such lender. (b) Participation Certificate. Each participating lender shall obtain and retain a participation certificate from the originating lender setting forth the full amount of the loan, the name and extent of participation of each participating lender, the date and terms of amortization of the loan and that the originating lender holds a note duly executed by the borrower for the full amount of the loan. In case of any change in the names of or the extent of the participation of participating lenders, a new and substituted participation certificate shall be issued to each participating lender. (c) Statement of Collateral. The originating lender shall submit to and each participating lender shall retain a certified statement signed by one of the officers of the originating lender showing the amount and nature of any collateral held by the originating lender as security for the loan. In case of any change in the amount or nature of the collateral, an amended statement shall be submitted by the originating lender and retained by the participating lenders.
Participating loans as defined in RSA 387:1, paragraph XIV, shall be legal investments subject to the provisions of this section. I. Mortgage Loans. Whenever the loan constitutes an interest in a legal investment as described in RSA 387:4, I, III, IV, and VI, the following requirements shall be complied with: (a) Application and Appraisal. The participating lender shall obtain and retain a written loan application by the borrower or a copy or summary of borrower's written application to the originating lender, which application or copy or summary thereof shall bear the certification of 2 members of the board of trustees or board of directors of the participating lender of the value of the premises to be mortgaged according to their best judgment, on the basis of an appraisal made by one of their members, or by some officer of the bank or some appraiser employed by the bank for the purpose of appraising. (b) Participation Agreement. The originating lender and all participating lenders shall execute a participation agreement which shall incorporate: the extent of participation by the originating and participating lenders; provision that if legal right therefor exists, foreclosure proceedings shall be instituted by the originating lender upon written request by participating lenders representing a majority of the amount of the total outstanding loan; provision that if legal right to foreclose exists the originating lender, within 60 days of written notice of desire to withdraw by any participating lender shall institute foreclosure proceedings or pay to such participating lender the amount then currently due such lender. In case of any change in the names of or the extent of the participation of participating lenders, the participation agreement shall be amended accordingly. Each participating lender shall obtain and retain an executed original or a certified or photostatic copy of the participation agreement and any amendment thereof. (c) Participation Certificates. Each participating lender shall obtain and retain a participation certificate from the originating lender. Such participation certificate shall set forth the full amount of the loan, the name and extent of participation of each participating lender, the date and terms of amortization of the loan, and that the originating lender holds a note and mortgage duly executed by the borrowers for the full amount of the loan. In case of any change in the names or of the extent of the participation of participating lenders, the participation certificates shall be amended accordingly by issuance of a supplement to each participating lender. (d) Insurance Statement. The originating lender shall submit to and each participating lender shall retain a certified statement signed by one of the officers of the originating lender showing the amount and type of insurance on the mortgaged premises. (e) Federal Housing Administration Construction Mortgage Loans. In the case of construction mortgage loans insured by Federal Housing Administration, which otherwise are legal investments, savings banks may lawfully participate therein without requiring the participation agreement to include the provisions relating to foreclosure and purchase of a dissenting participant's interest, as set forth in (b) above. II. Collateral and Unsecured Loans. Wherever the loan constituted an interest in a legal investment as described in RSA 387:5, the following requirements shall be complied with: (a) Participation Agreement. The originating lender and all participating lenders shall execute a participation agreement which shall incorporate: the extent of participation by the originating and participating lenders; and provision that, if the loan shall be in default as to principal or interest, the originating lender, upon receipt of written notice of desire to withdraw by any participating lender, shall forthwith exercise all rights available to realize on any collateral held as security for the loan and to collect the loan from the borrower or borrowers or pay to such participating lender the amount then currently due such lender. (b) Participation Certificate. Each participating lender shall obtain and retain a participation certificate from the originating lender setting forth the full amount of the loan, the name and extent of participation of each participating lender, the date and terms of amortization of the loan and that the originating lender holds a note duly executed by the borrower for the full amount of the loan. In case of any change in the names of or the extent of the participation of participating lenders, a new and substituted participation certificate shall be issued to each participating lender. (c) Statement of Collateral. The originating lender shall submit to and each participating lender shall retain a certified statement signed by one of the officers of the originating lender showing the amount and nature of any collateral held by the originating lender as security for the loan. In case of any change in the amount or nature of the collateral, an amended statement shall be submitted by the originating lender and retained by the participating lenders.
