State Codes and Statutes
Statutes > New-hampshire > TITLEXXXV > CHAPTER393 > 393-17With the approval of the board of directors, any shares pledged for a real estate loan may, at the request of the owner thereof, be cancelled whereupon there shall be endorsed on the mortgage note as a credit upon the amount of the loan the full value of such shares, less all monthly installments of interest, fines, and premium in arrears, unpaid taxes, and an amount not in excess of $300 to be expended for repairs, at the option of the directors, any other legal charges and such sum as will leave the amount of the loan a multiple of $50. Such cancellation and credit may be made even if the amount of the loan will not thereby be reduced as to principal. Thereupon new shares in the current series shall be issued to the shareholder in the proportion of one share to each $100 or multiple thereof of the loan then remaining unpaid. The new shares issued shall be transferred and pledged to the association as security for the amount of the loan remaining unpaid, and the fact thereof shall be endorsed upon or attached to the note in the following form:
| .........., 20... |
The value of the shares here pledged, less deductions authorized by RSA 393:17, amounting to $... has this day been applied as a credit upon this note, leaving a balance due and unpaid of $ ... to secure which ... shares of series .......... have been issued, and are hereby transferred and pledged.
For value received, I or we promise to pay to said corporation or its order $ ... at or before its monthly meeting on the ... of each month hereafter, being the amount of the monthly dues on the shares hereby substituted, and of the monthly interest and premium upon said balance of $..., together with all fines chargeable by the bylaws of said corporation upon arrears of such payments until said substituted shares shall reach maturity, or otherwise sooner pay to said corporation or its order the said balance of $..., with interest, fines, and premium as aforesaid.
Witness,
Approved
| (Signature) |
Treasurer
Neither the note evidencing the loan nor the mortgage securing the same shall be prejudiced by the application of the value and the change of shares, notwithstanding the fact that a provision for such application and change was not originally made in the note or mortgage, and both note and mortgage shall continue to be held by the association as good and sufficient security for the balance remaining unpaid. After the application of the value as a credit, the amount of the loan shall forthwith be reduced to an equal extent, and the owner shall thereafter be liable for only the reduced amount and any arrearages or penalties occasioned by his own default. No action under this section shall affect the rights of the holder, other than the corporation granting the accommodation, of any mortgage recorded prior to May 1, 1937, unless the written assent of such holder shall be obtained, nor shall any such action affect the rights of an original borrower whose note is dated prior to said date, unless his written assent shall be obtained.
Source. 1937, 106:1. RL 314:12. RSA 393:17. 1967, 127:3, eff. July 18, 1967.
