Section 393:18 Limitations on the Amount of Real Estate Loans and Investments.


   I. A cooperative bank or building and loan association or savings and loan association may loan its funds upon the security of a lien on real estate provided that no more than one percent of the assets of the association is loaned on any one property and provided that:
      (a) Loans supported by a first mortgage lien in excess of $10,000 may not exceed 90 percent of the appraised value of any one property and loans in excess of $55,000 may not exceed 80 percent of the appraised value on any one property; provided, however, that loans on real estate containing one or more dwelling units for not more than 4 families each may not exceed 90 percent of the appraised value of the property.
      (b) Loans supported by a second mortgage lien on improved real estate may also be made, provided that:
         (1) Such real estate shall be subject to a valid first mortgage lien of a bank whose principal place of business is in this state;
         (2) The net proceeds of any such loan shall not exceed 80 percent of the appraised value of such real estate at the time the loan is to be made, less the outstanding principal balance and advances made under the provisions of RSA 479:4 of the first mortgage lien;
         (3) Each such loan shall be evidenced by one or more negotiable notes and shall be secured by a valid mortgage lien subordinate only to first mortgage lien;
         (4) Each loan shall be repayable on demand or in regular monthly installments within 25 years.
   II. These limitations shall not apply to loans insured or guaranteed by the United States Secretary of Housing and Urban Development, the Veterans Administration, the state of New Hampshire or by a private mortgage guaranty insurance company licensed to do business in the state of New Hampshire and approved by the bank commissioner. Notwithstanding the foregoing limitations of this section, an association may make a loan in connection with the sale of real estate acquired by the association for the purpose of providing offices for the transaction of business of the association or acquired under a foreclosure or a deed in lieu of foreclosure in amount not to exceed the sale price the association received from such real estate.

Source. 1941, 25:1. RL 314:13. 1947, 24:5. 1953, 178:3. RSA 393:18. 1961, 136:4. 1963, 313:2. 1965, 317:2. 1967, 120:1. 1969, 134:1. 1971, 513:1. 1973, 193:1. 1977, 155:1. 1979, 133:1. 1981, 130:1, eff. July 11, 1981.