N.J. Admin. Code § 3:1-3.4

Current through Register Vol. 57, No. 1, January 6, 2025

Section 3:1-3.4 - Preliminary requirements

(a) Before any financial institution may exercise or use any of the emergency powers as enumerated in this subchapter, said financial institution must comply with the following requirements:

1. It must obtain and file, a certification to be signed by an appraiser as required by N.J.A.C. 3:1-8.2, which shall set forth the amount and extent of the damage or destruction sustained to the real property which is the security of any existing or proposed mortgage loan, a finding that such damage or destruction was caused by the disaster, and the amount required to pay for the cost of any construction, rehabilitation, alteration, repair or improvement of such real property.

2. It must obtain from the borrower or mortgagor a sworn statement which shall set forth the proceeds of any mortgage loan shall be used to pay the cost of construction, rehabilitation, alteration, repair or improvement of the real property.

3. Such certifications and statements shall be kept on file with the financial institution.

(b) In addition to the requirements enumerated in (a)1 and 2 above, a financial institution, prior to the exercise or use of any emergency mortgage powers, shall undertake and complete any and all investigations, appraisals and other precautions which it would ordinarily require in making a mortgage loan not otherwise provided by N.J.S.A. 17:2A-1 et seq., and this Subchapter.

N.J. Admin. Code § 3:1-3.4

Amended by R.1991 d.48, effective 2/4/1991.
See: 22 New Jersey Register 3425(a), 23 New Jersey Register 294(b).
Corrected internal cites.
Amended by R.1996 d.168, effective 4/1/1996.
See: 28 New Jersey Register 3(a), 28 New Jersey Register 1830(a).
In (a)1 deleted requirement for signature of second person.