Statutes, codes, and regulations
North Dakota Administrative Code
Title 13 - Department of Financial InstitutionsArticle 13-03 - Credit Unions
Chapter 13-03-02 - Limiting and Restricting the Amount That May be Loaned on Real Property Security
Section 13-03-02-02 - Requirements for advancement of money on security of real property

N.D. Admin. Code 13-03-02-02

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Current through Supplement No. 395, January, 2025
Section 13-03-02-02 - Requirements for advancement of money on security of real property

No state-chartered credit union may advance money on security of real property until the following requirements are met:

1. The mortgage has been properly signed and recorded in the office of the county recorder where the real property is located.
2. The credit union must verify that the mortgagor has the right to convey the real property and the credit union must determine the order of priority of the lien established by the mortgage.
3. For real estate loans equal to or more than one million dollars or four hundred thousand dollars for residential real estate not insured, an appraisal must be conducted by a licensed or certified appraiser if required under 12 Code of Federal Regulations part 722.
4. For real estate loans that do not meet the requirements of subsection 3, a credit union must obtain an appropriate evaluation of real property collateral for transactions if an appraisal by a licensed or certified appraiser is not obtained.
5. Regardless of the value of a real estate loan, the commissioner may issue an order requiring an appraisal by a licensed or certified appraiser when necessary to address safety and soundness concerns.
6. Adequate casualty fire and tornado insurance has been obtained and is maintained throughout the life of the loan with a mortgage clause for the benefit of the credit union.
7. A note for the amount of the loan has been signed by the mortgagor or mortgagors consistent with the terms of the mortgage.
8. The credit union may make exceptions to subsections 2, 3, and 6 of this section if the mortgage is taken as an abundance of caution as set forth in 12 CFR 722.3, and the value of the real property security is not used as part of the analysis of the borrower's credit worthiness.

N.D. Admin Code 13-03-02-02

Amended effective May 1, 1982; November 1, 1985; October 1, 1994; August 1, 1998; December 1, 2002; January 1, 2013.
Amended by Administrative Rules Supplement 371, January 2019, effective 1/1/2019.
Amended by Administrative Rules Supplement 2022-384, April 2022, effective 4/1/2022.

General Authority: NDCC 6-01-04

Law Implemented: NDCC 6-06-06