(a) A bank may, subject to the requirements of this chapter, make or acquire a loan secured by a first lien on a forest tract if
(1) the making of the loan is consistent with written lending policies of the bank and regulations adopted by the department;
(2) before the loan is made or acquired, the bank secures and maintains in its files evidence of a determination of the value of the property; and
(3) the loan is secured by an amortized mortgage, deed of trust, or assignment of a federal or state timber sale contract.
(b) The aggregate of all loans made or acquired by a bank under this section may not exceed 50 percent of its combined capital, surplus, and undivided profits.
(c) In this section, "forest tract" means a reasonably accessible tract of land primarily covered with marketable or potentially marketable growing timber having a recognized commercial value, which is safeguarded by fire protection, insect, pest, and disease control.
Section: Previous 06.05.200 06.05.205 06.05.206 06.05.207 06.05.208 06.05.209 06.05.210 06.05.211 06.05.212 06.05.215 06.05.220 06.05.225 06.05.230 06.05.231 06.05.232 NextLast modified: November 15, 2016