Appraisal of real estate required before granting loan; requirements. Every association shall appraise each parcel of real estate prior to the granting of a loan. The appraisal shall be in ink or typed, be dated and identify the security, specify separate valuations for land and improvements, show the fair market value, and be signed in ink. The appraised value shall be the value of the land and the permanent improvements thereon. If the appraisal covers land only, it shall show that the appraisal covers unimproved land, or covers building lots or sites which by reason of installations and improvements are ready for the construction of buildings thereon. The appraisal shall be reviewed by the board of directors, or by a loan committee designated by the board of directors, in which case all actions of the loan committee shall be affirmed at the next board of directors meeting.
Last modified: February 26, 2006