Minn. R. agency 120, ch. 2675, REAL ESTATE LOANS, pt. 2675.0901 - REAL ESTATE LOANS-DOCUMENTATION
A bank must maintain a written policy approved annually by its board of directors that at a minimum addresses:
A. Written appraisal or valuation reports
made in conjunction with federal, state, and board requirements. Valuation
reports must contain detail sufficient to state current market value based on
actual conditions and must not be based on projected or speculative events.
Updated evaluation reports based on changing conditions of an individual loan
transaction or economic conditions must also be included as a
requirement.
B. Description of fee
title, validity of the bank's lien, position of the lien, and documentation of
methods used to make these determinations.
C. Evidence of adequate insurance which names
the bank as the loss payee.
D.
Exemption of documentation requirements, for a single loan or class of loans,
if the loan documents reflect that the lien is not needed to support the loan
and where the terms of the transaction as a consequence have not been made more
favorable than they would have been in the absence of a lien. For regulatory
purposes, no real estate collateral value will be assigned to exempted
loans.
Notes
Statutory Authority: MS s 45.023; 46.01
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