Loans Upon Real Property

Loans may be made upon the security of improved real property in an amount not in excess of 60 percent of the appraised value of such real property; provided, however, that amortized loans may be made in an amount not in excess of 70 percent of the appraised value of such real property; provided further, that amortized loans upon the security of improved real property may made in an amount not in excess of 80 percent of the appraised value of such real property if such appraised value does not exceed ten thousand dollars ($10,000), or not in excess of 80 percent of the first ten thousand dollars ($10,000) of such appraised value if it exceeds ten thousand dollars ($10,000), plus 70 percent, of the remainder of such appraised value, subject to the following conditions in the case of each such loan exceeding 70 percent:

(1)the principal improvement on such real property shall consist of a single family dwelling; and

(2)the note or other obligation evidencing such loan shall provide for reduction of principal by monthly installments commencing in the case of construction loans not later than nine months after the date of such loan, and in case of any other loan not later than three months after the date of such loan. Loans may be made upon the security of unimproved real property in an amount not in excess of 33 1/3 percent of the appraised value of such real property. In respect of any loan made upon the security of real property where it is agreed and/or contemplated that improvements will be made thereon to become a part of such security, said real property shall be deemed to be improved real property and the value of such proposed improvements shall be included in the appraised value of such real property; provided, however, that at no time shall the amount advanced by the association on such loan exceed the ratio of loan to value authorized by this section in respect to such loan, excluding from such value the value of such proposed building or buildings when completed by including in such value the value of such building or buildings to such time. The term real property as used in this section and in Sections 130115, 130120 and 130121, whether unmodified or modified by the terms improved or unimproved, includes

(a)fee title to real property, and

(b)a leasehold interest in real property under a lease having a period of not less than fifty years to run from the date of the loan. If the security is COL120106 CH. 130 INVESTMENTS, LOANS AND BORROWING a leasehold interest, the value appraised shall be the value of such leasehold interest and not of the fee title. The provisions of this section are subject to the provisions of Section 130120 and of Section 130121.