Restrictions on Real Property Security

(1)With respect to a regulated loan in which the principal is Five Hundred Dollars ($500.00), or less, a lender may not contract for a security interest in real property. A security interest taken in violation of this Section is void.

(2)The amount of Five Hundred Dollars ($500.00) in Subsection

(1)is subject to change pursuant to the provisions on adjustment of dollar amounts (§ 1106).