Sec. 3-45. Loans and appraisals.
Sec. 3-45. Loans and appraisals. No loan shall be made from the School Fund
or the Agricultural College Fund on a mortgage of real estate, unless the security is
unencumbered and worth double the amount loaned, except that loans may be made on
residential property in any case where the security is worth at least fifty per cent more
than the amount loaned. No loan shall be made from said funds upon real estate security
until after the security has been appraised by at least two qualified appraisers appointed
by the Treasurer, one of whom shall be a resident of the town where such real estate is
situated, and the Treasurer or his clerk has made a personal examination of the same.
The appraisers shall take the oath hereinafter provided, and their appraisal, in the form
prescribed by the Treasurer, shall be placed on file in his office. The Treasurer or his
clerk shall certify upon every deed taken by him as security for any loan that he has
made a personal examination and that in his opinion the same is worth at least double
the amount loaned or, in the case of residential property, at least fifty per cent more than
the amount loaned. Before entering upon the performance of their duties as appraisers,
all persons selected to appraise real estate to be mortgaged to the state shall be sworn
to the faithful performance of their duties.
(1949 Rev., S. 137; 1957, P.A. 506, S. 3.)
See Sec. 12-178 re precedence of mortgage over lien consisting of assessed taxes.