Section 387:5 Collateral and Unsecured Loans.
The following described loans are legal investments:
I. Notes secured by any savings account in any savings bank or any savings department of a state bank existing under the laws of and located in any New England state or any bank or banking institution the deposits of which are insured by the Federal Deposit Insurance Corporation, or notes secured by any account in a building and loan association or cooperative bank existing under the laws of and located in this state, or notes secured by the shareholder's account in any federal savings and loan association located in this state, provided that the investment shall not be in excess of 100 percent of the withdrawal value of said account.
II. Notes secured by the authorized obligations of the United States of America, or notes secured by the authorized notes and bonds of this state or any of its municipalities, or notes secured by the policy of a life insurance company with a cash surrender value, provided that such security shall have at all times a market or cash value of at least 10 percent in excess of the notes while held by the bank.
III. Notes secured by securities which are dealt in on the New York Stock Exchange, the American Stock Exchange or the Boston Stock Exchange or notes secured by other securities which are legal investments in this state, provided that the market price of said securities shall at all times be at least 20 percent in excess of the amount due upon the notes while held by the bank.
III-a. Notes eligible for insurance by the United States Secretary of Housing and Urban Development, provided a contract of insurance exists between the holder and the United States Secretary of Housing and Urban Development as provided in Title I of the National Housing Act.
III-b. Assigned installment contracts for the sale of real estate, purchased from the administrator of veterans' affairs, and fully guaranteed by him in accordance with federal law.
III-c. Loans secured by mobile homes, provided that the loan term for a mobile home or for a mobile home and lot combined shall not exceed the maximum insurable maturities for such loans prescribed by section 2(b) of the National Housing Act (12 U.S.C. § 1703(b)) as now or hereafter amended, or prescribed by regulations issued thereunder by the United States Secretary of Housing and Urban Development as amended from time to time, and such loan shall be repayable in regular monthly installments. Provided further, that no loan for a mobile home shall exceed 80 percent of the retail value except that with dealer recourse such loan may exceed 80 percent but not 85 percent of the retail value. In determining whether any loan exceeds the percentage authorized above, no consideration shall be given to that portion of a loan guaranteed by a private mortgage guaranty insurance company licensed to do business in the state of New Hampshire and approved by the bank commissioner, that portion of a loan guaranteed by the veteran's administration, or loans insured by the United States Secretary of Housing and Urban Development.
III-d. Loans incurred for the purpose of motor home financing where the motor home is taken as security, provided that no loan on a motor home may exceed 80 percent of the retail value thereof except that with dealer recourse such loan may exceed 80 percent but not 85 percent of such retail value. Provided, further, that a loan on a new motor home shall be repayable in regular monthly installments within a period of 10 years, and a loan on a used motor home shall be repayable in regular monthly installments within a period of 7 years.
IV. Loans. Loans, including loans pursuant to open-end credit plans, based on general credit worthiness of the borrower and any other parties thereto, provided:
(a) All such loans, other than loans pursuant to open-end credit plans, shall be evidenced by notes with one or more signers, with or without one or more endorsers.
(b) Loans pursuant to any open-end credit plan shall be evidenced by a written loan agreement signed by the borrower, with or without a guarantor or guarantors, containing a specified loan limit and the borrower's promise to repay all amounts or credit advanced thereunder and any interest or finance charges in the manner therein provided, and may also be evidenced by a note or notes of the borrower and any other parties to the transaction.
(c) No savings bank shall invest in a loan under this paragraph which exceeds 2 percent of its capital funds unless suitable current data is furnished to the bank showing that the borrower and his co-signers, endorsers, or guarantors, if any, have a combined net worth of at least $50,000 or 20 percent in excess of the original loan amount (or of the loan limit in the case of a loan pursuant to an open-end credit plan), whichever net worth requirement is less; and the aggregate unpaid balance owed to any savings bank on loans in excess of 2 percent of its capital funds shall not exceed 5 percent of the deposits of such savings bank.
(d) The total amount loaned or agreed to be loaned to any one person at any time under this paragraph shall be limited to $ 2,500 exclusive of interest or discount, if the guaranty fund of the bank is not full or is impaired.
(e) A bank which takes under this paragraph a note payable on demand evidencing a loan other than loans pursuant to an open-end credit plan shall demand payment not later than one year from the date thereof, but may accept a new note in payment of such demand note.
(f) For purposes of this paragraph, the term ""open-end credit plan'' means an arrangement under which borrowers may obtain loans from time to time, may pay the balance of such loans in full or in installments and may be required to pay a finance charge computed by the bank from time to time on unpaid balances.
V. Notes which are guaranteed as to payment of at least 80 percent of their outstanding principal from time to time by the New Hampshire Higher Education Assistance Foundation.
Source. 1921, 73:2. PL 262:3. 1929, 122:3-6. 1931, 96:7-10. 1933, 27:2. 1935, 32:1, 2. 1937, 103:11, 12. 1939, 158:1; 170:4. RL 310:3, pars. V, VI, VII, VIII. 1945, 84:1; 164:1. 1949, 209:1. 1953, 195:1, par. 5. RSA 387:5. 1955, 214:16, 17. 1963, 144:1; 326:6. 1967, 234:9; 266:1. 1971, 537:2. 1973, 456:1, 2. 1977, 244:1. 1979, 193:1, 2, eff. Aug. 5, 1979.