Sec. 06.05.211. Loans secured by forest tracts.

169 words·~1 min read·/ak/title-6/chapter-5/06-05-211·

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

(a)A bank may, subject to the requirements of this chapter, make or acquire a loan secured by a first lien on a forest tract if

(1)the making of the loan is consistent with written lending policies of the bank and regulations adopted by the department;

(2)before the loan is made or acquired, the bank secures and maintains in its files evidence of a determination of the value of the property; and

(3)the loan is secured by an amortized mortgage, deed of trust, or assignment of a federal or state timber sale contract.

(b)The aggregate of all loans made or acquired by a bank under this section may not exceed 50 percent of its combined capital, surplus, and undivided profits.

(c)In this section, “forest tract” means a reasonably accessible tract of land primarily covered with marketable or potentially marketable growing timber having a recognized commercial value, which is safeguarded by fire protection, insect, pest, and disease control.