20-555. Security agreements; definition
205 words·~1 min read·
/az/title-20/20-555A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
A. In connection with a mortgage loan on the security of real property designed and used primarily for residential purposes only, which mortgage loan was acquired pursuant to section 20-553, an insurer may lend or invest an amount not exceeding twenty per cent of the amount loaned on or invested in such real property mortgage in a security agreement for a term of not more than five years, representing a first and prior lien, except for taxes not then delinquent, on personal property constituting durable equipment owned by the mortgagor and kept and used in the mortgaged premises.
B. For the purposes of this section, the term "durable equipment" shall include only mechanical refrigerators, air conditioning equipment, mechanical laundering machines, heating and cooking stoves and ranges, and in addition, in the case of apartment houses and hotels, room furniture and furnishings.
C. Prior to the acquisition of a security interest under this section, items of property to be included therein shall be separately appraised by a qualified appraiser and the fair market value thereof determined. No such security interest may exceed in amount the same ratio of loan to the value of the property as is applicable to the companion loan on the real property.