§ 37-3-510. Restrictions on interest in land as security.
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§ 37-3-510. Restrictions on interest in land as security.
(1)With respect to a supervised loan in which the principal is one thousand dollars or less, a lender may not contract for an interest in land as security. A security interest taken in violation of this section is void.
(2)An open-end credit agreement under which the credit limit is a minimum of five thousand dollars is exempt from this section even though one or more advances made pursuant to the agreement are less than one thousand dollars.