Section 06.05.211. Loans secured by forest tracts.

   (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.

Notes

History

(Sec. 7 ch 157 SLA 1970; am Sec. 31 ch 26 SLA 1993)