Vermont § 32302 - Real estate loans

§ 32302. Real estate loans

• (a) Clear title. All loans secured by mortgages on real estate shall be supported by written evidence
  satisfactory to the credit union that title to the security is marketable, and the
  lien is valid and enforceable. A mortgage on lands subject to lease under which rents
  are reserved to the owner, with all of the owner’s rights and options under the lease
  collaterally assigned to the credit union as security or a mortgage upon lands impressed
  with a public use, sometimes known as lease, society, or glebe lands, but held under
  a durable lease, shall not be deemed to be subordinate to such lease or public use. (b) Appraised value. The appraisal of real estate securing a real-estate-related transaction entered into
  by a credit union shall comply with Part 722 of the National Credit Union Administration
  regulations, as amended from time to time. (c) Servicing of loans. A credit union may contract with another credit union, corporation, or association
  whose transactions are in whole or in part the handling and servicing of mortgage
  loans to handle and service loans in its behalf. Whenever such a contract is made,
  the credit union shall not lose or suffer any impairment of any right of deduction
  or offset it might have against anyone liable for the mortgage debt. (d) Home loan escrow accounts. Any credit union that requires a home loan escrow account to be established and maintained
  by a borrower shall follow the provisions of section 10404 of this title. (e) Loans insured or guaranteed by federal law. Any mortgage on real estate given to secure a loan insured or guaranteed by the federal
  housing commissioner, the administrator of veterans’ affairs, or the administrator
  of the Small Business Administration under the National Housing Act, the Servicemen’s
  Readjustment Act of 1944, or the Small Business Act, respectively, as amended, shall
  not be subject to the provisions of any law of this State prescribing the nature,
  amount, or form of security, or manner of repayment, or requiring security upon which
  loans or advances of credit may be made, or prescribing or limiting the period or
  principal amount of which loans may be made, or prescribing or limiting the interest
  that may be charged or other charges that may be made or taken upon any loan or advance
  of credit. (Added 2005, No. 16, § 1, eff. July 1, 2005; amended 2021, No. 105 (Adj. Sess.), § 336, eff. July 1, 2022.)