§ 58-7-180. Chattel mortgages. - North Carolina Statutes

§58‑7‑180.  Chattel mortgages.

(a)        In connection witha mortgage loan on the security of real estate designed and used primarily forresidential purposes only, where the mortgage loan was acquired under G.S. 58‑7‑179,an insurer may lend or invest an amount not exceeding twenty percent (20%) ofthe amount lent on or invested in such real estate mortgage on the security ofa chattel mortgage to be amortized by regular periodic payments with a term ofnot more than five years, and representing a first and prior lien, except fortaxes not then delinquent, on personal property constituting durable equipmentowned by the mortgagor and kept and used in the mortgaged premises.

(b)        For the purposes ofthis section, the term "durable equipment" includes only mechanicalrefrigerators, air‑conditioning equipment, mechanical launderingmachines, heating and cooking stoves and ranges, and, in addition, in the caseof apartment houses and hotels, room furniture and furnishings.

(c)        Before theacquisition of a chattel mortgage under this section, items of property to beincluded therein shall be separately appraised by a qualified appraiser and thefair market value determined.  No such chattel mortgage loan shall exceed inamount the same ratio of loan to the value of the property as is applicable tothe companion loan on the real property.

(d)        This section doesnot prohibit an insurer from taking liens on personal property as additionalsecurity for any investment otherwise eligible under this Chapter. (1991,c. 681, s. 29.)