Appraisal of Personal Property used as Collateral for Loan – North Carolina Law

NORTH CAROLINA ADMINISTRATIVE CODE
Title 04. COMMERCE
Chapter 03. BANKING COMMISSION
Subchapter C. BANKS

§ 03C .1001. LOAN DOCUMENTATION

Unless otherwise provided, each bank, or any branch thereof, where notes are held must maintain on file the appropriate supporting documents as follows:

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(3) Personal Property Appraisals. Appraisals on personal property used as collateral for a loan shall be obtained and shall be completed as follows:
(a) Generally. Except as otherwise provided below, a written appraisal of personal property used to collateralize any loan must be made by the executive committee or loan committee of the bank, or any branch thereof, or other reliable persons familiar with the value of the property. Except as provided, all appraisals must be renewed every 24 months.
(b) Requirements. The appraisal required by this Item must include:
(i) the name of the borrower;
(ii) the date the appraisal was made;
(iii) the value of the collateral;
(iv) the signatures of at least two persons making the appraisal;
(v) a brief description of the property;
(vi) the amount of any prior lien and holder of the lien, if any; and
(vii) the original amount or outstanding balance of the loan which the property is used to secure.
(c) Appraisal Exceptions. No appraisal shall be required under the following circumstances:
(i) on collateral to notes of less than fifty thousand dollars ($50,000);
(ii) on loans fully secured by obligations of the United States or the State of North Carolina;
(iii) on loans fully secured by deposits in the bank maintaining the loan account;
(iv) on loans fully secured by the cash surrender or loan value of life insurance policies;
(v) on loans fully secured by bonded warehouse receipts;
(vi) on floor plan loans to dealers fully secured by new automobiles, stationwagons, vans, and trucks;
(vii) on discounted notes for a dealer where the note is given as the purchase price of an automobile or other consumer goods; or
(viii) on loans fully secured by listed securities, unless such loans are within the provisions of the Securities Exchange Act of 1934 as defined by Regulation "U," as amended from time to time by the Board of Governors of the Federal Reserve System. On loans secured by such collateral, appraisal must be made and kept on file until the loan is fully paid.
(d) Renewal Exceptions. Appraisals need not be renewed annually where an automobile, stationwagon, mobile home, or a truck or van not exceeding 8,000 pounds empty weight, is the sole or partial collateral for a loan.
(e) Single Signature Exception. An appraisal may be signed by only one person where an automobile, stationwagon, mobile home, or a truck or van not exceeding 8,000 pounds empty weight, is the sole collateral for a loan.

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