4.10.2.16 PROPERTY OWNER'S COLLATERAL SECURITY INTEREST:

1. A. The sufficiency of the collateral security interest in a registered cultural property whose repair, rehabilitation or restoration is to be funded with funds from the historic property loan fund and lending institution(s) shall be determined by the participating lending institution(s) in accordance with the customary and prudent lending practices.

2. B. The offer of collateral security in the form of an assignment to the state of New Mexico, historic preservation division, of a first mortgage, second mortgage, or assignment of lease, shall be commensurate with risk and approved by the division in consultation with the lending institution.

   [7/16/97; 4.10.2.16 NMAC - Rn, 4 NMAC 10.2.16, 1/1/08]