(a) A state bank, when making a mortgage loan, may not require, as a condition or term of the mortgage, that the mortgagor purchase casualty insurance on property which is the subject of the mortgage in an amount in excess of the fair market value of the buildings or appurtenances on the mortgaged premises.
(b) This section shall not be construed as limiting the right of the mortgagor to purchase replacement cost coverage on the property which is the subject of the mortgage.
Structure Arkansas Code
Title 23 - Public Utilities and Regulated Industries
Subtitle 2 - Financial Institutions And Securities
Chapter 47 - Bank Powers — Subsidiaries
§ 23-47-501. Loan limits — Maximum generally
§ 23-47-502. Loan limits — Inclusions and exceptions
§ 23-47-503. Loans involving stock of state bank
§ 23-47-504. Loans to affiliates and insiders
§ 23-47-505. Illegal loans — Liability of officer or director
§ 23-47-506. Sale of certain mortgage loans
§ 23-47-507. Power to hold and sell collateral
§ 23-47-508. Disposition of real estate acquired through debt collection