(a) A loan on a condominium unit and the undivided interest in the common elements
is an eligible investment for a bank, savings and loan association, trust company,
life insurance company, or other lending institution that is authorized to make real
property loans, and for an administrator, guardian, executor, trustee, individual,
partnership, corporation, or other fiduciary that is authorized to make real property
loans. In determining eligibility, the existence of a prior lien for taxes, assessments,
or other similar charges not yet delinquent may not be considered in determining whether
a mortgage or deed of trust on the security is a first lien. This section does not change any provision of law that would otherwise be applicable
that limits mortgage investments based on a special fraction or percentage of the
value of the mortgaged property.
(b) An association's lien for assessments does not make a condominium unit ineligible
for loans for which the unit would otherwise qualify.
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