For computation of total loans to any one borrower, loans secured by secondary liens will be considered unsecured unless the following criteria are met:
    (1) The position of the state bank’s mortgage shall be documented. Acceptable forms of documentation shall include an attorney’s title opinion, or title insurance, or a written memorandum of title search prepared by the bank’s own employee or agent. A written notation made by the person preparing the documentation that prior mortgages contain no future advance provisions is required. If prior liens do contain future advance provisions, an estoppel letter from prior mortgagees must be obtained.
    (2) The state bank shall maintain records to fully establish the bank’s equity in the mortgage at the time the loan is made.
    (3) Any loan with a maturity in excess of 5 years from origination will be subject to principal reduction through a regular schedule of payments. At least one such payment is required annually.
    (4) Any loan due on demand shall not be carried on the books of a state bank in excess of 5 years, however, it may be converted to an amortized loan with a stated maturity and thereby permissibly extended beyond 5 years.
Rulemaking Authority Florida Statutes § 655.012(2). Law Implemented Florida Statutes § 658.48. History-New 6-13-77, Amended 4-23-78, 6-30-81, Formerly 3C-11.17, 3C-11.017, 3C-120.004, Amended 10-29-12, 1-18-21.