§12-5-6. When notes deemed securities; appraisal.
(a) Whenever, by statute of this state, any public official,
board, commission or department of this state is charged with the
approval of securities required as collateral for the deposit of
public or other funds, or required to be deposited with the state
treasurer, or an investment of capital or surplus or a reserve or
other fund, is required to be maintained consisting of designated
securities deposited with the state treasurer, the securities
shall, at the discretion of that public official, board, commission
or department, include and mean notes executed by the person or
corporation required to make the deposit. The securities shall be
made payable to the state of West Virginia upon demand, or in the
event of the person or corporation, for the benefit of those for
whom the securities are deposited, when the notes are secured by
duly executed deeds of trust on improved, unencumbered real
property located in the state and owned by the person or
corporation executing the notes, the deeds of trust to be approved
by the attorney general of the state as to sufficiency of form and
manner of execution and accompanied by proper abstracts of title
and fire insurance policies equal to the amounts of the notes and
recorded among the land records of the county in which the real
property is located. Whenever any note so secured by a deed of
trust on real property owned by any person or corporation is
approved by any public official, board, commission or department of
this state, the real property shall have an appraised value of at least thirty per centum more than the amount of the note. The
value of the property shall be determined by an appraisal of two
landowners, who are citizens of this state and generally recognized
as experienced real estate appraisers, appointed by the public
official, board, commission or department, charged with the
approval of the securities. The expenses of the appraisal are to
be borne by the person or corporation required to make the deposit,
and each unit of that real property shall have an appraised value
of at least fifty thousand dollars.
For purposes of this section, "improved real property" means
all real property within the limits of an incorporated city or town
on which permanent buildings suitable for residential, industrial
or commercial use are located.
For purposes of this section, real property shall not be
deemed to be encumbered by reason of the existence of instruments
reserving rights-of-way, sewer rights and rights in walls, nor by
reason of building restrictions or other restrictive covenants, nor
by reason of the fact that it, or any part thereof, is subject to
lease under which rents or profits are reserved to the owner:
Provided, That the deed of trust for such investment is a full and
unrestricted first lien upon the property.
(b) Any public official, board, commission or department of
this state charged with the approval of securities required to be
deposited in accordance with this section, shall, at least annually
and more often if deemed proper, appoint a disinterested person or persons, not exceeding three, to make an examination and appraisal
of the securities deposited to determine if those securities meet
the requirements of the law of this state. The cost of that
examination and appraisal and expenses shall be borne by the person
or corporation required to make the deposits as security:
Provided, That the total cost and expenses shall not be less than
ten dollars nor more than twenty-five dollars per diem for each
person conducting the examination.