(1) The obligation shall be secured by either:

(2) In case the obligation is secured by a first lien, a title insurance policy shall be obtained which designates the credit union as the insured, warrants the priority and validity of the credit union's security interest, and does not contain any exception which would preclude the credit union from obtaining marketable title to the real property security in the event of default.

(3) In case the obligation is secured by one or more junior liens on a piece of real property and the aggregate of all junior liens held by the credit union on the piece of real property does not exceed $100,000, an abbreviated loan guarantee or fidelity lenders abbreviated guarantee issued by a title insurance company shall be obtained, unless the credit union obtains a title insurance policy of the type described in (2) of this subparagraph. As used in the previous sentence, an abbreviated loan guarantee or a fidelity lenders abbreviated guarantee refers to a limited guarantee issued by a title insurance company with respect to the priority and validity of the credit union's security interest which includes, at a minimum, a title search for all record owners and lienholders and a liability amount at least equal to the principal balance of the obligation.

(4) In case the obligation is secured by one or more junior liens on a piece of real property and the aggregate of all junior liens held by the credit union on the piece of real property exceeds $100,000, a title insurance policy of the type described in (2) of this subparagraph shall be obtained.

(5) Unless waived in writing by the credit committee or credit manager, adequate hazard insurance on the real property shall be maintained during the term of the obligation. The requirement for adequate hazard insurance may not be waived if the principal balance of the obligation exceeds the unsecured lending limits prescribed by the California Credit Union Law or the credit union's written lending policies.

(6) The promissory note and deed of trust shall include a due-on-sale clause.

(7) The board of directors of the credit union shall have established a limit on the amount of total obligations which may be secured by real property, and the obligation does not cause the credit union to exceed the limit.

(1) The lien of any tax, assessment, or bond levied or issued by any state or territory of the United States or by any district, political subdivision, or municipal corporation thereof, except the lien of an assessment levied against a particular parcel of real property and of any bond given or issued pursuant to law in lieu of the payment of such assessment.

(2) A lien created by a contract and given to secure the payment for water to be furnished under such contract for the irrigation of the real property or any part thereof.

(3) The lien of a bond given or issued pursuant to law in lieu of the payment of an assessment levied against a particular parcel of real property and the lien of any assessment levied to pay the bond, if the unpaid balance of the bond and the amount of the obligation combined do not exceed the percentage of the appraised value of the real property specified in the applicable provision of Paragraph (1) of Subdivision (a) of this Section.

(4) A lien given to secure the payment of any assessment or subscription to meet the requirements of any law of the United States in respect to any irrigation project of the United States in any state or territory of the United States which may be levied, made, or received by any corporation or association formed to carry out the provisions of any such law, if the unpaid balance of the assessment or subscription and the amount of the obligation combined do not exceed the percentage of the appraised value of the real property specified in the applicable provision of Paragraph (1) of Subdivision (a) of this Section.

(1) Any loans meeting the standards of the Federal National Mortgage Association or Federal Home Loan Mortgage Corporation.

(2) Any loans saleable in the secondary market as evidenced by commitments to buy by a buyer in the secondary market.

(3) Any line of credit loans.

(4) Any loans which contain provisions to adjust the amount of each payment, the number of monthly payments, or both, as is necessary because of changes in the interest rate charged and which are secured by a mortgage or deed of trust on real property which has or will have not more than four residential units.

(5) Any loans for which the promissory note contains an option or series of options by the credit union to call the loan during a sixty day period commencing not sooner than two years, nor later than seven years, from the date of each option period, there are no penalties for prepayment by the borrower, and the following written disclosure, or its substantial equivalent, is given to the borrower:

“Notice of Year ___ Call Option

“Your lender has the right to call this loan due on [the or each] ___ anniversary of the loan. The lender may exercise this right any time during the thirty-day period immediately following [the or each] ___ anniversary date of the loan.

“If the lender exercises its right to call the loan, upon receipt of notice, YOU WILL BE REQUIRED TO PAY THE LOAN IN FULL (OR ARRANGE NEW FINANCING) WITHIN NINETY (90) DAYS. You should be aware that interest rates in effect at the time of the call may be substantially higher than the interest rate on the original loan. “It cannot be predicted at this time whether or not the lender will exercise the option; however, it will generally be to the lender's advantage to exercise the option if an increase in interest rates has occurred or is anticipated, if the term of the loan extends significantly beyond the option date, or if other reasons exist making the call of the loan advantageous to the lender.”

(1) An obligation with a principal balance of $50,000 or less, provided, however, that all junior liens on a piece of real property will be counted for the purpose of applying the $100,000 threshold described in Paragraphs (3) and (4) of Subdivision (a).

(2) An obligation which conforms to the eligibility requirements established by the Federal National Mortgage Association or Federal Home Loan Mortgage Corporation for sale in the secondary mortgage market. The credit union shall maintain documents for each obligation made pursuant to this Paragraph which demonstrate that the obligation meets the eligibility requirements.

(3) An obligation which is an alternative mortgage transaction, as defined pursuant to Title VIII of the Garn-St. Germain Depository Institutions Act of 1982 (12 U.S.C. § 3801, et seq.) and any applicable regulations, guidelines and policies adopted thereunder. The credit union shall maintain documents for each obligation made pursuant to this Paragraph which demonstrate that the obligation meets the applicable federal requirements relating to the alternative mortgage transaction.

(4) An obligation which is secured by real property and which is a member business loan, as defined in Part 723 of the regulations of the National Credit Union Administration (12 C.F.R. Part 723).