(a) A bank may, subject to the requirements of this chapter, make or acquire a loan secured primarily by a first lien on an interest in improved or unimproved real property, including leases, if
(1) the making of the loan is consistent with written lending policies of the bank and regulations adopted by the department;
(2) before the loan is made or acquired, the bank secures and maintains in its files, evidence of merchantable title and a determination of the value of the property by a person familiar with the real property values in the vicinity where the real property is located; and
(3) insurance against loss from fire on all buildings on the real property that are included in the value of the property is acquired by the borrower or the bank and is not allowed to lapse.
(b) A bank may, subject to the requirements of this chapter, make or acquire a loan secured by a junior lien on real property if
(1) payments on the loan secured by all senior liens are current and the bank retains in its records a written report of the status and balance of the senior liens as of the date the junior lien loan is made or acquired; and
(2) all requirements of (a) of this section are met.
(c) In this section, “real property” includes a manufactured home that has become real property under AS 34.85.010. In this subsection, “manufactured home” has the meaning given in AS 45.29.102.