45 NAC 14-003. INDEPENDENCE

003 INDEPENDENCE. 003.01 The inspection and appraisal must be administered independently from the loan production function whenever possible. 003.02 If absolute lines of independence cannot be achieved, a bank must be able to demonstrate clearly that it has prudent safeguards to isolate its inspection and appraisal program from influence or interference from the loan production process. In such cases, another loan officer, other officer, or a director of the bank may be the only person qualified to perform the inspection and appraisal. To ensure independence, such persons must abstain from any vote or approval process involving loans on which they performed the inspection and appraisal.