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Question: We have a customer with 10 acres in the country who wants to waive his ag use valuation and get a home equity loan from us. Can we do this?
Answer: Not a good idea right now. First, the In Re Marketic case indicates that the borrower could restore the ag use valuation later and defeat your lien. Also, the Tax Code provides that the special use valuation can be waived for the current tax year before May 1. A waiver now would apply to next year. Although there hasn't been any litigation on the timing issue yet, this point worries us.
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