§ 23-54-108 — Default

(a) The reverse mortgage loan may become due and payable upon the occurrence of any one (1) of the following events: (1) The home securing the loan is sold or title to the home is otherwise transferred; (2) All borrowers cease occupying the home as a principal residence, except as provided in subsection (b) of this section; (3) Any fixed maturity date agreed to by the lender and the borrower occurs; or (4) An event occurs which is specified in the loan documents and which jeopardizes the lender's security. (b) (1) Temporary absences from the home not exceeding sixty (60) consecutive days shall not cause the mortgage to become due and payable. (2) Extended absences from the home exceeding sixty (60) consecutive days but less than one (1) year shall not cause the mortgage to become due and payable if the borrower has taken prior action which secures and protects the home in a manner satisfactory to the lender. (c) (1) The lender's right to collect reverse mortgage loan proceeds shall be subject to the applicable statute of limitations for written loan contracts. (2) Notwithstanding any other provision of law, the statute of limitations shall commence on the date that the reverse mortgage loan becomes due and payable as provided in the loan agreement.

Legislative History

Acts 2005, No. 2166, § 1.