§ 42-2302 — Notice requirements.

District of Columbia § 42-2302

• Jurisdiction: District of Columbia
• Title 42: Real Property.
• Ch. 23: Credit Line Deeds of Trust.

Text

(a) A credit line deed of trust shall include:

(1) On the front page, either in capital letters or underscored, the words “THIS IS A HOME EQUITY CREDIT LINE DEED OF TRUST. DEFAULT ON PAYMENTS MAY RESULT IN THE LOSS OF YOUR HOME.”;

(2) Language to convey notice to all parties that the noteholder, the grantors, and other borrowers identified have an agreement whereby the noteholder may make or contemplates making advances from time to time against the security described in the credit line deed of trust;

(3) The maximum aggregate amount of principal to be secured at any 1 time; and

(4) An explicit statement of the rights and obligations of the borrower and the consequences of default.

(b) Failure to provide the notice required by subsection (a) of this section shall be deemed an unlawful trade practice punishable under Chapter 39 of Title 28 .

(c) This section shall apply only to a credit line deed of trust for single family residential property.

Legislative History

Jan. 28, 1988, D.C. Law 7-67, § 3, 34 DCR 7441; Mar. 11, 1992, D.C. Law 9-72, § 2(b), 39 DCR 20