§ 28-15-11-15 — Restrictions on graduated payment adjustable mortgage loans

Indiana § 28-15-11-15

• Jurisdiction: Indiana
• Art. 15: SAVINGS ASSOCIATIONS
• Ch. 11: Alternative Mortgage Loans of Savings Associations

Text

A savings association may make graduated
payment adjustable mortgage loans subject to the requirements set
forth in section 14 of this chapter, except that:
(1) the amount of the scheduled monthly payment at the
beginning of the loan may be insufficient to fully amortize the
loan; and
(2) during a period of not more than ten (10) years beginning with
the closing date of the loan, the scheduled payments must rise
sufficiently to amortize the loan at the then existing interest rate
and principal balance over the then remaining loan term, and
thereafter the monthly payments must be adjusted every five (5)
years to a level sufficient to fully amortize the loan.

Legislative History

As added by P.L.193-1997, SEC.2.