§ 47-30-112 — Borrower's default - Terms and conditions

A reverse mortgage loan contract may provide for a borrower's default, thereby triggering early repayment of the loan, based only upon one (1) or more of the following terms and conditions: (1) The borrower fails to maintain the residence as required by the contract; (2) The borrower sells or otherwise conveys title to the home to a third party; (3) The borrower dies and the home is not the principal residence of the surviving borrower; (4) The home is not the principal residence of at least one (1) of the borrowers for a period of twelve (12) consecutive months for reasons of physical or mental illness; (5) For reasons other than physical or mental illness, the home ceases, without prior written permission from the lender, to be the principal residence of the borrower for a period of ninety (90) consecutive days and is not the principal residence during such period of another borrower under the loan; (6) The borrower fails to pay property taxes, hazard insurance premiums, mortgage insurance premiums, service fees or assessments under § 47-30-106 ; or (7) The mortgage or deed of trust ceases to constitute a first lien on the property securing the reverse mortgage loan.

Legislative History

Acts 1993, ch. 410, §13; 1997 , ch. 286, § 10.