(a) The term"equity line of credit" means an agreement in writing between alender and a borrower for an extension of credit pursuant to which:
(1) At any time within aspecified period not to exceed 30 years the borrower may request and the lenderis obligated to provide, by honoring negotiable instruments drawn by theborrower or otherwise, advances up to an agreed aggregate limit;
(2) Any repayments ofprincipal by the borrower within the specified period will reduce the amount ofadvances counted against the aggregate limit; and
(3) The borrower'sobligation to the lender is secured by a mortgage or deed of trust relating toreal property which mortgage or deed of trust shows on its face the maximumprincipal amount which may be secured at any one time and that it secures anequity line of credit governed by the provisions of this Article.
(b) As used insubdivision (a)(1) of this section, "lender is obligated" means thatthe lender is contractually bound to provide advances. The contract must setforth any events of default by the borrower, or other events not within thelender's control, which may relieve the lender from his obligation, and muststate whether or not the lender has reserved the right to cancel or terminatethe obligation.
(c) At any time whenthe balance of all outstanding sums secured by a mortgage or deed of trustpursuant to the provisions of this Article is zero, the lender shall, upon therequest of the borrower, make written entry upon the security instrumentshowing payment and satisfaction of the instrument; provided, however, thatsuch security instrument shall remain in full force and effect for the term setforth therein absent the borrower's request for such written entry. Noprepayment penalty may be charged with respect to an equity line of creditloan. (1985, c. 207, s. 2; 1995, c. 237, s. 1.)
(a) The term"equity line of credit" means an agreement in writing between alender and a borrower for an extension of credit pursuant to which:
(1) At any time within aspecified period not to exceed 30 years the borrower may request and the lenderis obligated to provide, by honoring negotiable instruments drawn by theborrower or otherwise, advances up to an agreed aggregate limit;
(2) Any repayments ofprincipal by the borrower within the specified period will reduce the amount ofadvances counted against the aggregate limit; and
(3) The borrower'sobligation to the lender is secured by a mortgage or deed of trust relating toreal property which mortgage or deed of trust shows on its face the maximumprincipal amount which may be secured at any one time and that it secures anequity line of credit governed by the provisions of this Article.
(b) As used insubdivision (a)(1) of this section, "lender is obligated" means thatthe lender is contractually bound to provide advances. The contract must setforth any events of default by the borrower, or other events not within thelender's control, which may relieve the lender from his obligation, and muststate whether or not the lender has reserved the right to cancel or terminatethe obligation.
(c) At any time whenthe balance of all outstanding sums secured by a mortgage or deed of trustpursuant to the provisions of this Article is zero, the lender shall, upon therequest of the borrower, make written entry upon the security instrumentshowing payment and satisfaction of the instrument; provided, however, thatsuch security instrument shall remain in full force and effect for the term setforth therein absent the borrower's request for such written entry. Noprepayment penalty may be charged with respect to an equity line of creditloan. (1985, c. 207, s. 2; 1995, c. 237, s. 1.)
(a) The term"equity line of credit" means an agreement in writing between alender and a borrower for an extension of credit pursuant to which:
(1) At any time within aspecified period not to exceed 30 years the borrower may request and the lenderis obligated to provide, by honoring negotiable instruments drawn by theborrower or otherwise, advances up to an agreed aggregate limit;
(2) Any repayments ofprincipal by the borrower within the specified period will reduce the amount ofadvances counted against the aggregate limit; and
(3) The borrower'sobligation to the lender is secured by a mortgage or deed of trust relating toreal property which mortgage or deed of trust shows on its face the maximumprincipal amount which may be secured at any one time and that it secures anequity line of credit governed by the provisions of this Article.
(b) As used insubdivision (a)(1) of this section, "lender is obligated" means thatthe lender is contractually bound to provide advances. The contract must setforth any events of default by the borrower, or other events not within thelender's control, which may relieve the lender from his obligation, and muststate whether or not the lender has reserved the right to cancel or terminatethe obligation.
(c) At any time whenthe balance of all outstanding sums secured by a mortgage or deed of trustpursuant to the provisions of this Article is zero, the lender shall, upon therequest of the borrower, make written entry upon the security instrumentshowing payment and satisfaction of the instrument; provided, however, thatsuch security instrument shall remain in full force and effect for the term setforth therein absent the borrower's request for such written entry. Noprepayment penalty may be charged with respect to an equity line of creditloan. (1985, c. 207, s. 2; 1995, c. 237, s. 1.)
