6-984. Prohibited acts
A. Except for employment verifications and deposit or account verifications, a
person shall not induce, require or permit any document in connection with making a
commercial mortgage loan to be signed by a party to the transaction if the document
contains any blank spaces to be filled in after it has been signed unless the party has
specifically authorized the licensee or the escrow agent in writing to complete those
blank spaces.
B. A person is not entitled to receive compensation in connection with arranging
for or negotiating a commercial mortgage loan if the person is not licensed pursuant to
or is not exempt from this article, except that a commercial mortgage banker, mortgage
banker or mortgage broker licensed pursuant to this article or article 1 or 2 of this
chapter may compensate a person who is a resident of another state and who meets the
licensing requirements, if any, of the other state in connection with arranging for or
negotiating a commercial mortgage loan.
C. A commercial mortgage banker may not commingle monies of borrowers or monies
held for the benefit of borrowers with monies of the commercial mortgage banker.
D. A person engaged in commercial mortgage banking shall not knowingly advertise,
display, distribute, broadcast or televise, or cause or permit to be advertised,
displayed, distributed, broadcast or televised, in any manner whatever, a false,
misleading or deceptive statement or representation with regard to the rates, terms or
conditions for a commercial mortgage loan. The charges or rates of charge, if stated,
shall be set forth in a clear and concise manner.
E. A commercial mortgage banker shall not, except in good faith, delay or cause
delay in the closing of a loan that results in increased costs to a borrower.
F. A commercial mortgage banker shall not record or cause to be recorded a document
that would give rise to liability under section 33-420.
G. A person who is employed by a licensee to act in the capacity of a commercial
mortgage banker shall not be concurrently employed by any other licensee to act in the
capacity of a commercial mortgage banker, except with the prior written approval of all
concurrently employing licensees.
H. A commercial mortgage banker shall not collect compensation for rendering
services as a real estate broker or real estate salesperson unless both of the following
apply:
1. The commercial mortgage banker is licensed pursuant to title 32, chapter 20.
2. The commercial mortgage banker has disclosed to the person from whom the
compensation is collected that the commercial mortgage banker is receiving compensation
both for commercial mortgage banking and for services as a real estate broker or
salesperson.
I. A licensee shall not accept any assignment of the borrower's wages or salary in
connection with activities governed by this article.
J. A commercial mortgage banker shall not make or negotiate or offer to make or
negotiate, for compensation, either directly or indirectly, a loan of money that is not
secured by a mortgage or deed of trust or any other lien interest in real property or if
the real estate security is a one to four family residence.
K. A commercial mortgage banker shall not make a false promise or misrepresentation
or conceal an essential or material fact in the course of the commercial mortgage banker
business.
L. A commercial mortgage banker shall not fail to truthfully account for the monies
belonging to a party to a commercial mortgage loan or commercial mortgage banking loan
transaction or fail to disburse monies in accordance with the agreements.
M. A commercial mortgage banker shall not record a mortgage or deed of trust if
monies are not available for the immediate disbursal to the mortgagor unless, before that
recording, the commercial mortgage banker informs the mortgagor in writing of a definite
date by which payment shall be made and obtains the mortgagor's written permission for
the delay.
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