§ 9-421. Alternative mortgage instruments

Latest version.

(a) Alternative mortgage instruments authorized. -- In accordance with the regulations of the Division Director, a savings and loan association may permit borrowers to repay indebtedness on a loan by any method of repayment or plan, including a plan or repayment of indebtedness on a loan that is other than a direct monthly reduction of principal plan that has a fixed interest rate, level payments, and full amortization.

(b) Disclosure to borrower. -- If a savings and loan association offers any alternative mortgage instrument on an owner-occupied residential loan in addition to a standard direct monthly reduction of principal plan, as required by the Division Director, the association shall give each prospective borrower information on the alternative plan and the standard plan.

HISTORY: 1980, ch. 856; 1986, ch. 282.

                    
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