90-6-505. Mortgage requirements. (1) Any mortgage securing payments made by a mortgagee to a mortgagor pursuant to a reverse annuity mortgage loan must be sufficiently definite, certain, and valid to secure all money actually advanced pursuant to and in accordance with its terms. The mortgage must secure money advanced at or subsequent to closing of the loan, up to but not exceeding the full amount of the loan. A reverse annuity mortgage has the same priority as if all money had been advanced at the time the mortgage was delivered. The mortgage must include but not be limited to the following:
(a) a statement that it is a reverse annuity mortgage loan;
(b) the full amount of the loan authorized;
(c) a statement of the dates on which advancements are to be made and the amounts of such advancements; and
(d) the events that will give rise to the maturity of the loan.
(2) The mortgagee and the mortgagor may modify the advancement dates in the mortgage by a statement signed by all parties to the mortgage and properly recorded with the original mortgage instrument. The modification may not limit or otherwise affect the priority of the mortgage.
History: En. Sec. 6, Ch. 178, L. 1989.
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