90-6-506. Repayment or termination of reverse annuity mortgage loan. (1) The mortgagor shall repay the reverse annuity mortgage loan as provided in this section.
(2) Repayment of any part of the reverse annuity mortgage loan is not required prior to the maturity of the loan and while the mortgagor resides on the secured property. The mortgagor may pay the outstanding loan balance in full at any time without penalty.
(3) The reverse annuity mortgage loan matures, advances under a reverse annuity mortgage loan terminate, and the entire unpaid balance of the loan plus accrued interest becomes due and payable only upon the occurrence of any of the following events:
(a) the death of the last surviving mortgagor;
(b) the sale or other transfer of the secured property to a person other than any of the original mortgagors;
(c) vacation of the secured property by the mortgagor, whether voluntarily, involuntarily, or pursuant to legal process; or
(d) any other occurrence that materially decreases the value of the property securing the loan or that will have the likely effect of causing the loan to not be repaid.
(4) Any occurrence allowing the termination of a loan as provided in subsection (3)(d) must be clearly recited in the mortgage, deed of trust, or trust indenture.
(5) Payment of the reverse annuity mortgage loan may not be required from any source other than the secured property.
History: En. Sec. 5, Ch. 178, L. 1989.
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