Utah Code 57-28-206. Disbursement
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(1) Subject to Subsection (2) and except as provided in Subsection (3), a lender shall pay the loan proceeds of a reverse mortgage under a term payment option, a tenure payment option, or a line of credit payment option.
Terms Used In Utah Code 57-28-206
- Interest rate: The amount paid by a borrower to a lender in exchange for the use of the lender's money for a certain period of time. Interest is paid on loans or on debt instruments, such as notes or bonds, either at regular intervals or as part of a lump sum payment when the issue matures. Source: OCC
- Mortgage: The written agreement pledging property to a creditor as collateral for a loan.
(2) Under a term payment option or a tenure payment option, upon a borrower’s request, the lender shall disburse a portion of the loan proceeds under a line of credit payment option.
(3) If a reverse mortgage is a fixed interest rate loan, the lender may pay the loan proceeds in a lump sum.