Arizona Laws 33-420.01. Suspension of line of credit; payoff demand statement; definitions
A. A secured lender under a revolving line of credit against real property shall suspend the revolving line of credit for a minimum of forty-five days on receipt of a request for a payoff demand statement as defined in section 33-715 from an escrow agent who is licensed pursuant to Title 6, Chapter 7.
Terms Used In Arizona Laws 33-420.01
- Beneficiary: A person who is entitled to receive the benefits or proceeds of a will, trust, insurance policy, retirement plan, annuity, or other contract. Source: OCC
- Deed: The legal instrument used to transfer title in real property from one person to another.
- Escrow: Money given to a third party to be held for payment until certain conditions are met.
- Foreclosure: A legal process in which property that is collateral or security for a loan may be sold to help repay the loan when the loan is in default. Source: OCC
- Mortgage: The written agreement pledging property to a creditor as collateral for a loan.
- Mortgagee: The person to whom property is mortgaged and who has loaned the money.
- Person: includes a corporation, company, partnership, firm, association or society, as well as a natural person. See Arizona Laws 1-215
- Property: includes both real and personal property. See Arizona Laws 1-215
- Real property: Land, and all immovable fixtures erected on, growing on, or affixed to the land.
- Trustee: A person or institution holding and administering property in trust.
B. This section shall not be construed to validate, invalidate or otherwise affect the foreclosure of a mortgage, the exercise of a trustee‘s power of sale or the exercise of a seller’s right to a forfeiture under an agreement for sale of real property.
C. For the purposes of this section:
1. "Revolving line of credit" means an open end revolving loan that is established pursuant to a written agreement between a borrower and a lender in which the lender agrees to lend the borrower money on a continuing basis for as long as the outstanding principal amount owed by the borrower does not exceed a specified amount.
2. "Secured lender" means any one of the following:
(a) A mortgagee on a mortgage.
(b) A beneficiary on a deed of trust.
(c) A person who holds or retains legal title to real property as security for financing the purchase of the real property under an agreement for sale of real property.
(d) A person who holds or retains a security interest in real property to secure the repayment of a loan.
(e) The authorized agent of those listed in this paragraph.
3. "Suspend" means to forbid the borrower from increasing or incurring any additional debt on the revolving line of credit.