Montana Code 90-6-506. Repayment or termination of reverse annuity mortgage loan
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.
Terms Used In Montana Code 90-6-506
- Annuity: A periodic (usually annual) payment of a fixed sum of money for either the life of the recipient or for a fixed number of years. A series of payments under a contract from an insurance company, a trust company, or an individual. Annuity payments are made at regular intervals over a period of more than one full year.
- Deed: The legal instrument used to transfer title in real property from one person to another.
- Mortgage: The written agreement pledging property to a creditor as collateral for a loan.
- Mortgage: means a mortgage as defined in 90-6-103. See Montana Code 90-6-503
- Mortgage loan: A loan made by a lender to a borrower for the financing of real property. Source: OCC
- Mortgagor: The person who pledges property to a creditor as collateral for a loan and who receives the money.
- Mortgagor: means a person:
(a)who is of lower income as determined by the board. See Montana Code 90-6-503
- Person: includes a corporation or other entity as well as a natural person. See Montana Code 1-1-201
- Process: means a writ or summons issued in the course of judicial proceedings. See Montana Code 1-1-202
- Property: means real and personal property. See Montana Code 1-1-205
- Reverse annuity mortgage loan: means a loan in which loan proceeds are advanced to the mortgagor to provide a monthly tax-free cash payment for 10 years. See Montana Code 90-6-503
(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.