HOUSE BILL No. 1179
DIGEST OF INTRODUCED BILL
Citations Affected: IC 24-4.6-5.
Synopsis: Reverse mortgages. Prohibits the acceleration of debt for a
reverse mortgage if a borrower: (1) is admitted to a hospital or nursing
home; and (2) complies with the material terms of the loan agreement.
Effective: July 1, 2005.
January 6, 2005, read first time and referred to Committee on Financial Institutions.
First Regular Session 114th General Assembly (2005)
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HOUSE BILL No. 1179
A BILL FOR AN ACT to amend the Indiana Code concerning trade
Be it enacted by the General Assembly of the State of Indiana:
SOURCE: IC 24-4.6-5; (05)IN1179.1.1. -->
SECTION 1. IC 24-4.6-5 IS ADDED TO THE INDIANA CODE
AS A NEW
CHAPTER TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2005]:
Chapter 5. Reverse Annuity Mortgage Loans
Sec. 1. As used in this chapter, "reverse annuity mortgage loan"
means a mortgage loan that:
(1) provides periodic payments to the borrower based on the
accumulated equity in the real estate securing the loan, with
payments made directly by the lender or through the
purchase of an annuity from an insurance company; and
(2) becomes due either:
(A) on a specified date; or
(B) on the occurrence of a specified event.
Sec. 2. As used in this chapter, "short term" means less than
fifty (50) consecutive days.
Sec. 3. (a) A loan agreement for a reverse annuity mortgage loan
may not contain a provision that permits the creditor, in the
creditor's sole discretion, to accelerate the indebtedness under a
reverse annuity mortgage loan without material cause.
(b) Material cause to accelerate the indebtedness of a reverse
annuity mortgage loan under this section:
(1) includes a borrower's failure to comply with the material
terms of the loan agreement; and
(2) does not include the short term admittance of a borrower
to a hospital, health facility, or any other treatment facility
for inpatient care if the borrower complies with the material
terms of the loan agreement.
SOURCE: ; (05)IN1179.1.2. -->
SECTION 2. [EFFECTIVE JULY 1, 2005] IC 24-4.6-5, as added
by this act, applies to loan agreements for reverse annuity
mortgage loans entered into after June 30, 2005.