Introduced Version






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.





Burton




    January 6, 2005, read first time and referred to Committee on Financial Institutions.







Introduced

First Regular Session 114th General Assembly (2005)


PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana Constitution) is being amended, the text of the existing provision will appear in this style type, additions will appear in this style type, and deletions will appear in this style type.
Additions: Whenever a new statutory provision is being enacted (or a new constitutional provision adopted), the text of the new provision will appear in this style type. Also, the word NEW will appear in that style type in the introductory clause of each SECTION that adds a new provision to the Indiana Code or the Indiana Constitution.
Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts between statutes enacted by the 2004 Regular Session of the General Assembly.

HOUSE BILL No. 1179



    A BILL FOR AN ACT to amend the Indiana Code concerning trade regulation.

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.