CHAPTER 34-25.1
Reverse Mortgages

SECTION 34-25.1-5

§ 34-25.1-5. Discharge of reverse mortgage.

(a) Notwithstanding the provisions of § 34-26-2, no mortgagee under an open-end mortgage subject to this chapter shall be obligated to discharge such mortgage until such mortgagee receives full satisfaction for the money due thereon and such written agreements as the mortgagee shall reasonably request releasing such mortgagee from any further obligation to make future advances under any and all notes and agreements theretofore secured by such mortgage deed.

(b) Notwithstanding the provisions of any agreement by and between the mortgagee and the mortgagor or any other person, the mortgagee under any such mortgage shall have the option to discharge any such mortgage if there has existed no outstanding indebtedness thereunder for a continuous period of not less than two (2) years, and effective upon the recording of such discharge, such mortgagee shall be released and discharged from any further obligation to make any loans or advances under any notes or agreements executed in connection with such mortgage.

History of Section.
(P.L. 1986, ch. 475, § 1.)