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Rhode Island General Laws Title 19. Financial Institutions § 19-14.1-4. Documents delivered to borrower--Advance payments--Release of security

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Every lender or loan broker, as applicable, who is the holder of any note shall:

(1) Give to any borrower, or the borrower's agent, making a loan payment a plain and complete receipt for all payments on the loan at the time the payment is made in person at the lender's or loan broker's office;

(2) Except for an open-end loan, upon written request from the borrower, the holder of a subordinate mortgage loan instrument shall deliver to the borrower, within ten (10) days from receipt of a written request, a statement of the borrower's account showing the date and amount of all payments made or credited to the account and the total unpaid balance. Not more than two (2) such statements shall be required in any twelve-month (12) period;

(3) Permit payment to be made in advance in any amount on any contract of loan at any time, but the lender or loan broker may apply the payment first to all interest in full at the agreed rate and other permitted charges, up to the date of the payment. Any broker fees, points, or origination fees shall not be subject to any required refund;

(4) Upon repayment of the loan in full, mark indelibly every obligation and security signed by the borrower with the word “paid” or “canceled” and release any mortgage, restore any pledge, cancel and return any note, or a copy of the note, and cancel and return any assignment, or a copy of the assignment, given to the lender or loan broker by the borrower;

(5) Issue mortgage discharges in accordance with the provision of chapter 26 of title 34; and

(6) In the case of educational loans, deliver to the borrower a written statement that discloses the name and address of the borrower and licensee; the name of each payee to whom disbursements will be made; the date and total amount of the loan commitment; a description of the payment schedule; the amount of any insurance procured by the lender with a summary of the nature and extent of coverage; the total amount of all insurance premiums to be collected by the licensee; the schedule of any disbursements to be made to the borrower; and the method by which the schedule of any disbursements to an educational institution will be determined.

Cite this article: - Rhode Island General Laws Title 19. Financial Institutions § 19-14.1-4. Documents delivered to borrower--Advance payments--Release of security - last updated January 01, 2019 |

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