§ 19-14.1-4 - Documents delivered to borrower – Advance payments – Release of security.
SECTION 19-14.1-4
§ 19-14.1-4 Documents delivered toborrower – Advance payments – Release of security. – 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 aloan payment a plain and complete receipt for all payments on the loan at thetime 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 fromthe borrower, the holder of a subordinate mortgage loan instrument shalldeliver to the borrower within ten (10) days from receipt of a written requesta statement of the borrower's account showing the date and amount of allpayments made or credited to the account and the total unpaid balance. Not morethan two (2) such statements shall be required in any twelve (12) month period;
(3) Permit payment to be made in advance in any amount on anycontract of loan at any time, but the lender or loan broker may apply thepayment first to all interest in full at the agreed rate and other permittedcharges, up to the date of the payment. Any broker fees, points or originationfees shall not be subject to any required refund;
(4) Upon repayment of the loan in full, mark indelibly everyobligation and security signed by the borrower with the word "paid" or"canceled" and release any mortgage, restore any pledge, cancel and return anynote or a copy of the note, and cancel and return any assignment or a copy ofthe assignment given to the lender or loan broker by the borrower;
(5) Issue mortgage discharges in accordance with theprovision of chapter 26 of title 34; and
(6) In the case of educational loans, deliver to the borrowera written statement which discloses the name and address of the borrower andlicensee, the name of each payee to whom disbursements will be made, the dateand 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 natureand extent of coverage, the total amount of all insurance premiums to becollected by the licensee, the schedule of any disbursements to be made to theborrower and of the method by which the schedule of any disbursements to aneducational institution will be determined.