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REFERENCE TITLE: home equity credit line; release |
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State of Arizona House of Representatives Fiftieth Legislature Second Regular Session 2012
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HB 2323 |
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Introduced by Representative McLain
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AN ACT
amending title 33, chapter 4, article 2, Arizona Revised Statutes, by adding section 33-420.01; relating to conveyances of real property.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it enacted by the Legislature of the State of Arizona:
Section 1. Title 33, chapter 4, article 2, Arizona Revised Statutes, is amended by adding section 33-420.01, to read:
33-420.01. Release of security in real property; line of credit; definitions
A. A secured lender under a revolving line of credit against real property shall close the line of credit and release the security interest on occurrence of any of the following:
1. Payment in full from an escrow agent who is licensed pursuant to title 6, chapter 7 and who is involved in a sale or loan transaction regarding the real property that is subject to the security interest of that lender and on a written request from an escrow agent who is licensed pursuant to title 6, chapter 7 for a full payoff of the line of credit.
2. A written request from the borrower to close the line of credit.
B. This section shall not be construed to validate, invalidate or otherwise affect the foreclosure of a mortgage, the exercise of a trustee's power of sale or the exercise of a seller's right to a forfeiture under an agreement for sale of real property.
C. For the purposes of this section:
1. "revolving line of credit" means an open end revolving loan that is established pursuant to a written agreement between a borrower and a lender in which the lender agrees to lend the borrower money on a continuing basis for as long as the outstanding principal amount owed by the borrower does not exceed a specified amount.
2. "Secured lender" means any one of the following:
(a) A mortgagee on a mortgage.
(b) A beneficiary on a deed of trust.
(c) A person who holds or retains legal title to real property as security for financing the purchase of the real property under an agreement for sale of real property.
(d) A person who holds or retains a security interest in real property to SECURE the repayment of a loan.