536A.20 Real estate loans. 1. A licensed industrial loan company may make permanent loans, construction loans, or combined construction and permanent loans, secured by liens on real property, asauthorized by rules adopted by the superintendent under chapter 17A. These rules shallcontain provisions as necessary to insure the safety and soundness of these loans, and toinsure full and fair disclosure to borrowers of the effects of provisions in agreements forthese loans, including provisions permitting change or adjustment of any terms of a loan,provisions permitting, requiring, or prohibiting repayment of a loan on a basis other than ofequal periodic installments of interest plus principal over a fixed term, provisions imposingpenalties for the borrower’s noncompliance with requirements of a loan agreement, orprovisions allowing or requiring a borrower to choose from alternative courses of action atany time during the effectiveness of a loan agreement. 2. A licensed industrial loan company may require and establish escrow accounts in connection with subsection 3. 3. a. A licensed industrial loan company may act as an escrow agent with respect to real property that is mortgaged to mpany may require and establish escrow accounts in connection with subsection 3. 3. a. A licensed industrial loan company may act as an escrow agent with respect to real property that is mortgaged to the licensed industrial loan company, and may receive fundsand make disbursements from escrowed funds in that capacity. The licensed industrialloan company shall be deemed to be acting in a fiduciary capacity with respect to thesefunds. A licensed industrial loan company receiving funds in escrow pursuant to an escrowagreement executed on or after July 1, 1982 and before July 1, 1983 or on or after July 1,1984 in connection with a loan defined in section 535.8, subsection 1, shall pay interest tothe borrower on those funds, calculated on a daily basis, at the lowest rate the company paysto holders of thrift certificates issued by the company. A licensed industrial loan companywhich maintains such an escrow account, whether or not the mortgage has been assignedto a third person, shall deliver to the mortgagor a written summary of all transactions madewith respect to the loan and escrow accounts during each calendar year. r not the mortgage has been assignedto a third person, shall deliver to the mortgagor a written summary of all transactions madewith respect to the loan and escrow accounts during each calendar year. However, themortgagor and mortgagee may, by mutual agreement, select a fiscal year reporting periodother than the calendar year. b. The summary shall be delivered or mailed not later than thirty days following the year to which the disclosure relates. The summary shall contain all of the following information: (1) The name and address of the mortgagee.(2) The name and address of the mortgagor.(3) A summary of escrow account activity during the year as follows:(a) The balance of the escrow account at the beginning of the year.(b) The aggregate amount of deposits to the escrow account during the year.(c) The aggregate amount of withdrawals from the escrow account for each of the following categories: (i) Payments against loan principal.(ii) Payments against interest.(iii) Payments against real estate taxes.(iv) Payments for real property insurance premiums.(v) All other withdrawals.(d) The balance of the escrow account at the end of the year.(4) A summary of loan principal for the year eal estate taxes.(iv) Payments for real property insurance premiums.(v) All other withdrawals.(d) The balance of the escrow account at the end of the year.(4) A summary of loan principal for the year as follows:(a) The amount of principal outstanding at the beginning of the year.(b) The aggregate amount of payments against principal during the year.(c) The amount of principal outstanding at the end of the year.4. Section 524.905, subsection 4, applies to the licensed industrial loan company in the same manner as if the licensed industrial loan company is a bank within the meaning of thatprovision. [82 Acts, ch 1253, §36, 43]83 Acts, ch 124, §21 – 23; 84 Acts, ch 1205, §1; 2012 Acts, ch 1023, §157Referred to in §535B.11 Sat Dec 23 01:39:22 2023 Iowa Code 2024, Section 536A.20 (16, 0)
Iowa Legal Code