'Financial institution' means a financial institution as defined in subdivision 10202(5) of this chapter. (2) Reverse mortgage loan. 'Reverse mortgage loan' means a loan that:(A) is a loan in which the committed principal amount is secured by a mortgage on residential property owned by the borrower; (B) is due upon sale of the property securing the loan or upon the death of the last surviving borrower or upon the borrower terminating use of the real property as a principal residence or upon the borrower’s default; (C) provides cash advances to the borrower based upon the equity or the value in the borrower’s owner-occupied principal residence; and (D) requires no payment of principal or interest until the entire loan becomes due and payable. (Added 2009, No. 53, § 4; amended 2021, No. 105 (Adj. Sess.), § 283, eff. July 1, 2022.)
Vermont Legal Code