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#1742214 - 09/19/12 05:49 PM Payable on demand
Many Hats Offline
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Joined: May 2008
Posts: 915
Orlando, FL
I am looking at a consumer RE mtg loan to purchase a PR and on the TIL disclosure it indicates that "This obligation is payable on demand"; however, the borrower is not subject to Reg O.

I thought consumer RE mtg loans should not be payable on demand.

Am I understanding this corectly?

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Lending Compliance
#1742243 - 09/19/12 06:19 PM Re: Payable on demand Many Hats
rlcarey Offline
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rlcarey
Joined: Jul 2001
Posts: 77,207
Galveston, TX
Whether it is allowed or not, would be a matter of State law. You need to read the note and see if there is a payable on demand feature included.
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#1742247 - 09/19/12 06:26 PM Re: Payable on demand Many Hats
Many Hats Offline
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Joined: May 2008
Posts: 915
Orlando, FL
It just says "I will pay this loan in full immediately upon Lender 's demand. If no demand is made, I will pay this loan in 59 regular payments...."

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#1742253 - 09/19/12 06:32 PM Re: Payable on demand Many Hats
rlcarey Offline
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rlcarey
Joined: Jul 2001
Posts: 77,207
Galveston, TX
Then there is a demand clause in the note and the disclosure is correct. Now, if you have violated State law, that is another issue.
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The opinions expressed here should not be construed to be those of my employer: PPDocs.com

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