Posted By: Many Hats
Payable on demand - 09/19/12 05:49 PM
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?
Posted By: rlcarey
Re: Payable on demand - 09/19/12 06:19 PM
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.
Posted By: Many Hats
Re: Payable on demand - 09/19/12 06:26 PM
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...."
Posted By: rlcarey
Re: Payable on demand - 09/19/12 06:32 PM
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.