WILLIAM DONALD SCHAEFER, Governor

Ch. 404

1.        THE CONSUMER BORROWER; AND

2.        EXCEPT IN THE CASE OF CONSUMER GOODS, ANY OTHER
PERSON WHO HAS A SECURITY INTEREST IN THE PROPERTY AND WHO:

A.       HAS DULY FILED A FINANCING STATEMENT INDEXED IN
THE NAME OF THE CONSUMER BORROWER IN THIS STATE; OR

B.        IS KNOWN BY THE CREDIT GRANTOR TO HAVE A
SECURITY INTEREST IN THE PROPERTY.

(III) 1. IF THE CONSUMER BORROWER OR OTHER PERSON
ENTITLED TO RECEIVE NOTIFICATION OBJECTS IN WRITING WITHIN 30 DAYS FROM
THE SENDING OF THE NOTIFICATION, THE CREDIT GRANTOR MUST TAKE
REASONABLE ACTION TO DISPOSE OF THE PROPERTY IN THE MANNER PROVIDED
UNDER SUBSECTION (J) OF THIS SECTION.

2. IN THE ABSENCE OF WRITTEN OBJECTION, THE CREDIT
GRANTOR MAY RETAIN THE PROPERTY IN FULL SATISFACTION OF THE
OUTSTANDING UNPAID INDEBTEDNESS UNDER THE LOAN.

(5) IF DESPITE COMPLYING WITH THE REQUIREMENTS OF THIS
SECTION THERE IS NO SALE OF TANGIBLE PERSONAL PROPERTY SECURING A LOAN
UNDER SUBSECTION (J) OF THIS SECTION:

(I)       THE CREDIT GRANTOR MAY RETAIN THE PROPERTY WITHOUT
OBLIGATION TO ACCOUNT TO THE BORROWER: AND

(II)     IF THE PROPERTY IS RETAINED, ALL OBLIGATIONS OF THE
BORROWER UNDER THE LOAN SHALL BE DISCHARGED.

12-1022.

(A) (1) IN THIS SECTION THE FOLLOWING WORDS HAVE THE MEANINGS
INDICATED.

(2)      "BORROWER" MEANS A CONSUMER BORROWER WHO MAKES AN
APPLICATION FOR A LOAN SECURED BY A FIRST MORTGAGE OR FIRST DEED OF
TRUST ON RESIDENTIAL REAL PROPERTY TO BE OCCUPIED BY THE BORROWER AS
THE BORROWER'S PRIMARY RESIDENCE.

(3)      "COMMITMENT" MEANS A WRITTEN, SPECIFIC, BINDING
AGREEMENT BETWEEN A BORROWER AND A LENDER WHICH SETS FORTH THE
TERMS OF A LOAN BEING EXTENDED TO THE BORROWER.

(4)      "FINANCING AGREEMENT" MEANS A WRITTEN AGREEMENT
BETWEEN A BORROWER AND A LENDER WHICH SETS FORTH THE TERMS OF A
PURCHASE MONEY LOAN OR A REFINANCING OF AN EXISTING LOAN THAT:

(I) RESULTS IN OR IS SECURED BY A FIRST MORTGAGE OR A FIRST
DEED OF TRUST ON RESIDENTIAL REAL PROPERTY TO BE OCCUPIED BY THE
BORROWER; AND

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