WILLIAM DONALD SCHAEFER, Governor                            Ch. 404

(II) IF THE CONSUMER BORROWER HAS NOT NOTIFIED THE
CREDIT GRANTOR OF THE OPTION CHOSEN BY THE CONSUMER BORROWER, WITHIN
60 DAYS AFTER THE DATE THE CREDIT GRANTOR MAILED NOTICE OF AN EXCESS
AMOUNT.

(D)     (1) FUNDS IN ANY ESCROW ACCOUNT SHALL BE KEPT SEPARATE FROM
AND MAY NOT BE COMMINGLED WITH THE FUNDS OF THE CREDIT GRANTOR.

(2)      A CREDIT GRANTOR MAY PLACE ESCROW FUNDS RECEIVED IN
CONNECTION WITH MORE THAN ONE LOAN INTO A SINGLE ESCROW ACCOUNT.

(3)       IN THE EVENT OF THE BANKRUPTCY OF THE CREDIT GRANTOR,
ANY ESCROW FUNDS PLACED IN ANY ESCROW ACCOUNT MAY NOT BE CONSIDERED
TO BE PART OF THE BANKRUPT ESTATE OF THE CREDIT GRANTOR.

(E)      A CREDIT GRANTOR MAY NOT IMPOSE A COLLECTION FEE OR SERVICE
CHARGE ON THE MAINTENANCE OF AN ESCROW ACCOUNT ON A FIRST MORTGAGE
OR FIRST DEED OF TRUST.

12-1027.

(A)     IN THIS SECTION, "LENDER'S INSPECTION FEE" MEANS A FEE IMPOSED BY
A CREDIT GRANTOR TO PAY FOR A VISUAL INSPECTION OF RESIDENTIAL REAL
PROPERTY.

(B)      EXCEPT AS PROVIDED IN SUBSECTION (C) OF THIS SECTION, A CREDIT
GRANTOR MAY NOT IMPOSE A LENDER'S INSPECTION FEE IN CONNECTION WITH A
LOAN MADE TO A CONSUMER BORROWER THAT IS SECURED BY RESIDENTIAL REAL
PROPERTY.

(C)      A LENDER'S INSPECTION FEE MAY BE IMPOSED ON A CONSUMER
BORROWER IF THE INSPECTION IS NEEDED TO ASCERTAIN COMPLETION OF:

(1)      CONSTRUCTION OF A NEW HOME; OR

(2)      REPAIRS, ALTERATIONS, OR OTHER WORK REQUIRED BY THE
CREDIT GRANTOR.

(D)     THIS SECTION DOES NOT APPLY TO AN APPRAISAL OF THE VALUE OF
REAL PROPERTY BY A CREDIT GRANTOR OR TO FEES IMPOSED IN CONNECTION
WITH AN APPRAISAL.

12-1028.

(A)     THIS SECTION APPLIES ONLY TO A LOAN TO A CONSUMER BORROWER
SECURED BY A FIRST MORTGAGE OR FIRST DEED OF TRUST ON RESIDENTIAL REAL
PROPERTY USED AS THE CONSUMER BORROWER'S PRIMARY RESIDENCE.

(B)      A CREDIT GRANTOR MAY REQUIRE A CONSUMER BORROWER TO PAY
FOR SERVICES RENDERED BY THE CREDIT GRANTOR'S ATTORNEY ONLY IF THE
ATTORNEY'S FEE:

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