Section 13-05-01-04 - Contents of loan disclosure statementWhenever a money broker arranges a loan for a borrower, the following loan disclosure statements must be prepared by the money broker for the borrower and set forth in a plain language and meaningful order:
1.Summary of loan terms. Money brokers must provide all loan disclosures mandated under title 12, Code of Federal Regulations, part 1024 and title 12, Code of Federal Regulations, part 1026.2.General information concerning loans.a. The amount of principal and interest payable, the interest rate, the number of payments and whether they are monthly or quarterly, and whether there is a final or balloon payment to pay off the loan in full. If there is a balloon payment, the following cautionary instructions must be printed in bold type on the contract: CAUTION TO BORROWER: IF YOU DO NOT HAVE THE FUNDS TO PAY THE BALLOON PAYMENT WHEN DUE, IT MAY BE NECESSARY FOR YOU TO OBTAIN A NEW LOAN AGAINST YOUR PROPERTY FOR THIS PURPOSE AND YOU MAY BE REQUIRED TO AGAIN PAY COMMISSION AND EXPENSES FOR ARRANGING THE LOAN. KEEP THIS IN MIND IN DECIDING UPON THE AMOUNT AND TERMS OF THE LOAN THAT YOU OBTAIN AT THIS TIME.b. Other information necessary, including the land description, types of instruments to be executed, and type of lien that will be against the property if the instruments are executed.c. Any prepayment penalty on full disclosure of the terms thereof.d. Whether credit life or credit disability will be required of the borrower as a condition of making the loan.N.D. Admin Code 13-05-01-04
Effective February 1, 1984; amended effective April 1, 2013.General Authority: NDCC 13-04.1-01
Law Implemented: NDCC 13-04.1-01, 13-04.1-06, 13-04.1-07