H.B. 264
         REVISOR'S STATUTE

house floor Amendments

Amendment 1 January 15, 2007 3:18 pm



Representative Stephen H. Urquhart proposes the following amendments:

1.    Page 3, Line 74 :    

             74          
{   57-15-8.5, as enacted by Chapter 224, Laws of Utah 1981   }


2.    Page 79, Line 2424 through Page 80, Line 2454 :    

             2424          
{   Section 52. 57-15-8.5 is amended to read:

             2425          57-15-8.5. Acceleration -- Conditions authorizing -- Exemption of loans sold to
             2426      federal agencies.
             2427          (1) Notwithstanding the provisions of Sections 57-15-2 and 57-15-4 , a lender or
             2428      secured party may accelerate or mature an indebtedness upon assumption of that indebtedness
             2429      if:
             2430          [(1)] (a) a written agreement with, or a written instrument executed by, the obligor on
             2431      the indebtedness allows the secured party or lender to accelerate or mature the indebtedness
             2432      and/or increase the interest rate thereon upon assumption of the indebtedness; [and]
             2433          [(2)] (b) (i) the secured party or lender has offered to accept the assumption without
             2434      acceleration and without maturing the indebtedness provided the assumer agree to pay the
             2435      secured party or lender not more than a 1% assumption fee, a not more than 1% interest rate
             2436      increase effective as of the date of assumption, whichever is earlier, and a further not more than
             2437      1% interest rate increase effective a date five years after the date of assumption, whichever is
             2438      earlier[. Neither of said]; and
             2439          (ii) that neither of the interest rate increases in Subsection (1)(b)(i) may cause the total
             2440      interest rate on the indebtedness to exceed 1% below the weighted average yield of the Federal
             2441      Home Loan Mortgage Corporation weekly auction for purchases of mortgages secured by
             2442      residential 1 to 4 family dwellings in effect on the date of the increase; and
             2443          [(3)] (c) the assumer has refused to consent to such assumption fee and interest rate
             2444      increases.
             2445          (2) As used in this section, [the term] "obligor" [shall mean] means the original
             2446      borrower or, if the secured party or lender has previously approved, and pursuant to that
             2447      approval there has been effected, an assumption of the indebtedness, the person last approved
             2448      as an assumer and who has assumed the indebtedness.
             2449          (3) If a determination is made by the Federal National Mortgage Association or by the
             2450      Federal Home Loan Mortgage Corporation that it will not purchase Utah mortgage loans
             2451      because of the effects of this [act] chapter, and such determination is communicated in writing

             2452      to the Legislature or governor of this state, then this [act] chapter will not apply, after receipt of
             2453      such communication, to any mortgages originated after the effective date of this [act] chapter
             2454      and sold to the entity making such determination.   }

Renumber remaining sections accordingly.

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hb0264.hfa.01.wpd LRGC cpeterson cpeterson