33-420.01. Suspension of line of credit; payoff demand statement; definitions

A. A secured lender under a revolving line of credit against real property shall suspend the revolving line of credit for a minimum of forty-five days on receipt of a request for a payoff demand statement as defined in section 33-715 from an escrow agent who is licensed pursuant to title 6, chapter 7.

B. This section shall not be construed to validate, invalidate or otherwise affect the foreclosure of a mortgage, the exercise of a trustee's power of sale or the exercise of a seller's right to a forfeiture under an agreement for sale of real property.

C. For the purposes of this section:

1. " Revolving line of credit" means an open end revolving loan that is established pursuant to a written agreement between a borrower and a lender in which the lender agrees to lend the borrower money on a continuing basis for as long as the outstanding principal amount owed by the borrower does not exceed a specified amount.

2. " Secured lender" means any one of the following:

(a) A mortgagee on a mortgage.

(b) A beneficiary on a deed of trust.

(c) A person who holds or retains legal title to real property as security for financing the purchase of the real property under an agreement for sale of real property.

(d) A person who holds or retains a security interest in real property to secure the repayment of a loan.

(e) The authorized agent of those listed in this paragraph.

3. " Suspend" means to forbid the borrower from increasing or incurring any additional debt on the revolving line of credit.