Loans (Repealed)

(a) The loans shall be limited to first mortgage permanent loans and first mortgage construction-permanent loans. (b) No construction loan period in a construction-permanent loan shall be in excess of twelve months from the date of closing, except that this date of maturity may be extended with the approval of the commissioner. (c) All loans, both permanent and construction-permanent, shall have a maturity satisfactory to the commissioner, but not in excess of thirty years from the date of the loan. (d) Each loan shall contain complete amortization provisions satisfactory to the commissioner. The sum of principal and interest payments shall be substantially the same in each month and shall come due on the first of the month. (e) Each note evidencing a loan and the mortgage securing such loan shall be on forms approved by the commissioner. (f) Disbursements of construction-permanent loans will be made in instalments. No disbursement shall exceed a reasonable percentage of the value of the work in place at the time the disbursement is made, less the amount of previous disbursement. The number of instalments and the stages at which they will be made shall be indicated clearly in the loan application and in the loan agreement and shall meet with the approval of the commissioner. In no event shall the aggregate of the disbursements made under a construction-permanent loan prior to the issuance of a final compliance inspection report by the commissioner exceed eighty per cent of the principal amount of such construction-permanent loan as written. (g) Commitments to make construction-permanent loans shall be cancellable at the will of the commissioner when construction has not been started within a reasonable period of time. (h) Each mortgage shall provide that the mortgagor will pay to the mortgagee on the first day of each month such equal monthly payments as will amortize the estimated amount of all taxes, special assessments, if any, and premiums on fire and other hazard insurance as may be required by the commissioner, within a period ending one month prior to the dates on which the same become delinquent, and that the mortgagee will hold such payments for the purpose of paying such taxes, assessments and insurance premiums before the same become delinquent for the benefit and account of the mortgagor. The mortgage shall also make provision for adjustments in case the estimated amount of such taxes, assessments and insurance premiums prove to be more, or less, than the actual amount thereof as paid by the mortgagor. (i) The monthly payments made by the mortgagor to the mortgagee as provided in subsections (d) and (h) of this section shall be applied by the mortgagee in the following order: (1) Taxes, special assessments, premiums on fire and other hazard insurance, as may be required by the commissioner; (2) interest on the mortgage, and (3) amortization of the principal of the mortgage. Any deficiency in the amount of any such aggregate monthly payment shall, unless made good by the mortgagor prior to or on the due date of the next such payment, constitute an event of default under the mortgage. (j) Each mortgage shall provide for a charge by the mortgagee of a "late charge" not to exceed three cents for each dollar of each payment more than fifteen days in arrears to cover the extra expense involved in handling delinquent payments. (k) The mortgagor shall pay to the state upon the execution of the mortgage a sum that will be sufficient to pay the estimated taxes, special assessments and premiums on fire and other hazard insurance, as may be required by the commissioner, for the period beginning on the date to which such taxes, assessments and insurance premiums were last paid and ending on the date of the first monthly payment under the mortgage. (See G.S. §§ 8-97(a), 8-98.)