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General Assembly Substitute Bill No. 7388
January Session, 2019
AN ACT PROTECTING A MORTGAGOR FROM AN UN REASONABLE
INVASION OF HIS OR HER PRIVACY BY A MORTGAGE HOLDER .
Be it enacted by the Senate and House of Representatives in General
Assembly convened:
Section 1. (NEW) (Effective October 1, 2019) (a) As used in this 1
section: 2
(1) "Mortgage" means a mortgage deed, deed of trust or other 3
equivalent consensual security interest on residential real property 4
securing a loan made primarily for personal, family or household 5
purposes that is first in priority over any other mortgages or liens 6
encumbering the residential real property, except those liens that are 7
given priority over a mortgage pursuant to state or federal law; 8
(2) "Mortgagee" means the owner or servicer of the debt secured by 9
a mortgage; 10
(3) "Mortgagor" means the owner-occupant of residential real 11
property located in this state who is also the borrower under the loan 12
that is secured by a mortgage and includes the heirs or assigns of the 13
mortgagor; and 14
(4) "Residential real property" means a one-to-four-family dwelling 15
occupied as a residence by a mortgagor. 16 Substitute Bill No. 7388
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(b) No property preservation clause set forth in any mortgage 17
permitting the mortgagee the right to secure, preserve or protect the 18
residential real property shall be construed as to permit the mortgagee, 19
or any agent, employee or representative of the mortgagee, to enter 20
upon the residential real property without the permission of the 21
owner, occupant or mortgagor or an order of the superior court for the 22
judicial district in which the property is situated. 23
(c) No mortgagee or any agent, employee or representative of the 24
mortgagee shall enter upon the residential real property secured by the 25
mortgage without the permission of the owner, occupant or mortgagor 26
or an order of the superior court for the judicial district in which the 27
property is situated. 28
(d) On and after October 1, 2019, no mortgagee shall require a 29
mortgagor, as a condition of obtaining a loan, to agree that a 30
mortgagee, or assignee of such mortgagee, has any right to enter the 31
residential real property secured by the mortgage without the 32
permission of the owner, occupant or mortgagor or an order of the 33
superior court for the judicial district in which the property is situated. 34
This act shall take effect as follows and shall amend the following
sections:
Section 1 October 1, 2019 New section
JUD Joint Favorable Subst.