Pennsylvania Act 1968-63 — MORTGAGE LOANS - PREMIUM CHARGES BY LENDER

Act text

MORTGAGE LOANS - PREMIUM CHARGES BY LENDER
                  Act of May 17, 1968, P.L. 122, No. 63               Cl. 12
                                  AN ACT

     Authorizing the charge of a premium for a mortgage loan in
        addition to interest and other charges permitted by law.

        Compiler's Note:  Section 2 of Act 209 of 1970 provided that
            Act 63 is repealed insofar as it is inconsistent with Act
            209.

        The General Assembly of the Commonwealth of Pennsylvania
     hereby enacts as follows:

        Section 1.  A lender who makes a loan secured by a lien on
     real estate obtained by a mortgage or deed may, with the written
     agreement of the borrower, charge the borrower a premium for the
     privilege of being granted such loan in an amount not to exceed
     one percent of the unpaid balance of the loan per annum if the
     premium is collected in installments.
        Section 2.  Such charge shall be valid and may be collected
     in addition to all interest and other costs, charges and
     expenses permitted by law.
        No premium or portion thereof authorized hereunder may be
     collected if the aggregate of the interest on the loan and such
     premium or portion thereof would exceed a maximum rate of seven
     percent.
        Section 3.  This act shall not apply to any such loan
     existing on the effective date of this act or the refinancing
     thereof nor to any such loan contracted for after a period of
     five years from the effective date hereof provided that any
     premium contracted for during such five year period may continue
     to be collected thereafter.
        Section 4.  This act shall take effect immediately.