NORTH CAROLINA GENERAL ASSEMBLY

1975 SESSION

 

 

CHAPTER 260

HOUSE BILL 322

 

 

AN ACT TO REWRITE G.S. 24-1.1 A REMOVING THE INTEREST RATE CEILING ON HOME LOANS SECURED BY FIRST MORTGAGES OR FIRST DEEDS OF TRUST AND REMOVING PREPAYMENT PENALTIES ON CERTAIN HOME LOANS.

 

The General Assembly of North Carolina enacts:

 

Section 1.  G.S. 24-1.1A as the same appears in the 1974 Cumulative Supplement to Volume ID of the General Statutes is hereby rewritten to read as follows:

"§ 24-1.1A.  Contract rates on home loans secured by first mortgages or first deeds of trust. (a) Notwithstanding any other provision of this Chapter, parties to a home loan secured by a first mortgage or a first deed of trust may contract in writing for the payment of interest as agreed upon by the parties.

(b)        No prepayment fees shall be contracted by the borrower and lender with respect to any home loan secured by a first mortgage or first deed of trust where the principal amount borrowed is one hundred thousand dollars ($100,000) or less. The provisions of G.S. 24-10(b) relating to prepayment fees shall apply to home loans secured by a first mortgage or first deed of trust where the principal amount borrowed is in excess of one hundred thousand dollars ($100,000).

(c)        Except as limited by subsection (b) above, a lender may charge to the borrower the fees provided in G.S. 24-10.

(d)        The loans or investments regulated by G.S. 53-45 shall not be subject to the provisions of this section.

(e)        The term 'home' shall mean real estate upon which there is located or there is to be located one or more single family dwellings or dwelling units."

Sec. 2.  Any real estate obligation existing before the effective date of this act shall be construed with regard to interest rates pursuant to the laws existing prior to April 3, 1974, and this act shall only apply to loans or loan commitments made after the effective date of this act.

Sec. 3.  If any provision of this Chapter or its application to any person or circumstance is held invalid, the remainder of this Chapter and its application to other persons or circumstances shall not be affected thereby.

Sec. 4.  This act shall become effective upon ratification and shall expire on June 30, 1977.

In the General Assembly read three times and ratified, this the 12th day of May, 1975.