NORTH CAROLINA GENERAL ASSEMBLY

1971 SESSION

 

 

CHAPTER 1122

HOUSE BILL 1210

 

 

AN ACT TO AMEND G.S. 24-1.2 TO LIMIT CERTAIN FIRST MORTGAGE LENDING.

 

The General Assembly of North Carolina enacts:

 

Section 1.  G.S. 24-1.2 is amended by adding thereto the following new subsection:

"(c)       On installment loans not exceeding fifty thousand dollars ($50,000), when secured by a first mortgage or deed of trust on real property where such real property is not used as the principal residence of the borrower, repayable in no less than two (2) years nor more than ten (10) years at least quarterly in substantially equal payments of principal and interest, upon written agreement signed by the parties, the rate of interest shall not exceed ten percent (10%) per annum computed on the outstanding balance. The borrower may prepay all or any part of such loan at any time prior to maturity without penalty."

Sec. 2.  G.S. 24-1.2 is further amended by adding the following additional new subsection:

"(d)      On installment loans not exceeding seven thousand five hundred dollars ($7,500), when secured by a first mortgage or deed of trust on real property, repayable in no less than one (1) year nor more than ten (10) years in substantially equal monthly payments of principal and interest, upon written agreement signed by the parties, the rate of interest shall not exceed ten percent (10%) per annum computed on the outstanding balance. The borrower may prepay all or any part of such loan at any time prior to maturity without penalty."

Sec. 3.  This act shall become effective upon ratification.

In the General Assembly read three times and ratified, this the 21st day of July, 1971.