§ 53-261. Taxes, insurance, and assessments. - North Carolina Statutes

§53‑261.  Taxes, insurance, and assessments.

A reverse mortgage loancontract may provide that it is the primary obligation of the borrower to payall property taxes, insurance premiums, and assessments in a timely manner, andthat the failure of the borrower to make these payments and to provide evidenceof payment to the lender may constitute grounds for default of the loan.  Areverse mortgage loan contract shall state that if a borrower fails to payproperty taxes, insurance premiums, or assessments, the lender may choose, atthe lender's option, to pay the amounts due, charge them to the reversemortgage loan, and recalculate regularly scheduled payments under the loan toaccount for the increased outstanding loan balance. (1991, c. 546, s. 1; 1995, c.115, s. 1.)