Section 206 – Disbursement.

• (1) Subject to Subsection (2) and except as provided in Subsection (3), a lender shall pay the loan proceeds of a reverse mortgage under a term payment option, a tenure payment option, or a line of credit payment option.

• (2) Under a term payment option or a tenure payment option, upon a borrower’s request, the lender shall disburse a portion of the loan proceeds under a line of credit payment option.

• (3) If a reverse mortgage is a fixed interest rate loan, the lender may pay the loan proceeds in a lump sum.

Enacted by Chapter 290, 2015 General Session