Restrictions on interest in land as security.

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(1) With respect to a consumer loan in which the amount financed is three thousand dollars or less, a lender may not contract for an interest in land as security. A security interest taken in violation of this section is void.

(2) For the purposes of this section, on revolving credit accounts, the amount financed shall be determined by the limit in the amount of credit made available to or for the account of the consumer if that limit is established by an express written agreement by the lender and if the lender does not retain the right to unilaterally reduce that credit limit, except in the event of default.

Source: L. 2000: Entire article R&RE, p. 1219, § 1, effective July 1.

Editor's note: This section is similar to former § 5-3-510, as it existed prior to 2000.


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