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The credit limit under an open-end mortgage may be reduced by the borrower, whether the advances to be made thereunder are obligatory or optional, to an amount not less than the amount of principal indebtedness shown on the most recent statement of the borrower's account received by the borrower from the creditor, plus the amount of any advances initiated by the borrower subsequent to that statement.
In order to effectuate such a reduction in the credit limit, the borrower must:
Serve a notice of limitation on the creditor substantially in accordance with the provisions of the mortgage and of this chapter; and
On or before the effective date of the notice, file a copy thereof for recordation in the appropriate register's office as an amendment to the mortgage.
Upon the recording of a notice of limitation in the appropriate register's office, the notice of limitation becomes irrevocable, and shall not be modified, amended, or rescinded.
In order to be effective, any such notice of limitation must be in substantial compliance with the following requirements:
It must name the creditor on whom the notice is served;
It must state specifically the reduced credit limit;
It must state the effective date of such limitation, which date cannot be sooner than one (1) regular business day after the date of the service of the notice;
It must name all parties to the open-end credit agreement and the mortgage securing the same;
It must identify with reasonable specificity the real property subject to the mortgage;
It must give any account number assigned to the account of the open-end credit agreement; and
It must be signed by all persons principally obligated to repay advances under the open-end credit agreement.
From and after the service of such a notice of limitation, the borrower shall not request or demand any further advances under the open-end credit agreement that exceed the credit limit stated in the notice, and the creditor will be relieved and released from any obligation or commitment to make advances thereunder that exceed that reduced credit limit.