Plain Text Law

Regulation .05 Ability to Repay.

Regulation .05 Ability to Repay.Copy Citation

A lender offering a shared appreciation agreement is deemed to have given due regard to a borrower’s ability to repay if disclosures are provided by the lender to the borrower in compliance with Regulation .02 of this chapter, provided that:
A.
The shared appreciation agreement does not require periodic payments prior to termination of the agreement; and
B.
The term of the shared appreciation agreement is no less than 5 years.