Pennsylvania Act 1992-82 — SECONDARY MORTGAGE LOAN ACT - AMEND LICENSEES' RECORDS

Act text

SECONDARY MORTGAGE LOAN ACT - AMEND LICENSEES' RECORDS
                  Act of Jul. 2, 1992, P.L. 387, No. 82               Cl. 07
                             Session of 1992
                               No. 1992-82

     HB 2166

                                  AN ACT

     Amending the act of December 12, 1980 (P.L.1179, No.219),
        entitled "An act to define and regulate secondary mortgage
        loans and providing penalties," further providing for scope
        of act and for licensees' records.

        The General Assembly of the Commonwealth of Pennsylvania
     hereby enacts as follows:

        Section 1.  Sections 10(c) and 20 of the act of December 12,
     1980 (P.L.1179, No.219), known as the Secondary Mortgage Loan
     Act, amended July 7, 1989 (P.L.222, No.36), are amended to read:
      Section 10.  Licensee requirements: records; reports;
                    examinations; receipts; information to be
                    furnished borrower.
        * * *
        (c)  The licensee's accounting records must be constructed
     and maintained in compliance with generally accepted accounting
     principles and all of the aforementioned instruments, documents,
     accounts, books and records shall be kept separate and apart
     from the records of any other business conducted by the licensee
     and shall be preserved and kept available for investigation or
     examination by the secretary for at least two years after a
     secondary mortgage loan has been paid in full, but in the case
     of an open-end loan the two-year period is measured from the
     date of each entry. The provisions of this section shall not
     apply to any instrument, document, account, book or record which
     is assigned, sold or transferred to another secondary mortgage
     loan licensee nor shall the two-year requirement apply to an
     instrument or document which must be returned to the borrower at
     the time a secondary mortgage loan is paid in full.
        * * *
      Section 20.  Scope of act.
        (a)  The provisions of this act shall apply to any secondary
     mortgage loan (except loans secured by real property made
     pursuant to a license issued under any other law of this
     Commonwealth) which:
            (1)  is negotiated, offered, or otherwise transacted
        within this Commonwealth, in whole or in part, whether by the
        ultimate lender or any other person;
            (2)  is made or executed within this Commonwealth; or
            (3)  notwithstanding the place of execution, is secured
        by real property located in this Commonwealth.
        (b)  Notwithstanding subsection (a), the secretary may
     license a branch office in a state contiguous to Pennsylvania,
     provided that the licensee maintains a principal place of
     business in this Commonwealth which is licensed under the
     provisions of this act.
        (c)  Nothing contained in this act shall prohibit any
     licensee from closing any loans made under the provisions of
     this act in the offices of attorneys-at-law licensed by and
     located in this Commonwealth or of title insurance companies or
     agencies licensed by and located in this Commonwealth[, if an
     employee of the licensee is present at the closing of any loan
     which is closed pursuant to the provisions of this subsection].
        Section 2.  This act shall take effect immediately.

     APPROVED--The 2nd day of July, A. D. 1992.

     ROBERT P. CASEY