N.J. Admin. Code § 3:1-14.2

Current through Register Vol. 56, No. 23, December 2, 2024

Section 3:1-14.2 - Revolving credit equity loan agreement

(a) A revolving credit equity loan shall be made pursuant to an agreement between the bank, savings bank or savings and loan association and the borrower whereby:

1. The bank, savings bank or savings and loan association may permit the borrower to obtain advances of money from the bank, savings bank or savings and loan association from time to time or the bank, savings bank or savings and loan association may advance money on behalf of the borrower from time to time as directed by the borrower.

2. The amount of each advance and permitted interest charges and/or insurance charges are debited to the borrower's account and payments and credits are credited to the same account;

3. Interest is computed on the unpaid principal balance of the account from time to time; and

4. The borrower has the privilege of paying the account in full at any time or, if the account is not in default, in monthly installments of fixed or determinable amounts as provided in the agreement.

N.J. Admin. Code § 3:1-14.2