Section 303 - Commitments to enter into residential mortgagesA residential mortgage commitment which provides for consummation within some future time following the issuance of the mortgage commitment may be consummated pursuant to the provisions, including interest rate, of such commitment notwithstanding the fact that the maximum lawful rate of interest at the time the residential mortgage is entered into is less than the commitment rate of interest, provided:
(1) The commitment rate of interest does not exceed the maximum lawful interest rate in effect on the date the mortgage commitment was issued;(2) The mortgage commitment when agreed to by the borrower shall constitute a legally binding obligation on the part of the residential mortgage lender to make a residential mortgage loan within a specified time period in the future at a rate of interest not exceeding the maximum lawful rate of interest effective as of the date of commitment offer.1974, Jan. 30, P.L. 13, No. 6, § 303, imd. effective.