26 Jun California, Idaho, Maryland, and Minnesota Legislative and Massachusetts Regulatory Update
The California legislature recently amended its laws governing equity lines of credit. The Idaho legislature recently amended its laws regarding a claim of lien. The Maryland legislature recently amended its laws governing property subject to a ground lease. The Minnesota legislature recently amended its laws governing the foreclosure notice requirements. The Massachusetts Division of Banks has issued a decision establishing the maximum allowable fee for dishonored checks. The Massachusetts letter was dated June 1, 2015; the states’ legislation is effective July 1, 2015.
CALIFORNIA ASSEMBLY BILL 1770
When a lender receives a “Borrower’s Instruction to Suspend and Close Equity Line of Credit,” from the lender that has been prepared and presented to the borrower by the lender and signed by a borrower, a lender must suspend the equity line of credit for a minimum of 30 (previously 45) days.
The above provisions are effective until July 1, 2019.
IDAHO SENATE BILL 1135
An owner or a reputed owner of real property must be served a claim of lien when filed within 90 days after the completion of the labor or services, or furnishing of materials. However, the terms “owner” or “reputed owner” do not include a trustee of a deed of trust.
MARYLAND HOUSE BILL 511
If the leasehold tenant is in default under a security instrument, the holder of the secured interest in the property that is subject to a ground lease, or any portion of a ground lease, that is recorded in the land records of the county in which the property is located may apply to the State Department of Assessments and Taxation to redeem the reversionary interest.
If a holder of a secured interest applies to redeem a reversion as authorized, the holder also must pay to the ground lease holder the outstanding amount due, including, if authorized under the ground lease, reasonable late fees, interest, collection costs, and expenses.
A holder of a secured interest in the property that is subject to the ground lease, or any portion of the ground lease, that is recorded in the land records of the county in which the property is located may cure the default by paying the outstanding amount due, including, if authorized under the ground lease, reasonable late fees, interest, collection costs, and expenses subject to the same provisions that are applicable to a leasehold tenant who cures a default after receiving notice or receiving personal service of process in an action filed if the default is not cured.
MINNESOTA SENATE FILE 1147
For purposes of the mortgage foreclosure by advertisement publication requirement, publication of the notice of sale is sufficient if it occurs:
- In a qualified newspaper having its known office of issue located in the county where the mortgaged premises, or some part of the mortgaged premises are located; or
- In a qualified newspaper having its known office of issue located in an adjoining county, if the publisher of the newspaper states, in the required sworn affidavit of publication that a substantial portion of the newspaper’s circulation is in the county where the mortgaged premises, or some part of the mortgaged premises are located.
In all cases, the affidavit of publication must state the county where the newspaper’s known office of issue is located and that the newspaper complies with the conditions described above.
MASSACHUSETTS DIVISION OF BANKS DECISION
The maximum allowable fee Massachusetts state-chartered banks and credit unions may assess certain consumer deposit accounts for processing dishonored checks, otherwise referred to as deposit return items (DRI), is $6.84.