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both the borrower's aggregate number of monthly debt payments | | and the aggregate amount paid by the borrower over the term of | | the high-rate, high-fee mortgage. |
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| | | 13-B.__A creditor may not recommend or encourage default or | | further default by a borrower on an existing loan or other | | debt prior to the closing of a high-rate, high-fee mortgage | | that refinances all or any portion of the existing loan or | | debt. |
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| | | 13-C.__Beginning January 1, 2004, a lender that makes a | | high-rate, high-fee mortgage to a borrower and offers the | | borrower the option to purchase an individual or group credit | | life, accident, health, disability or unemployment insurance | | product on a prepaid single premium basis must also offer the | | borrower the option of purchasing that insurance product on a | | monthly premium basis. |
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| | | If a borrower purchases from a lender an individual or group | | credit life, accident, health, disability or unemployment | | insurance product, that borrower has the right to cancel the | | insurance product at any time and receive a refund of any | | unearned premiums paid.__Notice of the right to cancel must be | | sent by mail to the borrower by the lender no later than 30 | | days after consummation.__The notice must also disclose the | | type of insurance product purchased, the cost of the product | | and the procedure for canceling the product. |
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| | | Sec. 7. 9-A MRSA §8-206-A, sub-§§16-A, 16-B and 18 are enacted to read: |
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| | | 16-A.__The lender and any assignee of the lender have the | | obligation, jointly and severally, to refund or credit the | | borrower for any default charges, prepayment penalties or | | prepaid finance charges collected in excess of the limits set | | forth in this article. |
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| | | 16-B.__A high-rate, high-fee mortgage may not include a call | | provision that permits the lender, in its sole discretion, to | | accelerate the indebtedness.__This subsection does not apply | | when repayment of the loan is accelerated by a bona fide | | default, pursuant to a due-on-sale clause provision or | | pursuant to another provision of the loan agreement unrelated | | to the payment schedule, including, but not limited to, | | bankruptcy or receivership. |
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| | | 18.__A political subdivision of this State is prohibited | | from enacting, issuing and enforcing ordinances, resolutions, | | rules, regulations, orders, requests for proposals or requests | | for bids pertaining to the financial lending activities of a | | person who: |
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