B. For the purposes of this section, penalty does not include:

1. 1. Any fees, payments or other charges that would otherwise be due when the reverse mortgage becomes due and payable.
2. 2. Any closing costs that the agreement states are owed by the borrower if the borrower repays the reverse mortgage in whole before the date in the agreement, if the repayment occurs within five years after the date on which the agreement was made.

C. A reverse mortgage becomes due and payable if any of the following applies:

1. 1. The property is not the principal residence of at least one borrower.
2. 2. A borrower conveys all of the borrower's title in the property and no other borrower retains title.
3. 3. For a period of longer than twelve consecutive months, a borrower fails to occupy the property because of physical or mental illness and the property is not the principal residence of at least one other borrower.
4. 4. A borrower does not perform an obligation under the mortgage.

E. The creditor's or the creditor's assignee's right to collect the outstanding balance of the reverse mortgage under the loan is subject to the applicable statute of limitations for written loan contracts. Notwithstanding any other law, the statute of limitations begins on either of the following:

1. 1. The date that the reverse mortgage becomes due and payable as specified in the agreement.
2. 2. The date the creditor or the creditor's assignee accelerates the loan due to the borrower's default on a provision in the agreement.