As used in this subchapter:

1. (1) Financial institution. “Financial institution” means a financial institution as defined in subdivision 10202(5) of this chapter.

2. (2) Reverse mortgage loan. “Reverse mortgage loan” means a loan that:

   1. (A) is a loan in which the committed principal amount is secured by a mortgage on residential property owned by the borrower;
   2. (B) is due upon sale of the property securing the loan or upon the death of the last surviving borrower or upon the borrower terminating use of the real property as a principal residence or upon the borrower’s default;
   3. (C) provides cash advances to the borrower based upon the equity or the value in the borrower’s owner-occupied principal residence; and
   4. (D) requires no payment of principal or interest until the entire loan becomes due and payable.

(Added 2009, No. 53, § 4; amended 2021, No. 105 (Adj. Sess.), § 283, eff. July 1, 2022.)