The Arizona Revised Statutes have been updated to include the revised sections from the 53rd Legislature, 2nd Regular Session. Please note that the next update of this compilation will not take place until after the conclusion of the 54th Legislature, 1st Regular Session, which convenes in January 2019.
This online version of the Arizona Revised Statutes is primarily maintained for legislative drafting purposes and reflects the version of law that is effective on January 1st of the year following the most recent legislative session. The official version of the Arizona Revised Statutes is published by Thomson Reuters.
33-420.01 - Suspension of line of credit; payoff demand statement; definitions
33-420.01. Suspension of line of credit; payoff demand statement; definitions
A. A secured lender under a revolving line of credit against real property shall suspend the revolving line of credit for a minimum of forty-five days on receipt of a request for a payoff demand statement as defined in section 33-715 from an escrow agent who is licensed pursuant to title 6, chapter 7.
B. This section shall not be construed to validate, invalidate or otherwise affect the foreclosure of a mortgage, the exercise of a trustee's power of sale or the exercise of a seller's right to a forfeiture under an agreement for sale of real property.
C. For the purposes of this section:
1. "Revolving line of credit" means an open end revolving loan that is established pursuant to a written agreement between a borrower and a lender in which the lender agrees to lend the borrower money on a continuing basis for as long as the outstanding principal amount owed by the borrower does not exceed a specified amount.
2. "Secured lender" means any one of the following:
(a) A mortgagee on a mortgage.
(b) A beneficiary on a deed of trust.
(c) A person who holds or retains legal title to real property as security for financing the purchase of the real property under an agreement for sale of real property.
(d) A person who holds or retains a security interest in real property to secure the repayment of a loan.
(e) The authorized agent of those listed in this paragraph.
3. "Suspend" means to forbid the borrower from increasing or incurring any additional debt on the revolving line of credit.