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286.5-501 Payment of expenses of loan -- Payments in lieu.
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Every association may require borrowing members to pay all reasonable
expenses incurred in connection with the making, closing, disbursing,
extending, readjusting, or renewing of real estate loans. Without limiting the
generality of the foregoing, such expenses may include appraisal, attorneys'
fees, abstract, recording, and registration fees, title examination, title
insurance, mortgage insurance, credit report, survey, drawing of papers,
escrow services, loan closing costs, and taxes or charges imposed upon or in
connection with the making and recording of any mortgage.
Every association also may require borrowing members to pay the cost of all
other necessary and incidental services rendered by the association or by
others in connection with real estate loans in such reasonable amounts as may
be fixed by the board of directors. Without limiting the generality of the
foregoing, such costs may include the costs of services of inspectors,
engineers, and architects.
Such initial charges may be collected by the association from the borrower and
paid to any person, including any director, officer, or employee of the
association rendering such services, or paid directly by the borrower.
In lieu of such initial charges to cover such expenses and costs, an association
may make a reasonable charge, part or all of which may be retained by the
association which renders such service, or part or all of which may be paid to
others who renders such services.
The fees and charges authorized by this section and KRS 286.5-491 shall be
in addition to interest authorized by law, and shall not be deemed to be a part
of the interest collected or agreed to be paid on such loans within the meaning
of any law of this Commonwealth which limits the rate of interest which may be
exacted in any transaction.
Effective:June 18, 1964
History: Created 1964 Ky. Acts ch. 138, sec. 31, effective June 18, 1964.
Formerly codified as KRS 289.501.
Legislative Research Commission Note (7/12/2006). In accordance with 2006
Ky. Acts ch. 247, secs. 38 and 39, this statute has been renumbered as a
section of the Kentucky Financial Services Code, KRS Chapter 286, and KRS
references within this statute have been adjusted to conform with the 2006
renumbering of that code.
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