1997 Regular Session
To: Banks and Banking
By: Representative Davis (7th)
House Bill 1025
(As Passed the House)
AN ACT TO PROHIBIT MORTGAGE LENDERS FROM REQUIRING DEBTORS TO PROCURE INSURANCE FOR THE PROTECTION OF REAL PROPERTY IN AN AMOUNT THAT EXCEEDS THE REPLACEMENT COST OF STRUCTURES OR IMPROVEMENTS ON THE PROPERTY AT THE TIME OF THE LOAN OR EXTENSION OF CREDIT; AND FOR RELATED PURPOSES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:
SECTION 1. A person, firm, partnership, corporation, association, or other legal entity, including a bank, savings and loan association, savings bank, credit union, mortgage banker, or other business entity that lends money or extends credit, may not require, in connection with a loan or extension of credit secured by real property, that the debtor procure insurance for the protection of the property against damage or destruction in an amount that exceeds the replacement cost of the structure or improvements existing on the secured property at the time of the loan or extension of credit.
SECTION 2. This act shall take effect and be in force from and after July 1, 1997.