2007 Regular Session
To: County Affairs; Judiciary A
By: Representative Lane (By Request)
AN ACT TO PROVIDE THAT BEFORE ANY PERSON MAY MAKE A LOAN OR EXTEND CREDIT FOR THE PURPOSE OF RESIDENTIAL CONSTRUCTION OR IMPROVEMENT, THE LENDER SHALL REQUIRE THE BORROWER TO PROVIDE WRITTEN EVIDENCE THAT THE RESIDENTIAL BUILDER OR REMODELER HOLDS A VALID LICENSE OR IS EXEMPT FROM LICENSURE, AND HAS ANY REQUIRED WORKERS' COMPENSATION INSURANCE; AND FOR RELATED PURPOSES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:
SECTION 1. (1) Before any person or entity may make a loan of money or extend credit to any person or entity for the purpose of residential construction or improvement, the lender shall require the borrower to provide written evidence that the residential builder or remodeler that will be undertaking the residential construction or improvement holds a valid license under Section 73-59-1 et seq. or is exempt under Section 73-59-15, and has workers' compensation insurance, if required. If the residential construction or improvement for which the loan or extension of credit is sought will be undertaken by a contractor who is exempt under Section 73-59-15, the lender shall require the borrower to provide written evidence that the contractor holds a valid license or certificate of responsibility for general construction, and has workers' compensation insurance, if required.
(2) As used in this section, the terms "residential construction," "residential improvement," "residential builder" and "remodeler" shall have the meanings as defined in Section 73-59-1.
SECTION 2. This act shall take effect and be in force from and after July 1, 2007.