70-32-221. Homestead subject to execution for certain judgments -- separate acknowledgment required. (1) If a borrower borrowing money from a regulated lender, as defined in 31-1-111, or a farm credit system lender encumbers real property that otherwise would qualify as a homestead under Title 70, chapter 32, the lender shall require the borrower to sign a written statement acknowledging that the real property is not exempt from execution as a homestead because under 70-32-202 it is subject to execution or forced sale to satisfy a judgment obtained on a debt secured by a mortgage or other encumbrance on the premises. The written acknowledgment may be in a document separate from, or may be included in, the loan agreement or loan documents and must be printed in capital letters of not less than 10-point boldfaced type and signed separately by the borrower.
     (2) The lender shall retain a copy of the acknowledgment provided for in subsection (1) until the mortgage or other encumbrance is paid or otherwise satisfied or discharged unless the acknowledgment is of record in the office of the clerk and recorder.

     History: En. Sec. 1, Ch. 590, L. 1987; amd. Sec. 2, Ch. 294, L. 1991.