32-5-505. Security. A holder of a supplementary license may take a security interest in personal property to secure an open-end loan and may retain the security interest until the open-end account is terminated. A holder of a supplementary license may take a security interest in real property to secure an open-end loan and may retain the security interest until the open-end account is terminated. However, if there is no outstanding balance in the account and there is no commitment by the licensee to make additional advances, the licensee shall, within 30 days following written request by the borrower, deliver to the borrower a release of the mortgage or a request for reconveyance of the deed of trust or trust indenture on any real property taken as security for a loan.

     History: En. Sec. 5, Ch. 218, L. 1981; amd. Sec. 7, Ch. 374, L. 1997.