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We have the borrower sign a form “Additional Loan Proceeds” stating they will not construct or purchase a 1-4 family dwelling including mobile/manufactured housing within 2 years from the date of this loan when making a loan for vacant land purchase.
We have an open end clause in our mortgages, if the borrower comes back later and refinances this loan with us and receives additional proceeds are we required to have this form signed again?
From the information you’ve given, this form appears to be connected to the specific loan. Because of this, in a refinance situation where the original note is paid off and a new loan is made, I believe you would need to have the form signed again in order for it to be applicable to the new transaction.
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