Section 14. A lender shall not pay a contractor under a home improvement contract from the proceeds of a high cost home mortgage loan other than (i) by an instrument payable to the borrower or jointly to the borrower and contractor, or (ii) at the election of the borrower, through a third party escrow agent in accordance with terms established in a written agreement signed by the borrower, the lender and the contractor before the disbursement of funds.
Structure Massachusetts General Laws
Part II - Real and Personal Property and Domestic Relations
Title I - Title to Real Property
Chapter 183c - Predatory Home Loan Practices
Section 3 - Certification From Counselor With Third-Party Nonprofit Organization
Section 4 - Obligor's Ability to Make Payments; Presumption
Section 5 - Prepayment Fees and Penalties
Section 6 - Limitation on Financing of Points and Fees
Section 7 - Interest Rate Increases
Section 8 - Limitation on Scheduled Payments
Section 9 - Demand for Repayment
Section 10 - Periodic Payment Schedule
Section 11 - No Fee to Modify or Defer Payment
Section 12 - Consolidation of Payments
Section 13 - Forum for Disputes
Section 14 - Lender's Payment of Contractor
Section 15 - Affirmative Claims and Defenses Available; Applicability
Section 16 - Default in Connection With Refinancing