254-A - Right of election of mortgagee in certain cases.

§ 254-a. Right of election of mortgagee in certain cases. If a bond or  note,  or the mortgage on real property, improved by a one to six family  residence occupied by the owner, securing the payment of same,  contains  (1)  a  provision  whereby the mortgagee retains the right to accelerate  the due date for payment of the balance of principal upon a transfer  or  sale  of  such  real  property  or  by  alienation of title of such real  property due to an act or operation of law,  and  (2)  a  provision  for  payment  of  any  charge,  however  denominated,  in  the  nature  of  a  prepayment fee and if a mortgagor sells or transfers his property or  if  title  to  the  mortgaged property is transferred by act or operation of  law and the purchaser requests permission to assume the mortgage or take  the mortgaged premises subject to the mortgage, but the  mortgagee  does  not  consent  to such request and thereby necessitates prepayment of the  mortgage, the mortgagee shall  not  levy  a  prepayment  fee;  provided,  however,  that  the  provisions  of  this section shall not apply to the  extent  such  provisions  are  inconsistent  with  any  federal  law  or  regulation.