A mortgage with a provision that permits borrowing additional money in the future without refinancing the loan or paying additional finance charges. Open-end provisions often limit such borrowing to no more than the original loan amount.
from Rupp's Insurance & Risk Management Glossary. © 2002, NILS Publishing. All rights reserved.
If the mortgage does not contain open-end language, and the lender advances additional monies without filing a modification of the mortgage, shame on them. I wouldn't think the rules vary much from state to state. Notice is notice.
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