2015 -- S 0502

========

LC001434

========

     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2015

____________

A N   A C T

RELATING TO PROPERTY - REDEMPTION, RELEASE, AND TRANSFER OF

MORTGAGES

     Introduced By: Senators Lombardi, Jabour, Nesselbush, Conley, and Archambault

     Date Introduced: February 26, 2015

     Referred To: Senate Judiciary

     It is enacted by the General Assembly as follows:

     SECTION 1. Section 34-26-7 of the General Laws in Chapter 34-26 entitled

"Redemption, Release, and Transfer of Mortgages" is hereby amended to read as follows:

     34-26-7. Certain ancient mortgages becoming void unless continued. -- On and after

January 1, 1989, no power of sale in any mortgage of real estate, except mortgages made by

public utilities, then now or thereafter hereafter of record shall be exercised and no entry shall be

made nor possession taken nor proceeding begun for foreclosure of any such mortgage after the

expiration of a period which shall be fifty (50) thirty-five (35) years from the date of recording of

the mortgage or in the case of a mortgage in which the term or maturity date is stated, five (5)

years from the expiration of the term or maturity date, unless an extension of the mortgage, or an

acknowledgment by affidavit of the mortgagee that the mortgage is not satisfied, is recorded

within the last ten (10) years of that period before the expiration of the applicable time period. In

case an extension of the mortgage or such an acknowledgment by affidavit is so recorded, the

period shall continue until ten (10) five (5) years shall have elapsed during which there is not

recorded any further extension of the mortgage or acknowledgment or affidavit that the mortgage

is not satisfied. The period shall not be extended by reason of a longer duration of the debt or the

obligation secured being stated in the mortgage or in any extension of the mortgage, or otherwise,

or by nonresidence or disability of any person interested in the mortgage or the real estate, or by

any partial payment, agreement, extension, acknowledgment, affidavit or other action not meeting

the requirements of this section. All extensions, agreements, affidavits and acknowledgments

shall be indexed in the land evidence records under the name of the present landowner. Upon the

expiration of the applicable period provided herein, the mortgage shall be treated for title

purposes as if it had been properly discharged by the record holder thereof.

     SECTION 2. This act shall take effect one year from its date of passage.

========

LC001434

========

LC001434 - Page 2 of 3

EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO PROPERTY - REDEMPTION, RELEASE, AND TRANSFER OF

MORTGAGES

***

     This act would clarify and reduce the time after which a recorded mortgage would be

unenforceable against real estate securing the mortgage.

     This act would take effect one year from its date of passage.

========

LC001434

========

LC001434 - Page 3 of 3