2015 -- S 0502 SUBSTITUTE A

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LC001434/SUB A

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2015

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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, and non-amortizing mortgages made by Rhode Island housing and mortgage

finance corporation 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.

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO PROPERTY - REDEMPTION, RELEASE, AND TRANSFER OF

MORTGAGES

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

unenforceable against real estate securing the mortgage. The act would make an exception for

non-amortizing mortgages made by the Rhode Island housing and mortgage finance corporation.

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

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