2017 -- H 5199 SUBSTITUTE A | |
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LC000193/SUB A | |
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STATE OF RHODE ISLAND | |
IN GENERAL ASSEMBLY | |
JANUARY SESSION, A.D. 2017 | |
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A N A C T | |
RELATING TO PUBLIC UTILITIES AND CARRIERS - PROPERTY ASSESSED CLEAN | |
ENERGY PROGRAM | |
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Introduced By: Representative Marvin L. Abney | |
Date Introduced: January 25, 2017 | |
Referred To: House Finance | |
(by request) | |
It is enacted by the General Assembly as follows: | |
1 | SECTION 1. Section 39-26.5-6 of the General Laws in Chapter 39-26.5 entitled |
2 | "Property Assessed Clean Energy Program" is hereby amended to read as follows: |
3 | 39-26.5-6. Priority of PACE lien. |
4 | (a) A PACE lien on a residential property shall be: subordinate to all liens on the |
5 | residential property in existence at the time the residential PACE lien is filed; subordinate to a |
6 | first mortgage on the residential property recorded after such PACE lien is filed; and superior to |
7 | any other lien on the residential recorded after such PACE lien is filed. This subsection shall not |
8 | affect the status or priority of any other municipal or statutory lien. |
9 | (b) At the time of a transfer of property ownership of a residential property, including by |
10 | foreclosure, the past due balances of any special assessment under this chapter shall be due for |
11 | payment. In the event of a foreclosure action, the past due balances shall include all payments on |
12 | a PACE assessment that are due and unpaid as of the date of the foreclosure. Unless otherwise |
13 | agreed by the PACE lender, all payments on the PACE assessment that become due after the date |
14 | of transfer by foreclosure or otherwise shall continue to be secured by a PACE lien on the PACE |
15 | property and shall be the responsibility of the transferee. |
16 | (c) A PACE lien on a commercial property shall be: senior to all liens on the commercial |
17 | property in existence at the time the PACE lien is filed, subject to the consent of the senior |
18 | mortgage holder on the property; senior to all liens filed or recorded after the time the PACE lien |
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1 | is created; but junior to a municipal tax lien. |
2 | (d) At the time of a transfer of property ownership of a commercial property, including |
3 | by tax sale, in accordance with §44-9-32, or foreclosure, the past due balances of any PACE |
4 | assessment under this chapter shall be due for payment. Unless otherwise agreed by the PACE |
5 | lender, all payments of PACE assessments that become due after the date of transfer by tax sale, |
6 | in accordance with §44-9-32, or foreclosure, or otherwise shall be secured by a PACE lien on the |
7 | PACE property and shall be the responsibility of the transferee. |
8 | SECTION 2. This act shall take effect on March 1, 2017. |
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LC000193/SUB A | |
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EXPLANATION | |
BY THE LEGISLATIVE COUNCIL | |
OF | |
A N A C T | |
RELATING TO PUBLIC UTILITIES AND CARRIERS - PROPERTY ASSESSED CLEAN | |
ENERGY PROGRAM | |
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1 | This act would include a tax sale as a transfer of property ownership that would trigger |
2 | the past due balances of any PACE assessment. |
3 | This act would take effect on March 1, 2017. |
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LC000193/SUB A | |
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