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

     

     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:

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     SECTION 1. Section 39-26.5-6 of the General Laws in Chapter 39-26.5 entitled

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"Property Assessed Clean Energy Program" is hereby amended to read as follows:

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     39-26.5-6. Priority of PACE lien.

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     (a) A PACE lien on a residential property shall be: subordinate to all liens on the

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residential property in existence at the time the residential PACE lien is filed; subordinate to a

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first mortgage on the residential property recorded after such PACE lien is filed; and superior to

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any other lien on the residential recorded after such PACE lien is filed. This subsection shall not

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affect the status or priority of any other municipal or statutory lien.

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     (b) At the time of a transfer of property ownership of a residential property, including by

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foreclosure, the past due balances of any special assessment under this chapter shall be due for

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payment. In the event of a foreclosure action, the past due balances shall include all payments on

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a PACE assessment that are due and unpaid as of the date of the foreclosure. Unless otherwise

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agreed by the PACE lender, all payments on the PACE assessment that become due after the date

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of transfer by foreclosure or otherwise shall continue to be secured by a PACE lien on the PACE

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property and shall be the responsibility of the transferee.

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     (c) A PACE lien on a commercial property shall be: senior to all liens on the commercial

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property in existence at the time the PACE lien is filed, subject to the consent of the senior

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mortgage holder on the property; senior to all liens filed or recorded after the time the PACE lien

 

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is created; but junior to a municipal tax lien.

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     (d) At the time of a transfer of property ownership of a commercial property, including

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by tax sale, in accordance with §44-9-32, or foreclosure, the past due balances of any PACE

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assessment under this chapter shall be due for payment. Unless otherwise agreed by the PACE

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lender, all payments of PACE assessments that become due after the date of transfer by tax sale,

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in accordance with §44-9-32, or foreclosure, or otherwise shall be secured by a PACE lien on the

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PACE property and shall be the responsibility of the transferee.

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     SECTION 2. This act shall take effect on March 1, 2017.

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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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     This act would include a tax sale as a transfer of property ownership that would trigger

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the past due balances of any PACE assessment.

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     This act would take effect on March 1, 2017.

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