Chapter 286

2005 -- S 0478 SUBSTITUTE A AS AMENDED

Enacted 07/15/05

 

A N A C T

RELATING TO TAX SALES

     

     Introduced By: Senators Metts, Pichardo, C Levesque, and Perry

     Date Introduced: February 10, 2005  

 

 

It is enacted by the General Assembly as follows:

 

     SECTION 1. Section 42-55-7 of the General Laws in Chapter 42-55 entitled "Rhode

Island Housing and Mortgage Finance Corporation" is hereby amended to read as follows:

     42-55-7. Powers relative to purchase of and sale to mortgage lenders of loans --

Loans to mortgage lender. -- The corporation shall have all the powers necessary or convenient

to carry out and effectuate the purposes and provisions of this chapter, including the following

powers in addition to others granted in this chapter:

      (1) To invest in, purchase or to make commitments to purchase, and take assignments

from mortgage lenders, of notes and mortgages evidencing loans for the construction,

rehabilitation, installation of energy saving improvements to, purchase, leasing, or refinancing of

housing for persons and families of low and moderate income or health care facilities in this state

upon the terms set forth in section 42-55-10;

      (2) To make loans to mortgage lenders under terms and conditions requiring the

proceeds to be used by those mortgage lenders for the making of new residential mortgages or

health care facilities upon the terms set forth in section 42-55-10;

      (3) To make commitments to purchase, and to purchase, service and sell federally

insured mortgages, and to make loans directly upon the security of a mortgage, provided the

underlying mortgage loans shall have been made and shall be continued to be used solely to

finance or refinance the construction, rehabilitation, purchase, or leasing of residential housing

for persons and families of low and moderate income or health care facilities in this state;

      (4) To sell, at public or private sale, with or without public bidding, any mortgage or

other obligation held by the corporation;

      (5) Subject to any agreement with bondholders or noteholders, to collect, enforce the

collection of, and foreclose on any collateral securing its loans to mortgage lenders and acquire or

take possession of the collateral and sell it at public or private sale, with or without public

bidding, and otherwise deal with such collateral as may be necessary to protect the interest of the

corporation therein. ;

     (6) To make or participate in the making of mortgage loans to persons of low or moderate

income and owners of property subject to tax sale for the purpose of extinguishing tax liens,

redeeming tax titles or preventing loss of property due to nonpayment of taxes. Any loan made

pursuant to this paragraph may be secured by a mortgage or otherwise, shall be repaid, shall bear

interest and shall be upon any terms and conditions that may be determined by the corporation;

     (7) To acquire at tax sale liens on one to four (4) family residential properties, to hold the lien

while endeavoring to assist the property owner with retaining ownership, to hold and sell the

property where consistent with the purpose of the corporation to encourage home ownership,

particularly by low-income persons, productive and beneficial use of property, and other purposes

of the corporation, and to adopt rules and regulations necessary to carry this program into effect.

     SECTION 2. This act shall take effect upon passage.     

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LC01377/SUB A/3

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