Future Loans and After-Acquired Property

SECTION 34-25-8

§ 34-25-8. Open-end mortgages.

Whenever a mortgage deed in statutory form or other form mortgaging real property is clearly entitled at the beginning thereof "Open-end mortgage to secure present and future loans under chapter 25 of title 34" and in all other respects complies with the requirements of § 34-25-9, the mortgage deed shall be security from the time of its recording in the records for recording real estate mortgages in the city or town in which the real property mortgaged therein is located for all mortgage debt secured thereby at the time of recording and for all future advances secured thereby in an aggregate principal amount outstanding at any time not to exceed the stated amount of such mortgage deed, whether or not the future advances are agreed to be made at the time of recording such mortgage deed and whether or not the mortgages readvances principal sums repaid. The mortgage shall also be security for interest, taxes, insurance premiums and such other obligations as are undertaken by the mortgagor in the mortgage deed or in the note or notes or agreement secured thereby, notwithstanding that the interest, taxes, insurance premiums and other obligations, when added to the total principal amount of such loans outstanding at any time may cause the amount secured by the mortgage deed to exceed the stated maximum amount. The application of this section shall be retroactive to June 1, 1983.

History of Section.
(P.L. 1983, ch. 230, § 1; P.L. 1984, ch. 238, § 1.)