§ 39-26.5-4.1. Financing agreements — PACE assessments — PACE liens.
(a) The Rhode Island infrastructure bank or a third-party capital provider may enter into a financing agreement with a qualifying PACE property owner. After such agreement is entered into, and upon notice from the Rhode Island infrastructure bank, the PACE municipality shall: (i) Place a caveat on the land records indicating that a PACE assessment and lien is anticipated upon completion of the PACE project for such property; or (ii) At the direction of the Rhode Island infrastructure bank, levy the PACE assessment and file a lien on the land records on the estimated costs of the PACE project prior to the completion or upon the completion of said PACE project.
(b) PACE assessments levied pursuant to this chapter and the interest, fees, and any penalties thereon shall constitute a lien against the qualifying PACE property on which they are made until they are paid. The lien shall be collected in the same manner as the property taxes of the PACE municipality on real property, including, in the event of default or delinquency, with respect to any penalties, fees, and remedies. Each lien may be recorded and released in the manner provided for property tax liens and if the property is commercial property as defined herein, it shall be subject to the consent of existing mortgage holders. The PACE lien shall take precedence over all other liens or encumbrances except a lien for taxes of the municipality on real property, or if the subject property is residential property as defined herein, the PACE lien shall be subject to any prior recorded mortgage which lien for taxes or pre-recorded residential mortgage shall have priority over the PACE-assessment lien. To the extent PACE assessments are paid in installments and any such installment is not paid when due, the PACE-assessment lien may be foreclosed to the extent of any unpaid installment payments and any penalties, interest, and fees related thereto. In the event the PACE-assessment lien is foreclosed, the PACE-assessment lien shall survive the judgment of foreclosure to the extent of any unpaid installment payments of the PACE assessment secured by the PACE-assessment lien that were not the subject of such judgment.
(c) Any PACE municipality may assign to the Rhode Island infrastructure bank any and all liens filed by the PACE municipality, as provided in the written agreement between the participating municipality and the Rhode Island infrastructure bank. The Rhode Island infrastructure bank may sell or assign, for consideration, any and all liens received from the participating municipality. The consideration received by the Rhode Island infrastructure bank shall be negotiated between the Rhode Island infrastructure bank and the assignee. The assignee or assignees of the liens shall have and possess the same powers and rights at law or in equity as the Rhode Island infrastructure bank and the participating municipality and its tax collector would have had if the lien had not been assigned with regard to the precedence and priority of the lien, the accrual of interest, and the fees and expenses of collection. The assignee shall have the same rights to enforce the liens as any private party holding a lien on real property, including, but not limited to, foreclosure and a suit on the debt. Costs and reasonable attorney’s fees incurred by the assignee as a result of any foreclosure action or other legal proceeding brought pursuant to this section and directly related to the proceeding shall be taxed in the proceeding against each person having title to any property subject to the proceedings. The costs and fees may be collected by the assignee at any time after demand for payment has been made by the assignee.
History of Section.
P.L. 2015, ch. 141, art. 14, § 9; P.L. 2017, ch. 480, § 3.