Future Loans and After-Acquired Property

SECTION 34-25-9

§ 34-25-9. Form of open-end mortgage.

In order to be entitled to the benefits of this chapter, a mortgage deed shall comply with the following provisions:

(1) The mortgage deed shall contain specific provisions permitting the future advances;

(2) At no time shall the unpaid principal balance of indebtedness outstanding under the mortgage deed exceed the stated amount thereof;

(3) All future advances shall be evidenced by a note or notes and/or an agreement signed by the obligor whose indebtedness is secured by the mortgage deed;

(4) The original mortgage deed shall be executed and recorded on or after June 1, 1983; and

(5) The mortgage shall provide an address at which mortgagee will accept written notices pursuant to §§ 34-25-10(b) and 34-25-11. 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.)