2015 -- H 5625

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LC001364

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2015

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A N   A C T

RELATING TO PROPERTY - REDEMPTION, RELEASE, AND TRANSFER OF

MORTGAGES

     

     Introduced By: Representatives Ackerman, Shekarchi, Kennedy, Lally, and O`Grady

     Date Introduced: February 25, 2015

     Referred To: House Judiciary

     It is enacted by the General Assembly as follows:

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     SECTION 1. Section 34-26-7 of the General Laws in Chapter 34-26 entitled

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"Redemption, Release, and Transfer of Mortgages" is hereby amended to read as follows:

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     34-26-7. Certain ancient mortgages becoming void unless continued. -- On and after

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January 1, 1989, no power of sale in any mortgage of real estate, except mortgages made by

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public utilities, then now or thereafter hereafter of record shall be exercised and no entry shall be

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made nor possession taken nor proceeding begun for foreclosure of any such mortgage after the

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expiration of a period which shall be fifty (50) thirty-five (35) years from the date of recording of

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the mortgage or in the case of a mortgage in which the term or maturity date is stated, five (5)

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years from the expiration of the term or maturity date, unless an extension of the mortgage, or an

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acknowledgment by affidavit of the mortgagee that the mortgage is not satisfied, is recorded

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within the last ten (10) years of that period before the expiration of the applicable time period. In

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case an extension of the mortgage or such an acknowledgment by affidavit is so recorded, the

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period shall continue until ten (10) five (5) years shall have elapsed during which there is not

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recorded any further extension of the mortgage or acknowledgment or affidavit that the mortgage

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is not satisfied. The period shall not be extended by reason of a longer duration of the debt or the

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obligation secured being stated in the mortgage or in any extension of the mortgage, or otherwise,

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or by nonresidence or disability of any person interested in the mortgage or the real estate, or by

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any partial payment, agreement, extension, acknowledgment, affidavit or other action not meeting

 

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the requirements of this section. All extensions, agreements, affidavits and acknowledgments

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shall be indexed in the land evidence records under the name of the present landowner. Upon the

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expiration of the applicable period provided herein, the mortgage shall be treated for title

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purposes as if it had been properly discharged by the record holder thereof.

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     SECTION 2. This act shall take effect one year from its date of passage.

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO PROPERTY - REDEMPTION, RELEASE, AND TRANSFER OF

MORTGAGES

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     This act would clarify and reduce the time after which a recorded mortgage would be

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unenforceable against real estate securing the mortgage.

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     This act would take effect one year from its date of passage.

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