2015 -- S 0865

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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 -- MORTGAGE FORECLOSURE AND SALE

     

     Introduced By: Senator Gayle L. Goldin

     Date Introduced: April 28, 2015

     Referred To: Senate Judiciary

     It is enacted by the General Assembly as follows:

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     SECTION 1. Chapter 34-27 of the General Laws entitled "Mortgage Foreclosure and

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Sale" is hereby amended by adding thereto the following section:

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     34-27-8. Requirement of affidavit from certain tax exempt entities. – (a) Definitions.

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-- The following definitions apply in the interpretation of the provisions of this section unless the

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context requires another meaning:

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     (1) "Mortgage loan" means a loan to a natural person made primarily for personal, family

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or household purposes secured wholly or partially by a mortgage on residential property.

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     (2) "Residential property" means real property on which there is a dwelling house with

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accommodations for no more than four (4) dwelling units and occupied, or to be occupied, in

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whole or in part, by the obligor on the mortgage debt; provided, however, that residential property

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shall be limited to the principal residence of a person; provided, further, that residential property

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shall not include an investment property or residence other than a primary residence; and

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provided, further, that residential property shall not include residential property taken in whole or

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in part as collateral for a commercial loan.

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     (b) In all circumstances in which an offer to purchase either a mortgage loan or

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residential property is made by an entity with a tax-exempt filing status under section 501(c)(3) of

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the Internal Revenue Code, or an entity controlled by an entity with such tax exempt filing status,

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no mortgagee shall require as a condition of sale or transfer to any such entity any affidavit,

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statement, agreement or addendum limiting ownership or occupancy of the residential property in

 

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question and, if obtained, such affidavit, statement, agreement or addendum shall not provide a

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basis to avoid a sale or transfer nor shall it be enforceable against such acquiring entity or any real

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estate broker, mortgagor or settlement agent named in such affidavit, statement or addendum.

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     SECTION 2. This act shall take effect upon passage.

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO PROPERTY -- MORTGAGE FORECLOSURE AND SALE

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     This act would provide that no mortgagee shall require an entity with tax-exempt status

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under 501 (c)(3) of the Internal Revenue Code to file an affidavit, statement, agreement or

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addendum limiting ownership or occupancy of residential property when offering to purchase a

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mortgage loan on residential property.

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     This act would take effect upon passage.

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