SECTION 1. Section 9-26-4.1 of the General Laws in Chapter 9-26 entitled "Levy and Sale on Execution" is hereby amended to read as follows:

9-26-4.1. Homestead estate exemption. -- In addition to the property exempt from attachment as set forth in section 9-26-4, an estate of homestead to the extent of one hundred fifty thousand dollars ($150,000) in the land and buildings may be acquired pursuant to this section by an owner or owners of a home or one or all who rightfully possess the premise by lease or otherwise, and who occupy or intend to occupy said home as a principal residence. Said estate shall be exempt from the laws of attachment, levy on execution and sale for payment of debts or legacies except in the following cases:

(1) sale for taxes, sewer liens, water liens, lighting district assessments and fire district assessments;

(2) for a debt contracted prior to the acquisition of said estate of homestead;

(3) for a debt contracted for the purchase of said home;

(4) upon an order issued by the family court to enforce its judgment that a spouse pay a certain amount weekly or otherwise for the support of a spouse or minor children;

(5) where a building or buildings are situated on land not owned by the owner of a homestead estate are attached, levied upon or sold for the ground rent of the lot upon which the building or buildings are situated.

(6) for a debt due to, or a lien in favor of, the department of human services and/or the state of Rhode Island for reimbursement of medical assistance, as provided for in section 40-8-15;

(7) For a debt heretofore or hereafter owing to a federally insured deposit taking institution or a person regulated or licensed under title 19.

For the purposes of this section, an owner of a home shall include a sole owner, joint tenant, tenant by the entirety or tenant in common; provided, that only one owner may acquire an estate of homestead in any such home for the benefit of his or her family; and provided further, that an estate of homestead may be acquired on only one principal residence for the benefit of a family. For the purposes of this section, the word "family" shall include either a parent and child or children, a husband and wife and their children, if any, or a sole owner. The provisions of this section shall not apply to any debt owing to a financial institution, or private mortgages, or a mechanics' lien on the property comprising said estate as provided for under chapter 34-28-1 et seq. of the Rhode Island general laws. Notwithstanding any other provisions of law it shall not be necessary to record a declaration of homestead in order to take advantage of the homestead estate exemption.

SECTION 2. This act shall take effect upon passage.