| Chapter 184 |
| 2017 -- H 5199 SUBSTITUTE A Enacted 07/18/2017 |
| A N A C T |
| RELATING TO PUBLIC UTILITIES AND CARRIERS - PROPERTY ASSESSED CLEAN ENERGY PROGRAM |
| Introduced By: Representative Marvin L. Abney |
| Date Introduced: January 25, 2017 |
| It is enacted by the General Assembly as follows: |
| SECTION 1. Section 39-26.5-6 of the General Laws in Chapter 39-26.5 entitled |
| "Property Assessed Clean Energy Program" is hereby amended to read as follows: |
| 39-26.5-6. Priority of PACE lien. |
| (a) A PACE lien on a residential property shall be: subordinate to all liens on the |
| residential property in existence at the time the residential PACE lien is filed; subordinate to a |
| first mortgage on the residential property recorded after such PACE lien is filed; and superior to |
| any other lien on the residential property recorded after such PACE lien is filed. This subsection |
| shall not affect the status or priority of any other municipal or statutory lien. |
| (b) At the time of a transfer of property ownership of a residential property, including by |
| foreclosure, the past-due balances of any special assessment under this chapter shall be due for |
| payment. In the event of a foreclosure action, the past-due balances shall include all payments on |
| a PACE assessment that are due and unpaid as of the date of the foreclosure. Unless otherwise |
| agreed by the PACE lender, all payments on the PACE assessment that become due after the date |
| of transfer by foreclosure or otherwise shall continue to be secured by a PACE lien on the PACE |
| property and shall be the responsibility of the transferee. |
| (c) A PACE lien on a commercial property shall be: senior to all liens on the commercial |
| property in existence at the time the PACE lien is filed, subject to the consent of the senior |
| mortgage holder on the property; senior to all liens filed or recorded after the time the PACE lien |
| is created; but junior to a municipal tax lien. |
| (d) At the time of a transfer of property ownership of a commercial property, including |
| by tax sale, in accordance with §44-9-32, or foreclosure, the past-due balances of any PACE |
| assessment under this chapter shall be due for payment. Unless otherwise agreed by the PACE |
| lender, all payments of PACE assessments that become due after the date of transfer by tax sale, |
| in accordance with §44-9-32, or foreclosure, or otherwise shall be secured by a PACE lien on the |
| PACE property and shall be the responsibility of the transferee. |
| SECTION 2. This act shall take effect on March 1, 2017. |
| ======== |
| LC000193/SUB A |
| ======== |