2003 -- H 5479 SUBSTITUTE A

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LC01543/SUB A

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STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2003

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A N A C T

RELATING TO PROPERTY - MORTGAGE FORECLOSURES

     Introduced By: Representatives Lewiss, Gallison, Anguilla, and Lally

     Date Introduced: February 06, 2003

     Referred To: House Corporations

It is enacted by the General Assembly as follows:

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     SECTION 1. Section 34-11-22 of the General Laws in Chapter 34-11 entitled "Form and

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Effect of Conveyances" is hereby amended to read as follows:

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     34-11-22. Statutory power of sale in mortgage. -- The following power shall be known

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as the "statutory power of sale" and may be incorporated in any mortgage by reference:

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      (Power)

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      But if default shall be made in the performance or observance of any of the foregoing or

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other conditions, or if breach shall be made of the covenant for insurance contained in this deed,

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then it shall be lawful for the mortgagee or his, her or its executors, administrators, successors or

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assigns to sell, together or in parcels, all and singular the premises hereby granted or intended to

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be granted, or any part or parts thereof, and the benefit and equity of redemption of the mortgagor

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and his, her or its heirs, executors, administrators, successors and assigns therein, at public

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auction upon the premises, or at such other place, if any, as may be designated for that purpose in

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this deed, or in the published notice of sale first by mailing written notice of the time and place of

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sale by certified mail, return receipt requested, to the mortgagor, at his or her or its last known

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address, at least twenty (20) days for mortgagors other than individual consumer mortgagors, and

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at least thirty (30) days for individual consumer mortgagors, prior to first publishing the notice,

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including the day of the mailing in the computation; second, by publishing the same at least once

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each week for three (3) successive weeks in a public newspaper published daily in the city in

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which the mortgaged premises are situated; and if there be no public newspaper published daily

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in the city in which the mortgaged premises are situated, or if the mortgaged premises are not

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situated in a city, then (1) if the mortgaged premises are situated in the city of Central Falls, in a

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public newspaper published daily in the city of Pawtucket; (2) if the mortgaged premises are

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situated in the town of North Providence, in a public newspaper published daily in either the city

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of Providence or the city of Pawtucket; (3) if the mortgaged premises are situated in any of the

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towns of Cumberland, Lincoln, Smithfield or North Smithfield, in a public newspaper published

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daily in either the city of Pawtucket or Woonsocket; (4) if the mortgaged premises are situated in

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the county of Providence elsewhere than in the above-named cities and towns, in a public

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newspaper published daily in the city of Providence; (5) if the mortgaged premises are situated in

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the county of Newport, in a public newspaper published daily in the city of Newport; but if there

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be no such public newspaper so published, then in some public newspaper published anywhere in

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the county of Newport; (6) if the mortgaged premises are situated in any of the counties of

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Bristol, Kent or Washington, in a public newspaper published daily in the city or town in which

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the mortgaged premises are situated; but if there be no public newspaper so published, in some

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public newspaper published daily in the county in which the mortgaged premises are situated or

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in a public newspaper published daily in the city of Providence; provided however if the

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mortgaged premises are situated in the town of New Shoreham then in addition to publication in a

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public newspaper published daily as required above, it shall also be published in a public

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newspaper published in the town of New Shoreham, and, in the event there is no public

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newspaper published in the town of New Shoreham, then in a public newspaper distributed in the

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town of New Shoreham; with power to adjourn such sale from time to time, provided that

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publishing of the notice shall be continued, together with a notice of the adjournment or

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adjournments, at least once each week in that newspaper; and in his, her or its or their own name

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or names, or as the attorney or attorneys of the mortgagor, for that purpose by these presents duly

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authorized and appointed with full power of substitution and revocation to make, execute and

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deliver to the purchaser or purchasers at that sale a good and sufficient deed or deeds of the

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mortgaged premises in fee simple, and to receive the proceeds of such sale or sales, and from

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such proceeds to retain all sums hereby secured whether then due or to fall due thereafter, or the

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part thereof then remaining unpaid, and also the interest then due on the proceeds, together with

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all expenses incident to the sale or sales, or for making deeds hereunder, and for fees of counsel

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and attorneys, and all costs or expenses incurred in the exercise of such powers, and all taxes,

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assessments, and premiums for insurance, if any, either theretofore paid by the mortgagee or his

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or her executors, administrators or assigns, or then remaining unpaid, upon the mortgaged

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premises, rendering and paying the surplus of the proceeds of sale, if any there be, over and above

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the amounts so to be retained as aforesaid, together with a true and particular account of the sale

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or sales, expenses and charges, to the mortgagor, or his, her or its heirs, executors, administrators,

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successors or assigns; which sale or sales made as aforesaid shall forever be a perpetual bar

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against the mortgagor and his, her or its heirs, executors, administrators, successors and assigns,

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and all persons claiming the premises, so sold, by, through or under him or her, them or any of

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them.

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     SECTION 2. Section 34-27-4 of the General Laws in Chapter 34-27 entitled "Mortgage

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Foreclosure and Sale" is hereby amended to read as follows:

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     34-27-4. Publication of notice under power of sale. -- (a) Whenever any real estate

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shall be sold under any power of sale mortgage executed subsequent to May 4, 1911, and the

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mortgage shall provide for the giving of notice of the sale by publication in some public

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newspaper at least once a week for three (3) successive weeks before the sale, the first publication

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of the notice shall be at least twenty-one (21) days before the day of sale, including the day of the

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first publication in the computation.

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      (b) Provided, however, that no notice shall be valid or effective unless the mortgagor has

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been mailed written notice of the time and place of sale by certified mail return receipt requested

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at the address of the real estate and, if different, at the mortgagor's address listed with the tax

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assessor's office of the city or town where the real estate is located or any other address

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mortgagor designates by written notice to mortgagee at his, her, or its last known address, at least

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twenty (20) days for mortgagors other than individual consumer mortgagors, and at least thirty

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(30) days for individual consumer mortgagors, days prior to the first publication, including the

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day of mailing in the computation. The mortgagee shall include in the foreclosure deed an

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affidavit of compliance with this provision.

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     SECTION 3. This act shall take effect on November 1, 2003; provided that the minimum

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thirty (30) day notice requirement for individual consumer mortgagors shall be applicable only

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with regard to notices mailed to such mortgagors on and after November 1, 2003.

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N A C T

RELATING TO PROPERTY - MORTGAGE FORECLOSURES

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     This act would increase from twenty (20) days to thirty (30) days the notice period to

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individual consumer mortgagors before a mortgagee first publishes a notice of sale in the

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newspapers.

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     This act would take effect on November 1, 2003; provided that the minimum thirty (30)

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day notice requirement for individual consumer mortgagors would be applicable only with regard

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to notices mailed to such mortgagors on and after November 1, 2003.

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LC01543/SUB A

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