2012 -- H 7855

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LC01885

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STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2012

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A N A C T

RELATING TO PROPERTY - FRAUDULENT FORECLOSURES THROUGH STATUTORY

ADVERTISING

     Introduced By: Representative Charlene Lima

     Date Introduced: February 28, 2012

     Referred To: House Judiciary

It is enacted by the General Assembly as follows:

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     SECTION 1. Chapter 34-11 of the General Laws entitled "Form and Effect of

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

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     34-11-22.1. Limitations on foreclosures by advertising. -- (a) The statutory power of

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sale by advertising shall be exercised only by the person or entity which owns the mortgage note

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secured by the mortgage deed, whose name appears simultaneously on the recorded mortgage

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deed, on the mortgage note and in the newspaper advertisements proposing foreclosure, and

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whose owner otherwise has a clear chain of recorded title.

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     (b) Any other entity or person seeking to foreclose the equity of redemption in any real

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estate parcel shall only foreclose through judicial proceedings as otherwise provided in chapter

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34-26.

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     (c) No entity or person shall be permitted to act as a mortgagee by nomination if such

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entity or person does not own the mortgage note being secured by the mortgage deed.

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     SECTION 2. This act shall take effect upon passage.

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LC01885

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N A C T

RELATING TO PROPERTY - FRAUDULENT FORECLOSURES THROUGH STATUTORY

ADVERTISING

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     This act would prohibit foreclosures by newspaper advertisement by those who are not

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the actual owners of the promissory notes secured by the mortgage deeds.

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     This act would take effect upon passage.

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LC01885

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