Introduced By:Representatives Lewiss, Kennedy, Knickle, Voccola and Schadone
Date Introduced : January 27, 1999
Referred To: Committee on Corporations
It is enacted by the general assembly as follows:
SECTION 1. Section 34-26-5 of the General Laws in Chapter 34-26 entitled "Redemption, Release, and Transfer of Mortgages" is hereby amended to read as follows:
34-26-5. Liability of mortgagee for failure to discharge,
release, or transfer mortgage. -- (a) If any mortgagee,
his {ADD , ADD} {DEL or DEL} her {ADD or its ADD} heirs, executors,
administrators, {ADD agents ADD} successors, or assigns, shall not,
within ten (10) days after a request made in that behalf and a
tender of all reasonable charges therefor, discharge the mortgage
in one of the modes aforesaid, or otherwise make and execute a
release and quitclaim of the estate so mortgaged, and acknowledge
it before some proper officer, or transfer the mortgage if required
under the provisions of section 34-26-4, he, she, or they so refusing
shall be liable to make good all damages that shall accrue for
want of the discharge, release, or transfer, to be recovered in
a civil action; and in case judgment shall pass against the party
sued, the mortgagee shall pay the plaintiff reasonable attorney's
fees and triple costs upon the suit {DEL . DEL} {ADD : ADD}
{ADD (b) In the event of noncompliance with the provisions of either
this section and/or section 34-26-2, the department of business
regulation is hereby authorized to collect a penalty against the
party in noncompliance in the amount of fifty dollars ($50.00)
for the first day of noncompliance and five dollars ($5.00) for
each day thereafter that the party remains in noncompliance.
The mortgagor shall be entitled to a reimbursement of reasonable
attorneys fees for the costs incurred by the mortgagor in attempting
to obtain a discharge to which the mortgagor was lawfully entitled
pursuant to the provisions of this section and/or section 34-26-2.
Demand for attorney's fees and costs pursuant to this section
shall be made to the Department of Business Regulation, and the
department shall collect such fees from the party in noncompliance.
The penalty shall be enforced by the department in the district
court for the district wherein the mortgage was originally recorded.
The department shall promulgate rules and regulations governing
the processing of such reimbursement. ADD}
{ADD (c) As used herein, the term "first day of noncompliance" shall mean the first day following the last day for a mortgagee or similar party to discharge the mortgage. ADD}
SECTION 2. This act shall take effect upon passage.
This act would provide for a fine and attorney's fees and costs to be assessed against mortgagees who do not record discharges to mortgages that have been satisfied within the time limits provided for by statute. The department of business regulation would be charged with collecting the penalty and attorney's fees and costs. The act would entitle mortgagors and/or their attorneys to reasonable attorney's fees, and costs, to be collected by the department of business regulation.
This act would take effect upon passage.
