Introduced By: Representatives Lewiss, Kennedy, Knickle, Voccola and Schadone
Date Introduced : January 27, 1999
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, {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 mortgagee shall pay a penalty to the mortgagor
for noncompliance in the amount of fifty dollars ($50) for a first
day of noncompliance and five dollars ($5.00) for each day thereafter
that the party remains in noncompliance. The mortgagor shall
also be entitled to a reimbursement of reasonable attorney's fees,
if applicable, for the costs incurred by the mortgagor and/or
his, her or its attorneys in attempting to obtain a discharge
to which the mortgage was lawfully entitled pursuant to the provisions
of this section and/or section 34-26-2. Demand for penalties
and, if applicable, attorney's fees and costs pursuant to this
section may be made to the Department of Business Regulation,
in those instances in which the mortgagee is a regulated institution
as defined in Title 19 of the General Laws of Rhode Island, and
the Department shall direct such regulated institutions to pay
applicable penalties and reimburse effected mortgagors for attorneys
fees and costs incurred, on confirmed instances of noncompliance.
The Department may promulgate rules and regulations governing
the processing of such reimbursement. In those instances in which
the mortgagee is not a regulated institution as defined in Title
19 of the General Laws of Rhode Island, the Department shall provide
the mortgagor with the name, address and telephone number of the
regulatory agency having jurisdiction over the actions of such
mortgagees. 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.
