§ 42-55.2-6. Property in the land bank exempt from legal process.
(a) Any land deposited into the land bank inventory shall not be subject to attachment, execution, or any judicial or administrative process during the period it is held by the corporation, unless that parcel or asset is pledged as security for any loan agreement related to that parcel in which case any available legal process shall be available against that parcel, but no liens, fines, penalties, assessments, or other charges shall be made against the land bank, the corporation, or the state for any reason during the period the property is held in the land bank.
(b) In the event there is a division in the freehold interest where only a portion of the rights related to the property is located in the land bank, the remainder may be made subject to legal process as long as such process does not act to divest the land bank of any of its attributes of ownership or ability to develop the property.
(c) In the event of a divided ownership where a portion of the fee or property interest is held by the land bank or any other conflict in ownership which may arise under this section, the corporation may petition the superior court for partition in which after the required notice and service of process is completed upon confirmatory motion, the land bank shall be awarded and receive the whole fee simple interest by way of an interim order or a final judgment. An interim order or a final judgment constitutes a recordable order which shall be considered binding in the chain of title and any of the remainder portion claimed by another owner or creditor shall be subject to owelty under the law or in equity based on the value of the interest transferred to the land bank. Neither the corporation nor any land subject to such a partition action shall be restrained nor enjoined and no equitable order shall issue to prevent the development of the property by the corporation or its applicant or assignee.
History of Section.
P.L. 2025, ch. 255, § 1, effective June 27, 2025; P.L. 2025, ch. 275, § 1, effective
June 27, 2025.