§ 39-26.5-6. Priority of PACE lien.
(a) A PACE lien on a residential property shall be: subordinate to all liens on the residential
property in existence at the time the residential PACE lien is filed; subordinate
to a first mortgage on the residential property recorded after the PACE lien is filed;
and superior to any other lien on the residential property recorded after the PACE
lien is filed. This subsection shall not affect the status or priority of any other
municipal or statutory lien.
(b) At the time of a transfer of property ownership of a residential property, including
by foreclosure,
Free access — add to your briefcase to read the full text and ask questions with AI
§ 39-26.5-6. Priority of PACE lien.
(a) A PACE lien on a residential property shall be: subordinate to all liens on the residential
property in existence at the time the residential PACE lien is filed; subordinate
to a first mortgage on the residential property recorded after the PACE lien is filed;
and superior to any other lien on the residential property recorded after the PACE
lien is filed. This subsection shall not affect the status or priority of any other
municipal or statutory lien.
(b) At the time of a transfer of property ownership of a residential property, including
by foreclosure, the past-due balances of any special assessment under this chapter
shall be due for payment. In the event of a foreclosure action, the past-due balances
shall include all payments on a PACE assessment that are due and unpaid as of the
date of the foreclosure. Unless otherwise agreed by the PACE lender, all payments
on the PACE assessment that become due after the date of transfer by foreclosure or
otherwise shall continue to be secured by a PACE lien on the PACE property and shall
be the responsibility of the transferee.
(c) A PACE lien on a commercial property shall be: senior to all liens on the commercial
property in existence at the time the PACE lien is filed, subject to the consent of
the existing mortgage holders on the property; senior to all liens filed or recorded
after the time the PACE lien is created; but junior to a municipal tax lien.
(d) At the time of a transfer of property ownership of a commercial property, including
by tax sale, in accordance with § 44-9-32, or foreclosure, the past-due balances of any PACE assessment under this chapter
shall be due for payment. Unless otherwise agreed by the PACE lender, all payments
of PACE assessments that become due after the date of transfer by tax sale, in accordance
with § 44-9-32, or foreclosure, or otherwise shall be secured by a PACE lien on the PACE property
and shall be the responsibility of the transferee.