§ 42-34-10 — § 42-34-10. Insurance of mortgages.

Rhode Island § 42-34-10

• Jurisdiction: Rhode Island
• Title 42: State Affairs and Government
• Ch. 42-34: Industrial-Recreational Building Authority

Text

§ 42-34-10. Insurance of mortgages.

(a) The authority is authorized, upon application of the proposed mortgagee, to insure mortgage payments required by a mortgage on any industrial and/or recreational project, upon such terms and conditions as the authority may prescribe, provided the aggregate amount of the unpaid principal balance of all obligations of all mortgages so insured outstanding at any one time shall not exceed eighty million dollars ($80,000,000).

(b) To be eligible for insurance under the provisions of this chapter a mortgage shall:

(1) Be one that is made to and held by a mortgagee approved by the authority;

(2) Involve a principal obligation, including initial service charges and appraisal, inspection and other fees approved by the authority, not to exceed five million dollars ($5,000,000) for any one project and not to exceed ninety percent (90%) of the cost of any project described in § 42-34-6(4)(i) and not to exceed eighty percent (80%) of the cost of any project described in § 42-34-6(4)(ii), and not to exceed seventy-five percent (75%) of the cost of any project described in § 42-34-6(12);

(3) Have a maturity date satisfactory to the authority but in no case later than twenty-five (25) years from the date of the mortgage for any project described in § 42-34-6(4)(i) and (12) and twenty (20) years from the date of the mortgage for any project described in § 42-34-6(4)(ii);

(4) Contain complete amortization provisions satisfactory to the authority requiring periodic payments, costs of local property taxes and assessments, land lease rentals, if any, and hazard insurance on the property and such mortgage insurance premiums as are required under § 42-34-11, all as the authority shall from time to time prescribe or approve;

(5) Be in such form and contain such terms and provisions, with respect to property, insurance, repairs, alterations, payment of taxes and assessments, restrictions as to location of machinery and equipment, default reserves, delinquency charges, default remedies, anticipation of maturity, additional and secondary liens, and other matters as the authority may prescribe. No mortgage for any project described in § 42-34-6(12) shall be insured under the provisions of this chapter unless the authority shall have made affirmative determinations in accordance with subsections (15) and (16) of § 42-34-7.

Legislative History

P.L. 1958, ch. 191, § 11; P.L. 1960, ch. 21, § 4; P.L. 1964, ch. 70, § 5; P.L. 1966, ch. 234, § 6; P.L. 1973, ch. 99, § 6; P.L. 1986, ch. 245, § 2; P.L. 1987, ch. 537, § 3; P.L. 2007, ch. 340, § 34.