§ 16-32-15 - Assumption of defaulted obligations – Lien on property. - Rhode Island Statutes

SECTION 16-32-15

   § 16-32-15  Assumption of defaultedobligations – Lien on property. – Whenever default is made on the part of a society in the payment of loansguaranteed under the provisions of § 16-32-12, or any part of them, theboard of governors for higher education is authorized to assume the obligationand to make required payments on principal and interest from any of theappropriations available for the University of Rhode Island. In the event of adefault, in cases where that board assumes the obligation of a society, thestate shall have a lien subject to any mortgages or encumbrances existing atthe time on any and all property of the society. The lien may be released afterthe reimbursement to the state of all payments made on behalf of the society,plus accrued interest.