§ 27-5-6.1 - Notice concerning single interest hazard insurance. - Rhode Island Statutes

SECTION 27-5-6.1

   § 27-5-6.1  Notice concerning singleinterest hazard insurance. – No bank or lending institution doing business in this state, whether actingunder state or federal authority, which includes, but is not limited to: (1) abank, savings bank, or trust company, as defined in title 19, its affiliates orsubsidiaries, (2) a bank holding company, as defined in 12 U.S.C. § 1841,its affiliates or subsidiaries, (3) mortgage companies and mortgage services,and (4) any other individual, corporation, partnership, or associationauthorized to take deposits and/or to make loans of money under the provisionsof title 19, shall, in connection with a loan secured by residential propertysituated in the state of Rhode Island of four (4) or fewer units and occupiedor to be occupied in whole or in part by the mortgagor, obtain a singleinterest hazard insurance policy for the property and impose the cost on themortgagor unless the bank or lending institution shall give the mortgagorwritten notice of its intent to obtain that coverage and ten (10) days shallhave elapsed after the date on which notice is given; provided, that nothing inthis section shall require the giving of notice or preclude the bank or lendinginstitution from obtaining that coverage and imposing the cost on the mortgagorwhere the bank or lending institution has received notice of the nonrenewal orcancellation of the hazard insurance on the property.