§ 34-25.1-5 - Discharge of reverse mortgage. - Rhode Island Statutes

SECTION 34-25.1-5

   § 34-25.1-5  Discharge of reverse mortgage.– (a) Notwithstanding the provisions of § 34-26-2, no mortgagee under anopen-end mortgage subject to this chapter shall be obligated to discharge suchmortgage until such mortgagee receives full satisfaction for the money duethereon and such written agreements as the mortgagee shall reasonably requestreleasing such mortgagee from any further obligation to make future advancesunder any and all notes and agreements theretofore secured by such mortgagedeed.

   (b) Notwithstanding the provisions of any agreement by andbetween the mortgagee and the mortgagor or any other person, the mortgageeunder any such mortgage shall have the option to discharge any such mortgage ifthere has existed no outstanding indebtedness thereunder for a continuousperiod of not less than two (2) years, and effective upon the recording of suchdischarge, such mortgagee shall be released and discharged from any furtherobligation to make any loans or advances under any notes or agreements executedin connection with such mortgage.