§ 34-25-10 - Priority of open-end mortgages over encumbrances not previously recorded. - Rhode Island Statutes

SECTION 34-25-10

   § 34-25-10  Priority of open-end mortgagesover encumbrances not previously recorded. – (a) The mortgage deed and the rights established therein, shall, to the extentof the loans secured thereby, and interest, taxes, insurance premiums and otherobligations as secured thereby, have full priority over all mortgages, liensand encumbrances which have not been recorded prior to the recording of themortgage deed except as otherwise hereinafter provided.

   (b) If, after the recording of the mortgage deed, any writ ofattachment attaching the real estate mortgaged under the mortgage deed or anyexecution against the real estate or any notice of lis pendens affecting thereal estate or any subsequent mortgage or lien against such real estate berecorded in the records of the city or town, any optional or nonobligatoryadvances secured by the mortgage deed which are made by the mortgagee afterreceipt of written notice by the mortgagee at the address provided for suchpurpose in the mortgage deed, shall not have priority over the lien of the writof attachment, execution, lis pendens or subsequent mortgage or lien, exceptthat any obligatory advances which the mortgagee agreed to make by agreemententered into with mortgagor prior to receipt of written notice and any taxes,insurance premiums and obligations of the mortgagor as the mortgagee hasagreed, or which the mortgagor has given the mortgagee the right, to pay inconnection with the mortgage deed, shall continue to have priority over thewrit of attachment, execution, lis pendens, or subsequent mortgage or lien. Forthe purposes of this chapter, an "obligator advance" is defined as any advanceor principal which the mortgagee is obligated to make, absent the occurrence ofan event of default under the mortgage or any corresponding loan agreement ornotes, on or before a specified date or time or upon application therefor bythe mortgagor or other obligor whose indebtedness is secured by the mortgage.