§ 42-34-9 - Mortgage insurance fund: Subrogation. - Rhode Island Statutes

SECTION 42-34-9

   § 42-34-9  Mortgage insurance fund:Subrogation. – (a) There is hereby created an industrial building mortgage insurance fund,hereinafter in this chapter referred to as the "fund" which shall be used bythe authority as a nonlapsing, revolving fund for carrying out the provisionsof this chapter. To this fund shall be charged any and all expenses of theauthority, including mortgage payments required by loan defaults, and to thefund shall be credited all receipts of the authority, including mortgageinsurance premiums and proceeds from the sale, disposal, lease, or rental ofpersonal property which the authority may receive under the provisions of thischapter.

   (b) Moneys in the fund not needed currently to meet theexpenses and obligations of the authority shall be deposited with the generaltreasurer to the credit of the fund, or may be invested in such manner as isprovided for by statute.

   (c) The authority shall become subrogated to the extent thatmortgage payments have been paid by the authority to the mortgagee of aninsured mortgage notwithstanding that the authority has not paid all of themortgage payments under the mortgage, and the authority shall have the right tobring a separate cause of action by way of subrogation with respect to eachmortgage payment which it has paid to the mortgagee. All recoveries by way ofsubrogation shall be credited to the fund as provided in subsection (a).