2005 -- S 0478 SUBSTITUTE A

=======

LC01377/SUB A/3

=======

STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2005

____________

A N A C T

RELATING TO TAX SALES

     Introduced By: Senators Metts, Pichardo, C Levesque, and Perry

     Date Introduced: February 10, 2005

     Referred To: Senate Judiciary

It is enacted by the General Assembly as follows:

1-1

     SECTION 1. Section 42-55-7 of the General Laws in Chapter 42-55 entitled "Rhode

1-2

Island Housing and Mortgage Finance Corporation" is hereby amended to read as follows:

1-3

     42-55-7. Powers relative to purchase of and sale to mortgage lenders of loans --

1-4

Loans to mortgage lender. -- The corporation shall have all the powers necessary or convenient

1-5

to carry out and effectuate the purposes and provisions of this chapter, including the following

1-6

powers in addition to others granted in this chapter:

1-7

      (1) To invest in, purchase or to make commitments to purchase, and take assignments

1-8

from mortgage lenders, of notes and mortgages evidencing loans for the construction,

1-9

rehabilitation, installation of energy saving improvements to, purchase, leasing, or refinancing of

1-10

housing for persons and families of low and moderate income or health care facilities in this state

1-11

upon the terms set forth in section 42-55-10;

1-12

      (2) To make loans to mortgage lenders under terms and conditions requiring the

1-13

proceeds to be used by those mortgage lenders for the making of new residential mortgages or

1-14

health care facilities upon the terms set forth in section 42-55-10;

1-15

      (3) To make commitments to purchase, and to purchase, service and sell federally

1-16

insured mortgages, and to make loans directly upon the security of a mortgage, provided the

1-17

underlying mortgage loans shall have been made and shall be continued to be used solely to

1-18

finance or refinance the construction, rehabilitation, purchase, or leasing of residential housing

1-19

for persons and families of low and moderate income or health care facilities in this state;

2-1

      (4) To sell, at public or private sale, with or without public bidding, any mortgage or

2-2

other obligation held by the corporation;

2-3

      (5) Subject to any agreement with bondholders or noteholders, to collect, enforce the

2-4

collection of, and foreclose on any collateral securing its loans to mortgage lenders and acquire or

2-5

take possession of the collateral and sell it at public or private sale, with or without public

2-6

bidding, and otherwise deal with such collateral as may be necessary to protect the interest of the

2-7

corporation therein. ;

2-8

     (6) To make or participate in the making of mortgage loans to persons of low or moderate

2-9

income and owners of property subject to tax sale for the purpose of extinguishing tax liens,

2-10

redeeming tax titles or preventing loss of property due to nonpayment of taxes. Any loan made

2-11

pursuant to this paragraph may be secured by a mortgage or otherwise, shall be repaid, shall bear

2-12

interest and shall be upon any terms and conditions that may be determined by the corporation.

2-13

     SECTION 2. This act shall take effect upon passage.

=======

LC01377/SUB A/3

========

EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N A C T

RELATING TO TAX SALES

***

3-1

     This act would authorize RIHMFC to make or participate in making mortgage loans to

3-2

low or moderate income owners of property subject to tax sale for the purpose of extinguishing

3-3

tax liens or preventing loss of property due to nonpayment of taxes.

3-4

     This act would take effect upon passage.

=======

LC01377/SUB A/

=======