(a)  A PACE lien on a residential property shall be: subordinate to all liens on the residential property in existence at the time the residential PACE lien is filed; subordinate to a first mortgage on the residential property recorded after the PACE lien is filed; and superior to any other lien on the residential property recorded after the PACE lien is filed. This subsection shall not affect the status or priority of any other municipal or statutory lien.

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Terms Used In Rhode Island General Laws 39-26.5-6

  • assessment: means the special assessment placed on a PACE property owner's property tax or other municipal assessment bill in accordance with this chapter, to be collected by or on behalf of the PACE municipality in which that PACE property is located and remitted to the Rhode Island infrastructure bank or to the lender that has financed that PACE project. See Rhode Island General Laws 39-26.5-2
  • Commercial property: means a property operated for commercial purposes, or a residential property that contains five (5) or more housing units. See Rhode Island General Laws 39-26.5-2
  • Foreclosure: A legal process in which property that is collateral or security for a loan may be sold to help repay the loan when the loan is in default. Source: OCC
  • Lien: A claim against real or personal property in satisfaction of a debt.
  • Mortgage: The written agreement pledging property to a creditor as collateral for a loan.
  • PACE: is a voluntary financing mechanism that allows both residential and commercial property owners to access affordable, long-term financing for energy upgrades, and other eligible environmental health and environmental safety upgrades on their property. See Rhode Island General Laws 39-26.5-2
  • PACE lien: means the non-accelerating lien placed on a PACE property in accordance with the rules and regulations promulgated by the Rhode Island infrastructure bank pursuant to this chapter, in order to secure the repayment of a PACE assessment made in connection with that PACE property and to secure the repayment of each PACE assessment to be made by that PACE property owner as each assessment comes due. See Rhode Island General Laws 39-26.5-2
  • Past-due balances: means the sum of the due and unpaid assessments on a PACE property as of the time the ownership of that PACE property is transferred. See Rhode Island General Laws 39-26.5-2
  • property: means any residential property or commercial property that is the subject of an approved application for a PACE project filed pursuant to this chapter. See Rhode Island General Laws 39-26.5-2

(b)  At the time of a transfer of property ownership of a residential property, including by foreclosure, the past-due balances of any special assessment under this chapter shall be due for payment. In the event of a foreclosure action, the past-due balances shall include all payments on a PACE assessment that are due and unpaid as of the date of the foreclosure. Unless otherwise agreed by the PACE lender, all payments on the PACE assessment that become due after the date of transfer by foreclosure or otherwise shall continue to be secured by a PACE lien on the PACE property and shall be the responsibility of the transferee.

(c)  A PACE lien on a commercial property shall be: senior to all liens on the commercial property in existence at the time the PACE lien is filed, subject to the consent of the existing mortgage holders on the property; senior to all liens filed or recorded after the time the PACE lien is created; but junior to a municipal tax lien.

(d)  At the time of a transfer of property ownership of a commercial property, including by tax sale, in accordance with § 44-9-32, or foreclosure, the past-due balances of any PACE assessment under this chapter shall be due for payment. Unless otherwise agreed by the PACE lender, all payments of PACE assessments that become due after the date of transfer by tax sale, in accordance with § 44-9-32, or foreclosure, or otherwise shall be secured by a PACE lien on the PACE property and shall be the responsibility of the transferee.

History of Section.
P.L. 2013, ch. 271, § 1; P.L. 2013, ch. 361, § 1; P.L. 2015, ch. 141, art. 14, § 9; P.L. 2017, ch. 184, § 1; P.L. 2017, ch. 261, § 1; P.L. 2017, ch. 480, § 3.