§ 34-25-12. Discharge of open-end mortgage.
(a) Notwithstanding the provisions of § 34-26-2, no mortgagee under an open-end mortgage subject to this chapter shall be obligated to discharge the mortgage until the mortgagee receives full satisfaction for the money due thereon and receives such written agreements as the mortgagee shall reasonably request releasing the mortgagee from any further obligation to make future advances under any and all notes and agreements theretofore secured by the mortgage deed.
(b) Notwithstanding the provisions of any agreement by and between the mortgagee and the mortgagor or any other person, the mortgagee under the mortgage shall have the option to discharge any mortgage if there has existed no outstanding indebtedness thereunder for a continuous period of not less than two (2) years, and effective upon the recording of the discharge, the mortgagee shall be released and discharged from any further obligation to make any loans or advances under any notes or agreements executed in connection with the mortgage.
History of Section.P.L. 1983, ch. 230, § 1.
Structure Rhode Island General Laws
Chapter 34-25 - Future Loans and After-Acquired Property
Section 34-25-2. - Priority of future loan mortgages over encumbrances not previously recorded.
Section 34-25-3. - Priority of attachment, execution, or lis pendens over subsequent loans.
Section 34-25-4. - Relinquishment of security as to additional loans — Stipulation as to amount due.
Section 34-25-5. - Mortgages to which §§ 34-25-1 — 34-25-5 apply.
Section 34-25-6. - Mortgagees authorized to take future loan mortgages.
Section 34-25-7. - Application of mortgages to after-acquired property of public utilities.
Section 34-25-8. - Open-end mortgages.
Section 34-25-9. - Form of open-end mortgage.
Section 34-25-10. - Priority of open-end mortgages over encumbrances not previously recorded.
Section 34-25-12. - Discharge of open-end mortgage.
Section 34-25-13. - Mortgages to which §§ 34-25-8 — 34-25-14 apply.
Section 34-25-14. - Mortgagees authorized to take open-end mortgages.