§ 34-25.1-3 - Priority over encumbrances not previously recorded.
SECTION 34-25.1-3
§ 34-25.1-3 Priority over encumbrances notpreviously 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 the 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 that 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 "obligatory advance" shall be defined as anyadvance of principal which the mortgagee is obligated to make, absent theoccurrence of an event of default under the mortgage or any corresponding loanagreement or notes, on or before a specified date or time or upon applicationtherefor by the mortgagor or other obligor whose indebtedness is secured by themortgage.