§ 34-25-1 - Real estate mortgage to secure future loans – Amounts and purposes of loans covered.
SECTION 34-25-1
§ 34-25-1 Real estate mortgage to securefuture loans – Amounts and purposes of loans covered. – (a) Whenever a mortgage deed in statutory form or other form mortgaging realproperty is entitled at the beginning thereof "Mortgage to secure present andfuture loans under §§ 34-25-1 – 34-25-5" and contains in itsprovisions a provision to the effect that it is intended to secure present andfuture loans and states a maximum amount as the total of the principal amountof loans to be secured thereby, hereinafter referred to as the stated maximumamount, the mortgage deed shall be security from the time of its recording inthe records for recording real estate mortgages in the city or town in whichthe real property mortgaged therein is located for all loans which at the timeof or before the recordings are made or agreed to be made by the mortgagee tothe mortgagor on the security of the mortgage and shall also constitutesecurity from the time of its recording for all additional loans made from timeto time by the mortgagee to the mortgagor on the security of the mortgage afterthe recording of the mortgage and prior to its discharge of record, whether ornot made after reduction of the principal of any loan made on the security ofthe mortgage. The mortgage shall also be security for interest, taxes,insurance premiums and other obligations undertaken by such mortgagor in themortgage deed or in the note or notes secured thereby, notwithstanding that theinterest, taxes, insurance premiums and other obligations, when added to thetotal principal amount of the loans outstanding at any time, may cause theamount secured by the mortgage to exceed the stated maximum amount.
(b) Provided, however, that such stated maximum amount shallnot be an amount which exceeds by more than three thousand dollars ($3,000) thetotal of the principal amount of loans which at the time of or before therecording the mortgagee made or agreed to make to the mortgagor.
(c) And provided further, that that portion of the totalamount of the principal of all loans outstanding at any one time made on thesecurity of the mortgage in excess of the stated maximum amount shall not, tothe extent of such excess, be secured by the mortgage while the total amountoutstanding is in excess of the stated maximum amount.