§ 34-25.1-5 Discharge of reverse 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 such
mortgage until such mortgagee receives full satisfaction for the money due
thereon and such written agreements as the mortgagee shall reasonably request
releasing such mortgagee from any further obligation to make future advances
under any and all notes and agreements theretofore secured by such mortgage
(b) Notwithstanding the provisions of any agreement by and
between the mortgagee and the mortgagor or any other person, the mortgagee
under any such mortgage shall have the option to discharge any such 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 such
discharge, such 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 such mortgage.
History of Section.
(P.L. 1986, ch. 475, § 1.)