Text: SSB02170 Text: SSB02172 Text: SSB02100 - SSB02199 Text: SSB Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 Section 1. Section 654.12B, Code Supplement 1995, is 1 2 amended to read as follows: 1 3 654.12B PRIORITY OF RECORDED PURCHASE MONEY MORTGAGE LIEN. 1 4 The lien created by a recorded purchase money mortgage 1 5 shall have priority over and is senior to preexisting 1 6 judgments against the purchaser and any other right, title, 1 7 interest, or lien arising either directly or indirectly by, 1 8 through, or under the purchaser. A mortgage is a purchase 1 9 money mortgageifto the extent it is eitherof the following: 1 10 1. Taken or retained by the seller of the real estate to 1 11 secure all or part of its price, including all costs in 1 12 connection with the purchase. 1 13 2. Taken by a lender who, by making an advance or 1 14 incurring an obligation, provides funds to enable the 1 15 purchaser to acquire rights in the real estate, including all 1 16 costs in connection with the purchase, if the funds are in 1 17 fact so used. Except when it is a refinancing of an existing 1 18 purchase money mortgage between the same lender and purchaser 1 19 and no new funds are advanced, a mortgage given to secure 1 20 funds which are used to pay off another mortgage is not a 1 21 purchase money mortgage. 1 22TheIf more than one purchase money mortgage exists, the 1 23 first mortgage to be recorded has priority. In order to be 1 24 entitled to the rights provided by this section, the mortgage 1 25shallmust contain a recital that it is a purchase money 1 26 mortgagein order to provide notice to third parties of its1 27priority.If there is more than one purchase money mortgage,1 28a prior recorded mortgage has priority unless "the prior1 29recorded mortgage" or "a mortgage recorded earlier" provides1 30otherwise.However, failure to include the recital in the 1 31 mortgage shall not prevent a mortgage otherwise qualifying as 1 32 a purchase money mortgage from being a purchase money mortgage 1 33 for purposes other than this section. The rights in this 1 34 section are in addition to, and the obligations are not in 1 35 derogation of, all rights provided by common law. 2 1 Sec. 2. RETROACTIVE APPLICABILITY. This Act applies 2 2 retroactively to purchase money mortgages taken or retained on 2 3 or after July 1, 1995. 2 4 EXPLANATION 2 5 This bill provides rights, in addition to those found at 2 6 common law, for holders of purchase money mortgages. The bill 2 7 provides that where more than one purchase money mortgage 2 8 against a purchaser exists, the first to be recorded has 2 9 priority. The bill also provides that the protection afforded 2 10 through purchase money mortgages is limited to the purchase 2 11 amount and related costs. In addition, the bill provides that 2 12 the failure to provide notice that a mortgage is a purchase 2 13 money mortgages does not prevent the mortgage from being a 2 14 purchase money mortgage if it otherwise meets the requirements 2 15 for a purchase money mortgage. 2 16 The bill is retroactively applicable to purchase money 2 17 mortgages taken or retained on or after July 1, 1995. 2 18 LSB 3740SC 76 2 19 mk/cf/24
Text: SSB02170 Text: SSB02172 Text: SSB02100 - SSB02199 Text: SSB Index Bills and Amendments: General Index Bill History: General Index
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