§ 39-26.5-6. Priority of PACE lien. (a) A PACE lien on a residential property shall be: subordinate to all liens on the residential property in existence at the time the residential PACE lien is filed; subordinate to a first mortgage on the residential property recorded after such PACE lien is filed; and superior to any other lien on the residential property recorded after such PACE lien is filed. This subsection shall not affect the status or priority of any other municipal or statutory lien.

(b) At the time of a transfer of property ownership of a residential property, including by foreclosure, the past-due balances of any special assessment under this chapter shall be due for payment. In the event of a foreclosure action, the past-due balances shall include all payments on a PACE assessment that are due and unpaid as of the date of the foreclosure. Unless otherwise agreed by the PACE lender, all payments on the PACE assessment that become due after the date of transfer by foreclosure or otherwise shall continue to be secured by a PACE lien on the PACE property and shall be the responsibility of the transferee.

(c) A PACE lien on a commercial property shall be: senior to all liens on the commercial property in existence at the time the PACE lien is filed, subject to the consent of the existing mortgage holders on the property; senior to all liens filed or recorded after the time the PACE lien is created; but junior to a municipal tax lien.

(d) At the time of a transfer of property ownership of a commercial property, including by tax sale, in accordance with § 44-9-32, or foreclosure, the past-due balances of any PACE assessment under this chapter shall be due for payment. Unless otherwise agreed by the PACE lender, all payments of PACE assessments that become due after the date of transfer by tax sale, in accordance with § 44-9-32, or foreclosure, or otherwise shall be secured by a PACE lien on the PACE property and shall be the responsibility of the transferee.

History of Section. (P.L. 2013, ch. 271, § 1; P.L. 2013, ch. 361, § 1; P.L. 2015, ch. 141, art. 14, § 9; P.L. 2017, ch. 184, § 1; P.L. 2017, ch. 261, § 1; P.L. 2017, ch. 480, § 3.)