Rhode Island § 42-34-9 - Industrial-Recreational Building Authority

§ 42-34-9. Mortgage insurance fund — Subrogation.

(a) There is hereby created an industrial building mortgage insurance fund, hereinafter in this chapter referred to as the “fund” which shall be used by the authority as a nonlapsing, revolving fund for carrying out the provisions of this chapter. To this fund shall be charged any and all expenses of the authority, including mortgage payments required by loan defaults, and to the fund shall be credited all receipts of the authority, including mortgage insurance premiums and proceeds from the sale, disposal, lease, or rental of personal property that the authority may receive under the provisions of this chapter.

(b) Moneys in the fund not needed currently to meet the expenses and obligations of the authority shall be deposited with the general treasurer to the credit of the fund, or may be invested in such manner as is provided for by statute.

(c) The authority shall become subrogated to the extent that mortgage payments have been paid by the authority to the mortgagee of an insured mortgage notwithstanding that the authority has not paid all of the mortgage payments under the mortgage, and the authority shall have the right to bring a separate cause of action by way of subrogation with respect to each mortgage payment that it has paid to the mortgagee. All recoveries by way of subrogation shall be credited to the fund as provided in subsection (a).