(a) Whenever a mortgage deed in statutory form or other form mortgaging real property is entitled at the beginning thereof "Mortgage to secure present and future loans under §§ 34-25-1 — 34-25-5" and contains in its provisions a provision to the effect that it is intended to secure present and future loans and states a maximum amount as the total of the principal amount of loans to be secured thereby, hereinafter referred to as the stated maximum amount, the mortgage deed shall be security from the time of its recording in the records for recording real estate mortgages in the city or town in which the real property mortgaged therein is located for all loans which at the time of or before the recordings are made or agreed to be made by the mortgagee to the mortgagor on the security of the mortgage and shall also constitute security from the time of its recording for all additional loans made from time to time by the mortgagee to the mortgagor on the security of the mortgage after the recording of the mortgage and prior to its discharge of record, whether or not made after reduction of the principal of any loan made on the security of the mortgage. The mortgage shall also be security for interest, taxes, insurance premiums and other obligations undertaken by such mortgagor in the mortgage deed or in the note or notes secured thereby, notwithstanding that the interest, taxes, insurance premiums and other obligations, when added to the total principal amount of the loans outstanding at any time, may cause the amount secured by the mortgage to exceed the stated maximum amount.
(b) Provided, however, that such stated maximum amount shall not be an amount which exceeds by more than three thousand dollars ($3,000) the total of the principal amount of loans which at the time of or before the recording the mortgagee made or agreed to make to the mortgagor.
(c) And provided further, that that portion of the total amount of the principal of all loans outstanding at any one time made on the security of the mortgage in excess of the stated maximum amount shall not, to the extent of such excess, be secured by the mortgage while the total amount outstanding is in excess of the stated maximum amount.
History of Section.
G.L. 1938, ch. 442, § 20; P.L. 1952, ch. 3018, § 1; G.L. 1956, § 34-25-1.