SB127 Summary

• Establishes the Future Advance Mortgage Protection Act to clarify that mortgages securing future advances are valid and enforceable from the time of execution, regardless of whether funds have been advanced.

• Defines future advance mortgages as those securing indebtedness made after the mortgage's creation and confirms they have the same priority as if advances were made contemporaneously with mortgage execution.

• Specifies that a future advance mortgage is created and its security attaches at execution without requiring additional consideration or any actual loan disbursement.

• Applies the act both prospectively to mortgages created after enactment and retrospectively to mortgages existing on the effective date.

• Becomes effective immediately upon passage and Governor approval.