(a) Borrowing.--From time to time, a conservator may borrow money or incur indebtedness in order to cover the costs of rehabilitation or to otherwise fulfill the conservator's obligations under this act.
(b) Liens.--In order to facilitate the borrowing of funds for the costs of rehabilitation, the court may grant priority status to a lien given to secure payment on a debt incurred for purposes authorized under this chapter, provided that:
(1) the conservator sought to obtain the necessary financing from the senior, nongovernmental lienholder, but the lienholder declined to provide financing for reasonable improvements or other costs of rehabilitation on reasonable terms; and
(2) lien priority is necessary in order to induce another lender to provide financing on reasonable terms.
(c) Lien status of rehabilitation expenses.--Should the senior lienholder agree to provide financing for the costs of rehabilitation, any funds lent to cover the costs shall be deemed to be added to the senior lienholder's preexisting first lien.
(d) Approval of financing.--The court may approve financing for the costs of rehabilitation, the terms of which may include deferred repayment and use restrictions. The terms of the financing may remain with the property after the conservatorship has ended and be assumed by any of the following:
(1) The owner, if the owner regains possession of the property under section 10(2).
(2) The buyer who takes title under section 9.
Credits
2008, Nov. 26, P.L. 1672, No. 135, § 8, effective in 90 days [Feb. 24, 2009]. Amended 2014, Oct. 22, P.L. 2557, No. 157, § 5, effective in 60 days [Dec. 22, 2014].
68 P.S. § 1108, PA ST 68 P.S. § 1108
Current through Act 10 of the 2024 Regular Session. Some statute sections may be more current, see credits for details.
