Bill > H24

This bill adopts the Uniform Assignment of Rents Act, which provides a standardized legal framework for how lenders can collect rent from a property when the borrower defaults on a loan secured by that property. Key provisions include defining what constitutes an "assignment of rents" (a transfer of rights to collect rent tied to a loan secured by real estate), establishing that a mortgage or deed of trust automatically creates an assignment of rents unless stated otherwise, and outlining how this assignment of rents can be perfected (made legally binding and enforceable) through recording in the registry of deeds. The Act also details specific methods for enforcing an assignment of rents, such as appointing a receiver, notifying the borrower (assignor), or directly notifying the tenant to pay rent to the assignee (lender). It clarifies the priority of these assignments in cases of multiple lenders and addresses how collected rents should be applied, generally prioritizing expenses, then the secured obligation, and finally any remaining funds to the borrower. The bill also makes some conforming changes to existing Massachusetts law regarding the recording of leases and assignments of rents, and the rights of mortgagors to possess and receive profits from mortgaged property.