Amendment #636 to H4200

Good Funds Statute

Mr. Linsky of Natick moves to amend the bill by adding the following new sections:

SECTION XXXX. Section sixty-three B of chapter one hundred eighty-three is hereby amended by adding the following paragraph;

A. No person, other than the mortgagor, the mortgagor’s attorney, or the mortgagee’s attorney, shall have in his possession any portion of the mortgage proceeds at the time that the mortgage deed is recorded.

B. Any mortgagor claiming to be aggrieved by a violation of this section may, within three years after the violation, institute and prosecute in his own name and on his own behalf, or for himself and for others similarly situated, a civil action for any damages incurred or for one-thousand dollars for each violation, whichever is greater, and for injunctive relief. Any mortgagor so aggrieved and who prevails in such an action shall be awarded triple damages; and the mortgagor shall also be awarded the costs of the litigation and reasonable attorneys’ fees.

C. The Undersecretary of the Massachusetts Office Consumer Affairs & Business Regulation is hereby authorized to enforce the provisions of this section including, but not limited to, the promulgation of reasonable rules and regulations, and shall take such affirmative action as in her judgment will affect the purposes of this section.

D. A violation of section sixty-three B of chapter one hundred eighty-three shall also be deemed an unfair and deceptive act and unfair method of competition pursuant to the provisions of chapter 93A, including its private rights of actions and remedies and rights, remedies, and duties of the Attorney General therein.

SECTION XXX. Section six of chapter two hundred fifty-five E is amended by inserting after clause (ii) the following clause:

(iii) any violation of section sixty-three B of chapter one hundred eighty-three.