Whereas, The deferred operation of this act would tend to defeat its purpose, which is, in part, to immediately clarify actions brought under the Soldiers' and Sailors' Civil Relief Act, therefore it is hereby declared to be an emergency law, necessary for the immediate preservation of the public convenience.
Be it enacted by the Senate and House of Representatives
in General Court assembled, and by the authority of the same,
SECTION 1. Section 1 of chapter 57 of the acts of 1943, as most recently amended by section 1 of chapter 127 of the acts of 1982, is hereby further amended by striking out the last paragraph and inserting in place thereof the following two paragraphs:-
In proceedings under this section, no person who is not a record owner of the equity of redemption in the mortgaged property and who is not entitled to the benefit of the Soldiers' and Sailors' Civil Relief Act, 50 USC Sections 510 to 591, inclusive, with respect to the mortgage, trust deed or other security described in the bill, whether named as a defendant in the bill or not, shall be entitled to appear or be heard in such proceeding, except on behalf of a person so entitled, or unless an affidavit by the claimant, or a certificate by counsel appearing for him, stating that he is entitled to the benefits of said act, is filed with the appearances. Such proceedings shall be limited to the issues of the existence of such persons and their rights if any. No proceedings shall be brought under this section in any case in which the record ownership of the equity of redemption in the mortgaged property is held by one or more of the following types of entities, whether domestic or foreign: a corporation; a limited partnership; a trust operating under a written instrument or declaration of trust, the beneficial interest under which is divided into transferable certificates of participation or shares; or a general partnership or joint venture of which all the general partners who appear of record so appear to be one or more of the foregoing types of entities. The court in which is brought any proceeding under this section shall not require or cause to be joined as a party or to be served with process in or notice of said proceeding any party interested in the mortgaged property other than the record owner thereof.
A decree by the court that no person is then subject to or is entitled to the benefits of the Soldiers' and Sailors' Civil Relief Act of 1940, or any amendments thereto hereafter enacted, shall forever bar the persons named in the bill or complaint from complaining that such foreclosure or seizure is invalid under said act.
SECTION 2. Said chapter 57 is hereby further amended by striking out section 2 and inserting in place thereof the following section:-
Section 2. A copy of said decree may be recorded in the registry of deeds and city or town clerk's office in which such mortgage is recorded, and if so recorded shall be conclusive evidence of compliance with the provisions of said Soldiers' and Sailors' Civil Relief Act of 1940, and any amendments thereto, in so far as the court has power to determine the same, as against all persons, except that such copy shall not be conclusive evidence of such compliance against persons whose interests appeared of record prior to the recording of the notice of said proceeding unless they were named as defendants or had notice of said proceeding.
SECTION 2A. The provisions of this act shall not apply to members of the armed services while engaged, directly or indirectly, on active duty during the operation known as Desert Shield, whether members of regular armed services, reservists or members of the National Guard.
SECTION 3. This act shall take effect on January first, nineteen hundred and ninety-one and shall apply to any complaint filed after said date in accordance with the provisions of this act.