(1) If the mortgagee fails to mail the notice required by this subsection to the mortgagor
within one hundred twenty (120) days after the date of default, it shall pay a penalty
at the rate of one thousand ($1,000) per month for each month or part thereof, with
the first month commencing on the one hundred twenty-first (121st) day after the date
of default and a new month commencing on the same day (or if there is no such day,
then on the last day) of each succeeding calendar month until the mortgagee sends
the mortgagor written notice as required by this section.
Notwithstanding the foregoing, any penalties assessed under this subsection for any
failure of any mortgagee to provide notice as provided herein during the period from
September 13, 2013, through the effective date of this section shall not exceed the
total amount of one hundred twenty-five thousand dollars ($125,000) for such mortgagee.
(2) Penalties accruing pursuant to subsection (d)(1) shall be paid to the mediation coordinator
prior to the completion of the mediation process. All penalties accrued under this
section shall be transferred to the state within one month of receipt by the mediation
coordinator and deposited to the restricted-receipt account within the general fund
established by § 42-128-2(3) and used for the purposes set forth therein.
(3) Issuance by the mediation coordinator of a certificate authorizing the mortgagee to
proceed to foreclosure, or otherwise certifying the mortgagee’s good-faith effort
to comply with the provisions of this section, shall constitute conclusive evidence
that, to the extent that any penalty may have accrued pursuant to subsection (d)(1),
the penalty has been paid in full by the mortgagee.