2005 Rhode Island Code - § 34-25.1-7 — Term of loan advancements.

    (a) Reverse mortgages may be written over any amortization period currently in use by lending institutions and may provide that the reverse payments made on the amount borrowed be payable by the mortgagee to the mortgagor over monthly periods not to exceed ten (10) years with the then outstanding balance due and payable at the conclusion of the term or amortized on a standard payment basis for the remainder of the original term of amortization. Interest on the outstanding advance may either be charged to the mortgagor throughout the initial payment term, or may be accumulated and due upon the conclusion of the original payment term.

   (b) Reverse mortgages may be written over any amortization period currently in use by lending institutions with a portion of the mortgage proceeds used to purchase an immediate or deferred life annuity contract from companies authorized to issue annuity contracts in this state. In such cases, the monthly annuity payments shall be used to pay interest payments on the mortgage loan with the remainder forwarded to the mortgagor. Repayment of principal in such cases would occur on the sale of the security or the closing of the mortgagor's estate, whichever first occurs.