Sec. 1. 14 MRSA §4422, sub-§1, as amended by PL 2003, c. 47, §§1 and 2, is further amended to read:

1. Principal residence. The exemption of a debtor's principal residence is subject to this subsection. For purposes of this subsection, "principal residence" means that place where the person has established a fixed and principal home to which the person, whenever temporarily absent, intends to return.

A. Except as provided in paragraph B, the debtor's aggregate interest, not to exceed $35,000 $100,000 in value, in real or personal property that the debtor or a dependent of the debtor uses as a residence, or in a cooperative that owns property that the debtor or a dependent of the debtor uses as a residence, or in a burial plot for the debtor or a dependent of the debtor, provided that if minor dependents of the debtor have their principal place of residence with the debtor, the debtor's aggregate interest may not exceed $70,000 and provided further except that if the debtor's interest is held jointly with any other person or persons, the exemption may not exceed in value the lesser of $35,000 $100,000 or the product of the debtor's fractional share times $70,000 $100,000.

B. The debtor's aggregate interest, not to exceed $70,000 $200,000 in value, in property described in paragraph A, if the debtor or a dependent of the debtor is either a person 60 years of age or older or a person physically or mentally disabled and because of such disability is unable to engage in substantial gainful employment and whose disability has lasted or can be expected to last for at least 12 months or can be expected to result in death; provided that if the debtor's interest is held jointly with any other person or persons, the exemption may not exceed in value the lesser of $70,000 $200,000 or the product of the fractional share of the debtor's interest times $140,000 $200,000. This paragraph does not apply to liens obtained prior to its effective date or to judgments based on torts involving other than ordinary negligence on the part of the debtor.

C. That portion of the proceeds from any sale of property which that is exempt under this section shall be exempt for a period of 6 months from the date of receipt of such proceeds for purposes of reinvesting in a residence within that period.

Sec. 2. 14 MRSA §4422, sub-§17 is enacted to read: