05RS SB67

SB67

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SB 67 (BR 899) - T. Buford

     AN ACT relating to recording of lien documents.
     Create a new section of KRS Chapter 382 to require the assignor of a lien on real property to file the assignment for recording with the county clerk within 30 days of the date of the assignment; create a new section of KRS Chapter 382 to establish a procedure for the assignee to record an assignment or release with the county clerk in the event the assignor fails to record the assignment; amend KRS 382.090 to require the assignor of a lien on real property to file the assignment for recording with the county clerk within 30 days of the date of the assignment and to require recording of release of a lien within 30 days of satisfaction; establish that providing the assignment or release to the mortgagor does not substitute for filing the document with the county clerk; amend KRS 382.360 to provide that liens by deed or mortgage shall, rather than may, be discharged by recording satisfaction of the lien; require a release to be filed with the county clerk within 30 days of satisfaction; require the clerk to cause the original deed of release to be delivered to the mortgagor or grantor or person entitled thereto; amend KRS 382.365 to provide that an owner of real property or a party acquiring an interest in real property may file an action in District Court or Circuit Court against an assignor who fails to record an assignment, with judgment to include costs, including attorney's fees.

SB 67 - AMENDMENTS


     SFA (1, D. Kelly) - Delete the original bill in its entirety; amend KRS 382.360 to require the county clerk to cause to be delivered the original deed of release to the mortgagor, grantor or person entitled thereto, to require the recording of a mortgage assignment with the county clerk within thirty (30) days of the assignment, to provide the method of recording, to provide that if an assignee reassigns the note before thirty (30) days the assignee may request that the subsequent assignee file the assignment with the reassignment, provide that delivering an assignment to the assignee or a lien release to the mortgagor does not substitute for filing with the clerk, provide that if a mortgage secures more than one note this Act does not require the release of the mortgage if a note secured by the mortgage remains unpaid, and provide that failure to record a mortgage assignment does not affect the validity or perfection or invalidity or lack of perfection of the mortgage lien; amend KRS 382.265 to require an assignee to record an assignment with the county clerk as required by this Act, provide that failure to record a mortgage assignment does not affect the validity or perfection or invalidity or lack of perfection of the mortgage lien, provide that in a court proceeding to obtain release of a mortgage if the court is satisfied by payment in full to the final lienholder or final assignee the court shall enter judgment noting the identity of the final lienholder or final assignee and authorize and direct the master commissioner to file the requisite release or assignment or both with the county clerk, provide that for damages under this section written notice to the lienholder is sufficient if provided to the lienholder at the appropriate address and to the appropriate person , and provide that damages shall not exceed three (3) times the actual damages plus attorney's fees and court costs, but in no event less than $500.

     HCS - Retain original provisions; clarify what is written notice under KRS 382.365(4); provide that damages under KRS 382.365(5) are damages for failure to record an assignment pursuant to KRS 382.365(3).

     Feb 1-introduced in Senate
     Feb 2-to Banking and Insurance (S)
     Feb 10-reported favorably, 1st reading, to Calendar
     Feb 11-2nd reading, to Rules; posted for passage in the Regular Orders of the Day for Monday, February 14, 2005
     Feb 14-passed over and retained in the Orders of the Day; floor amendment (1) filed
     Feb 15-3rd reading, passed 35-0 with floor amendment (1)
     Feb 16-received in House
     Feb 17-to Banking and Insurance (H)
     Feb 22-posted in committee; posting waived
     Feb 23-reported favorably, 1st reading, to Calendar with Committee Substitute
     Feb 24-2nd reading, to Rules
     Mar 1-recommitted to Local Government (H)
     Mar 2-posting waived


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