Session Law

Identifying Information:L. 2001 ch. 028
Other Identifying Information:2001 Senate Bill 70
Tax Type:Other
Brief Description:An Act concerning mortgages on real property; relating to the entry of satisfaction thereof; amending K.S.A. 2000 Supp. 58-2309a and repealing the existing section.
Keywords:


Body:

CHAPTER 28

SENATE BILL No. 70


An Act concerning mortgages on real property; relating to the entry of satisfaction thereof;

amending K.S.A. 2000 Supp. 58-2309a and repealing the existing section.

Be it enacted by the Legislature of the State of Kansas:

Section 1. K.S.A. 2000 Supp. 58-2309a is hereby amended to read

as follows: 58-2309a. (a) When the indebtedness secured by a recorded

mortgage is paid and there is no agreement for the making of future

advances to be secured by the mortgage, the mortgagee or the mortga-

gee's assignee shall enter satisfaction or cause satisfaction of such mort-

gage to be entered of record forthwith, paying the required fee. In the

event the mortgagee or the mortgagee's assignee fails to enter satisfaction

or cause satisfaction of such mortgage to be entered within 20 days after

written demand by certified or registered mail, the lender or a designated

closing agent acting as a closing agent in the sale, financing or refinancing

of the real estate subject to such mortgage, who upon reliance of written

payoff information provided by the mortgagee, and which payoff infor-

mation shall be deemed as the correct and full amount due and owing

under such mortgage, has caused the indebtedness to be paid in full may

cause satisfaction of the mortgage to be entered. If in fact the mortgagee

or mortgagee's assignee was not paid in accordance with the aforesaid

payoff information when the mortgage was released the lender or the

closing agent in the sale, financing or refinancing of the real estate subject

to such mortgage who signed the false release shall be liable in damages

to the mortgagee or mortgagee's assignee for the entire indebtedness

together with interest thereon, attorney fees, and any additional damages

that the mortgagee or mortgagee's assignee has incurred. Upon recording

of such satisfaction by the lender or closing agent in the sale, financing

or refinancing of the real estate subject to such mortgage, who has caused

the indebtedness to be paid in full, such mortgage shall be deemed fully

released as if discharged by the mortgagee or mortgagee's assignee.

(b) When a mortgage is recorded covering real estate in which the

mortgagor has no interest, the mortgagee or the mortgagee's assignee

shall enter satisfaction or cause satisfaction of such mortgage to be en-

tered of record, paying the required fee without charge to the mortgagor

or the mortgagor's assigns.

(c) A mortgagor, a mortgagor's heirs or assigns or anyone acting for

such mortgagor, heirs or assigns, or the owner of real estate upon which

a mortgage has been recorded by someone having no interest in the real

estate, may make demand upon a mortgagee or assignee of a mortgagee

for the entering of satisfaction of the mortgage, as provided for in sub-

sections (a) and (b). The following persons may make demand upon a

mortgagee or assignee of a mortgagee for the entering of satisfaction of

the mortgage, as provided for in subsections (a) and (b):

(1) A mortgagor, a mortgagor's heirs or assigns or anyone acting for

such mortgagor, heirs or assigns;

(2) an owner of real estate upon which a mortgage has been recorded

by someone having no interest in the real estate; or

(3) a lender or designated closing agent acting as a closing agent in

the sale, financing or refinancing of the real estate subject to such mort-

gage.

(d) Any mortgagee or assignee of a mortgagee who refuses or neglects

to enter satisfaction of such mortgage within 20 days after demand has

been made as provided in subsection (c) shall be liable in damages to the

person for whom the demand was made in the sum of $500, together

with a reasonable attorney's fee for preparing and prosecuting the action.

The plaintiff in such action may recover any additional damages that the

evidence in the case warrants. Civil actions may be brought under this

act before any court of competent jurisdiction, and attachments may be

had as in other cases.

(e) The mortgagee or assignee of a mortgagee entering satisfaction

or causing to be entered satisfaction of a mortgage under the provisions

of subsection (a) shall furnish to the office of the register of deeds the

full name and last known post office address of the mortgagor or the

mortgagor's assignee. The register of deeds shall forward such informa-

tion to the county clerk who shall make any necessary changes in address

records for mailing tax statements.

Sec. 2. K.S.A. 2000 Supp. 58-2309a is hereby repealed.

Sec. 3. This act shall take effect and be in force from and after its

publication in the Kansas register.

Approved March 20, 2000.

Published in the Kansas Register March 29, 2000.


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Date Composed: 09/25/2001 Date Modified: 09/25/2001