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AL SB170
Bill
AI Summary
SB 170 Summary
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Adopts the Alabama Residential Mortgage Satisfaction Act as Chapter 10B of Title 35, establishing uniform procedures for clearing residential land titles and recording mortgage satisfactions.
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Requires secured creditors to provide payoff statements within 14 days of receiving a written request and to record mortgage satisfactions within 30 days of payment, with liability for failures including actual damages plus $500 in statutory damages.
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Establishes a self-help remedy allowing landowners to use satisfaction agents (title insurers or licensed attorneys) to record affidavits of satisfaction if secured creditors fail to timely record satisfactions, after providing 30-day notice to the creditor.
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Permits secured creditors to record documents of rescission to correct erroneously recorded satisfactions, with liability protections limited to cases involving negligence, wantonness, recklessness, or deliberate misconduct.
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Becomes effective January 1, 2011, and amends existing code sections 35-10-26 and 35-10-30 to conform them to the new chapter.
Legislative Description
Residential Mortgage Satisfaction Act, method for clearing residential land titles for subsequent transactions, self-help title clearing remedy using affidavit of satisfaction and satisfaction agent, document of rescission by secured creditor to rescind erroneous recording of a mortgage, Secs. 35-10B-101 to 35-10B-104, inclusive, 35-10B-201 to 35-10B-205, inclusive, 35-10B-301 to 35-10B-308, inclusive, 35-10B-401, 35-10B-402 added, Secs. 35-10-26, 35-10-30 am'd. (2010-20614)
Property, Real and Personal
Last Action
Pending third reading on day 27 Favorable from Banking and Insurance with 1 substitute
4/8/2010