HB21 Summary

• Expands the Alabama Residential Mortgage Satisfaction Act to include mortgages securing commercial agricultural property and renames it the "Alabama Residential and Agricultural Mortgage Satisfaction Act."

• Requires secured creditors to submit satisfaction of commercial agricultural mortgages for recording within 30 days after receiving full payment and performance of the secured obligation.

• Imposes a $500 penalty on secured creditors who fail to record satisfaction within 30 days if mortgagors make a written request and the creditor fails to comply within 21 days of that request.

• Allows satisfaction agents to record an affidavit of satisfaction if a secured creditor fails to do so within 30 days after receiving notification of intent to file.

• Becomes effective on the first day of the third month following passage and approval by the Governor.