HB62 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 mortgages on commercial agricultural properties for recording within 30 days of receiving full payment, with a $500 penalty if mortgagors must make a written request and creditor fails to comply within 21 days.

• Defines "commercial agricultural property" as real property used primarily for growing plants, trees, or animals for for-profit business purposes, excluding recreational use.

• Applies the same payoff statement requirements, notification procedures, and satisfaction agent provisions to commercial agricultural mortgages as currently apply to residential mortgages.

• Becomes effective on the first day of the third month following passage and approval, with an exception that the new requirements do not apply to agricultural mortgages satisfied before the effective date.