HB795 Alabama 2010 Session

Summary

Primary Sponsor

Mike Hill

Republican

Session

Regular Session 2010

Title

Financial institutions, acquisition of real property interests by a receiver, method of constructive notice of assignment of real property interest, Sec. 35-4-77 added

Summary

HB795 creates a method to provide constructive notice of transfers of real property interests by receivers of banks and other depository institutions.

What This Bill Does

The bill adds Section 35-4-77, establishing that when a receiver acquires an interest in property tied to a depository institution, an assignment executed by the receiver or its agent and recorded in the county real property records serves as constructive notice of the transfer. The notice does not require listing every individual property; a general description identifying the interests is enough, and the assignment will be indexed in the probate court direct index by the institution's name and in the reverse index by the assignee. The recording fee is collected as if transferring a single instrument, and all prior assignments that substantially comply are ratified. The method is not exclusive and works with other notice methods; it becomes effective immediately after governor approval.

Who It Affects

• Receivers and the institutions placed in receivership (banks, savings associations, savings banks, or other depository institutions) and their agents, who must use the new assignment recording method and indexing.
• The general public and other parties dealing with property records (lenders, buyers, title holders) who would gain clearer public notice of property interest transfers through recorded assignments.

Key Provisions

• Adds new Section 35-4-77 to provide constructive notice of property interest assignments by receivers.
• Assignment recorded by receiver or agent after acquisition of mortgage, lien, or real property interest constitutes constructive notice of transfer.
• No need to identify each property; a general reference suffices; assignment must be indexed direct by probate judge under institution name and reverse by assignee name.
• Recording fee collected as if transferring a single instrument; prior assignments ratified; not exclusive method; cumulative with other notice methods.
• Effective immediately after passage and governor's approval.

AI-generated summary using openai/gpt-5-nano on Feb 25, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Banks and Banking