HB218 Alabama 2019 Session

Summary

Primary Sponsor

Chris PringleRepresentative

Republican

Session

Regular Session 2019

Title

Residential Mortgage Satisfaction Act, recordation of satisfaction of non-resident mortgages, Sec. 35-10-27 repealed; Secs. 35-10-26, 35-10-30, 35-10-90, 35-10-91, 35-10-92, 35-10-94, 35-10-96 am'd.

Summary

HB 218 expands mortgage satisfaction rules to include commercial agricultural mortgages, renames the act, and adds timelines, procedures, and penalties for recording satisfactions.

What This Bill Does

It extends the satisfaction recording requirement to both residential real property and commercial agricultural property. It requires a satisfaction to be submitted for recording within 30 days after full payment and performance, and allows a satisfaction affidavit by a satisfaction agent if the creditor delays. It creates penalties for non-recordation, including a $200 penalty for failure to record within the 30-day period and a $500 penalty if a mortgagor sends a written request and the creditor misses a 21-day recording window. It preserves residential payoff statement rules, notes that payoff requirements do not apply to commercial agricultural property, and repeals a prior related section.

Who It Affects

• Mortgagors of residential property (1-4 units) and commercial agricultural property: their mortgages must have satisfactions recorded within specified timelines after payment; they may request payoff statements (for residential mortgages) and may trigger penalties if satisfactions are not recorded.
• Secured creditors and mortgage lenders (including those with equity lines) and satisfaction agents: they must record satisfactions within 30 days after full payment, may face penalties for delays, and may use satisfaction agents to file affidavits; payoff statement processes apply to residential mortgages but not to commercial agricultural property.

Key Provisions

• Expands the act to cover residential real property (1-4 units) and commercial agricultural property and renames the act to Alabama Mortgage Satisfaction Act.
• Requires submission for recording of a satisfaction within 30 days after full payment and performance of the secured obligation.
• Authorizes satisfaction affidavits filed by a satisfaction agent after notice, with a 30-day window and specific steps to proceed if the creditor does not respond.
• Imposes penalties for non-recordation: $200 if the creditor fails to record within the 30-day period; $500 penalty if a mortgagor sends a written request and the creditor does not record within 21 days.
• Provides payoff statement requirements for residential mortgages (within 14 days, with related details) and notes that payoff requirements do not apply to commercial agricultural property.
• Repeals Section 35-10-27 and makes conforming changes to Sections 35-10-26 and 35-10-30.
• Effective date is the first day of the third month after the governor’s approval.
• Adds definitions for commercial agricultural property and related terms and clarifies scope and application of the act.

AI-generated summary using openai/gpt-5-nano on Feb 24, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Mortgages