SB 127
Bill Summary
Under current law, a future advance mortgage, which is created upon its execution, may secure funds advanced at the time the mortgage is executed as well as funds advanced in the future. A recent Alabama Supreme Court opinion held that a future advance mortgage, although recorded, is not created until the lender advances funds under the loan secured by the mortgage, thus potentially eliminating the priority a future advance mortgage has over subsequently recorded mortgages or liens
This bill would create the Future Advance Mortgage Protection Act
This bill would clarify that a mortgage may secure not only existing indebtedness but also future advances to the same extent as if the future advances were made at the same time the mortgage was created
This bill would also provide that this bill would apply prospectively to mortgages created in the future, as well as retrospectively to existing mortgages
Relating to future advance mortgages; to add a new Article 6, commencing with Section 35-10-120, to Chapter 10 of Title 35 of the Code of Alabama 1975; to establish the Future Advance Mortgage Protection Act; to provide that future advance mortgages are valid and enforceable; and to provide that this article shall apply prospectively to mortgages created in the future and retrospectively to existing mortgages.
Bill Actions
| Action Date | Chamber | Action |
|---|---|---|
| April 3, 2019 | S | Fiscal Responsibility and Economic Development first Substitute Offered |
| April 3, 2019 | S | Pending third reading on day 7 Favorable from Fiscal Responsibility and Economic Development with 1 substitute |
| April 3, 2019 | S | Read for the second time and placed on the calendar with 1 substitute and |
| March 19, 2019 | S | Read for the first time and referred to the Senate committee on Fiscal Responsibility and Economic Development |
Bill Calendar
| Type | Date | Location | Description |
|---|---|---|---|
| Hearing | April 3, 2019 | Room 825 REVISED TIME at 13:00 | Senate FRED Hearing |
| Hearing | April 3, 2019 | Room 825 REVISED AGENDA at 00:00 | Senate FRED Hearing |
| Hearing | April 3, 2019 | Room 825 at 00:00 | Senate FRED Hearing |
Bill Text
Bill Documents
| Type | Link |
|---|---|
| Bill Text | SB 127 - Introduced |
| Bill Amendments | Senate Fiscal Responsibility and Economic Development first Substitute Offered |