HB21 Alabama 2020 Session

Summary

Primary Sponsor

Chris PringleRepresentative

Republican

Session

Regular Session 2020

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Residential Mortgage Satisfaction Act, recordation of satisfaction of non-resident mortgages, Sec. 35-10-27 repealed; Secs. 35-10-26, 35-10-30, 35-10-90, 35-10-91, 35-10-92, 35-10-94, 35-10-96 am'd.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 21 broadens the Residential Mortgage Satisfaction Act to cover commercial agricultural mortgages, renames the act, and updates recordation requirements and penalties.

What This Bill Does

It adds mortgages securing commercial agricultural property to the set of mortgages that must have a recorded satisfaction when paid. It renames the act to the Alabama Residential and Agricultural Mortgage Satisfaction Act and makes conforming changes to related sections. It updates definitions and processes, including how secured creditors report satisfactions, the 30-day recording deadline after full payment, and procedures for payoff statements and affidavits of satisfaction.

Who It Affects

• Mortgagors (homeowners and commercial agricultural property owners) who will have satisfactions recorded when their loans are paid in full.
• Lenders/secured creditors (banks, mortgage companies, and title insurers) who must record satisfactions, issue payoff statements, and may face penalties for noncompliance.

Key Provisions

• Expands the act to include mortgages on commercial agricultural property in addition to residential property.
• Renames the act to Alabama Residential and Agricultural Mortgage Satisfaction Act and makes conforming edits to sections 35-10-90, 35-10-91, 35-10-92, 35-10-94, 35-10-96, 35-10-26, and 35-10-30; repeals 35-10-27.
• Defines key terms, including commercial agricultural property, equity line security instrument, secured creditor, and submit for recording.
• Requires secured creditors to record a satisfaction within 30 days after full payment and performance, with penalties for failure and specified exceptions.
• Allows satisfaction agents to submit an affidavit of satisfaction if the creditor fails to record, with notification and procedural requirements.
• Incorporates payoff statement rules and related notice requirements, including updates to payoff amounts and reasonable verification processes.

AI-generated summary using openai/gpt-5-nano on Feb 22, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Mortgages