HB62 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Residential Mortgage Satisfaction Act, recordation of satisfaction of non-resident mortgages, Sec. 35-10-27 repealed; Secs. 35-10-26, 35-10-30, 35-10-90, 35-10-91, 35-10-92, 35-10-94, 35-10-96 am'd.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 62 would expand Alabama's mortgage satisfaction reporting to include commercial agricultural mortgages and rename the act the Alabama Residential and Agricultural Mortgage Satisfaction Act.

What This Bill Does

It adds commercial agricultural property mortgages to the set of loans that must have their satisfaction recorded, and renames the act to reflect both residential and agricultural loans. It updates definitions and procedural rules to cover both types of mortgages, including payoff statements and affidavit procedures. It also changes recording timelines and penalties for not filing satisfactions, and repeals a previous provision, with an effective date set after approval.

Who It Affects

• Mortgagors/borrowers: will benefit from clearer, more timely recording of mortgage satisfaction and standardized payoff information; may initiate or respond to payoff and satisfaction processes.
• Secured creditors/lenders: must follow new deadlines and procedures for recording satisfactions, including for commercial agricultural mortgages, and may face penalties for late submissions.

Key Provisions

• Expands the act to include mortgages securing commercial agricultural property and renames the act to the Alabama Residential and Agricultural Mortgage Satisfaction Act.
• Amends sections 35-10-90, 35-10-91, 35-10-92, 35-10-94, 35-10-96, 35-10-26, and 35-10-30 and repeals section 35-10-27.
• Secured creditors must submit for recording a satisfaction within 30 days after full payment and performance of the obligation.
• If the creditor fails to record after a written request, mortgagors may receive a $500 penalty after 21 days from receipt of the request.
• Establishes payoff statement rules (timelines and required information) and allows for updated payoff amounts during normal business hours.
• Provides procedures for affidavits of satisfaction by a satisfaction agent when satisfactions are not recorded, including notification requirements and recordable affidavits.
• Defines key terms (including commercial agricultural property and equity line security instruments) and clarifies when satisfaction is considered complete.
• Effective date set for the first day of the third month after passage and Governor approval.

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