HB457 Alabama 2021 Session

Updated Feb 22, 2026

Summary

Primary Sponsor: Chris PringleRepresentative
Republican
Session: Regular Session 2021
Title: Residential Mortgage Satisfaction Act, recordation of satisfaction of non-resident mortgages, Sec. 35-10-27 repealed; Secs. 35-10-26, 35-10-30, 35-10-90, 35-10-91, 35-10-92, 35-10-94, 35-10-96 am'd.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: HB457 expands Alabama's Mortgage Satisfaction Act to require recording of satisfaction for commercial agricultural mortgages and renames the act accordingly.
What This Bill Does
It extends the recording requirement from just residential mortgages to include commercial agricultural property mortgages and renames the act to the Alabama Residential and Agricultural Mortgage Satisfaction Act. It updates definitions and related code sections to reflect the broader scope, and repeals an older provision. It preserves payoff statement rules and penalties for non-recording, and adds a mechanism for mortgagors to appoint a satisfaction agent to file an affidavit of satisfaction if the creditor does not record on time.

Who It Affects
Secured creditors (banks, lenders, and mortgage servicers) who must submit satisfaction for recording for commercial agricultural mortgages and who face penalties if they fail to record within the specified timelines.
Mortgagors and their authorized agents (owners of residential property and commercial agricultural property) who gain a process to obtain or ensure a recorded satisfaction, including the option to appoint a satisfaction agent to act on their behalf.

Key Provisions
Amends Sections 35-10-90, 35-10-91, 35-10-92, 35-10-94, 35-10-96, 35-10-26, and 35-10-30 to include commercial agricultural mortgages and renames the act to the Alabama Residential and Agricultural Mortgage Satisfaction Act.
Defines new terms including COMMERCIAL AGRICULTURAL PROPERTY, EQUITY LINE SECURITY INSTRUMENT, and SECURED CREDITOR; broadens the scope beyond solely residential real property.
Section 35-10-92 requires secured creditors to submit a satisfaction for recording within 30 days after full payment and performance, with specific carve-outs for equity lines and pre-existing conditions; penalties apply per Section 35-10-30 if they fail.
Section 35-10-91 establishes payoff statement requirements and timelines (14 days to issue, required content, and conditions for updates).
Section 35-10-94 allows mortgagors to appoint a satisfaction agent to notify and submit an affidavit of satisfaction if the creditor does not record in time.
Section 35-10-96 details the contents and formalities of an affidavit of satisfaction.
Section 35-10-26 clarifies when payment or satisfaction occurs and limits extend-value obligations after written satisfaction requests.
Section 35-10-30 imposes a $200 penalty for failure to record within the designated time, with exceptions and remedies outlined.
Repeals Section 35-10-27, the prior provision related to entry of full payment or satisfaction in records.
Effectiveness is the first day of the third month after the Governor signs the bill.

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