382.520 Renewal, extension, interest rate modification, or additional loan under
493 words·~2 min read·
/ky/382-520A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
mortgage on real estate -- Superiority of lien -- Release of lien, when.
(1)In all cases where a loan is secured by a real estate mortgage, the mortgage
originally executed and delivered by the borrower to the lender shall secure payment
of all renewals, extensions, or interest rate modifications of the loan and the note
evidencing it, whether so provided in the mortgage or not.
(2)The mortgage referred to in subsection
(1)of this section may secure any additional
indebtedness, whether direct, indirect, existing, future, contingent, or otherwise, to
the extent expressly authorized by the mortgage, if the mortgage by its terms
stipulates the maximum additional indebtedness which may be secured thereby.
Except as provided in subsection
(3)of this section, the mortgage lien authorized by
this subsection shall be superior to any liens or encumbrances of any kind created
after recordation of such mortgage, even to the extent of sums advanced by a lender
with actual or constructive notice of a subsequently created lien, provided, however,
any mortgagee upon receipt of a written request of a mortgagor must release of
record the lien to secure additional indebtedness as exceeds the balance of such
additional indebtedness at the time of the request.
(a)The written request referred to in subsection
(2)of this section shall be signed
by the mortgagor or his agent or attorney, and shall set forth a description of
the real property to which the request relates, the date, parties to, the volume
and initial page of the record of the mortgage referred to in subsection
(1)of
this section, and a description of the nature, amount, and holder of the lien or
encumbrance which the mortgagor intends to place upon such real property.
The request shall be deemed to have been received by the holder of the
mortgage referred to in subsection
(1)of this section only when delivered to
the holder by certified mail, return receipt requested, at the address of the
holder appearing of record on the mortgage or an assignment thereof;
(b)If within ten
(10)business days after receipt of the written request referred to
in this subsection, the holder of the mortgage referred to in subsection
(1)of
this section fails to release that amount of the lien to secure additional
indebtedness to the extent described in the request, the mortgagor may record
in the office of the county clerk in which the mortgage referred to in
subsection
(1)of this section is recorded a copy of the written request upon
payment of the same filing fee as provided for a release of a mortgage;
(c)If, after a copy of the written request is recorded, an advance is made by the
holder of the mortgage referred to in subsection
(1)of this section, then the
lien of the mortgage for the unpaid balance of the advance so made shall be
subordinate to the lien or encumbrance described in the request.