§46-15. Holder must release - Penalty - Definitions.

439 words·~2 min read·/ok/title-46-mortgages/46-15

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A. Any mortgage or judgment lien on real estate shall be released by the holder of any such mortgage or judgment lien within thirty

(30)days of the payment of the debt secured by the mortgage or judgment lien and the holder of the mortgage or judgment lien shall file the release of the mortgage or judgment lien with the county clerk where the mortgage or judgment lien is recorded. If, at the end of the thirty-day period, the holder has failed to release the mortgage or judgment lien, the mortgagor or debtor, or the agent representing the mortgagor or debtor, may at any time request in writing the holder of the mortgage or judgment lien to release the mortgage or judgment lien and the holder of the mortgage or judgment lien shall have ten

(10)days from the date of the request to release such mortgage or judgment lien. If the holder of the mortgage or judgment lien fails to release the mortgage or judgment lien by the end of such ten-day period, the mortgage or judgment lien holder shall then forfeit and pay to the mortgagor or debtor a penalty of one percent (1%) of the principal debt not to

exceed One Hundred Dollars ($100.00) per day each day the release is not recorded after the ten-day period has expired and the penalty may be recovered in a civil action in any court having jurisdiction thereof, but the request for the release shall be in writing and describe the mortgage or judgment lien and premises with reasonable certainty. Provided that, the total penalty shall not exceed one hundred percent (100%) of the total principal debt.

B. A title insurance company attorney may bring action on behalf of the mortgagor or debtor to recover the penalty described in subsection A of this section.

C. For purposes of this section:

1. "Mortgagor" shall include any subsequent purchaser of the mortgaged real estate; and

2. "Title insurance company" shall mean a corporation or other business entity authorized and licensed to transact business of insuring titles to interests in real property in this state. R.L. 1910, § 4023. Amended by Laws 1977, c. 156, § 2, eff. Oct. 1, 1977; Laws 1978, c. 92, § 1, eff. Oct. 1, 1978; Laws 1987, c. 4, § 1, eff. Nov. 1, 1987; Laws 2015, c. 175, § 1, eff. Nov. 1, 2015; Laws 2016, c. 210, § 19, emerg. eff. April 26, 2016; Laws 2021, c. 250, § 1, eff. Nov. 1, 2021. NOTE: Laws 2015, c. 177, § 1 repealed by Laws 2016, c. 210, § 20, emerg. eff. April 26, 2016.