1.1                          A bill for an act 
  1.2             relating to real estate; providing for a certificate 
  1.3             of mortgage satisfaction; proposing coding for new law 
  1.4             in Minnesota Statutes, chapter 507. 
  1.5   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.6      Section 1.  [507.403] [CERTIFICATE OF MORTGAGE SATISFACTION 
  1.7   BY ASSIGNEE.] 
  1.8      Subdivision 1.  [CERTIFICATE OF SATISFACTION.] A 
  1.9   certificate of satisfaction of mortgage that complies with this 
  1.10  section is effective to discharge the mortgage even if one or 
  1.11  more assignments of the mortgage have not been recorded or filed.
  1.12     Subd. 2.  [CONTENTS.] A certificate of satisfaction under 
  1.13  this section must contain substantially all of the following: 
  1.14     (1) the name of the assignee, the name of the mortgagor, 
  1.15  the name of the original mortgagee, the date of the mortgage, 
  1.16  the date of recording, and the volume and page number or 
  1.17  document number of the mortgage in the real property records 
  1.18  where the mortgage is recorded; and 
  1.19     (2) a statement that the assignee is the holder, owner, or 
  1.20  successor of the mortgagee's interest in the mortgage. 
  1.21     Subd. 3.  [EXECUTION.] A certificate of satisfaction under 
  1.22  this section must be executed and acknowledged as required by 
  1.23  law in the case of a deed by a duly authorized officer or duly 
  1.24  appointed agent of the assignee, but shall not relieve any 
  1.25  person of any liability for damages caused by the person's 
  2.1   wrongful or erroneous execution of a certificate of satisfaction.
  2.2      Subd. 4.  [EFFECT.] For purposes of satisfying a mortgage 
  2.3   under this section, a certificate of satisfaction that contains 
  2.4   the information and statements required by subdivision 2 and 
  2.5   which is executed as provided in this section is prima facie 
  2.6   evidence of the facts contained in it, is entitled to be 
  2.7   recorded with the county recorder or registrar of titles, and 
  2.8   operates as a satisfaction of the mortgage described in the 
  2.9   certificate.  The county recorder and the registrar of titles 
  2.10  shall rely upon it to satisfy the mortgage.  Recording of a 
  2.11  wrongful, erroneous, or unauthorized certificate shall not 
  2.12  relieve the mortgagor, or the mortgagor's successors or assigns, 
  2.13  from any personal liability on the loan or other obligations 
  2.14  secured by the mortgage.  In addition to any other remedy 
  2.15  provided by law, a person who wrongfully or erroneously executes 
  2.16  a certificate under this section is liable to the mortgagee or 
  2.17  an assignee for actual damage sustained due to the recording of 
  2.18  the certificate, together with reasonable attorney fees, and 
  2.19  costs and disbursements incurred by a mortgagee or assignee in 
  2.20  the enforcement of the terms of this subdivision. 
  2.21     Subd. 5.  [RECORDING.] If a mortgage is recorded in more 
  2.22  than one county and a certificate of satisfaction is recorded in 
  2.23  one of them, a certified copy of the certificate may be recorded 
  2.24  in the other county with the same effect as the original.  In 
  2.25  every case, the certificate must be entered and indexed as a 
  2.26  satisfaction of the mortgage described in the certificate. 
  2.27     Subd. 6.  [APPLICATION.] This section applies to any 
  2.28  mortgage recorded or filed in this state in the original 
  2.29  principal amount of $500,000 or less, and any certificate of 
  2.30  satisfaction of the mortgage executed, recorded, or filed 
  2.31  before, on, or after the effective date of this section. 
  2.32     Sec. 2.  [507.413] [AUTHORITY OF MORTGAGEE DESIGNATED AS 
  2.33  NOMINEE OR AGENT.] 
  2.34     (a) An assignment, satisfaction, release, or power of 
  2.35  attorney to foreclose is entitled to be recorded in the office 
  2.36  of the county recorder or filed with the registrar of titles and 
  3.1   is sufficient to assign, satisfy, release, or authorize the 
  3.2   foreclosure of a mortgage, as the case may be, if: 
  3.3      (1) a mortgage is granted to a mortgagee as nominee or 
  3.4   agent for a third party identified in the mortgage, and the 
  3.5   third party's successors and assigns; 
  3.6      (2) a subsequent assignment, satisfaction, release of the 
  3.7   mortgage, or power of attorney to foreclose the mortgage, is 
  3.8   executed by the mortgagee or the third party, its successors or 
  3.9   assigns; and 
  3.10     (3) the assignment, satisfaction, release, or power of 
  3.11  attorney to foreclose is in recordable form. 
  3.12  The county recorder and registrar of titles shall rely upon such 
  3.13  assignment, satisfaction, release, or power of attorney to 
  3.14  foreclose to assign, satisfy, release, or foreclose said 
  3.15  mortgage. 
  3.16     (b) This section applies to any mortgage, assignment, 
  3.17  satisfaction, release, or power of attorney to foreclose 
  3.18  executed, recorded, or filed before, on, or after the effective 
  3.19  date of this section. 
  3.20     Sec. 3.  [EFFECTIVE DATE.] 
  3.21     Section 1 is effective August 1, 2004.