SF 957

as introduced - 80th Legislature (1997 - 1998) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to mortgages; regulating certificates of 
  1.3             releases by title insurance companies; amending 
  1.4             Minnesota Statutes 1996, section 507.401, subdivisions 
  1.5             2 and 3. 
  1.6   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.7      Section 1.  Minnesota Statutes 1996, section 507.401, 
  1.8   subdivision 2, is amended to read: 
  1.9      Subd. 2.  [CERTIFICATE OF RELEASE.] An officer or duly 
  1.10  appointed agent of a title insurance company may, on behalf of a 
  1.11  mortgagor or a person who acquired from the mortgagor title to 
  1.12  all or a part of the property described in a mortgage, execute a 
  1.13  certificate of release that complies with the requirements of 
  1.14  this section and record the certificate of release in the real 
  1.15  property records of each county in which the mortgage is 
  1.16  recorded if:  (i) a satisfaction or release of the mortgage has 
  1.17  not been executed and recorded within 60 days after the date 
  1.18  payment in full of the loan secured by the mortgage was sent in 
  1.19  accordance with a payoff statement furnished by the mortgagee or 
  1.20  the mortgage servicer, and (ii) the title insurance company, its 
  1.21  officer, or agent has sent to the last known address of the 
  1.22  mortgagee or the mortgage servicer, at least 30 days prior to 
  1.23  executing the certificate of release, written notice of its 
  1.24  intention to execute and record a certificate of release in 
  1.25  accordance with this section after the expiration of the 60-day 
  2.1   period. 
  2.2      Sec. 2.  Minnesota Statutes 1996, section 507.401, 
  2.3   subdivision 3, is amended to read: 
  2.4      Subd. 3.  [CONTENTS.] A certificate of release executed 
  2.5   under this section must contain substantially all of the 
  2.6   following: 
  2.7      (1) the name of the mortgagor, the name of the original 
  2.8   mortgagee, and, if applicable, the mortgage servicer, the date 
  2.9   of the mortgage, the date of recording, and volume and page or 
  2.10  document number in the real property records where the mortgage 
  2.11  is recorded, together with similar information for the last 
  2.12  recorded assignment of the mortgage; 
  2.13     (2) a statement that the mortgage was in the original 
  2.14  principal amount of $500,000 or less; 
  2.15     (3) a statement that the person executing the certificate 
  2.16  of release is an officer or a duly appointed agent of a title 
  2.17  insurance company authorized and licensed to transact the 
  2.18  business of insuring titles to interests in real property in 
  2.19  this state under chapter 68A; 
  2.20     (4) a statement that the certificate of release is made on 
  2.21  behalf of the mortgagor or a person who acquired title from the 
  2.22  mortgagor to all or a part of the property described in the 
  2.23  mortgage; 
  2.24     (5) a statement that the mortgagee or mortgage servicer 
  2.25  provided a payoff statement which was used to make payment in 
  2.26  full of the unpaid balance of the loan secured by the 
  2.27  mortgage; and 
  2.28     (6) a statement that payment in full of the unpaid balance 
  2.29  of the loan secured by the mortgage was made in accordance with 
  2.30  the written or verbal payoff statement., and received by the 
  2.31  mortgagee or mortgage servicer, as evidenced by one or more of 
  2.32  the following in the records of the title insurance company or 
  2.33  its agent: 
  2.34     (i) a bank check, certified check, escrow account check 
  2.35  from the title company or title insurance agent, or attorney 
  2.36  trust account check that has been negotiated by the mortgagee or 
  3.1   mortgage servicer; or 
  3.2      (ii) other documentary evidence of payment to the mortgagee 
  3.3   or mortgage servicer; 
  3.4      (7) a statement that more than 60 days have elapsed since 
  3.5   the date payment in full was sent; 
  3.6      (8) a statement that after the expiration of the 60-day 
  3.7   period referred to in subdivision 2, the title insurance 
  3.8   company, its officer, or agent sent to the last known address of 
  3.9   the mortgagee or mortgage servicer, at least 30 days prior to 
  3.10  executing the certificate of release, notice in writing of its 
  3.11  intention to execute and record a certificate of release in 
  3.12  accordance with this section, with an unexecuted copy of the 
  3.13  proposed certificate of release attached to the written notice; 
  3.14  and 
  3.15     (9) a statement that the title insurance company, its 
  3.16  officer, or agent has not received notification in writing of 
  3.17  any reason why the certificate of release should not be executed 
  3.18  and recorded after the expiration of the 30-day notice period 
  3.19  referred to in subdivision 2.