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Key: (1) language to be deleted (2) new language

                            CHAPTER 153-S.F.No. 1621 
                  An act relating to real estate; providing for a 
                  certificate of mortgage satisfaction; proposing coding 
                  for new law in Minnesota Statutes, chapter 507. 
        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
           Section 1.  [507.403] [CERTIFICATE OF MORTGAGE SATISFACTION 
        BY ASSIGNEE.] 
           Subdivision 1.  [CERTIFICATE OF SATISFACTION.] A 
        certificate of satisfaction of mortgage that complies with this 
        section is effective to discharge the mortgage even if one or 
        more assignments of the mortgage have not been recorded or filed.
           Subd. 2.  [CONTENTS.] A certificate of satisfaction under 
        this section must contain substantially all of the following: 
           (1) the name of the assignee, the name of the mortgagor, 
        the name of the original mortgagee, the date of the mortgage, 
        the date of recording, and the volume and page number or 
        document number of the mortgage in the real property records 
        where the mortgage is recorded; and 
           (2) a statement that the assignee is the holder, owner, or 
        successor of the mortgagee's interest in the mortgage. 
           Subd. 3.  [EXECUTION.] A certificate of satisfaction under 
        this section must be executed and acknowledged as required by 
        law in the case of a deed by a duly authorized officer or duly 
        appointed agent of the assignee, but shall not relieve any 
        person of any liability for damages caused by the person's 
        wrongful or erroneous execution of a certificate of satisfaction.
           Subd. 4.  [EFFECT.] For purposes of satisfying a mortgage 
        under this section, a certificate of satisfaction that contains 
        the information and statements required by subdivision 2 and 
        which is executed as provided in this section is prima facie 
        evidence of the facts contained in it, is entitled to be 
        recorded with the county recorder or registrar of titles, and 
        operates as a satisfaction of the mortgage described in the 
        certificate.  The county recorder and the registrar of titles 
        shall rely upon it to satisfy the mortgage.  Recording of a 
        wrongful, erroneous, or unauthorized certificate shall not 
        relieve the mortgagor, or the mortgagor's successors or assigns, 
        from any personal liability on the loan or other obligations 
        secured by the mortgage.  In addition to any other remedy 
        provided by law, a person who wrongfully or erroneously executes 
        a certificate under this section is liable to the mortgagee or 
        an assignee for actual damage sustained due to the recording of 
        the certificate, together with reasonable attorney fees, and 
        costs and disbursements incurred by a mortgagee or assignee in 
        the enforcement of the terms of this subdivision. 
           Subd. 5.  [RECORDING.] If a mortgage is recorded in more 
        than one county and a certificate of satisfaction is recorded in 
        one of them, a certified copy of the certificate may be recorded 
        in the other county with the same effect as the original.  In 
        every case, the certificate must be entered and indexed as a 
        satisfaction of the mortgage described in the certificate. 
           Subd. 6.  [APPLICATION.] This section applies to any 
        mortgage recorded or filed in this state and any certificate of 
        satisfaction of the mortgage executed, recorded, or filed 
        before, on, or after the effective date of this section. 
           Sec. 2.  [507.413] [AUTHORITY OF MORTGAGEE DESIGNATED AS 
        NOMINEE OR AGENT.] 
           (a) An assignment, satisfaction, release, or power of 
        attorney to foreclose is entitled to be recorded in the office 
        of the county recorder or filed with the registrar of titles and 
        is sufficient to assign, satisfy, release, or authorize the 
        foreclosure of a mortgage if: 
           (1) a mortgage is granted to a mortgagee as nominee or 
        agent for a third party identified in the mortgage, and the 
        third party's successors and assigns; 
           (2) a subsequent assignment, satisfaction, release of the 
        mortgage, or power of attorney to foreclose the mortgage, is 
        executed by the mortgagee or the third party, its successors or 
        assigns; and 
           (3) the assignment, satisfaction, release, or power of 
        attorney to foreclose is in recordable form. 
        The county recorder and registrar of titles shall rely upon this 
        assignment, satisfaction, release, or power of attorney to 
        foreclose to assign, satisfy, release, or foreclose the mortgage.
           (b) This section applies to any mortgage, assignment, 
        satisfaction, release, or power of attorney to foreclose 
        executed, recorded, or filed before, on, or after the effective 
        date of this section. 
           Presented to the governor April 2, 2004 
           Signed by the governor April 6, 2004, 10:45 a.m.