Brief ⁽¹⁾

SB 70, as amended, concerns the persons who may make a demand upon a mortgagee or assignee of a mortgagee for the entering of satisfaction of a mortgage.

The bill adds to the list of persons who may make such a demand a lender or designated closing agent acting as a closing agent in the sale, financing, or refinancing of the real estate subject to the mortgage.

The Committee amendment changes the effective date of the bill to publication in the Kansas Register.

Background

SB 70 was requested by Heartland Community Bankers Association whose representative explained that, notwithstanding recent legislative action to get mortgage holders to enter the required satisfaction of mortgage upon payment, lenders still are finding mortgage holders, particularly those out-of-state, to be slow or unresponsive to demands for filing the satisfaction document. Passage of SB 70 makes it clear that the lender or closing agent in a real estate transaction has legal standing in dealing with mortgage holders who fail to release mortgages in a timely manner.

The Kansas Land Title Association and the Kansas Bankers Association also supported the bill.

The fiscal note prepared by the Division of the Budget indicates that passage of the bill will have no fiscal effect.

1. *Supplemental notes are prepared by the Legislative Research Department and do not express legislative intent. The supplemental note and fiscal note for this bill may be accessed on the Internet at http://www.ink.org/public/legislative/fulltext.cgi