H.P. 1127 - L.D. 1586
An Act to Require the Holder or Servicer of a Mortgage to Record the Discharge Within 60 Days
Be it enacted by the People of the State of Maine as follows:
Sec. 1. 33 MRSA §551, as amended by PL 1977, c. 100, §§1 and 2, is further amended to read:
§551. Entry on record; neglect to discharge
A mortgage shall only may be discharged by a written instrument acknowledging the satisfaction thereof and signed and acknowledged by the mortgagee or by his executor, administrator the mortgagee's duly authorized officer or agent, personal representative or assignee. The instrument shall must recite the name or identity of the mortgagee and mortgagor, or their successors in interest, authenticated and the record location of the mortgage discharged. The instrument, when recorded, shall have has the same effect as a deed of release duly acknowledged and recorded. If a mortgagee or his executor, administrator or assignee, after full performance of the condition of his mortgage whether before or after breach of such condition, refuses or neglects for 7 days after being thereto requested to make such discharge or to execute and acknowledge a deed of release of the mortgage, he shall be punished by a fine of not less than $10 nor more than $50, to be recovered in a civil action.
Within 60 days after full performance of the conditions of the mortgage, the mortgagee shall record a valid and complete release of mortgage together with any instrument of assignment necessary to establish the mortgagee's record ownership of the mortgage. As used in this paragraph, the term "mortgagee" means both the owner of the mortgage at the time it is satisfied and any servicer who receives the final payment satisfying the debt. If a release is not transmitted to the registry of deeds within 60 days, the owner and any such servicer are jointly and severally liable to an aggrieved party for damages equal to exemplary damages of $200 per week after expiration of the 60 days, up to an aggregate maximum of $5,000 for all aggrieved parties or the actual loss sustained by the aggrieved party, whichever is greater. If multiple aggrieved parties seek exemplary damages, the court shall equitably allocate the maximum amount. The mortgagee is also liable for court costs and reasonable attorney's fees in any successful action to enforce the liability. The mortgagee may charge the mortgagor for any recording fees incurred in recording the release of mortgage.
With respect to a mortgage securing an open-end line of credit, the 60-day period to deliver a release commences after the mortgagor delivers to the address designated for payments under the line of credit a written request to terminate the line and the mortgage together with payment in full of all amounts secured by the mortgage. The mortgagee may designate in writing a different address for delivery of written notices under this paragraph.
All discharges of recorded mortgages, attachments or liens of any nature shall must be recorded by a written instrument, and except for termination statements filed pursuant to Title 11, section 9-404, acknowledged in same manner as other instruments presented for record and no such discharges shall may be permitted by entry in the margin of the instrument to be discharged.
Sec. 2. Application. This Act applies to mortgages satisfied after December 31, 1999.
Effective September 18, 1999, unless otherwise indicated.
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