MISSISSIPPI LEGISLATURE

1999 Regular Session

To: Judiciary B

By: Representative Taylor

AN ACT TO AMEND SECTION 89-5-21, MISSISSIPPI CODE OF 1972, TO REVISE THE AMOUNT REQUIRED TO BE PAID BY A MORTGAGEE OR CESTUI QUE TRUST FOR THE FAILURE TO ENTER SATISFACTION UPON THE MORTGAGE OR DEED OF TRUST; AND FOR RELATED PURPOSES.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:

SECTION 1. Section 89-5-21, Mississippi Code of 1972, is amended as follows:

89-5-21. (1) Except as otherwise provided in this section, any mortgagee or cestui que trust, or assignee of any mortgagee or cestui que trust, of real or personal estate, having received full payment of the money due by the mortgage or deed of trust, shall enter satisfaction upon the margin of the record of the mortgage or deed of trust, which entry shall be attested by the clerk of the chancery court and discharge and release the same, and shall bar all actions or suits brought thereon, and the title shall thereby revest in the grantor.

(2) With respect to a mortgage or deed of trust which states on its face that it secures a line of credit, if the line of credit is:

(a) Used primarily for business, commercial or agricultural purposes, or

(b) To other than a natural person, satisfaction of record shall be accomplished as set forth in subsection (3) of this section, and extinguishment shall occur as provided in subsection (4) of this section.

(3) A mortgagee or cestui que trust, or the assignee of a mortgagee or cestui que trust, under a mortgage or deed of trust described in subsection (2) of this section, shall, upon

(a) The termination or maturity of the line of credit and the payment of all sums owing in connection with the line of credit, or

(b) The payment of all sums owing in connection with the line of credit and the written request by the debtor to cancel the line of credit and mortgage or deed of trust securing the line of credit, enter satisfaction of the mortgage or deed of trust in the same manner as with other mortgages or deeds of trust.

(4) Upon the occurrence of either paragraph (a) or (b) of subsection (3) of this section, a mortgage or deed of trust described in subsection (2) of this section shall be extinguished and title shall revest in the mortgagor as effectually as if reconveyed.

(5) Subsections (2), (3) and (4) of this section shall not apply to consumer loans used primarily for personal, family or household purposes.

(6) Any such mortgagee or cestui que trust, or such assignee, by himself or his attorney, who does not, after payment of all sums owed, within one (1) month after full payment of all debts secured by the mortgage or deed of trust, cancel on the record the mortgage or deed of trust shall forfeit the sum of Two Hundred Dollars ($200.00), which may be recovered by suit on part of the party aggrieved, and if after request, he fails or refuses to make the acknowledgment of satisfaction, the person so neglecting or refusing shall forfeit and pay to the party aggrieved any sum not exceeding the mortgage money, to be recovered by action; but the entry of satisfaction may be made by anyone authorized to do it by the written authorization of the mortgagee or beneficiary, duly acknowledged and recorded, and shall have the same effect as if done by the mortgagee or beneficiary.

(7) As used in this section, the term "line of credit" means any loan, extension of credit or financing arrangement where the lender has agreed to make additional or future advances.

SECTION 2. This act shall take effect and be in force from and after July 1, 1999.