HB 1717 -- Missouri Uniform Residential Mortgage Satisfaction Act

Sponsor:  Flook

This bill establishes the Missouri Uniform Residential Mortgage
Satisfaction Act.  In its main provisions, the bill:

(1)  Defines "address for giving a notification," "document of
rescission," "notification," "payoff statement," "security
instrument," and "sign";

(2)  Allows a person recording a satisfaction or affidavit of
satisfaction of a security instrument in error to record a
document of rescission canceling the erroneous satisfaction.  A
recorded document of rescission will not affect the rights of a
person that acquired interest in the property prior to it being
recorded;

(3)  Allows an entitled person or his or her agent to request a
payoff statement from the creditor including information on the
payoff amount, applicable fees, payoff calculation, daily
interest charge, and payment cutoff time.  If the payoff
statement amount was understated, the creditor can send a
corrected payoff statement in a timely fashion.  However, if the
entitled person reasonably relied on the original payoff amount,
the creditor cannot deny its accuracy;

(4)  Requires creditors to submit a satisfaction for recording
stating that a secured obligation has been fully satisfied.  A
secured obligation cannot be fully performed until all lines of
credit are terminated.  If a satisfaction for recording is not
submitted within 45 days of receipt, the creditor will be liable
to the landowner for any actual damages caused by the failure
plus an additional amount equal to the lesser of $300 per day or
10% of the original principal amount of the security instrument;

(5)  Specifies that secured creditors are not liable if they
established reasonable procedures to comply with their
obligations, complied in good faith, and were unable to comply
due to circumstances beyond their control;

(6)  Allows title insurance companies and licensed attorneys to
serve as satisfaction agents;

(7)  Allows a satisfaction agent to submit an affidavit of
satisfaction for the landowner if the secured creditor has not
submitted for recording a satisfaction of a security instrument.
The satisfaction agent will notify the secured creditor of his or
her intent.  An affidavit of satisfaction may not be completed if
the secured obligation remains unsatisfied;

(8)  Specifies the information that must be included in a
satisfaction or an affidavit of satisfaction;

(9)  Makes any satisfaction agent liable to the secured creditor
for any actual damage caused by knowingly recording an affidavit
of satisfaction erroneously and subject to enforcement of any
criminal statute prohibiting this conduct and any punitive
damages as a result; and

(10)  Requires that consideration be given to the need to promote
uniformity of law with respect to its subject matter among the
states that enact a uniform residential satisfaction act.  The
act may modify, limit, and supercede the Federal Electronic
Signatures in Global and National Commerce Act, 15 U.S.C.
Section 7001, but may not modify, limit, or supercede Section
101(c) of the federal act, 15 U.S.C. Section 7001(c), or
authorize electronic delivery of any notice described in Section
103(b) of the federal act, 15 U.S.C. Section 7003(b).

Missouri House of Representatives
93rd General Assembly, 2nd Regular Session
Last Updated November 29, 2006 at 9:44 am