CHAPTER 28 SENATE BILL No. 70 An Act concerning mortgages on real property; relating to the entry of satisfaction thereof;
amending K.S.A. 2000 Supp. 58-2309a and repealing the existing section. Be it enacted by the Legislature of the State of Kansas:

      Section  1. K.S.A. 2000 Supp. 58-2309a is hereby amended to read
as follows: 58-2309a. (a) When the indebtedness secured by a recorded
mortgage is paid and there is no agreement for the making of future
advances to be secured by the mortgage, the mortgagee or the mortga-
gee's assignee shall enter satisfaction or cause satisfaction of such mort-
gage to be entered of record forthwith, paying the required fee. In the
event the mortgagee or the mortgagee's assignee fails to enter satisfaction
or cause satisfaction of such mortgage to be entered within 20 days after
written demand by certified or registered mail, the lender or a designated
closing agent acting as a closing agent in the sale, financing or refinancing
of the real estate subject to such mortgage, who upon reliance of written
payoff information provided by the mortgagee, and which payoff infor-
mation shall be deemed as the correct and full amount due and owing
under such mortgage, has caused the indebtedness to be paid in full may
cause satisfaction of the mortgage to be entered. If in fact the mortgagee
or mortgagee's assignee was not paid in accordance with the aforesaid
payoff information when the mortgage was released the lender or the
closing agent in the sale, financing or refinancing of the real estate subject
to such mortgage who signed the false release shall be liable in damages
to the mortgagee or mortgagee's assignee for the entire indebtedness
together with interest thereon, attorney fees, and any additional damages
that the mortgagee or mortgagee's assignee has incurred. Upon recording
of such satisfaction by the lender or closing agent in the sale, financing
or refinancing of the real estate subject to such mortgage, who has caused
the indebtedness to be paid in full, such mortgage shall be deemed fully
released as if discharged by the mortgagee or mortgagee's assignee.

      (b) When a mortgage is recorded covering real estate in which the
mortgagor has no interest, the mortgagee or the mortgagee's assignee
shall enter satisfaction or cause satisfaction of such mortgage to be en-
tered of record, paying the required fee without charge to the mortgagor
or the mortgagor's assigns.

      (c) A mortgagor, a mortgagor's heirs or assigns or anyone acting for
such mortgagor, heirs or assigns, or the owner of real estate upon which
a mortgage has been recorded by someone having no interest in the real
estate, may make demand upon a mortgagee or assignee of a mortgagee
for the entering of satisfaction of the mortgage, as provided for in sub-
sections (a) and (b). The following persons may make demand upon a
mortgagee or assignee of a mortgagee for the entering of satisfaction of
the mortgage, as provided for in subsections (a) and (b):

      (1) A mortgagor, a mortgagor's heirs or assigns or anyone acting for
such mortgagor, heirs or assigns;

      (2) an owner of real estate upon which a mortgage has been recorded
by someone having no interest in the real estate; or

      (3) a lender or designated closing agent acting as a closing agent in
the sale, financing or refinancing of the real estate subject to such mort-
gage.

      (d) Any mortgagee or assignee of a mortgagee who refuses or neglects
to enter satisfaction of such mortgage within 20 days after demand has
been made as provided in subsection (c) shall be liable in damages to the
person for whom the demand was made in the sum of $500, together
with a reasonable attorney's fee for preparing and prosecuting the action.
The plaintiff in such action may recover any additional damages that the
evidence in the case warrants. Civil actions may be brought under this
act before any court of competent jurisdiction, and attachments may be
had as in other cases.

      (e) The mortgagee or assignee of a mortgagee entering satisfaction
or causing to be entered satisfaction of a mortgage under the provisions
of subsection (a) shall furnish to the office of the register of deeds the
full name and last known post office address of the mortgagor or the
mortgagor's assignee. The register of deeds shall forward such informa-
tion to the county clerk who shall make any necessary changes in address
records for mailing tax statements.

 Sec.  2. K.S.A. 2000 Supp. 58-2309a is hereby repealed.
 Sec.  3. This act shall take effect and be in force from and after its
publication in the Kansas register.

Approved March 20, 2001.
 Published in the Kansas Register March 29, 2001.
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