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HB 429 - Mortgage; failure to transmit cancellation; liability of grantee

Crawford, Robert (Mack) M (129th)

Status Summary	HC:	Judy	SC:	B&FI	FR:	02/03/99	LA:	01/10/00	S - Read 3rd Time (CSFA )

First Reader Summary

A BILL to amend Code Section 44-14-3 of the Official Code of Georgia Annotated, relating to cancellation by the grantee or holder upon payment of the indebtedness secured by a mortgage or conveyance to secure debt, so as to change a provision relating to liability of the grantee or holder for failure to transmit a cancellation of the mortgage or conveyance to secure debt upon payment of the indebtedness; and for other purposes.

HB 429                                            HB 429/CSFA 
 
      H. B. No. 429 (COMMITTEE SUBSTITUTE)(AM) 
      By:  Representative Crawford of the 129th 
 
 
 
                        A BILL TO BE ENTITLED 
                               AN ACT 
 
 
  1- 1  To amend Code Section 44-14-3 of the Official Code of 
  1- 2  Georgia Annotated, relating to cancellation by the grantee 
  1- 3  or holder of record upon payment of the indebtedness secured 
  1- 4  by a mortgage or conveyance to secure debt, so as to specify 
  1- 5  when a penalty must be paid; to provide for cancellation of 
  1- 6  an instrument upon recording an affidavit that a written 
  1- 7  notice was mailed to the grantee or holder of record 60 days 
  1- 8  previously and such grantee or holder of record has not 
  1- 9  provided a legally sufficient satisfaction or cancellation; 
  1-10  to provide for related procedures and the contents of the 
  1-11  notice and affidavit and attachments to the affidavit; to 
  1-12  provide penalties for filing a fraudulent affidavit; to 
  1-13  repeal conflicting laws; and for other purposes. 
 
  1-14       BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA: 
 
  1-15                           SECTION 1. 
 
  1-16  Code Section 44-14-3 of the Official Code of Georgia 
  1-17  Annotated, relating to cancellation by grantee or holder 
  1-18  upon payment, is amended by striking in its entirety 
  1-19  subsection (c) and inserting in lieu thereof the following: 
 
  1-20    "(c) Upon the failure of the grantee or holder to transmit 
  1-21    properly a legally sufficient satisfaction or cancellation 
  1-22    as provided in this Code section, the grantee or holder 
  1-23    shall, upon written demand, be liable to the grantor for 
  1-24    the sum of $500.00 as liquidated damages and, in addition 
  1-25    thereto, for such additional sums for any loss caused to 
  1-26    the grantor plus reasonable attorney's fees. The grantee 
  1-27    or holder shall not be liable to the grantor if he or she 
  1-28    demonstrates reasonable inability to comply with 
  1-29    subsection (b) of this Code section; and the grantee or 
  1-30    holder shall not be liable to the grantor unless and until 
  1-31    a written demand for the transmittal is made liquidated 
  1-32    damages is made. No other provision of this Code section 
  1-33    shall be construed so as to affect the obligation of the 
  1-34    grantee or holder to pay the liquidated damages provided 
  1-35    for in this subsection." 
 
 
                                 -1- 
 
 
 
  2- 1                           SECTION 2. 
 
  2- 2  Said Code section is further amended by inserting 
  2- 3  immediately following subsection (c) the following: 
 
  2- 4    "(c.1) In the event that a grantee or holder of record has 
  2- 5    failed to transmit properly a legally sufficient 
  2- 6    satisfaction or cancellation to authorize and direct the 
  2- 7    clerk or clerks to cancel the instrument of record within 
  2- 8    60 days after a written notice mailed to such grantee or 
  2- 9    holder of record by registered or certified mail, return 
  2-10    receipt requested, the clerk or clerks are authorized and 
  2-11    directed to cancel the instrument upon recording an 
  2-12    affidavit by an attorney who has caused the secured 
  2-13    indebtedness to be paid in full or by an officer of a 
  2-14    regulated or chartered financial institution whose 
  2-15    deposits are federally insured if that financial 
  2-16    institution has paid the secured indebtedness in full. 
  2-17    The notice to be mailed to the grantee or holder of record 
  2-18    shall identify the indebtedness and include a recital or 
  2-19    explanation of this subsection.  The affidavit shall 
  2-20    include a recital of actions taken to comply with this 
  2-21    subsection.  Such affidavit shall include as attachments 
  2-22    the following items: 
 
  2-23      (1) A written verification which was given at the time 
  2-24      of payment by the grantee or holder of record of the 
  2-25      amount necessary to pay off such loan; and 
 
  2-26        (2)(A) Copies of the front and back of a canceled 
  2-27        check to the grantee or holder of record paying off 
  2-28        such loan; 
 
  2-29        (B) Confirmation of a wire transfer to the grantee or 
  2-30        holder of record paying off such loan; or 
 
  2-31        (C) A bank receipt showing payment to the grantee or 
  2-32        holder of record of such loan. 
 
  2-33    Any person who files an affidavit in accordance with this 
  2-34    subsection which affidavit is fraudulent shall be guilty 
  2-35    of a felony and shall be punished by imprisonment for not 
  2-36    less than one year nor more than three years or by a fine 
  2-37    of not less than $1,000.00 nor more than $5,000.00, or 
  2-38    both." 
 
  2-39                           SECTION 3. 
 
  2-40  All laws and parts of laws in conflict with this Act are 
  2-41  repealed. 
 
 
 
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