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Bill Title: To make changes relative to entries of satisfaction, to clarify the status of volunteer firefighters for purposes of the Patient Protection and Affordable Care Act, to make changes regarding coverage for a dependent child under a parent's health insurance plan and the hours of work needed to qualify for coverage under a small employer health benefit plan, to increase the duration of the health insurance considered to be short-term under certain insurance laws, and to make changes to the chemotherapy parity law.
Spectrum: Moderate Partisan Bill (Republican 25-6)
Status: (Passed) 2014-12-19 - Governor' Action
[HB201 Detail]Download: Ohio-2013-HB201-Comm_Sub.html
As Reported by the House Financial Institutions, Housing, and Urban Development Committee
130th General Assembly | Regular Session | 2013-2014 |
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Cosponsors:
Representatives Adams, J., Terhar, Thompson, Hayes
A BILL
| To amend section 5301.36 and to enact section | 1 |
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5301.234 of the Revised Code to make changes | 2 |
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relative to mortgage subrogation and entries of | 3 |
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:
Section 1. That section 5301.36 be amended and section | 5 |
5301.234 of the Revised Code be enacted to read as follows: | 6 |
Sec. 5301.234. (A) A mortgage encumbering real property | 7 |
granted to secure funds that are used to satisfy a prior mortgage | 8 |
or lien on the real property shall be subrogated to the priority | 9 |
of the prior mortgage or lien that was satisfied, to the extent of | 10 |
the amount satisfied, if both of the following apply: | 11 |
(1) The parties to the mortgage granted to secure funds that | 12 |
are used to satisfy a prior mortgage or lien intend that mortgage | 13 |
to have the priority of the satisfied mortgage or lien. | 14 |
(2) At the time the holder of a subordinate mortgage or lien | 15 |
received its interest, the holder expected the interest to be | 16 |
junior to the satisfied mortgage or lien. | 17 |
(B) A mortgagee seeking to be subrogated pursuant to division | 18 |
(A) of this section shall not be denied subrogation for the | 19 |
priority of the satisfied mortgage or lien for any of the | 20 |
following reasons: | 21 |
(1) The mortgagee is engaged in the business of lending. | 22 |
(2) The mortgagee had actual knowledge or constructive notice | 23 |
of a mortgage or lien over which the mortgagee would gain priority | 24 |
through subrogation. | 25 |
(3) The mortgagee committed a mistake or was negligent or a | 26 |
third party committed a mistake or was negligent. | 27 |
(4) The lien for which the mortgagee seeks to be subrogated | 28 |
was released. | 29 |
(5) The mortgagee obtained a title insurance policy. | 30 |
(C) Notwithstanding the application of division (A) of this | 31 |
section, the holder of a subordinate mortgage or lien shall retain | 32 |
the same subordinate position that the holder would have had if | 33 |
the prior mortgage or lien had not been satisfied. | 34 |
Sec. 5301.36. (A) Except in a county in which the county | 35 |
recorder has elected to require that all satisfactions of | 36 |
mortgages be recorded by separate instrument as allowed under | 37 |
section 5301.28 of the Revised Code, when recording a mortgage, | 38 |
county recorders shall leave space on the margin of the record for | 39 |
the entry of satisfaction, and record therein the satisfaction | 40 |
made on the mortgage, or permit the owner of the claim secured by | 41 |
the mortgage to enter such satisfaction. Such record shall have | 42 |
the same effect as the record of a release of the mortgage. | 43 |
(B) Within ninety days from the date of the satisfaction of a | 44 |
residential mortgage, the mortgagee shall record a release of the | 45 |
mortgage evidencing the fact of theits satisfaction in the | 46 |
appropriate county recorder's office and pay any fees required for | 47 |
the recording. The mortgagee may, by contract with the mortgagor, | 48 |
recover the cost of the fees required for the recording of the | 49 |
satisfaction by the county recorder. | 50 |
(C) If the mortgagee fails to comply with division (B) of | 51 |
this section, the mortgagor of the unrecorded satisfaction and the | 52 |
current owner of the real property to which the mortgage pertains | 53 |
may recover, in a civil action, damages of two hundred fifty | 54 |
dollars. This division does not preclude or affect any other legal | 55 |
remedies or damages that may be available to the mortgagor. | 56 |
(D)(1) If upon the expiration of the ninety-day period | 57 |
described in division (B) of this section, the satisfaction of | 58 |
mortgage remains unrecorded, the current owner of the real | 59 |
property shall provide the mortgagee written notice, in accordance | 60 |
with the Rules of Civil Procedure, of the failure to enter the | 61 |
release of the mortgage of record. The notice shall be in | 62 |
substantially the following form: | 63 |
"OHIO LAW REQUIRES A MORTGAGEE, WHETHER THE ORIGINAL MORTGAGEE OR | 64 |
ANY SUCCESSOR TO THE INTEREST OF THE ORIGINAL MORTGAGEE, TO RECORD | 65 |
A RELEASE OF A MORTGAGE EVIDENCING ITS SATISFACTION IN THE | 66 |
APPROPRIATE COUNTY RECORDER'S OFFICE AND TO PAY ANY FEES REQUIRED | 67 |
FOR THE RECORDING WITHIN A CERTAIN TIME PERIOD. (Name of | 68 |
mortgagor)'S MORTGAGE LOAN, (loan number or other loan | 69 |
identification), FOR PROPERTY LOCATED AT (property address), WAS | 70 |
SATISFIED ON (date of satisfaction). IT APPEARS YOU HAVE YET TO | 71 |
RECORD A RELEASE OF THIS MORTGAGE. FAILURE TO RECORD THE RELEASE | 72 |
WITHIN 15 DAYS OF RECEIVING THIS NOTICE MAY RESULT IN A CIVIL | 73 |
ACTION FILED AGAINST YOU TO RECOVER REASONABLE ATTORNEYS' FEES AND | 74 |
COSTS INCURRED IN SUCH AN ACTION OR OTHERWISE TO OBTAIN THE | 75 |
RECORDING, PLUS DAMAGES OF $100 FOR EACH DAY OF NONCOMPLIANCE NOT | 76 |
TO EXCEED $5,000 IN TOTAL DAMAGES." | 77 |
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(2) Within fifteen days after delivery of the notice | 78 |
described in division (D)(1) of this section, the mortgagee shall | 79 |
record a release of the mortgage evidencing the fact of its | 80 |
satisfaction in the appropriate county recorder's office and pay | 81 |
any fees required for the recording. The mortgagee may, by | 82 |
contract with the mortgagor or current owner of the real property, | 83 |
recover the cost of the fees required for the recording of the | 84 |
satisfaction by the county recorder. | 85 |
(E) If the mortgagee fails to comply with division (D)(2) of | 86 |
this section after receiving the notice in accordance with | 87 |
division (D)(1) of this section, the current owner of the real | 88 |
property may recover, in a civil action, reasonable attorneys' | 89 |
fees and costs incurred in such an action or otherwise to obtain | 90 |
the recording of a satisfaction of mortgage plus damages of one | 91 |
hundred dollars for each day of noncompliance, not to exceed five | 92 |
thousand dollars in total damages. | 93 |
This division does not preclude or affect any other legal | 94 |
remedies or damages that may be available to the current owner. | 95 |
(F) A mortgagee that records a release of a mortgage | 96 |
evidencing the fact of its satisfaction within the time periods | 97 |
required by this section shall not be in violation of this | 98 |
section, or subject to damages or fees, due to the failure of a | 99 |
county recorder to timely process that release of mortgage. | 100 |
(G) A current owner may combine the civil actions described | 101 |
in divisions (C) and (E) of this section by bringing one action to | 102 |
collect for both damages, or may bring separate actions. | 103 |
(H) As used in this section, "residential mortgage" means an | 104 |
obligation to pay a sum of money evidenced by a note and secured | 105 |
by a lien upon: | 106 |
(1) "Mortgagee" includes the original mortgagee or any | 107 |
successor to or assignee of the original mortgagee. | 108 |
(2) realproperty located within this state containing two | 109 |
or fewer residential units or on which two or fewer residential | 110 |
units are to be constructed and shall include such an | 111 |
"Satisfaction" means that the obligation on a residential | 112 |
condominium or cooperative unit secured by a mortgage has been | 113 |
paid in full and the underlying obligation terminated, with no | 114 |
opportunities for future advancements. | 115 |
Section 2. That existing section 5301.36 of the Revised Code | 116 |
is hereby repealed. | 117 |
Section 3. (A)(1) With respect to an unreleased commercial | 118 |
mortgage that has been satisfied more than ninety days prior to | 119 |
the effective date of this act, but not recorded, the mortgagee | 120 |
shall not be subject to a civil action or damages as described in | 121 |
division (C) of section 5301.36 of the Revised Code. | 122 |
(2) The current owner of the real property to which such a | 123 |
mortgage pertains shall provide the mortgagee the written notice | 124 |
described in division (D)(1) of section 5301.36 of the Revised | 125 |
Code not sooner than on the effective date of this act and may | 126 |
recover damages in a civil action for failure to comply with | 127 |
division (D)(2) of that section pursuant to division (E) of that | 128 |
section. | 129 |
(B)(1) With respect to an unreleased commercial mortgage that | 130 |
has been satisfied less than ninety days prior to the effective | 131 |
date of this act, but not recorded, the mortgagee shall not be | 132 |
subject to a civil action or damages as described in division (C) | 133 |
of section 5301.36 of the Revised Code. | 134 |
(2) The current owner of the real property to which such a | 135 |
mortgage pertains shall provide the mortgagee the written notice | 136 |
described in division (D)(1) of section 5301.36 of the Revised | 137 |
Code not sooner than on the ninetieth day after the mortgage was | 138 |
satisfied and may recover damages in a civil action for failure to | 139 |
comply with division (D)(2) of that section pursuant to division | 140 |
(E) of that section. | 141 |
(C)(1) With respect to an unreleased residential mortgage | 142 |
that has been satisfied, but not recorded, prior to the effective | 143 |
date of this act, the mortgagee shall be subject to a civil action | 144 |
or damages as described in division (C) of section 5301.36 of the | 145 |
Revised Code for failure to comply with division (B) of that | 146 |
section. | 147 |
(2) If such a mortgage was satisfied more than ninety days | 148 |
prior to the effective date of this act, the current owner of the | 149 |
real property to which the mortgage pertains shall provide the | 150 |
mortgagee the written notice described in division (D)(1) of | 151 |
section 5301.36 of the Revised Code not sooner than on the | 152 |
effective date of this act and may recover damages in a civil | 153 |
action for failure to comply with division (D)(2) of that section | 154 |
pursuant to division (E) of that section. If such a mortgage was | 155 |
satisfied less than ninety days prior to the effective date of the | 156 |
act, the current owner shall provide the mortgagee the written | 157 |
notice described in division (D)(1) of section 5301.36 of the | 158 |
Revised Code not sooner than on the ninetieth day after the | 159 |
mortgage was satisfied and may recover damages in a civil action | 160 |
for failure to comply with division (D)(2) of that section | 161 |
pursuant to division (E) of that section.
| 162 |
(D) As used in this section, "mortgagee" has the same meaning | 163 |
as in section 5301.36 of the Revised Code, as amended by this act. | 164 |