Bill Text: OH HB201 | 2013-2014 | 130th General Assembly | Comm Sub

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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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

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As Reported by the Senate Insurance and Financial Institutions Committee

130th General Assembly Regular Session 2013-2014

Sub. H. B. No. 201

Representative Butler 

Cosponsors: Representatives Adams, J., Terhar, Thompson, Hayes, Adams, R., Amstutz, Anielski, Beck, Bishoff, Blair, Blessing, Boyce, Budish, Burkley, Conditt, Green, Hood, Huffman, Letson, Milkovich, Perales, Retherford, Strahorn, Sykes, Winburn Speaker Batchelder 

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A BILL

To amend section 5301.36 and to enact section

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5301.361 of the Revised Code to make changes

2

relative to entries of satisfaction.

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BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:

Section 1. That section 5301.36 be amended and section	4
5301.361 of the Revised Code be enacted to read as follows:	5

Sec. 5301.36.  (A) Except in a county in which the county	6
recorder has elected to require that all satisfactions of	7
mortgages be recorded by separate instrument as allowed under	8
section 5301.28 of the Revised Code, when recording a mortgage,	9
county recorders shall leave space on the margin of the record for	10
the entry of satisfaction, and record therein the satisfaction	11
made on the mortgage, or permit the owner of the claim secured by	12
the mortgage to enter such satisfaction. Such record shall have	13
the same effect as the record of a release of the mortgage.	14

(B) Within ninety days from the date of the satisfaction of a	15
residential mortgage, the mortgagee shall record a release of the	16
mortgage evidencing the fact of theits satisfaction in the	17
appropriate county recorder's office and pay any fees required for	18
the recording. The mortgagee may, by contract with the mortgagor,	19
recover the cost of the fees required for the recording of the	20
satisfaction by the county recorder.	21

(C) If the mortgagee fails to comply with division (B) of	22
this section, the mortgagor of the unrecorded satisfaction and the	23
current owner of the real property to which the mortgage pertains	24
may recover, in a civil action, damages of two hundred fifty	25
dollars. This division does not preclude or affect any other legal	26
remedies or damages that may be available to the mortgagor.	27

(D)(1) If upon the expiration of the ninety-day period	28
described in division (B) of this section, the satisfaction of	29
mortgage remains unrecorded, the current owner of the real	30
property shall provide the mortgagee written notice, in accordance	31
with the Rules of Civil Procedure, of the failure to enter the	32
release of the mortgage of record. The notice shall be in	33
substantially the following form:	34

"OHIO LAW REQUIRES A MORTGAGEE, WHETHER THE ORIGINAL MORTGAGEE OR	35
ANY SUCCESSOR TO THE INTEREST OF THE ORIGINAL MORTGAGEE, TO RECORD	36
A RELEASE OF A MORTGAGE EVIDENCING ITS SATISFACTION IN THE	37
APPROPRIATE COUNTY RECORDER'S OFFICE AND TO PAY ANY FEES REQUIRED	38
FOR THE RECORDING WITHIN A CERTAIN TIME PERIOD. (Name of	39
mortgagor)'S MORTGAGE LOAN, (loan number or other loan	40
identification), FOR PROPERTY LOCATED AT (property address), WAS	41
SATISFIED ON (date of satisfaction). IT APPEARS YOU HAVE YET TO	42
RECORD A RELEASE OF THIS MORTGAGE. FAILURE TO RECORD THE RELEASE	43
WITHIN 15 DAYS OF RECEIVING THIS NOTICE MAY RESULT IN A CIVIL	44
ACTION FILED AGAINST YOU TO RECOVER REASONABLE ATTORNEYS' FEES AND	45
COSTS INCURRED IN SUCH AN ACTION OR OTHERWISE TO OBTAIN THE	46
RECORDING, PLUS DAMAGES OF $100 FOR EACH DAY OF NONCOMPLIANCE NOT	47
TO EXCEED $5,000 IN TOTAL DAMAGES."	48

(2) Within fifteen days after delivery of the notice	49
described in division (D)(1) of this section, the mortgagee shall	50
record a release of the mortgage evidencing the fact of its	51
satisfaction in the appropriate county recorder's office and pay	52
any fees required for the recording. The mortgagee may, by	53
contract with the mortgagor or current owner of the real property,	54
recover the cost of the fees required for the recording of the	55
satisfaction by the county recorder.	56

(E) If the mortgagee fails to comply with division (D)(2) of	57
this section after receiving the notice in accordance with	58
division (D)(1) of this section, the current owner of the real	59
property may recover, in a civil action, reasonable attorneys'	60
fees and costs incurred in such an action or otherwise to obtain	61
the recording of a satisfaction of mortgage plus damages of one	62
hundred dollars for each day of noncompliance, not to exceed five	63
thousand dollars in total damages.	64

This division does not preclude or affect any other legal	65
remedies or damages that may be available to the current owner.	66

(F) A mortgagee that records a release of a mortgage	67
evidencing the fact of its satisfaction within the time periods	68
required by this section shall not be in violation of this	69
section, or subject to damages or fees, due to the failure of a	70
county recorder to timely process that release of mortgage.	71

(G) A current owner may combine the civil actions described	72
in divisions (C) and (E) of this section by bringing one action to	73
collect for both damages, or may bring separate actions.	74

(H) As used in this section, "residential mortgage" means an	75
obligation to pay a sum of money evidenced by a note and secured	76
by a lien upon:	77

(1) "Mortgagee" includes the original mortgagee or any	78
successor to or assignee of the original mortgagee.	79

(2) realproperty located within this state containing two	80
or fewer residential units or on which two or fewer residential	81
units are to be constructed and shall include such an	82
"Satisfaction" means that the obligation on a residential	83
condominium or cooperative unit secured by a mortgage has been	84
paid in full and the underlying obligation terminated, with no	85
opportunities for future advancements.	86

Sec. 5301.361. (A)(1) With respect to an unreleased	87
commercial mortgage that has been satisfied more than ninety days	88
prior to the effective date of this section, but not recorded, the	89
mortgagee shall not be subject to a civil action or damages as	90
described in division (C) of section 5301.36 of the Revised Code.	91

(2) The current owner of the real property to which such a	92
mortgage pertains shall provide the mortgagee the written notice	93
described in division (D)(1) of section 5301.36 of the Revised	94
Code not sooner than on the effective date of this section and may	95
recover damages in a civil action for failure to comply with	96
division (D)(2) of that section pursuant to division (E) of that	97
section.	98

(B)(1) With respect to an unreleased commercial mortgage that	99
has been satisfied less than ninety days prior to the effective	100
date of this section, but not recorded, the mortgagee shall not be	101
subject to a civil action or damages as described in division (C)	102
of section 5301.36 of the Revised Code.	103

(2) The current owner of the real property to which such a	104
mortgage pertains shall provide the mortgagee the written notice	105
described in division (D)(1) of section 5301.36 of the Revised	106
Code not sooner than on the ninetieth day after the mortgage was	107
satisfied and may recover damages in a civil action for failure to	108
comply with division (D)(2) of that section pursuant to division	109
(E) of that section.	110

(C)(1) With respect to an unreleased residential mortgage	111
that has been satisfied, but not recorded, prior to the effective	112
date of this section, the mortgagee shall be subject to a civil	113
action or damages as described in division (C) of section 5301.36	114
of the Revised Code for failure to comply with division (B) of	115
that section.	116

(2) If such a mortgage was satisfied more than ninety days	117
prior to the effective date of this section, the current owner of	118
the real property to which the mortgage pertains shall provide the	119
mortgagee the written notice described in division (D)(1) of	120
section 5301.36 of the Revised Code not sooner than on the	121
effective date of this section and may recover damages in a civil	122
action for failure to comply with division (D)(2) of that section	123
pursuant to division (E) of that section. If such a mortgage was	124
satisfied less than ninety days prior to the effective date of the	125
section, the current owner shall provide the mortgagee the written	126
notice described in division (D)(1) of section 5301.36 of the	127
Revised Code not sooner than on the ninetieth day after the	128
mortgage was satisfied and may recover damages in a civil action	129
for failure to comply with division (D)(2) of that section	130
pursuant to division (E) of that section.	131

(D) As used in this section, "mortgagee" has the same meaning	132
as in section 5301.36 of the Revised Code.	133

Section 2. That existing section 5301.36 of the Revised Code	134
is hereby repealed.	135