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

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-Introduced.html

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As Introduced

130th General Assembly Regular Session 2013-2014

H. B. No. 201

Representative Butler 

Cosponsors: Representatives Adams, J., Terhar, Thompson, Hayes 

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A BILL

To amend section 5301.36 and to enact section

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5301.234 of the Revised Code to make changes

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relative to mortgage subrogation and entries of

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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	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.

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(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.

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(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 may recover, in a civil action,	52
damages of two hundredup to fifty dollars for each day of	53
noncompliance and reasonable attorneys' fees and costs incurred in	54
such an action or otherwise to obtain the recording of a	55
satisfaction of mortgage. This division does not preclude or	56
affect any other legal remedies or damages that may be available	57
to the mortgagor.	58

(D) As used in this section, "residential mortgage" means an	59
obligation to pay a sum of money evidenced by a note and secured	60
by a lien upon:	61

(1) "Mortgagee" includes the original mortgagee or any	62
successor to or assignee of the original mortgagee.	63

(2) "Mortgagor" includes the original mortgagor and any	64
successor to the interest of the original mortgagor in the real	65
property located within this state containing two or fewer	66
residential units or on which two or fewer residential units are	67
to be constructed and shall include such an obligation on a	68
residential condominium or cooperative unit.	69

(3) "Satisfaction" means that the obligation secured by a	70
mortgage has been paid in full and the underlying obligation	71
terminated, with no opportunities for future advancements.	72

Section 2. That existing section 5301.36 of the Revised Code	73
is hereby repealed.	74

Section 3. With respect to an unreleased mortgage that has	75
been satisfied, but not recorded, prior to the effective date of	76
this act, the mortgagor shall provide the mortgagee written	77
notice, addressed to the last address of public record for the	78
mortgagee, of the failure to enter the release of the mortgage of	79
record. The mortgagee shall have sixty days from the delivery of	80
the notice to record the satisfaction and release of the mortgage	81
in the appropriate county recorder's office. The mortgagee shall	82
pay any fees required for the recording within one hundred eighty	83
days after the effective date of this act. A mortgagor may	84
institute an action and recover damages under division (C) of	85
section 5301.36 of the Revised Code as amended by this act.	86