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

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-Engrossed.html

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As Passed by the House

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

1

5301.234 of the Revised Code to make changes

2

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.

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

(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