2013 Kentucky Revised Statutes CHAPTER 382 - CONVEYANCES AND ENCUMBRANCES 382.520 Renewal, extension, or additional loan under mortgage on real estate -- Superiority of lien -- Release of lien, when.
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382.520 Renewal, extension, or additional loan under mortgage on real estate
-- Superiority of lien -- Release of lien, when.
(1)
(2)
(3)
In all cases where a loan is secured by a real estate mortgage, the mortgage
originally executed and delivered by the borrower to the lender shall secure
payment of all renewals and extensions of the loan and the note evidencing it,
whether so provided in the mortgage or not.
The mortgage referred to in subsection (1) of this section may secure any
additional indebtedness, whether direct, indirect, existing, future, contingent, or
otherwise, to the extent expressly authorized by the mortgage, if the mortgage
by its terms stipulates the maximum additional indebtedness which may be
secured thereby. Except as provided in subsection (3) of this section, the
mortgage lien authorized by this subsection shall be superior to any liens or
encumbrances of any kind created after recordation of such mortgage, even to
the extent of sums advanced by a lender with actual or constructive notice of a
subsequently created lien, provided, however, any mortgagee upon receipt of a
written request of a mortgagor must release of record the lien to secure
additional indebtedness as exceeds the balance of such additional
indebtedness at the time of the request.
(a) The written request referred to in subsection (2) of this section shall be
signed by the mortgagor or his agent or attorney, and shall set forth a
description of the real property to which the request relates, the date,
parties to, the volume and initial page of the record of the mortgage
referred to in subsection (1) of this section, and a description of the
nature, amount, and holder of the lien or encumbrance which the
mortgagor intends to place upon such real property. The request shall be
deemed to have been received by the holder of the mortgage referred to
in subsection (1) of this section only when delivered to the holder by
certified mail, return receipt requested, at the address of the holder
appearing of record on the mortgage or an assignment thereof;
(b) If within ten (10) business days after receipt of the written request
referred to in this subsection, the holder of the mortgage referred to in
subsection (1) of this section fails to release that amount of the lien to
secure additional indebtedness to the extent described in the request, the
mortgagor may record in the office of the county clerk in which the
mortgage referred to in subsection (1) of this section is recorded a copy of
the written request upon payment of the same filing fee as provided for a
release of a mortgage;
(c) If, after a copy of the written request is recorded, an advance is made by
the holder of the mortgage referred to in subsection (1) of this section,
then the lien of the mortgage for the unpaid balance of the advance so
made shall be subordinate to the lien or encumbrance described in the
request.
Effective:July 14, 1992
History: Amended 1992 Ky. Acts ch. 49, sec. 2, effective July 14, 1992. -Amended 1986 Ky. Acts ch. 103, sec. 1, effective July 15, 1986. -- Amended
1982 Ky. Acts ch. 323, sec. 6, effective July 15, 1982. -- Amended 1980 Ky.
Acts ch. 168, sec. 1, effective July 15, 1980. -- Amended 1968 Ky. Acts ch. 152,
sec. 158. -- Amended 1960 Ky. Acts ch. 89, sec. 1. -- Created 1948 Ky. Acts
ch. 196, sec. 1.
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