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2020 Kentucky Revised Statutes
Chapter 382 - Conveyances and encumbrances
382.365 Release of lien, with notice to property owner, within thirty days of satisfaction -- Assignments of liens -- Proceeding against lienholder in District Court or Circuit Court -- Liability of lienholder when lien not released or notice not sent -- Notice to state or lienholder -- Damages.
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382.365 Release of lien, with notice to property owner, within thirty days of
satisfaction -- Assignments of liens -- Proceeding against lienholder in District
Court or Circuit Court -- Liability of lienholder when lien not released or
notice not sent -- Notice to state or lienholder -- Damages.
A holder of a lien on real property, including a lien provided for in KRS 376.010,
shall release the lien in the county clerk's office where the lien is recorded within
thirty (30) days from the date of satisfaction.
An assignee of a lien on real property shall record the assignment in the county
clerk's office as required by KRS 382.360. Failure of an assignee to record a
mortgage assignment shall not affect the validity or perfection, or invalidity or lack
of perfection, of a mortgage lien under applicable law.
A proceeding may be filed by any owner of real property or any party acquiring an
interest in the real property in District Court or Circuit Court against a lienholder
that violates subsection (1) or (2) of this section. A proceeding filed under this
section shall be given precedence over other matters pending before the court.
Upon proof to the court of the lien being satisfied by payment in full to the final
lienholder or final assignee, the court shall enter a judgment noting the identity of
the final lienholder or final assignee and authorizing and directing the master
commissioner of the court to execute and file with the county clerk the requisite
release or assignments or both, as appropriate. The judgment shall be with costs
including a reasonable attorney's fee. If the court finds that the lienholder received
written notice of its failure to release and lacked good cause for not releasing the
lien, the lienholder shall be liable to the owner of the real property or to a party with
an interest in the real property in the amount of one hundred dollars ($100) per day
for each day, beginning on the fifteenth day after receipt of the written notice, of the
violation for which good cause did not exist. This written notice shall be properly
addressed and sent by certified mail or delivered in person to the final lienholder or
final assignee as follows:
(a) For a corporation, to an officer at the lienholder's principal address or to an
agent for process located in Kentucky; however, if the corporation is a foreign
corporation and has not appointed an agent for process in Kentucky, then to
the agent for process in the state of domicile of the corporation;
(b) For an individual, to the individual at the address shown on the mortgage, at
the lienholder's residence or place of business, or at an address to which the
lienholder has directed that correspondence or payoff be sent;
(c) For a trust or an estate, to a fiduciary at the address shown on the mortgage or
at an address to which the lienholder has directed that correspondence or
payoff be sent; and
(d) For any other entity, including but not limited to limited liability companies,
partnerships, limited partnerships, limited liability partnerships, and
associations, to an officer, partner, or member at the entity's principal place of
business or to an agent for process.
A lienholder that continues to fail to release a satisfied real estate lien, without good
cause, within forty-five (45) days from the date of written notice shall be liable to
the owner of the real property or to a party with an interest in the real property for
an additional four hundred dollars ($400) per day for each day for which good cause
did not exist after the forty-fifth day from the date of written notice, for a total of
five hundred dollars ($500) per day for each day for which good cause did not exist
after the forty-fifth day from the date of written notice. The lienholder shall also be
liable for any actual expense including a reasonable attorney's fee incurred by the
owner or a party with an interest in the real property in securing the release of real
property by such violation and in securing an award of damages. Damages under
this subsection for failure to record an assignment pursuant to KRS 382.360(3) shall
not exceed three (3) times the actual damages, plus attorney's fees and court costs,
but in no event less than five hundred dollars ($500).
(6) The former holder of a lien on real property shall send by regular mail a copy of the
lien release to the property owner at his or her last known address within seven (7)
days of the release. A former lienholder that violates this subsection shall be liable
to the owner of the real property for fifty dollars ($50) and any actual expense
incurred by the owner in obtaining documentation of the lien release.
(7) For the purposes of this section, "date of satisfaction" means that date of receipt by
a holder of a lien on real property of a sum of money in the form of a certified
check, cashier's check, wired transferred funds, or other form of payment
satisfactory to the lienholder that is sufficient to pay the principal, interest, and other
costs owing on the obligation that is secured by the lien on the property.
(8) The provisions of this section shall not apply when a lienholder is deceased and the
estate of the lienholder has not been settled.
(9) The state licensing agency, if applicable, or any holder of a lien on real property
shall be notified of the disposition of any actions brought under this section against
(10) The provisions of this section shall be held and construed as ancillary and
supplemental to any other remedy provided by law.
(11) If more than one (1) owner or party with an interest in the real property brings an
action to recover damages under this section, any statutory damages shall be
allocated equally among recovering parties in the absence of agreement otherwise
among said parties. The entry of a judgment awarding damages shall bar a
subsequent action by any other person or entity to recover damages for the same
Effective: July 12, 2006
History: Amended 2006 Ky. Acts ch. 183, sec. 18, effective July 12, 2006. -- Amended
2000 Ky. Acts ch. 412, sec. 1, effective July 14, 2000. -- Amended 1998 Ky. Acts ch.
280, sec. 1, effective July 15, 1998; and ch. 507, sec. 1, effective July 15, 1998. -Amended 1988 Ky. Acts ch. 259, sec. 3, effective July 15, 1988. -- Amended 1986
Ky. Acts ch. 191, sec. 1, effective July 15, 1986. -- Created 1978 Ky. Acts ch. 331,
sec. 1, effective June 17, 1978.
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