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#1441461 - 09/10/10 05:56 PM New Statute? Mortgage tohave principle location?
Big Blue Banker Offline
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Big Blue Banker
Joined: Apr 2009
Posts: 305
I just heard through the elusive grapevine that there was a new Kentucky state statute that has recently gone into effect that requires the mortgage to have the principle banking location.

We currently put the bank location on the mortgage as whatever location the loan is being originated, not the principle location.

Any guidance, my fellow Kentuckians?

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#1441660 - 09/10/10 08:56 PM Re: New Statute? Mortgage tohave principle location? Big Blue Banker
Irishguy Offline
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Irishguy
Joined: Aug 2008
Posts: 586
Kentucky
Is this what you are referring to:

KRS §382.430—Clerical Errors or Omissions
of County of Residence

KRS §382.430 previously required mortgages to
list the county and state of residence and the post
office address of the person or corporation holding
the property. This requirement sometimes led
to clerical errors and omissions that endangered
banks’ security. HB 264 amends KRS §382.430
to read that a mortgage or other lien instrument
must include the address of the person or the
principal place of business of a corporation in order
to have a valid lien on the property, removing any
requirements regarding the necessity to include
the county of residence in the mortgagee’s address.
This amendment protects Kentucky banks who
have omitted the county of residence in their loan
documents—a small mistake but one that could
have great consequences under the prior statue

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#1441827 - 09/13/10 01:28 PM Re: New Statute? Mortgage tohave principle location? Irishguy
MarieR Offline
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Joined: Nov 2005
Posts: 614
That is the one. The line that references the principal place of business is the questionable part. My operations person has been working with Laser Pro and the KBA to see what is going on. We also put the address of the branch and not the principal place of business (main office).
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#1441923 - 09/13/10 03:16 PM Re: New Statute? Mortgage tohave principle location? MarieR
Irishguy Offline
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Irishguy
Joined: Aug 2008
Posts: 586
Kentucky
MarieR -- I would be interested in what you find out. When we prepare docs in Laser Pro, we have been putting the address of the branch that originated the loan.

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#1441972 - 09/13/10 04:14 PM Re: New Statute? Mortgage tohave principle location? Irishguy
MarieR Offline
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Joined: Nov 2005
Posts: 614
We have currently changed to putting the main bank address on all mortgages and are researching to see how many were filed after the effective date (7-15). I'll keep you updated.

Irishguy - were did you find that summary? We found out about it from an attorney reviewing one of our mortgages, but couldn't find the change addressed in any of the legislative updates or notices.
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#1442157 - 09/13/10 07:40 PM Re: New Statute? Mortgage tohave principle location? MarieR
Irishguy Offline
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Irishguy
Joined: Aug 2008
Posts: 586
Kentucky
I googled it and came up with this link to a PDF by Morgan and Pottinger:

http://www.morganandpottinger.com/CM/Newsletter/Spring-2010.pdf

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#1442176 - 09/13/10 07:50 PM Re: New Statute? Mortgage tohave principle location? Irishguy
Irishguy Offline
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Irishguy
Joined: Aug 2008
Posts: 586
Kentucky
Here is another link, but to me it seems like this bill may not have passed yet??

www.lrc.ky.gov/record/10rs/HB264/bill.doc

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#1442190 - 09/13/10 08:00 PM Re: New Statute? Mortgage tohave principle location? Irishguy
MarieR Offline
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Joined: Nov 2005
Posts: 614
Funny that you got it from M&P. I spoke with one of their attorney's last week about it and he hadn't heard about the change.
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CRCM

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#1442917 - 09/14/10 08:10 PM Re: New Statute? Mortgage tohave principle location? MarieR
Irishguy Offline
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Irishguy
Joined: Aug 2008
Posts: 586
Kentucky
I have our attorneys looking at this. As soon as I hear something from them, I will let everyone know.

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#1445366 - 09/20/10 04:49 PM Re: New Statute? Mortgage tohave principle location? Irishguy
Irishguy Offline
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Irishguy
Joined: Aug 2008
Posts: 586
Kentucky
Our attorney suggested that we put the principal location of our bank. He had not heard anything about the rule until I forwarded him the message though.

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