Knowing When to Walk Away
With only one day left in the 2016 legislative session—the legislature is scheduled to adjourn sine die on April 12—the General Assembly has passed, and the Governor signed, less than 30 of the 941 bills introduced—a success rate of only 3%. Most of the remaining time will be spent in budget negotiations, and the Governor will be considering whether to sign or veto some additional bills.
For creditors, the Governor has signed some technical amendments of note:
A termination statement of a lien noted on a motor vehicle (or other) certificate of title may be faxed from any county clerk to the county clerk of the county where originally filed. SB 74, amending KRS 186.045.
The effectiveness of a lien noted on a motor vehicle (or other) certificate of title is extended from 7 years to 10 years. Continuation statements must be filed within 6 months of expiration, and will last 5 years (down from 7) counting from the date the existing lien would have expired. SB 122, amending KRS 186A.190.
The provisions requiring deeds and mortgages to refer to the source of title of grantor or mortgagor are clarified – some were concerned that the language "next immediate source" meant a second step back in title. The amendment drops the word "next, " and leaves it "immediate source." SB 122, amending KRS 382.110 and 382.290.
In foreclosures, the grantee by commissioner's deed must be recorded within five days of receipt from the commissioner. SB 122, amending KRS 382.110. This is a change supported by consumer advocates, thought it is not clear that there was a problem that needed fixing.
The provisions allowing correction of mortgages by attorney's affidavit were clarified to confirm that limitations prohibiting changes to terms, dollar amounts and interest rates apply only to affidavits of amendments, and not to amendments signed by both mortgagor and mortgagee. Also, the provision clarifies that such affidavits may be used to correct manifest clerical or typographical errors, such as spelling, punctuation or numbering mistakes in typing or printing. SB 122, amending KRS 382.297.