Effect.
(1) Liens by deed or mortgage may be discharged by an entry acknowledging their
satisfaction on the margin of the record thereof, or in the alternative, at the option of
the county clerk, in a marginal entry record, signed by the person entitled thereto, or
his or her personal representative or agent, and attested by the clerk, or may be
discharged by a separate deed of release, which shall recite the date of the
instrument and deed book and the page wherein it is recorded. Such release in the
case of a mortgage or deed of trust shall have the effect to reinstate the title in the
mortgagor or grantor or person entitled thereto. Each entry in the marginal entry
record shall be linked to its respective referenced instrument in the indexing system
for the referenced instruments.
(2) If a lien or mortgage is released by a deed of release, the clerk shall immediately, at
the option of the clerk, either link the release and its filing location to its respective
referenced instrument in the indexing system for the referenced instrument, or
endorse on the margin of the record wherein the lien is retained "Released by deed
of release (stating whether in whole or in part) lodged for record (giving date, deed
book and page wherein such deed of release may be found)" and the clerk shall also
attest such certificate.
(3) When a mortgage is assigned to another person, the assignee shall file the
assignment for recording with the county clerk within thirty (30) days of the
assignment and the county clerk shall attest the assignment and shall note the
assignment in the blank space, or in a marginal entry record, beside a listing of the
book and page of the document being assigned. Provided, however, that an assignee
that reassigns the note prior to the thirtieth day after first acquiring the assignment
may request that the subsequent assignee file the unfiled assignment with the new
reassignment.
(4) Delivering an assignment to the assignee or a lien release to the mortgagor shall not
substitute for filing the assignment or release with the county clerk, as required by
this section.
(5) Notwithstanding the provisions of this section, nothing in this chapter shall require
the legal holder of any note secured by lien in any deed or mortgage to file a release
of any mortgage when the mortgage securing such paid note also secures a note or
other obligation which remains unpaid.
(6) 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.
Effective: January 1, 2020
History: Amended 2019 Ky. Acts ch. 86, sec. 45, effective January 1, 2020. --
Amended 2006 Ky. Acts ch. 183, sec. 17, effective July 12, 2006. -- Amended 1982
Ky. Acts ch. 323, sec. 3, effective July 15, 1982. -- Recodified 1942 Ky. Acts ch.
208, sec. 1, effective October 1, 1942, from Ky. Stat. sec. 498.
Notes of Decisions
Boyd Cnty. ex rel. Hedrick v. Merscorp, Inc., 985 F. Supp. 2d 823 (E.D. Ky. 2013).
· cites it 15× “88], Plaintiffs allege the following causes of action: (1) negligent and/or will violation of KRS 382.360 [Docket No. 88 at ¶¶ 107-109], (2) negligent and/or will violation of KRS 434.”
Wells Fargo Fin. Kentucky, Inc. v. Thomer, 315 S.W.3d 335 (Ky. Ct. App. 2010).
“KRS 382.360. However, as a matter of law, whether or not a formal release occurs, upon full payment of the indebtedness, the instrument of record becomes a nullity.”
Montgomery Cnty. ex rel. Becker v. Merscorp, Inc., 16 F. Supp. 3d 542 (E.D. Pa. 2014).
“While the Higgins case obviously required construction of Kentucky law, specifically, KRS 382.360(3), the similarities between that case and this one are striking given the direction contained in the Kentucky statute — "[w]hen a mortgage is assigned to another person, the…”
Forcht v. Forcht Bank, N.A., 533 S.W.3d 695 (Ky. Ct. App. 2017).
“KRS 382.360. However, as a matter of-law, whether or not a formal release occurs, upon full payment of the indebtedness, the instrument of record becomes a nullity.”
Bratton v. Citifinancial, Inc., 415 S.W.3d 625 (Ky. 2013).
· cites it 2× “(2) 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…”
Whitman v. CitiMortgage, Inc. (E.D. Ky. 2022).
· cites it 2× “(2) 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…”
Mikael Judah & Laura Judah v. EMC Mortg. Corp. (Tex. App. 2015).
“While the Higgins case obviously required construction of Kentucky law, specifically, KRS 382.360(3), the similarities between that case and this one are striking given the direction contained in the Kentucky statute - ″[when a mortgage is assigned to another person, the…”
— Ky. Rev. Stat. § 382.360(1) — 1 case
— Ky. Rev. Stat. § 382.360(3) — 9 cases
Montgomery Cnty. ex rel. Becker v. Merscorp, Inc., 16 F. Supp. 3d 542 (E.D. Pa. 2014).
“While the Higgins case obviously required construction of Kentucky law, specifically, KRS 382.360(3), the similarities between that case and this one are striking given the direction contained in the Kentucky statute — "[w]hen a mortgage is assigned to another person, the…”
Boyd Cnty. ex rel. Hedrick v. Merscorp, Inc., 985 F. Supp. 2d 823 (E.D. Ky. 2013).
“88], Plaintiffs allege the following causes of action: (1) negligent and/or will violation of KRS 382.360 [Docket No. 88 at ¶¶ 107-109], (2) negligent and/or will violation of KRS 434.”
— Ky. Rev. Stat. § 382.360(6) — 3 cases
Boyd Cnty. ex rel. Hedrick v. Merscorp, Inc., 985 F. Supp. 2d 823 (E.D. Ky. 2013).
“88], Plaintiffs allege the following causes of action: (1) negligent and/or will violation of KRS 382.360 [Docket No. 88 at ¶¶ 107-109], (2) negligent and/or will violation of KRS 434.”
— Ky. Rev. Stat. § 382.360(B) — 1 case
Bratton v. Citifinancial, Inc., 415 S.W.3d 625 (Ky. 2013).
“(2) 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…”
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