Ky. Rev. Stat. § 382.520

Renewal, extension, interest rate modification, or additional loan under

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mortgage on real estate -- Superiority of lien -- Release of lien, when. (1) 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, extensions, or interest rate modifications of the loan and the note evidencing it, whether so provided in the mortgage or not. (2) 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. (3) (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: June 24, 2015 History: Amended 2015 Ky. Acts ch. 48, sec. 1, effective June 24, 2015. -- Amended 2014 Ky. Acts ch. 31, sec. 1, effective July 15, 2014. -- 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.

Notes of Decisions

Cited in 8 cases (1 in the last 5 years), 1964–2025 · leading case: Wells Fargo Financial Kentucky, Inc. v. Thomer

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Wells Fargo Financial Kentucky, Inc. v. Thomer (2010) kyctapp · cites it 3× “KRS 382.520. Thus, we must focus upon the indebtedness rather than the mortgage for without the debt, there is no mortgage.”

Forcht v. Forcht Bank, N.A. (2017) kyctapp · cites it 3× “KRS 382.520. Thus, we must focus upon the indebtedness rather than the mortgage for without the debt, there is no mortgage.”

Citizens Fidelity Bank & Trust Co. v. Blieden (In Re Blieden) (1985) kywb · cites it 3× “KRS 382.520 provides: “In all cases where a loan is made by a bank, trust company, or savings and loan association incorporated and doing business under the laws of the Commonwealth of the United States of America, the mortgage originally executed and delivered by the borrower…”

Bank of Maysville v. Brock (1964) kyctapp · cites it 2× “KRS 382.520, so far as it is pertinent here, was to the effect that the original mortgage should secure, if such was so provided by its terms and conditions, the payment of the note evidencing the loan made, all renewals and extensions thereof, but the aggregate indebtedness…”

Liberty National Bank & Trust Co. v. Vanderkraats (1995) kyctapp “See KRS 382.520(2) and KRS 335.9-204(3). Appellant also argues that the trial court’s interpretation (which gave “after assessed” taxes priority) would unwisely burden commerce.”

Asher v. Morgan Stanley Mortgage Capital Holdings LLC (2020) kyeb · cites it 5× “§ 382.520 states, in pertinent part: (1) 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, extensions, or interest rate modifications of the loan and…”

Metal Sales Manufacturing Corp. v. Newton (1999) kyctapp · cites it 7× “The trial court further concluded that KRS 382.520 applied to give the mortgage priority because materialman’s hens are deemed “created” when they are filed.”

Scott Anderson v. Wilmington Savings Fund Society, Fsb, as Owner Trustee of the Residential Credit Opportunities Trust V (2025) kyctapp “Moreover, KRS 382.520(1) specifically provides as follows: [i]n 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, extensions, or interest rate…”

— Ky. Rev. Stat. § 382.520(1) — 2 cases

Forcht v. Forcht Bank, N.A. (2017) kyctapp “KRS 382.520. Thus, we must focus upon the indebtedness rather than the mortgage for without the debt, there is no mortgage.”

— Ky. Rev. Stat. § 382.520(2) — 3 cases

Asher v. Morgan Stanley Mortgage Capital Holdings LLC (2020) kyeb “§ 382.520 states, in pertinent part: (1) 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, extensions, or interest rate modifications of the loan and…”

Metal Sales Manufacturing Corp. v. Newton (1999) kyctapp “The trial court further concluded that KRS 382.520 applied to give the mortgage priority because materialman’s hens are deemed “created” when they are filed.”

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