A. Any mortgage on real estate shall be released by the holder of any such mortgage within thirty (30) days of the payment of the debt secured by the mortgage and the holder of the mortgage shall file the release of the mortgage with the county clerk where the mortgage is recorded. If, at the end of the thirty-day period, the holder has failed to release the mortgage, the mortgagor may at any time request in writing the holder of the mortgage to release the mortgage and the holder of the mortgage shall have ten (10) days from the date of the request to release such mortgage. If the holder of the mortgage fails to release the mortgage by the end of such ten-day period, the mortgage holder shall then forfeit and pay to the mortgagor a penalty of one percent (1%) of the principal debt not to exceed One Hundred Dollars ($100.00) per day each day the release is not recorded after the ten-day period has expired and the penalty shall be recovered in a civil action in any court having jurisdiction thereof, but the request for the release shall be in writing and describe the mortgage and premises with reasonable certainty. Provided that, the total penalty shall not exceed one hundred percent (100%) of the total principal debt.
B. A title insurance company or its duly appointed agent may bring action on behalf of the mortgagor to recover the penalty described in subsection A of this section.
C. For purposes of this section:
1. "Mortgagor" shall include any subsequent purchaser of the mortgaged real estate; and
2. "Title insurance company" shall mean a corporation or other business entity authorized and licensed to transact business of insuring titles to interests in real property in this state.
R.L. 1910, § 4023. Amended by Laws 1977, c. 156, § 2, eff. Oct. 1, 1977; Laws 1978, c. 92, § 1, eff. Oct. 1, 1978; Laws 1987, c. 4, § 1, eff. Nov. 1, 1987; Laws 2015, c. 175, § 1, eff. Nov. 1, 2015; Laws 2016, c. 210, § 19, emerg. eff. April 26, 2016.
NOTE: Laws 2015, c. 177, § 1 repealed by Laws 2016, c. 210, § 20, emerg. eff. April 26, 2016.
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