08
HB 1093/AP
House
Bill 1093 (AS PASSED HOUSE AND SENATE)
By:
Representatives Willard of the
49th,
Mills of the
25th,
Coan of the
101st,
Fleming of the
117th,
O`Neal of the
146th,
and others
A
BILL TO BE ENTITLED
AN ACT
AN ACT
To
amend Code Section 44-14-3 of the Official Code of Georgia Annotated, relating
to furnishing of cancellation by grantee or holder upon payment, liability for
failure to comply, cancellation of instrument after failure to comply, and
liability of agents, so as to change certain provisions relating to the demand
for liquidated damages; to provide for related matters; to provide for an
effective date and applicability; to repeal conflicting laws; and for other
purposes.
BE
IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:
SECTION
1.
Code
Section 44-14-3 of the Official Code of Georgia Annotated, relating to
furnishing of cancellation by grantee or holder upon payment, liability for
failure to comply, cancellation of instrument after failure to comply, and
liability of agents, is amended by revising subsections (b) and (c) as
follows:
"(b)(1)
Whenever the
indebtedness secured by any instrument is paid in full, the grantee or holder of
the instrument, within 60 days of the date of the full payment, shall cause to
be mailed to the grantor, at the grantor´s last known address as shown on
the records of the grantee or holder of the instrument, written notice of the
grantee´s or holder of the instrument´s transmittal of notice of
satisfaction or cancellation as required by this subsection and notice of the
grantor´s right to demand payment of $500.00 in liquidated damages from the
grantee or holder of the instrument if such obligation is not timely
met.
(2)
Whenever the indebtedness secured by any instrument is paid in full, the grantee
or holder of the instrument, within 60 days of the date of the full payment,
shall cause to be furnished to the clerk of the superior court of the county or
counties in which the instrument is recorded a legally sufficient satisfaction
or cancellation to authorize and direct the clerk or clerks to cancel the
instrument of record. The grantee or holder
of the
instrument shall further direct the clerk
of the court to transmit to the grantor the original cancellation or
satisfaction document at the grantor´s last known address as shown on the
records of the grantee or holder
of the
instrument. In the case of a revolving
loan account, the debt shall be considered to be 'paid in full' only when the
entire indebtedness including accrued finance charges has been paid and the
lender or debtor has notified the other party to the agreement in writing that
he or
she wishes to terminate the agreement
pursuant to its terms.
(2)(3)
Notwithstanding paragraph
(1)
(2)
of this subsection, if an attorney at law remits the pay-off balance of an
instrument to a grantee or holder
of the
instrument on behalf of a grantor, the
grantee or holder
of the
instrument may direct the clerk of the
court to transmit to such attorney the original cancellation or satisfaction
document.
(3)(4)
A grantee or holder
of the
instrument shall be authorized to add to
the pay-off amount the costs of recording a cancellation or satisfaction of an
instrument.
(c)(1)
Upon the failure of the grantee or holder
of the
instrument to transmit
properly
a legally sufficient satisfaction or cancellation as
provided
in
required by
subsection (b) of this Code section, the
grantee or holder
of the
instrument
shall, upon
written demand, be liable to the grantor
for the sum of $500.00 as liquidated damages
and, in
addition thereto, for such additional sums
for any loss caused to the
grantor,
plus reasonable attorney´s fees
if the grantor
makes a written demand for liquidated damages to the grantee or holder of the
instrument before transmittal, but not less than 61 days after the instrument is
paid in full, and prior to filing a civil
action.
(2)
The grantee or holder
of the
instrument shall not be liable to the
grantor if he or she demonstrates reasonable inability to comply with subsection
(b) of this Code section; and the grantee or holder shall not be liable to the
grantor unless and until a written demand for the liquidated damages
as provided in
subsection (b) of this Code section is
made. No
settlement agent or attorney may take an assignment of the right to the $500.00
in liquidated damages.
(3)
Except as provided in paragraph (1) of subsection (b) and paragraph (2) of
subsection (c) of this Code section, no
No
other provision of this Code section shall be construed so as to affect the
obligation of the grantee or holder
of the
instrument to pay the liquidated damages
provided for in this subsection.
(4)
At least 15 business days prior to filing a civil action to recover liquidated
damages, the grantor shall provide notice in writing to the grantee or holder of
the instrument at the address where the grantee or holder of the instrument
directs payments to be mailed with respect to the indebtedness secured by the
instrument or, if such address is not available, at the address of the grantee
or holder of the instrument´s registered agent for service of process in
Georgia stating that the grantee or holder of the instrument:
(A)
Has failed to comply with the obligation required by this Code
section;
(B)
Owes the grantor liquidated damages in the amount of $500.00; and
(C)
May be sued by the grantor for the failure to comply with the provisions of this
Code section.
(5)
If the grantee or holder of the instrument fails to provide written notice to
the grantor regarding the grantee´s or holder of the instrument´s
obligation for transmittal as provided in paragraph (1) of subsection (b) of
this Code section, the grantor may file a civil action at any time more than 60
days after the grantee´s or holder of the instrument´s receipt of full
payment."
SECTION
2.
This
Act shall become effective upon its approval by the Governor or upon its
becoming law without such approval. A demand for liquidated damages made before
the effective date of this Act shall be governed by the provisions of former
Code Section 44-14-3.
SECTION
3.
All
laws and parts of laws in conflict with this Act are repealed.