Nebraska recently enacted legislation clarifying the requirements for a lender to release its lien upon the satisfaction of the obligation secured thereby and receipt of a written request for release, and the consequences for failing to do so. The provisions take effect on July 1, 2018.
Specifically, the amendments clarify that a lender must, after receipt of payment in full or performance of the secured obligation, and receipt of a written request from the borrower or borrower’s successor in interest, record a deed of reconveyance or a release or satisfaction, as applicable, in the land records. A lender that fails to do so within sixty days after receiving payment in full or performance of the secured obligation and the requisite written request is liable to: (i) the borrower or the borrower’s successor in interest for the greater of $5,000 or actual damages, plus attorney’s fees and costs; or (ii) a successor in interest of the borrower or of a landowner, purchaser, or holder of a junior lien, if such person made the requisite written request, for actual damages plus attorney’s fees and costs. A court may also order a reconveyance or the recordation of a release or satisfaction.
The amendments also clarify that the transfer of any secured obligation also operates as a transfer of the security of such obligation.
A copy of the amendments is available here.