Bill Summary – FastDemocracy

1009.01000
     Sixty-seventh
     Legislative Assembly                     SENATE BILL NO. 2292
     of North Dakota
     Introduced by
       Senators Meyer, Holmberg, Patten
       Representative O'Brien
  A BILL for an Act to create and enact section 35-03-15.1 of the North Dakota Century Code,
  relating to mortgage modifications; and to amend and reenact sections 35-03-14 and 35-03-15
  of the North Dakota Century Code, relating to the expiration and extension of real estate
  mortgages.
  BE IT ENACTED BY THE LEGISLATIVE ASSEMBLY OF NORTH DAKOTA:
      SECTION 1. AMENDMENT. Section 35-03-14 of the North Dakota Century Code is
  amended and reenacted as follows:
      35-03-14. Expiration of real estate mortgages.
      1.   Unless extended or modified as specified in sectionsections 35-03-15 and 35-03-15.1,
          the lien created by a mortgage of North Dakota real estate and all notice from the
          record thereofof the lien expires as to all persons and for all purposes as follows:
     1.   a.     If the final maturity date is ascertainable from the record of the mortgage, the lien
                 of the mortgage expires ten years after thatthe final maturity date.
     2.   b.     If the final maturity date of the mortgage is not ascertainable from the record, the
                 lien of the mortgage expires ten years after the date the mortgage is filed for
                 record in the office of the recorder.
     2.   Expiration of a mortgage lien under the provisions of this section is equivalent for all
          purposes to proper discharge of the mortgage of record, and execution or recordation
          of a discharge instrument is not necessary to terminate a mortgage lien whichthat has
          so expired. Satisfaction of mortgage in the common form may be recorded at any time.
     3.   Expiration of a mortgage lien as provided hereinin this section occurs notwithstanding
          that the right to foreclose the mortgage has not been or might not be barred by the
          defense of limitations, whether tolled by nonresidence, disability, death, part payment,
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     Legislative Assembly
           acknowledgment, extension, new promise, or waiver, and occurs notwithstanding any
           provisions of the Federal Soldiers' and Sailors' Civil Relief Act.
     SECTION 2. AMENDMENT. Section 35-03-15 of the North Dakota Century Code is
  amended and reenacted as follows:
     35-03-15. Extension of mortgage - Expiration delayed - Retroactivity.
      1.   Expiration of a real estate mortgage lien as provided in sectionsections 35-03-14 and
           35-03-15.1 does not occur if prior to the date suchthe expiration otherwise would
           become effective:
      1.   a.   An action or proceeding to foreclose is timely and properly commenced and the
               summons and complaint in suchthe action are duly filed with the clerk of the court
               having jurisdiction, and there is duly recorded in the office of the recorder a
               special notice of the pendency of suchthe action, or of the pendency of a
               proceeding to foreclose by advertisement;
     2.   b.   A proceeding to foreclose by advertisement is commenced and a special notice
               of the pendency of the proceeding is recorded in the office of the recorder.
          c.   There is duly recorded in the office of the recorder the statutory notice of intention
               to foreclose with proof of service;
     3.   d.   A deed in lieu of foreclosure purporting to continue the mortgage lien unmerged
               in the fee title is duly recorded in the office of the recorder;
     4.   e.   Actual possession of the mortgaged property is taken and held by the owner of
               the mortgage, or the owner of the mortgage recorded a notice of enforcement of
               an assignment of rents related to the mortgaged property; or
     5.   f.   An instrument by or on behalf of an interested partythe owner of the mortgage or
               the owner's authorized agent in affidavit form asserting extension and
               continuation of the mortgage lien is duly recorded in the office of the recorder of
               the county in which the affected mortgaged real estate or some portion thereofof
               the affected mortgaged real estate is situated, provided that no such instrument is
               effective to postpone expiration of a mortgage lien under this section for more
               than ten years beyond the date expiration would have become effective under
               section 35-03-14, unless the lien was modified under section 35-03-15.1.
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     Legislative Assembly
      2.   The provisions of section 35-03-14 and this section apply to all mortgages, including
           those executed or recorded before the effective date of said sectionssection 35-03-14
           and this section. The provisions of said sectionssection 35-03-14 and this section do
           not bar any action, precludeexcept foreclosure or enforcement of any lien, or cause
           any mortgage lien to expire, until January 1, 1964.
      SECTION 3. Section 35-03-15.1 of the North Dakota Century Code is created and enacted
  as follows:
      35-03-15.1. Modification of mortgage - Expiration delayed.
      1.   Expiration of a real estate mortgage under section 35-03-14 does not occur if before
          the date the expiration would become effective a mortgage modification is recorded in
          the office of the recorder. A modified mortgage expires as provided under section
          35-03-14, unless the modified mortgage is extended under section 35-03-15 or
          subsequently modified. If a modified mortgage is extended or subsequently modified,
          the mortgage expires as follows:
          a.   If the final maturity date is ascertainable from the record of the mortgage
               modification, the lien of the mortgage expires ten years after the final maturity
               date.
          b.   If the final maturity date of the mortgage is not ascertainable from the record of
               the original mortgage or a mortgage modification, the lien of the mortgage
               expires ten years after the date the last mortgage modification is filed for record
               in the office of the recorder.
     2.   As used in this section, "mortgage modification" means a written instrument amending
          at least one term of an original mortgage which:
          a.   References the original mortgage by recording date and document number; and
          b.   Is signed by the mortgagor, or the mortgagor's successor in interest, and the
               owner of the mortgage.
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Statutes affected: 
INTRODUCED: 35-03-14, 35-03-15
Enrollment: 35-03-14, 35-03-15