Assignment of Deed of Trust by Individual Mortgage Holder
Alaska Law Summary
Assignment and Satisfaction
of Mortgages
Assignments Generally: Lenders,
or holders of mortgages or deeds of trust, often assign mortgages or deeds
of trust to other lenders, or third parties. When this is done the
assignee (person who received the assignment) steps into the place of the
original lender or assignor. To effectuate an assignment, the general
rules is that the assignment must be in proper written format and recorded
to provide notice of the assignment.
Satisfactions Generally: Once a mortgage
or deed of trust is paid, the holder of the mortgage is required to satisfy
the mortgage or deed of trust of record to show that the mortgage or deed
of trust is no longer a lien on the property. The general rule is that
the satisfaction must be in proper written format and recorded to provide
notice of the satisfaction. If the lender fails to record a satisfaction
within set time limits, the lender may be responsible for damages set by
statute for failure to timely cancel the lien. Depending on your state,
a satisfaction may be called a Satisfaction, Cancellation, or Reconveyance.
Some states still recognize marginal satisfaction but this is slowly being
phased out. A marginal satisfaction is where the holder of the mortgage
physically goes to the recording office and enters a satisfaction on the
face of the the recorded mortgage, which is attested by the clerk
Alaska Law
Assignment: An assignment may be recorded,
and thereupon operates as constructive notice to all persons.
Demand to Satisfy: The lender must record
satisfaction of the deed of trust upon full payment and receipt of written
request from debtor.
Recording Satisfaction: A deed of trust
may be discharged upon the record of the mortgage by the recorder who has
custody of the record when there is presented to the recorder a certificate
executed by the mortgagee or the personal representatives or assigns of
the mortgagee, acknowledged or proved and certified to entitle conveyances
to be recorded, specifying that the mortgage is paid or otherwise satisfied
or discharged.
Marginal Satisfaction: A mortgage may be
discharged upon the record of the mortgage by the recorder when presented
with a certificate executed by the mortgagee, acknowledged and specifying
that the mortgage is satisfied. The certificate itself shall also be recorded.
Penalty: If a mortgagee, after full performance
of the condition of the mortgage, for 10 days after being so requested
in writing, and after tender of the reasonable charges, neglects or refuses
to discharge the mortgage, or to execute and acknowledge a certificate
of discharge or release of the mortgage, the mortgagee is liable to the
mortgagor in the sum of $300 damages, and also for all damages occasioned
by the neglect or refusal.
Acknowledgment: An assignment or satisfaction
must contain a proper Alaska acknowledgment, or other acknowledgment approved
by Statute.
Alaska Statutes
Sec. 34.20.030. Recording of discharge upon certificate of mortgagee.
A mortgage may be discharged upon the record of the mortgage
by the recorder who has custody of the record when there is presented to
the recorder a certificate executed by the mortgagee or the personal
representatives or assigns of the mortgagee, acknowledged or proved and
certified in the manner prescribed in AS 34.15 to entitle conveyances to
be recorded, specifying that the mortgage is paid or otherwise satisfied
or discharged.
Sec. 34.20.040. Recording certificate.
A certificate of discharge provided for in AS 34.20.030 and
the proof or acknowledgment of the certificate shall be recorded at
full length. A reference shall be made to the book and page containing
the record of the certificate in the entry of the discharge of the mortgage
made by the recorder upon the record of the discharge.
Sec. 34.20.050. Penalty for failure to discharge mortgage or
execute certificate.
If a mortgagee, or personal representatives, successors in interest
or assigns of the mortgagee, after full performance of the condition of
the mortgage, whether before or after a breach, for 10 days after
being so requested in writing, and after tender of the reasonable
charges, neglects or refuses to discharge the mortgage, or to execute and
acknowledge a certificate of discharge or release of the mortgage, the
mortgagee is liable to the mortgagor, the heirs, successors in interest,
representatives or assigns of the mortgagor, in the sum of $300 damages,
and also for all damages occasioned by the neglect or refusal.
Sec. 34.20.110. Trust deeds recorded as mortgages.
For the purposes of record, a deed of trust, given to secure
an indebtedness, shall be treated as a mortgage of real estate, and
recorded in full in the book provided for mortgages of real property. The
person who makes or executes the deed of trust shall be indexed as "mortgagor,"
and the trustee and the beneficiary or cestui que trust, as the "mortgagees."
Sec. 34.20.130. Recording assignment, subordination, or waiver.
(a) The following instruments may be recorded:
(1) an assignment of the beneficial interest under a deed of
trust; or
(2) an instrument by which a deed of trust of real property is subordinated
or waived as to priority.
(b) From the time it is filed for record, the instrument operates
as constructive notice to all persons.
