Effective - 01 Jan 1986
443.110. Partial release of certain mortgages, deeds of trust or security instruments made how — conditions — requirements. — Whenever any security instrument heretofore or hereafter executed, providing for the issue of a series of notes or bonds aggregating one hundred thousand dollars or more not including interest or interest notes or coupons secured in whole or in part by property located in this state, by its terms confers authority upon the trustee or trustees therein named, or either of them, to release the property or any part thereof encumbered by any such security instrument from the lien thereof, such release may be so made and it shall be the duty of the recorder of deeds of the county in which the property so released from such security instrument shall be situated to accept and record in the proper records any deed of release executed and duly acknowledged by such trustee, pursuant to the authority conferred by such security instrument, releasing the whole or any part of such mortgaged property; provided, however, that in the case of a security instrument which shall not have been qualified under the Federal Trust Indenture Act of 1939, as from time to time amended, no such release shall be made unless such security instrument shall contain a provision requiring that the amount due under the security instrument or the amount of money or other consideration received from the sale of the property described in such release or such portion thereof as may be stipulated in such security instrument shall be deposited with some banking firm or banking corporation or trust company named in such security instrument for the benefit of the holders of such notes or bonds, or a provision requiring that there shall have been reinvested in property subject to the lien of such security instrument an amount of money equal to the value of the property so released; provided, however, if there shall have been such reinvestments as provided by the terms of such security instrument, which shall not have been qualified under the Federal Trust Indenture Act of 1939, as from time to time amended, there shall be filed with the recorder of deeds, together with the aforesaid release, a certificate that at a meeting of the bondholders or noteholders, held at the place named in the security instrument for the payment of the principal of such bonds or notes, after publication of notice of such meeting for two weeks in some newspaper regularly published at such place, less than a majority in interest of the bonds or notes represented at such meeting voted against such release or a certificate that none of the bonds or notes were represented at such meeting. Such certificate shall be made by the person who shall at such meeting be elected chairman thereof, and upon the filing thereof the recorder of deeds shall record said release as aforesaid; and provided further, that if the mortgaged property be subject to several security instruments, and upon the sale of only a part of the property covered by such security instruments, the amount of money or other consideration received from the sale of the property described in such release shall have been deposited with the banking firm or banking corporation or trust company named in the first security instrument for the benefit of the holders of the notes or bonds thereby secured in the order of their priority, and the excess if any, for the benefit of the holders of notes or bonds secured by the subsequent security instruments in the order of their priority, and such depositary shall so certify, then the property so sold may be released by the trustees in each of the security instruments, which confer authority upon the trustee or trustees therein named to release such property from the lien of such security instruments.
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(RSMo 1939 § 3470, A.L. 1947 V. I p. 229, A.L. 1985 H.B. 210)
Prior revisions: 1929 § 3083; 1919 § 2242
Effective 1-01-86