A. When any debt or evidence of debt secured by a mortgage or deed of trust upon any real estate in the state has been fully satisfied, it is the duty of the mortgagee, trustee or the assignee of the debt or evidence of debt, as the case may be, to cause the full satisfaction of it to be entered of record in the office of the county clerk of the county where the mortgage or deed of trust is recorded.
B. The debt or evidence of debt secured by a mortgage or deed of trust shall not have been fully satisfied for purposes of Subsection A of this section, even if all sums due thereunder have been paid in full, if the written agreement between the mortgagor or trustor and the mortgagee or beneficiary provides for the securing of a series of loans or a line of credit by a mortgage or deed of trust and the notation "Line of credit mortgage" is prominently placed on the mortgage or deed of trust that is filed with the county clerk in the county or counties in which the property is located.
C. If, at any time the obligation secured by the mortgage or deed of trust described in Subsection B of this section is fulfilled, and the balance is zero, the mortgagee or beneficiary shall cause the mortgage or deed of trust to be released of record upon written demand of the mortgagor, trustor or the successor or assignee thereof. In the event of the death or incompetence of the mortgagor or trustor, the heirs, personal representative, conservator or guardian of the mortgagor or trustor as appropriate may make the demand for release described in this subsection.
History: Laws 1909, ch. 51, § 1; Code 1915, § 4776; C.S. 1929, § 117-120; 1941 Comp., § 63-404; 1953 Comp., § 61-7-4; Laws 1991, ch. 59, § 1.
ANNOTATIONSCompiler's notes. — The compilers of the 1915 Code substituted "county clerk" for "probate clerk and ex officio recorder."
The 1991 amendment, effective June 14, 1991, added the catchline; designated the section as Subsection A; added Subsections B and C; and made minor stylistic changes in Subsection A.
Cancellation granted on condition of payment. — Where a building and loan association had agreed to take homeowners' loan corporation bonds in full settlement of a claim, part of which had been paid, but the mortgage had not been released, the court granted mortgagors cancellation of note and mortgage upon condition of payment. Chaves Cnty. Bldg. & Loan Ass'n v. Hodges, 1936-NMSC-046, 40 N.M. 326, 59 P.2d 671.
Am. Jur. 2d, A.L.R. and C.J.S. references. — 55 Am. Jur. 2d Mortgages §§ 410 et seq., 1222 et seq.
Quitclaim deed by mortgagee to mortgagor as satisfaction of mortgage, 44 A.L.R. 1273, 162 A.L.R. 556.
Satisfied or discharged mortgage as cloud on title, 78 A.L.R. 101.
Tender of amount of mortgage debt which is made upon condition of receipt in full or release of mortgage as affecting lien of mortgage, 93 A.L.R. 74.
Mortgagor as released by consent of mortgagee to release or impairment of mortgage security by grantee of mortgagor, 112 A.L.R. 1343.
Discharge of accommodation maker or surety by release of mortgage or other security given for note, 2 A.L.R.2d 260.
Requiring security as condition of canceling of record mortgage or lien, or of recording payment, 2 A.L.R.2d 1064.
Reinstatement and restoration of mortgages released or discharged without authorization, as against subsequent purchasers, lienholders, judgment creditors and the like, without notice, 35 A.L.R.2d 948.
Construction of provision in real estate mortgage, land contract or other security instrument for release of separate parcels of land as payments are made, 41 A.L.R.3d 7.
Damages recoverable for real estate mortgagee's refusal to discharge mortgage or give partial release therefrom, 8 A.L.R.4th 853.
Discharge of mortgage and taking back of new mortgage as affecting lien intervening between old and new mortgages, 43 A.L.R.5th 519.
59 C.J.S. Mortgages §§ 470 to 472.