Debts Secured By Liens On Real Property

The act makes the following changes to certain requirements upon satisfaction of indebtedness consisting of a line of credit secured by a lien on real property:

• The lien continues and no lien release is required until the line of credit expires and the debt is satisfied unless, before expiration of the line of credit, the outstanding indebtedness is satisfied and the debtor relinquishes in writing all right to make any further draw upon the line of credit; and
• The debtor relinquishes all right to make a further draw by either requesting in writing that the line of credit be closed by the creditor or by written notification by the debtor or the debtor's designee that the real property is being conveyed upon payment of all indebtedness. Upon satisfaction of all indebtedness in connection with the conveyance of the real property and notice to the creditor or holder of the conveyance, the creditor or holder shall terminate the line of credit, record the release of the lien on real property, or in the case of a deed of trust, file with the public trustee the documents required for release, and return all papers and personal property as required by law.

(Note: This summary applies to this bill as enacted.)