§506-8  Release of mortgages of real
property or fixtures.  The mortgagee of real property or the record
assignee of a mortgage interest shall provide to the mortgagor a release of
mortgage upon full satisfaction of the mortgage and discharge of any secured
debt.  The instrument shall be duly acknowledged, shall sufficiently describe
the mortgage that has been satisfied, and be recordable in the bureau of
conveyances or office of the assistant registrar of the land court, or both, as
appropriate.  If the mortgagee or record assignee fails to provide a release of
the mortgage as required by this section within sixty days from the date of a
request made in writing by any party in interest, and sent by certified or
registered mail to the mortgagee or record assignee at its last known address,
then:



(1)  Any title insurer or underwritten title company
as defined in section 431:20-102 may execute the release of mortgage on behalf
of the mortgagee or record assignee; provided that:



(A)  The release shall have attached to it an
affidavit setting forth proof, such as a canceled check or written confirmation
from the mortgagee, that reasonably establishes that the mortgage debt has been
discharged and the mortgage has been fully satisfied; and



(B)  The release shall be executed by an
officer of the title insurer or underwritten title company.



In
the event that a mortgage is released by a title insurer or underwritten title
company under the provisions of this section but the mortgage debt has not been
discharged, the mortgage has not been fully satisfied, and the title insurer or
underwritten title company acted with gross negligence or in bad faith in
releasing the mortgage, the title insurer or underwritten title company
releasing the mortgage shall be liable to the mortgagee for treble damages and
reasonable attorneys' fees and costs; or



(2)  The mortgagor or a company issuing title
insurance to a new owner of the mortgaged subject real property or to another
mortgagee of the subject real property, or the escrow company charged by the
mortgagor with obtaining the release of mortgage, or any other interested
party, as plaintiff, may institute an action in any circuit court to obtain the
release of mortgage; provided that:



(A)  The plaintiff in the action shall mail a
copy of the complaint to the mortgagee or record assignee by certified or
registered mail addressed to the mortgagee or record assignee at its last known
address;



(B)  If the mortgagee or record assignee does
not file an answer to the complaint within forty-five days after the mailing,
the court, upon receipt of an affidavit of mailing required by this section and
upon satisfactory proof that the mortgage debt has been discharged and the
mortgage has been fully satisfied, shall issue an order releasing the mortgage;



(C)  This order shall be recorded in the bureau
of conveyances or office of the assistant registrar of the land court, or both,
as appropriate; and



(D)  Upon a finding of good cause by the court,
the plaintiff shall be entitled to treble damages and reasonable attorneys'
fees and costs incurred in the action unless the court finds that the mortgagee
had a reasonable basis for believing that a dispute existed regarding whether
the mortgage should have been released. [L 1988, c 143, §1; am L 1994, c 78,
§1]