66-25-103 - Entry of partial payments. - Tennessee Statutes

66-25-103. Entry of partial payments.

(a)  (1)  The mortgagee, or the assignee or the transferee of a debt secured by such instrument, who has accepted partial payments, on request in writing of a judgment creditor or other creditor of the mortgagor having a lien or claim on the property covered by the lien, or the party making such payment, including, but not limited to, the maker, the mortgagor, the purchaser of the property covered by such instrument, any closing agent or attorney who has collected and transmitted funds for such payment, shall execute and record an instrument of partial or full release, giving the date and the amount of the payment or payments.

     (2)  In any county having a population of not less than thirty-two thousand six hundred (32,600) nor more than thirty-two thousand seven hundred (32,700) according to the 1980 federal census or any subsequent federal census the mortgagee, or the assignee or the transferee of a debt secured by such instrument, who has accepted partial payments, on request in writing of a judgment creditor or other creditor of the mortgagor having a lien or claim on the property covered by the lien, or the party making such payment, including, but not limited to, the maker, the mortgagor, the purchaser of the property covered by such instrument, any closing agent or attorney who has collected and transmitted funds for such payment, shall execute and record a statement of partial release in the manner and form provided in part 2 of this chapter for a full release, giving the date and amount of such partial payment or payments.

(b)  The mortgagee, or the assignee or the transferee of a debt secured by real property who has accepted partial payments pursuant to an agreement to release a portion or portions of the property securing the lien of such instrument on request in writing of the party making such payment, including, but not limited to, the maker, the mortgagor, the purchaser of the property covered by such instrument or any closing agent or attorney who has collected and transmitted funds for such payment shall execute and record a formal partial release deed.

(c)  (1)  If for thirty (30) days after receipt of the written request set forth in subsections (a) and (b), the mortgagee, or the assignee or transferee of a debt so secured arbitrarily or unreasonably fails to record the statement or partial deed of release set out in subsections (a) and (b), such person shall forfeit to the party making such request the sum of one hundred dollars ($100). If the indebtedness is not released within the thirty-day period, the party having requested the release shall again request the release, and, if after thirty (30) days from the second request, the indebtedness has not been released, the holder shall forfeit to the party making the request a sum not to exceed one thousand dollars ($1,000).

     (2)  In the event suit is instituted to collect either or both of the forfeitures, the holder shall also be liable to the party instituting suit for all reasonable expenses, attorney fees, and the court costs incurred in the action.

[Acts 1907, ch. 473, § 2; Shan., § 3704a2; mod. Code 1932, § 8071; Acts 1977, ch. 260, § 2; T.C.A. (orig. ed.), § 64-2503; Acts 1988, ch. 636, § 13; Acts 1990, ch. 902, § 4.]