Ad valorem taxes; require notice of any unpaid taxes to landowner after deed of trust is satisfied.

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To: Judiciary A
MISSISSIPPI LEGISLATURE REGULAR SESSION 2026

By: Representative Gibbs (72nd)

HOUSE BILL NO. 1436

AN ACT TO AMEND SECTION 89-5-21, MISSISSIPPI CODE OF 1972, TO 1
REQUIRE NOTICE OF ANY UNPAID AD VALOREM TAXES TO BE PROVIDED TO A 2
PROPERTY OWNER AFTER A MORTGAGE OR DEED OF TRUST SECURING THE 3
PROPERTY IS SATISFIED; AND FOR RELATED PURPOSES. 4
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI: 5
SECTION 1. Section 89-5-21, Mississippi Code of 1972, is 6
amended as follows: 7
89-5-21. (1) Except as otherwise provided in subsections 8
(3), (4) and (5), any mortgagee or cestui que trust, or assignee 9
of any mortgagee or cestui que trust, of real or personal estate, 10
having received full payment of the money due by the mortgage or 11
deed of trust, shall enter satisfaction upon the margin of the 12
record of the mortgage or deed of trust, which entry shall be 13
attested by the clerk of the chancery court and discharge and 14
release the same, and shall bar all actions or suits brought 15
thereon, and the title shall thereby revest in the grantor. Upon 16
the satisfaction of a mortgage or deed of trust, the clerk of the 17
chancery court shall cause notice to be sent promptly to the tax 18
collector of the county in which the real property secured by the 19
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deed of trust is situated advising the tax collector that the 20
property is no longer encumbered by the deed of trust. No later 21
than ninety (90) days after the date of satisfaction of the 22
mortgage or deed of trust, the tax collector shall mail to the 23
landowner of record notice of unpaid taxes, if any, on the real 24
property which are due by the taxpayer. 25
(2) Any such mortgagee or cestui que trust, or such 26
assignee, by himself or his attorney, who does not, after payment 27
of all sums owed, within one (1) month after written request, 28
cancel on the record the mortgage or deed of trust shall forfeit 29
the sum of Two Hundred Dollars ($200.00), which can be recovered 30
by suit on part of the party aggrieved, and if after request, he 31
fails or refuses to make such acknowledgment of satisfaction, the 32
person so neglecting or refusing shall forfeit and pay to the 33
party aggrieved any sum not exceeding the mortgage money, to be 34
recovered by action; but such entry of satisfaction may be made by 35
anyone authorized to do it by the written authorization of the 36
mortgagee or beneficiary, duly acknowledged and recorded, and 37
shall have the same effect as if done by the mortgagee or 38
beneficiary. 39
(3) With respect to a mortgage or deed of trust which states 40
on its face that it secures a line of credit, satisfaction of 41
record shall be accomplished and extinguishment shall occur as 42
provided in subsection (5). 43
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(4) As used in this section, the term "line of credit" means 44
any loan, extension of credit or financing arrangement where the 45
lender has agreed to make additional or future advances. 46
(5) Any mortgagee or cestui que trust, or the assignee of a 47
mortgagee or cestui que trust, under a mortgage or deed of trust 48
securing a line of credit shall, upon (a) the termination or 49
maturity of the line of credit and the payment of all sums owing 50
in connection with the line of credit, or (b) the payment of all 51
sums owing in connection with the line of credit and a written 52
request by the debtor to cancel the line of credit and the 53
mortgage or deed of trust securing the line of credit, enter 54
satisfaction upon the margin of the record of the mortgage or deed 55
of trust, which entry shall be attested by the clerk of the 56
chancery court and discharge and release the same, and shall bar 57
all actions or suits brought thereon, and the title shall thereby 58
revest in the grantor. For the purpose of this subsection (5), 59
the requirement of a written request by the debtor may be 60
satisfied by a prospective creditor's delivery of a document, 61
signed by the debtor, requesting cancellation of the line of 62
credit and the mortgage or deed of trust securing the line of 63
credit. 64
SECTION 2. Nothing in this act shall affect or defeat any 65
claim, assessment, appeal, suit, right or cause of action for 66
taxes due or accrued under the ad valorem tax laws before the date 67
on which this act becomes effective, whether such claims, 68
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ST: Ad valorem taxes; require notice of any
unpaid taxes to landowner after deed of trust is
satisfied.
assessments, appeals, suits or actions have been begun before the 69
date on which this act becomes effective or are begun thereafter; 70
and the provisions of the ad valorem tax laws are expressly 71
continued in full force, effect and operation for the purpose of 72
the assessment, collection and enrollment of liens for any taxes 73
due or accrued and the execution of any warrant under such laws 74
before the date on which this act becomes effective, and for the 75
imposition of any penalties, forfeitures or claims for failure to 76
comply with such laws. 77
SECTION 3. This act shall take effect and be in force from 78
and after July 1, 2026. 79