Fayette County Clerk > Land Records

Releases

Bond to Release a Mechanics Lien - Private Property	Bond to Release a Mechanics Lien - Public Property	Federal Tax Lien Releases
Marginal Releases - Using an In-House Form	Release	Release of Child Support Lien In State
Release of Child Support Lien Out of State	Release of City Assessments & Enforcement Liens	Release of Corporation Lien for Taxes
Release of Dower or Curtesy Interest	Release of Judgment Lien	Release of Lis Pendens (and Other Encumbrances)
Release of Lis Pendens Concerning Proceedings in Bankruptcy	Release of Mechanics Lien	Release of Medicaid Program Lilen
Request for Mortgage Release to Secure Additional Indebtedness	State Tax Lien Releases

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Bond to Release a Mechanics Lien - Private Property

KRS 376.100

The owner or claimant of property against which a lien has been asserted under KRS 376.010 may at any time before a judgment has been rendered enforcing the lien, execute before the County Clerk where the lien was filed, a bond for double the amount of the lien claimed with good sureties to be approved by the clerk. Conditioned upon the obligors satisfying any judgement that may be rendered in favor of the person asserting the lien. The clerk shall preserve the bond and upon its execution, the lien shall be discharged.

SURETY BY A LICENSED INSURER

When accepting a surety bond by an insurance company, the clerk must make certain the insurance company is in good standing with the Kentucky Department of Insurance. Each clerk should have a list of such insurance companies. KRS 304-21.201 (2)(3) states that the county clerks will be provided this list by March 1 of each year. These companies can also be verified by contacting the Kentucky Department of Insurance at 502-564-3630. Their address is PO Box 517 Frankfort KY 40602-0517.

The surety bond is recorded along with the release document.

The document must have:

The name of the party asserting the lien
The name of the party the lien is against
The surety bond must be attached to the release
There must be a place on the document for the clerk's approval of the surety
The bond must be double the amount of the lien
A Preparation Statement KRS 382.335
Reference where the lien is recorded (the book and page)

The clerk shall request a return mail address (KRS 382.240)

Indexing: The first party is the person producing the bond. The second party is the person the lien is against.

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Bond to Release a Mechanics Lien - Furnished on Public Property

KRS 376.250 House Bill 259

Prior to judgment a bond to release a lien may be executed before the county clerk in the county in which the lien was filed.

The bond must be double the amount of the lien claimed.

The clerk shall approve the bond only if the bond is secured by:

Cash
A letter of credit from a bank
Surety by a licensed insurer

Cash
The definition of cash is bills, coins, cashier's check, certified check or money order. Any form of cash receipt must be deposited in the bank. Holding a certified check, cashiers check does not meet the requirement of cash. The bank can cancel the certified check. A business check or check from an attorney is not acceptable unless it is certified.

If the bond is paid in cash, check or money order, a separate escrow account for safekeeping must be set up for each bond. This is very important to insure that this money is not co-mingled with any clerk fee or any other bond.

The county clerk would return the money after receiving a properly executed release of the mechanics lien by the legal holder of the lien or upon a court order. The county clerk must have the bank issue a cashier's check out of the specific escrow account established for this bond. That account should be closed and not reused. The county clerk must keep all records associated with these transactions with their accounting records. This is an item that will be reviewed by auditors.

A LETTER OF CREDIT FROM A BANK
A letter of credit from a bank must be an original, on bank stationery and must be signed by an officer of the bank. The letter of credit must state that it is irrevocable. Even though this is not in the statute, a revocable letter of credit would not satisfy the term bond.

The letter of credit must be maintained by the clerk's office in a secure location as you would any other secured document (such as a will), or in a lock box or safety deposit box.

It is important to treat a letter of credit as if it was cash. It is the clerk's backing for the bond. A photocopy of the letter of credit is recorded along with the release document.

The county clerk would return the letter of credit after receiving a properly executed release of the mechanics lien by the legal holder of the lien or upon a court order.

SURETY BY A LICENSED INSURER
When accepting a surety bond by an insurance company, the clerk must make certain the insurance company is in good standing with the Kentucky Department of Insurance. Each clerk should have a list of such insurance companies. KRS 304-21.201 (2)(3) states that the county clerks will be provided this list by March 1 of each year. These companies can also be verified by contacting the Kentucky Department of Insurance at 502-564-3630. Their address is PO Box 517 Frankfort KY 40602-0517.

The surety bond is recorded along with the release document

The document must have:

The name of the party asserting the lien
The name of the party the lien is against
The surety bond must be attached to the release
There must be a place on the document for the clerk's approval of the surety
The bond must be double the amount of the lien
A preparation Statement (KRS 382.335)

The clerk shall request a return mail address (KRS 382.240)

Indexing: The first party is the person producing the bond. The second party is the person the lien is against.

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Federal Tax Lien Releases

AKA IRS releases, AKA U S releases

The IRS prepares these documents. The releases are filed per KRS 382.490.

The release must by prepared by the IRS or appropriate U.S government entity. The release must by signed.

Indexing information: The first party is the entity or agency releasing the lien, the second party is the person the lien was filed against.

The liens and releases must be linked in the applicable index per KRS 382.480, KRS 382.490.

The county clerk shall file and retain all Federal tax lien notices. The county clerk shall enter the certificate, with the date of filing, in a federal lien index, on the same line where the notice of the lien so discharged is entered, and shall permanently attach the original certificate of discharge to the original notice of lien. He shall mail the duplicate to the lien holder from whom received.

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Marginal Releases - Using an In-House Form

KRS 382.360 provides the clerk with the option of using a marginal entry record for releasing mortgages. This form can be used in place of the marginal entry, but caution needs to be used when releasing a mortgage in this manner.

The statute states that the person entitled to release the lien or their personal representative and attested by the clerk must sign the record. This means that the person releasing the mortgage must be the legal holder of the mortgage and that it must be signed in front of the deputy or the clerk. The person releasing the mortgage should show identification. The release also must state the date and the book and page of the original filing.

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It is the recommendation of the Kentucky County Clerks Association to avoid releasing or assigning documents in the margin of a book even though the statutes still provide for this method. (Books that have information that changes cannot be microfilmed.) An alternative to this process is to use an in-house form.

IMPORTANT NOTE: Per KRS 382.290(6) No holder of a note secured by lien retained in either deed or mortgage shall lodge for record, and no clerk or deputy clerk shall receive and permit to be lodged for record, any deed or instrument of writing that does not comply with the provisions of this section. Meaning a release shall not be lodged with the clerk or deputy clerk without first verifying the release is from the legal holder, and the book and page of the document to be released, is the correct document. See Penalties sections KRS 382.990.

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Release

AKA Deed of Release, Satisfaction of Mortgage, Discharge of Mortgage, KRS 382.360, KRS 382.290

The document must have the following:

Name of the person or entity releasing the obligation (KRS 382.200)
Name of the individual or entity being released) (KRS 382.200)
The mortgage book and page reference being released, or the deed book and page in the case of a vendors lien (KRS 382.360)
Partial releases require a description of the property being released (KRS 382.360)
Release must state whole or partial release (KRS 382.360)
Preparation statement (KRS 382.335)
The document must by returned by the clerk to the mortgagor, grantor or person entitled thereto

The clerk shall request a return mail address (KRS 382.240)

Document must be: signed by the party or parties executing the release and the signature(s) notarized. KRS 382.360 & KRS 382.290

Indexing information: The document is indexed in the general index to deeds and mortgages, under the name of both parties. The first party is the lien holder. The second party is the person being released. The release must also be linked in the indexing system to its respective referenced instrument or make a marginal release or entry per KRS 382.290, KRS 382.360.

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IMPORTANT NOTE: Per KRS 382.290(6) No holder of a note secured by lien retained in either deed or mortgage shall lodge for record, and no clerk or deputy clerk shall receive and permit to be lodged for record, any deed or instrument of writing that does not comply with the provisions of this section. Meaning a release shall not be lodged with the clerk or deputy clerk without first verifying the release is from the legal holder, and the book and page of the document to be released, is the correct document. See Penalties sections KRS 382.99
Effective 7-12-2006

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Release of Child Support Lien - In State

KRS 205.745 and KRS 382.470

The release requires the following:

The person or entity releasing the lien
The person, persons, or entity being released
The book and page being released
A Preparation Statement (KRS 382.335)

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Indexing information: The clerk shall index the name or names being released and link the release to the original lien in the indexing system. (KRS 382.470) The first party is the entity releasing the lien. The second party is the person or entity being released.

file a lien release.
Document must be: signed by the authorized person or entity releasing the lien. The signature must be acknowledged. (KRS 382.470) ONLY the entity holding the lien can

The clerk shall request a return mail address (KRS 382.240)

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Release of Child Support Lien - Out of State

KRS 205.7785 and KRS 382.470

The release requires the following:

The person or entity releasing the lien
The person, persons, or entity being released
The book and page being released
A Preparation Statement (KRS 382.335)

The clerk shall request a return mail address (KRS 382.240)

Authorized agent of the party that filed the lien must sign the document and their signature must be acknowledged (notarized). (KRS 382.470) ONLY the entity holding the lien can file a lien release.

Indexing information: The clerk shall index the name or names being released and link the release to the original lien in the indexing system. (KRS 382.470) The first party is the entity releasing the lien. The second party is the person or entity being released.

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Release of City Assessments & Enforcement Liens

The lien release can only be made by the same entity that filed the lien.

Recording requirements are the same as a Release of Lis Pendens. See Release of Lis Pendens Section

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Release of Corporation Lien for Taxes

The statute addresses this lien release as a marginal release. "When any tax has been paid, the president or treasurer of the corporation shall enter the word "paid" upon the record in the proper column, and enter the amount so paid and subscribe thereto the name of the corporation by him."

The preferred method of releasing this or any lien is by recording a release document. The recording requirements for a release document would be the same as the Release of Lis Pendens. See this section.

Index the lien in the real estate index as follows:

The first party is the holder of the lien (corporation)
The second party is the owner of the property

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Release of Dower or Curtesy Interest

The Kentucky Statutes do not permit a "Release of Dower or Curtesy Interest" by married persons as a stand alone document in general. To release a dower or curtesy interest the document must be in the form of a deed or will (KRS 386.095).

There is one exception to this statute - if a married person is mentally disabled, upon the petition of the other spouse, Circuit Court can declare the spouse mentally disabled and permit the waiver of dower or curtesy by permitting that person's Conservator or Guardian to sign on behalf of the disabled spouse or appoint a Commissioner to do the same. (KRS 392.140)

This would not be a stand alone document and would require the Circuit Court order together with the waiver of dower or curtesy in order to be filed.
Revised 01/22/04

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Release of Lis Pendens (and other Encumbrances)
Release of Judgment Lien
Release of Mechanics Lien

KRS 382.470, KRS 382.365

The release requires the following:

The name of the person or entity releasing the lien (KRS 382.200)
The name of the person or entity being released (KRS 382.470 & 382.200)
The book and page reference being released (KRS 382.290 & 382.470)
Preparation statement (KRS 382.335) (if court prepared may not have a preparation statement)

The clerk shall request a return mail address (KRS 382.240)

The release must by signed and notarized by the person filing the notice or by the attorney of record in the action, or by a writing executed, acknowledged, and recorded in the manner provided for conveyance of land. KRS 382.470

Indexing information: These are indexed per KRS 382.470. The clerk shall index the name or names being released and link the release to the original lien in the indexing system. The first party is the person or entity bringing the action. The second party is the person the lien was filed against.

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For documentation on judgment lien releases and mechanics lien releases refer to KRS 382.365.

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Release of Lis Pendens Concerning Proceedings in Bankruptcy

KRS 382.470

The release requires the following:

The name of the person or entity releasing the bankruptcy action (KRS 382.200)
The name of the person or entity being released from the bankruptcy action (KRS 382.470 & 382.200)
The book and page reference being released (KRS 382.290 & 382.470)
Preparation statement (KRS 382.335) (if court prepared may not have a preparation statement )

The clerk shall request a return mail address (KRS 382.240)

The release must by signed and notarized by the person filing the notice or by the attorney of record in the action, or by a writing executed, acknowledged, and recorded in the manner provided for conveyance of land. KRS 382.470

Indexing information: These are indexed per KRS 382.470. The clerk shall index the name or names being released and link the release to the original lien in the indexing system. The first party is the person or entity bringing the action. The second party is the person involved in the bankruptcy action.

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Release of Medicaid Program Lien

KRS 205.8471

The requirements are the same as a release of any other lis pendens. The State must prepare and sign the release.

The document must have:

The Commonwealth (KRS 382.470 & 382.200)
The taxpayer being released (KRS 382.470 & 382.200)
The book and page reference of the original lien (KRS 382.290)

Indexing information - The releases are filed per KRS 134.420(2), 382.290 and are to be linked to the original filing in the indexing system. Releases must have the book and page reference being released. The first party is the Commonwealth of Kentucky. The second party is the person being released.

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Request for Mortgage Release to Secure Additional Indebtedness

KRS 382.520 provides statutory direction for renewal, extension or additional loan under a mortgage on real estate. It also defines the superiority of liens and makes a provision to request a mortgage release to secure additional indebtedness.

This document is not a deed of release but a notice to the Senior Mortgage holder of a request to secure additional debt by the mortgagor.

The provisions are as follows:
The request must be written.
The request must refer to KRS 382.520(2) & (3).
The request shall be signed by the mortgagor or his agent or attorney.
It must set forth a description of the real property to which the request relates.
It must include the date, parties to, the volume and initial page of the record of the original mortgage.
It must have a description of the nature, amount, and holder of the lien or encumbrance that the mortgagor intends to place upon such real property.

The request must be sent by certified mail with a return receipt to the holder of the mortgage, at the address of record.

If within ten (10) business days after receipt of the written request, holder of the mortgage fails to release that amount of the lien to secure additional indebtedness to the extent described in the request, the mortgagor may record in the office of the county clerk in which the mortgage is recorded a copy of the written request upon payment of the same filing fee as provided for a release of a mortgage;

If, after a copy of the written request is recorded, an advance is made by the holder of the mortgage, then the lien of the mortgage for the unpaid balance of the advance so made shall be subordinate to the lien or encumbrance described in the request.

The clerk shall request a return mail address (KRS 382.240)

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State Tax Lien Releases

The document must have:

The Commonwealth (KRS 382.470 & 382.200)
The taxpayer being released (KRS 382.470 & 382.200)
The book and page reference of the original lien (KRS 382.290)

Indexing information: The releases are filed per KRS 134.420(2), 382.290 and are to be linked to the original filing in the indexing system. Releases must have the book and page reference being released. The first party is the Commonwealth of Kentucky. The second party is the person being released.

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