Erroneous certificate of release
Sec. 16. (a) The execution and recording of a wrongful or
erroneous certificate of release by a title insurance company or a
duly appointed agent with authority from a title insurance company
does not relieve the mortgagor, or anyone succeeding to or assuming
the interest of the mortgagor, from any liability for the debt or other
obligations secured by the mortgage that is the subject of the
wrongful or erroneous certificate of release.
(b) Additionally, a title insurance company or an appointed agent
with authority from a title insurance company that wrongfully or
erroneously executes and records a certificate of release is liable to
the mortgagee, or the assignee of the mortgagee if the mortgage has
been assigned, for actual damages sustained due to the recording of
a wrongful or erroneous certificate of release.
As added by P.L.2-2002, SEC.14.
Last modified: May 24, 2006