I've been looking around in the KRS and I'm trying to find the answer to this question. Does the mortgage maturity date have to match the note maturity date?

For example, a lender wants to file a 10 year mortgage but the note is only going to be a 1 year loan. Is this permissible under the KRS? Any help would be appreciated!

You need to ask your legal counsel, however:

382.330􀁢􀁢􀁢Instrument not to be recorded unless date of maturity shown --Exception.

No county clerk shall record a deed or deed of trust or mortgage covering real property by which the payment of any indebtedness is secured unless the deed or deed of trust or mortgage states the date and the maturity of the obligations thereby secured which have been already issued or which are to be issued forthwith. In the case of obligations due on demand, the requirement of stating the maturity thereof shall be satisfied by stating that such obligations are "due on demand."


I would say "the maturity of the obligations thereby secured which have been already issued or which are to be issued forthwith. " tells me he is playing with fire.

Why in the world does he want to do this anyway??

Thank you Randy. I had found that section of the KRS as well.

Generally, these are lines of credit that are renewed from year to year. The loan officer would rather have a longer maturity date on the mortgage initially so they don't have to modify the mortgage each year to extend the maturity date for a year.

Without legal blessing I would advise against it based on a basic read of the law. It may be just a price of structuring transactions in such a manner.

Thank you for your help Randy!!!!

This issue came up with our bank a couple of years ago. We are on the Tennessee/Kentucky border with loans in both states. It can be confusing having to abide by different states' statutes.

You might ask your legal counsel for their thoughts on recording a mortgage with a future advance clause built-in to cover the additional borrowings and a final maturity date (ex: 20 years) listed.