KRS 382.520: Renewal, extension, interest rate modification, or additional loan under

mortgage on real estate -- Superiority of lien -- Release of lien, when.

(1) In all cases where a loan is secured by a real estate mortgage, the mortgage

originally executed and delivered by the borrower to the lender shall secure payment

of all renewals, extensions, or interest rate modifications of the loan and the note

evidencing it, whether so provided in the mortgage or not.

(2) The mortgage referred to in subsection (1) of this section may secure any additional

indebtedness, whether direct, indirect, existing, future, contingent, or otherwise, to

the extent expressly authorized by the mortgage, if the mortgage by its terms

stipulates the maximum additional indebtedness which may be secured thereby.

Except as provided in subsection (3) of this section, the mortgage lien authorized by

this subsection shall be superior to any liens or encumbrances of any kind created

after recordation of such mortgage, even to the extent of sums adv anced by a lender

with actual or constructive notice of a subsequently created lien, provided, however,

any mortgagee upon receipt of a written request of a mortgagor must release of

record the lien to secure additional indebtedness as exceeds the balance of such

additional indebtedness at the time of the request.

(3) (a) The written request referred to in subsection (2) of this section shall be signed

by the mortgagor or his agent or attorney, and shall set forth a description of

the real property to which the request relates, the date, parties to, the volume

and initial page of the record of the mortgage referred to in subsection (1) of

this section, and a description of the nature, amount, and holder of the lien or

encumbrance which the mortgagor intends to place upon such real property.

The request shall be deemed to have been received by the holder of the

mortgage referred to in subsection (1) of this section only when delivered to

the holder by certified mail, return receipt requested, at the address of the

holder appearing of record on the mortgage or an assignment thereof;

(b) If within ten (10) business days after receipt of the written request referred to

in this subsection, the holder of the mortgage referred to in subsection (1) of

this section fai ls 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 referred to in

subsection (1) of this section is recorded a cop y of the written request upon

payment of the same filing fee as provided for a release of a mortgage;

(c) If, after a copy of the written request is recorded, an advance is made by the

holder of the mortgage referred to in subsection (1) of this section, t hen 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.