If I understand your question correctly, you want the database timestamp -- not the app server timestamp.
Though the table column is not null, could you declare the property to be nullable? This would allow the property to take a null, and database to insert the default timestamp for the modified_date column. When the property was read, it would always be not null.
It is a good stratgy, however it won't work.
If I declare the column to be nullable, it will fail on insert and update. The bean property that represents the column will be null, so it will pass Hibernate checking, at this point Hibernate believes that the column is nullable, so Hibernate will insert the null value in the SQL query, because the table declare the field is not null, it will throw an exception.
I found a workround solution. In the .hbn file, I declared the INSERT and UPDATE to be false. This way, Hibernate ignors the value of the property, and does not include it in the SQL query.
It works, however it would be nice if Hibernte can recogniz that there is a default binding values for columns.