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S.B. 76

             1     

TRUST DEED AMENDMENTS

             2     
2010 GENERAL SESSION

             3     
STATE OF UTAH

             4     
Chief Sponsor: John L. Valentine

             5     
House Sponsor: Lorie D. Fowlke

             6     
             7      LONG TITLE
             8      General Description:
             9          This bill modifies a provision relating to a statement provided by a trustee under a trust
             10      deed.
             11      Highlighted Provisions:
             12          This bill:
             13          .    clarifies a trustee's responsibility to provide a statement of reinstatement or payoff
             14      amounts;
             15          .    authorizes a person with a right to reinstate an obligation secured by a trust deed to
             16      request a statement;
             17          .    provides a time frame within which a trustee is required to provide the statement;
             18          .    provides consequences if a trustee fails to provide the statement within the time
             19      required; and
             20          .    makes technical changes.
             21      Monies Appropriated in this Bill:
             22          None
             23      Other Special Clauses:
             24          None
             25      Utah Code Sections Affected:
             26      AMENDS:
             27          57-1-31.5, as last amended by Laws of Utah 2007, Chapter 306

             28     
             29      Be it enacted by the Legislature of the state of Utah:
             30          Section 1. Section 57-1-31.5 is amended to read:
             31           57-1-31.5. Accounting of costs and fees paid -- Disclosure.
             32          (1) [For purposes of] As used in this section[,]:
             33          (a) "Compensation" means anything of economic value that is paid, loaned, granted,
             34      given, donated, or transferred to a trustee for or in consideration of:
             35          [(a)] (i) services;
             36          [(b)] (ii) personal or real property; or
             37          [(c)] (iii) other thing of value.
             38          (b) "Interested party" means a person with a right, by contract or under Subsection
             39      57-1-31 (1), to reinstate an obligation secured by a trust deed.
             40          (c) "Payoff statement" means a statement under Subsection (2) that an interested party
             41      requests in order to obtain the amount required to pay off a loan secured by a trust deed.
             42          (d) "Reinstatement statement" means a statement under Subsection (2) that an
             43      interested party requests in order to obtain the amount required under Subsection 57-1-31 (1) to
             44      reinstate an obligation secured by a trust deed.
             45          [(2) If a trustee receives a request from the trustor for a statement as to the amount
             46      required to be paid to reinstate or payoff a loan, the]
             47          (2) (a) An interested party may submit a written request to a trustee for a statement of
             48      the amount required to be paid:
             49          (i) to reinstate an obligation secured by a trust deed; or
             50          (ii) to pay off a loan secured by a trust deed.
             51          (b) A trustee who receives a written request under Subsection (2)(a) shall provide the
             52      statement using, as far as practicable, the communication method that the interested party used
             53      to make the request.
             54          (c) (i) If the trustee provides a requested reinstatement statement later than five
             55      business days after the request is made, the time to reinstate under Section 57-1-31 is tolled
             56      from the date of the request to the date that the trustee provides the statement.
             57          (ii) If, after scheduling a trustee's sale, the trustee fails to provide a requested payoff
             58      statement within three business days after the request is made, the trustee shall:

             59          (A) cancel the trustee's sale; or
             60          (B) postpone the trustee's sale to a date at least 10 business days after the trustee
             61      provides the statement.
             62          (3) A trustee shall include with [that] each statement required under Subsection (2)(a):
             63          (a) a detailed listing of any of the following that the trustor would be required to pay to
             64      reinstate or payoff the loan:
             65          (i) [attorney's] attorney fees;
             66          (ii) trustee fees; or
             67          (iii) any costs including:
             68          (A) title fees;
             69          (B) publication fees; or
             70          (C) posting fees; and
             71          (b) subject to Subsection [(3)] (4), a disclosure of:
             72          (i) any relationship that the trustee has with a third party that provides services related
             73      to the foreclosure of the loan; and
             74          (ii) whether the relationship described in Subsection [(2)] (3)(b)(i) is created by:
             75          (A) an ownership interest in the third party; or
             76          (B) contract or other agreement.
             77          [(3)] (4) Subsection [(2)] (3)(b) does not require a trustee to provide a trustor:
             78          (a) a copy of any contract or agreement described in Subsection [(2)] (3)(b);
             79          (b) specific detail as to the nature of the ownership interest described in Subsection
             80      [(2)] (3)(b); or
             81          (c) the amount of compensation the trustee receives related to the foreclosure of the
             82      loan under a relationship described in Subsection [(2)] (3)(b).




Legislative Review Note
    as of 1-15-10 8:16 AM

Office of Legislative Research and General Counsel

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