Download Zipped Introduced WordPerfect SB0076S01.ZIP
[Status][Bill Documents][Fiscal Note][Bills Directory]

First Substitute S.B. 76

Representative Lorie D. Fowlke proposes the following substitute bill:


             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 process and time frame for a trustee 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) "Approved delivery method" means delivery by:
             34          (i) certified or registered United States mail with return receipt requested; or
             35          (ii) a nationally recognized letter or package delivery or courier service operating in the
             36      state that provides a service for:
             37          (A) tracking the delivery of an item; or
             38          (B) documenting:
             39          (I) that the item was received by the intended recipient; or
             40          (II) a refusal to accept delivery of the item.
             41          (b) "Compensation" means anything of economic value that is paid, loaned, granted,
             42      given, donated, or transferred to a trustee for or in consideration of:
             43          [(a)] (i) services;
             44          [(b)] (ii) personal or real property; or
             45          [(c)] (iii) other thing of value.
             46          (c) "Interested party" means a person with a right under Subsection 57-1-31 (1), to
             47      reinstate an obligation secured by a trust deed.
             48          (d) "Payoff statement" means a statement under Subsection (2) that an interested party
             49      requests in order to obtain the amount required to pay off a loan secured by a trust deed.
             50          (e) "Reinstatement statement" means a statement under Subsection (2) that an
             51      interested party requests in order to obtain the amount required under Subsection 57-1-31 (1) to
             52      reinstate an obligation secured by a trust deed.
             53          [(2) If a trustee receives a request from the trustor for a statement as to the amount
             54      required to be paid to reinstate or payoff a loan, the]
             55          (2) (a) (i) An interested party may submit a written request to a trustee for a statement
             56      of the amount required to be paid:

             57          (A) to reinstate an obligation secured by a trust deed; or
             58          (B) to pay off a loan secured by a trust deed.
             59          (ii) (A) A request for a reinstatement statement is not timely unless the trustee receives
             60      the request at least 10 business days before expiration of the three-month period under Section
             61      57-1-31 to reinstate an obligation.
             62          (B) A request for a payoff statement is not timely unless the trustee receives the request
             63      at least 10 business days before the trustee's sale.
             64          (iii) An interested party submitting a reinstatement statement or payoff statement to a
             65      trustee shall submit the statement to the trustee:
             66          (A) at the address specified in the trust deed for notices to the trustee; or
             67          (B) at an alternate address approved by the trustee for delivery of mail or notices.
             68          (iv) A trustee is considered to have received a request submitted under Subsection
             69      (2)(a)(i) if:
             70          (A) the interested party submitted the request through an approved delivery method;
             71      and
             72          (B) documentation provided under the approved delivery method indicates that:
             73          (I) the request was delivered to the trustee; or
             74          (II) delivery of the request was refused.
             75          (b) (i) A trustee who receives a written request under Subsection (2)(a) shall provide
             76      the statement to the interested party.
             77          (ii) A trustee is considered to have provided the statement requested under Subsection
             78      (2)(a) on the date that the trustee deposits the statement with an approved delivery method:
             79          (A) with all delivery costs prepaid; and
             80          (B) addressed to the interested party at the address provided in the request.
             81          (c) (i) If the trustee provides a requested reinstatement statement later than five
             82      business days after the request is made, the time to reinstate under Section 57-1-31 is tolled
             83      from the date of the request to the date that the trustee provides the statement.
             84          (ii) If, after scheduling a trustee's sale, the trustee fails to provide a requested payoff
             85      statement within five business days after the request is made, the trustee shall:
             86          (A) cancel the trustee's sale; or
             87          (B) postpone the trustee's sale to a date at least 10 business days after the trustee

             88      provides the statement.
             89          (3) A trustee shall include with [that] each statement required under Subsection (2)(a):
             90          (a) a detailed listing of any of the following that the trustor would be required to pay to
             91      reinstate or payoff the loan:
             92          (i) [attorney's] attorney fees;
             93          (ii) trustee fees; or
             94          (iii) any costs including:
             95          (A) title fees;
             96          (B) publication fees; or
             97          (C) posting fees; and
             98          (b) subject to Subsection [(3)] (4), a disclosure of:
             99          (i) any relationship that the trustee has with a third party that provides services related
             100      to the foreclosure of the loan; and
             101          (ii) whether the relationship described in Subsection [(2)] (3)(b)(i) is created by:
             102          (A) an ownership interest in the third party; or
             103          (B) contract or other agreement.
             104          [(3)] (4) Subsection [(2)] (3)(b) does not require a trustee to provide a trustor:
             105          (a) a copy of any contract or agreement described in Subsection [(2)] (3)(b);
             106          (b) specific detail as to the nature of the ownership interest described in Subsection
             107      [(2)] (3)(b); or
             108          (c) the amount of compensation the trustee receives related to the foreclosure of the
             109      loan under a relationship described in Subsection [(2)] (3)(b).

[Bill Documents][Bills Directory]