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7 LONG TITLE
8 General Description:
9 This bill modifies a provision relating to a statement provided by a trustee under a trust
11 Highlighted Provisions:
12 This bill:
13 . clarifies a trustee's responsibility to provide a statement of reinstatement or payoff
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:
23 Other Special Clauses:
25 Utah Code Sections Affected:
27 57-1-31.5, as last amended by Laws of Utah 2007, Chapter 306
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) [
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:
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.
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 [
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) [
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 [
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 [
75 (A) an ownership interest in the third party; or
76 (B) contract or other agreement.
78 (a) a copy of any contract or agreement described in Subsection [
79 (b) specific detail as to the nature of the ownership interest described in Subsection
81 (c) the amount of compensation the trustee receives related to the foreclosure of the
82 loan under a relationship described in Subsection [
Legislative Review Note
as of 1-15-10 8:16 AM