7-7-35. Sale of real estate securities -- Dealing with buyer -- Liability of original
borrower.
In the case of an investment made by an association in a real estate loan, in the event the
ownership of the real estate security or any part thereof becomes vested in a person other than the
party or parties originally executing the security instruments, and providing there is no agreement
in writing to the contrary, an association may, without notice to the party or parties, deal with the
successor or successors in interest with reference to the mortgage or trust deed and the debt
secured by it in the same manner as with the party or parties. The association may forbear to sue
or may extend time for payment of or otherwise modify the terms of the debt secured by that real
estate, without discharging or in any way affecting the original liability of the party or parties.
Enacted by Chapter 16, 1981 General Session
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Last revised: Thursday, May 28, 2009