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Section 21.5 | Trustees of trust deeds -- Duties -- Prohibited conduct -- Penalties. |
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57-1-21.5. Trustees of trust deeds -- Duties -- Prohibited conduct -- Penalties. (1) Except as provided in Subsection (2), the following duties of the trustee may not be delegated: (a) the preparation and execution of: (i) the notice of default and election to sell; (ii) the cancellation of notice of default and election to sell; (iii) the notice of sale; and (iv) the trustee's deed; (b) the notification of foreclosure through publication, posting, and certified or registered mail; (c) the receiving and responding to requests for reinstatement or payoff requirements; and (d) the handling of reinstatement or payoff funds. (2) Nothing in this section is intended to prevent: (a) the trustee from using clerical or office staff: (i) that is under the trustee's direct and immediate supervision; and (ii) to assist in the duties described in Subsection (1); (b) the trustee from using the services of others for publication, posting, marketing, or advertising the sale; or (c) a beneficiary of a trust deed or the servicing agent of the beneficiary from directly performing the functions described in: (i) Subsection (1)(c); or (ii) Subsection (1)(d). (3) The amendments in Laws of Utah 2002, Chapter 209, to Subsection (2) do not apply to a foreclosure if the notice of default related to the foreclosure was filed before May 6, 2002. (4) (a) Except as provided in Subsection (4)(c), a trustee may not solicit or receive any fee for referring business to a third party. (b) Fees prohibited under Subsection (4)(a) include: (i) a commission; (ii) a referral based fee, including a fee for the referral of: (A) title work; (B) posting services; or (C) publishing services; or (iii) a fee similar to a fee described in Subsection (4)(b)(i) or (ii). (c) Subsection (4)(a) does not apply to: (i) fees received by a trustee for the trustee acting as co-legal counsel, if the trustee is otherwise permitted by law to receive fees as co-legal counsel; or (ii) a nonpreferred participation in net profits based upon an ownership interest or franchise relationship that is not otherwise prohibited by law. (5) A trustee may not require the following to pay any costs that exceed the actual costs incurred by the trustee: (a) a trustor reinstating or paying off a loan; or (b) a beneficiary acquiring property through foreclosure. (6) (a) A person that violates Subsection (4) or (5) is guilty of a class B misdemeanor. (b) In addition to a person's liability under Subsection (6)(a), if a person violates
Subsection (4) or (5), that person is liable to the trustor for an amount equal to the greater of:
Amended by Chapter 250, 2008 General Session |
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