Title 57 Chapter 1 Section 31.5

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Index	Utah Code
Title 57	Real Estate
Chapter 1	Conveyances
Section 31.5	Reinstatement or payoff statement -- Timeliness of request -- Trustee's duty to provide statement -- Statement to include accounting of costs and fees.

57-1-31.5. Reinstatement or payoff statement -- Timeliness of request -- Trustee's duty to provide statement -- Statement to include accounting of costs and fees.

(1)

As used in this section:

(a)

"Approved delivery method" means delivery by:

(i)	certified or registered United States mail with return receipt requested; or

(ii)

a nationally recognized letter or package delivery or courier service operating in the state that provides a service for:

(A)	tracking the delivery of an item; or

(B)

documenting:

(I)	that the item was received by the intended recipient; or

(II)	a refusal to accept delivery of the item.

(b)

"Compensation" means anything of economic value that is paid, loaned, granted, given, donated, or transferred to a trustee for or in consideration of:

(i)

services;

(ii)	personal or real property; or

(iii)

other thing of value.

(c)	"Interested party" means a person with a right under Subsection 57-1-31(1) to reinstate an obligation secured by a trust deed.

(d)	"Payoff statement" means a statement under Subsection (2) that an interested party requests in order to obtain the amount required to pay off a loan secured by a trust deed.

(e)	"Reinstatement statement" means a statement under Subsection (2) that an interested party requests in order to obtain the amount required under Subsection 57-1-31(1) to reinstate an obligation secured by a trust deed.

(2)

(a)

(i)

An interested party may submit a written request to a trustee for a statement of the amount required to be paid:

(A)	to reinstate an obligation secured by a trust deed; or

(B)	to pay off a loan secured by a trust deed.

(ii)

(A)	A request for a reinstatement statement is not timely unless the trustee receives the request at least 10 business days before expiration of the three-month period under Section 57-1-31 to reinstate an obligation.

(B)	A request for a payoff statement is not timely unless the trustee receives the request at least 10 business days before the trustee's sale.

(iii)

An interested party submitting a reinstatement statement or payoff statement to a trustee shall submit the statement to the trustee:

(A)	at the address specified in the trust deed for notices to the trustee; or

(B)	at an alternate address approved by the trustee for delivery of mail or notices.

(iv)

A trustee is considered to have received a request submitted under Subsection (2)(a)(i) if:

(A)	the interested party submitted the request through an approved delivery method; and

(B)

documentation provided under the approved delivery method indicates that:

(I)	the request was delivered to the trustee; or

(II)	delivery of the request was refused.

(b)

(i)	A trustee who receives a written request under Subsection (2)(a) shall provide the statement to the interested party.

(ii)

A trustee is considered to have provided the statement requested under Subsection (2)(a) on the date that the trustee deposits the statement with an approved delivery method:

(A)	with all delivery costs prepaid; and

(B)	addressed to the interested party at the address provided in the request.

(c)

(i)	If the trustee provides a requested reinstatement statement later than five business days after the request is received, the time to reinstate under Section 57-1-31 is tolled from the date of the request to the date that the trustee provides the statement.

(ii)

If, after scheduling a trustee's sale, the trustee fails to provide a requested payoff statement within five business days after the request is received, the trustee shall:

(A)	cancel the trustee's sale; or

(B)	postpone the trustee's sale to a date at least 10 business days after the trustee provides the statement.

(3)

A trustee shall include with each statement required under Subsection (2)(a):

(a)

a detailed listing of any of the following that the trustor would be required to pay to reinstate or payoff the loan:

(i)	attorney fees;

(ii)	trustee fees; or

(iii)

any costs including:

(A)	title fees;

(B)	publication fees; or

(C)	posting fees; and

(b)

subject to Subsection (4), a disclosure of:

(i)	any relationship that the trustee has with a third party that provides services related to the foreclosure of the loan; and

(ii)

whether the relationship described in Subsection (3)(b)(i) is created by:

(A)	an ownership interest in the third party; or

(B)	contract or other agreement.

(4)

Subsection (3)(b) does not require a trustee to provide a trustor:

(a)	a copy of any contract or agreement described in Subsection (3)(b);

(b)	specific detail as to the nature of the ownership interest described in Subsection (3)(b); or

(c)	the amount of compensation the trustee receives related to the foreclosure of the loan under a relationship described in Subsection (3)(b).

Amended by Chapter 24, 2010 General Session

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