S.B. 76 Enrolled

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

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

86 statement within five business days after the request is received, the trustee shall:
87 (A) cancel the trustee's sale; or
88 (B) postpone the trustee's sale to a date at least 10 business days after the trustee
89 provides the statement.
90 (3) A trustee shall include with [that] each statement required under Subsection (2)(a):
91 (a) a detailed listing of any of the following that the trustor would be required to pay to
92 reinstate or payoff the loan:
93 (i) [attorney's] attorney fees;
94 (ii) trustee fees; or
95 (iii) any costs including:
96 (A) title fees;
97 (B) publication fees; or
98 (C) posting fees; and
99 (b) subject to Subsection [(3)] (4), a disclosure of:
100 (i) any relationship that the trustee has with a third party that provides services related
101 to the foreclosure of the loan; and
102 (ii) whether the relationship described in Subsection [(2)] (3)(b)(i) is created by:
103 (A) an ownership interest in the third party; or
104 (B) contract or other agreement.
105 [(3)] (4) Subsection [(2)] (3)(b) does not require a trustee to provide a trustor:
106 (a) a copy of any contract or agreement described in Subsection [(2)] (3)(b);
107 (b) specific detail as to the nature of the ownership interest described in Subsection
108 [(2)] (3)(b); or
109 (c) the amount of compensation the trustee receives related to the foreclosure of the
110 loan under a relationship described in Subsection [(2)] (3)(b).