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First Substitute S.B. 76
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 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:
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) "Approved delivery method" means delivery by:
34 (i) certified or registered United States mail with return receipt requested; or
35 (ii) a nationally recognized letter or package delivery or courier service operating in the
36 state that provides a service for:
37 (A) tracking the delivery of an item; or
38 (B) documenting:
39 (I) that the item was received by the intended recipient; or
40 (II) a refusal to accept delivery of the item.
41 (b) "Compensation" means anything of economic value that is paid, loaned, granted,
42 given, donated, or transferred to a trustee for or in consideration of:
46 (c) "Interested party" means a person with a right under Subsection 57-1-31 (1), to
47 reinstate an obligation secured by a trust deed.
48 (d) "Payoff statement" means a statement under Subsection (2) that an interested party
49 requests in order to obtain the amount required to pay off a loan secured by a trust deed.
50 (e) "Reinstatement statement" means a statement under Subsection (2) that an
51 interested party requests in order to obtain the amount required under Subsection 57-1-31 (1) to
52 reinstate an obligation secured by a trust deed.
55 (2) (a) (i) An interested party may submit a written request to a trustee for a statement
56 of the amount required to be paid:
57 (A) to reinstate an obligation secured by a trust deed; or
58 (B) to pay off a loan secured by a trust deed.
59 (ii) (A) A request for a reinstatement statement is not timely unless the trustee receives
60 the request at least 10 business days before expiration of the three-month period under Section
61 57-1-31 to reinstate an obligation.
62 (B) A request for a payoff statement is not timely unless the trustee receives the request
63 at least 10 business days before the trustee's sale.
64 (iii) An interested party submitting a reinstatement statement or payoff statement to a
65 trustee shall submit the statement to the trustee:
66 (A) at the address specified in the trust deed for notices to the trustee; or
67 (B) at an alternate address approved by the trustee for delivery of mail or notices.
68 (iv) A trustee is considered to have received a request submitted under Subsection
69 (2)(a)(i) if:
70 (A) the interested party submitted the request through an approved delivery method;
72 (B) documentation provided under the approved delivery method indicates that:
73 (I) the request was delivered to the trustee; or
74 (II) delivery of the request was refused.
75 (b) (i) A trustee who receives a written request under Subsection (2)(a) shall provide
76 the statement to the interested party.
77 (ii) A trustee is considered to have provided the statement requested under Subsection
78 (2)(a) on the date that the trustee deposits the statement with an approved delivery method:
79 (A) with all delivery costs prepaid; and
80 (B) addressed to the interested party at the address provided in the request.
81 (c) (i) If the trustee provides a requested reinstatement statement later than five
82 business days after the request is made, the time to reinstate under Section 57-1-31 is tolled
83 from the date of the request to the date that the trustee provides the statement.
84 (ii) If, after scheduling a trustee's sale, the trustee fails to provide a requested payoff
85 statement within five business days after the request is made, the trustee shall:
86 (A) cancel the trustee's sale; or
87 (B) postpone the trustee's sale to a date at least 10 business days after the trustee
88 provides the statement.
89 (3) A trustee shall include with [
90 (a) a detailed listing of any of the following that the trustor would be required to pay to
91 reinstate or payoff the loan:
92 (i) [
93 (ii) trustee fees; or
94 (iii) any costs including:
95 (A) title fees;
96 (B) publication fees; or
97 (C) posting fees; and
98 (b) subject to Subsection [
99 (i) any relationship that the trustee has with a third party that provides services related
100 to the foreclosure of the loan; and
101 (ii) whether the relationship described in Subsection [
102 (A) an ownership interest in the third party; or
103 (B) contract or other agreement.
105 (a) a copy of any contract or agreement described in Subsection [
106 (b) specific detail as to the nature of the ownership interest described in Subsection
108 (c) the amount of compensation the trustee receives related to the foreclosure of the
109 loan under a relationship described in Subsection [
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