§ 71-1-308 — Reconveyance Of Trust Indenture -- Forms -- Objections To Reconveyance

71-1-308 . Reconveyance of trust indenture -- forms -- objections to reconveyance. (1) A title insurer or title insurance producer may reconvey a trust indenture in accordance with the provisions of this section if:
(a) the obligation secured by the trust indenture has been fully paid by the title insurer or title insurance producer; or
(b) the obligation secured by the trust indenture was fully paid by a former title insurer, title insurance producer, or predecessor of the title insurer or title insurance producer.
(2) A title insurer or title insurance producer may reconvey a trust indenture regardless of whether the title insurer or title insurance producer is named as a trustee under a trust indenture.
(3) At the time that the obligation secured by the trust indenture is paid in full, or at any time after payment, the title insurer or title insurance producer shall deliver by certified mail a notice of intent to reconvey and a copy of the reconveyance to be recorded to the beneficiary or servicer at:
(a) the address specified in the trust indenture;
(b) any address for the beneficiary or servicer specified in the last-recorded assignment of the trust indenture;
(c) any address for the beneficiary or servicer specified in a request for notice recorded under 71-1-314 ; or
(d) the address shown on any payoff statement received by the title insurer or title insurance producer from the beneficiary or servicer.
(4) (a) The notice of intent to reconvey must contain the name of the beneficiary and the servicer if loan payments on the trust indenture are collected by a servicer, the name of the title insurer or title insurance producer, and the date that the notice is signed.
(b) The notice must be substantially in the following form:
1. THIS NOTICE CONCERNS THE (TRUST INDENTURE) DESCRIBED AS FOLLOWS:
2. THE UNDERSIGNED CLAIMS TO HAVE PAID IN FULL OR POSSESSES SATISFACTORY EVIDENCE OF THE FULL PAYMENT OF THE OBLIGATION SECURED BY THE TRUST INDENTURE DESCRIBED ABOVE.
3. THE UNDERSIGNED WILL FULLY RECONVEY THE TRUST INDENTURE DESCRIBED IN THIS NOTICE WITHIN 90 DAYS FROM THE DATE STATED ON THIS NOTICE UNLESS:
(A) A RECONVEYANCE OF THE TRUST INDENTURE HAS BEEN RECORDED; OR
(B) THE UNDERSIGNED HAS RECEIVED BY CERTIFIED MAIL A NOTICE STATING THAT THE OBLIGATION SECURED BY THE TRUST INDENTURE HAS NOT BEEN PAID IN FULL OR THAT YOU OTHERWISE OBJECT TO THE RECONVEYANCE OF THE TRUST DEED. NOTICE MUST BE MAILED TO THE ADDRESS STATED ON THIS FORM.
(C) PURSUANT TO 71-1-307 , MCA, A BENEFICIARY OR SERVICER MAY BE LIABLE FOR DAMAGES, COSTS, AND PENALTIES FOR FAILING TO RECONVEY A TRUST INDENTURE WITHIN 90 DAYS OF THE DATE STATED IN THIS NOTICE IF THE OBLIGATION SECURED BY THE TRUST INDENTURE HAS BEEN FULLY PAID PRIOR TO THE DELIVERY OF THIS NOTICE.
4. A COPY OF THE RECONVEYANCE OF TRUST INDENTURE IS ENCLOSED WITH THIS NOTICE.
(5) (a) If, within 90 days from the day on which the title insurer or title insurance producer delivers the notice of intent to reconvey, the beneficiary or servicer does not send by certified mail to the title insurer or title insurance producer a notice that the obligation secured by the trust indenture has not been paid in full or that the beneficiary or servicer objects to the reconveyance of the trust indenture, the title insurer or title insurance producer may execute, acknowledge, and record a reconveyance of a trust indenture.
(b) A reconveyance of a trust indenture must be in substantially the following form:
1. The undersigned title insurer or title insurance producer has fully paid the obligation secured by the trust indenture or possesses satisfactory evidence of the full payment of the obligation secured by the trust indenture.
2. As required by 71-1-308 , the title insurer or title insurance producer delivered to the beneficiary or servicer a notice of intent to reconvey and a copy of the reconveyance.
3. The trust indenture has not been reconveyed and the title insurer or title insurance producer did not receive, within 90 days from the day on which the title insurer or title insurance producer delivered the notice of intent to reconvey to the beneficiary or servicer, a notice from the beneficiary or servicer, sent by certified mail, that the obligation secured by the trust indenture has not been paid in full or that the beneficiary or servicer objects to the reconveyance of the trust indenture.
(c) (i) A reconveyance of trust indenture executed and notarized in accordance with subsection (5)(b) may be recorded.
(ii) Except as provided in subsection (5)(c)(iii), a reconveyance of a trust indenture that is recorded in compliance with subsection (5)(c)(i) is valid regardless of any deficiency in the reconveyance procedure not disclosed in the reconveyance of trust indenture.
(iii) If the title insurer's or title insurance producer's signature on a reconveyance of trust recorded under subsection (5)(c)(i) is forged, the release of mortgage or reconveyance of trust is void.
(6) A reconveyance of trust indenture pursuant to the provisions of this section does not, by itself, discharge any promissory note or other obligation that was secured by the trust indenture at the time that the trust indenture was reconveyed.

Legislative History

En. Sec. 2, Ch. 413, L. 2005.