(1)Transfers in
trust of real property may be made to secure (a) existing debts or obligations, (b) debts or obligations
created simultaneously with the execution of the trust deed, (c) future
advances necessary to protect the security, even though such future advances cause
the total indebtedness to exceed the maximum amount stated in the trust deed,
(d)any future advances to be made at the option of the parties in any amount unless, except as otherwise provided under
subsection (2) or (3) of this section, a maximum amount of total indebtedness
to be secured is stated in the trust deed, or (e) the
performance of an obligation of any other person named in the trust deed to
a beneficiary.
(2)Future advances necessary to protect the security shall
include, but not be limited to, advances
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(1) Transfers in
trust of real property may be made to secure (a) existing debts or obligations, (b) debts or obligations
created simultaneously with the execution of the trust deed, (c) future
advances necessary to protect the security, even though such future advances cause
the total indebtedness to exceed the maximum amount stated in the trust deed,
(d) any future advances to be made at the option of the parties in any amount unless, except as otherwise provided under
subsection (2) or (3) of this section, a maximum amount of total indebtedness
to be secured is stated in the trust deed, or (e) the
performance of an obligation of any other person named in the trust deed to
a beneficiary.
(2) Future advances necessary to protect the security shall
include, but not be limited to, advances for payment of real property taxes,
special assessments, prior liens, hazard insurance premiums, maintenance charges
imposed under a condominium declaration or other covenant, and costs of repair,
maintenance, or improvements. Future
advances necessary to protect the security are secured by the trust deed and
shall have the priority specified in subsection (3) of this section.
(3)(a) Except as provided in subdivision (b) of this subsection,
all items identified in subsection (1) of this section are equally secured
by the trust deed from the time of filing the trust deed as provided by law
and have the same priority as the trust deed over the rights of all other
persons who acquire any rights in or liens upon the trust property subsequent
to the time the trust deed was filed.
(b)(i) The trustor or his or her successor in title may limit
the amount of optional future advances secured by the trust deed under subdivision (1)(d) of this section by filing a notice for
record in the office of the register of deeds of each county in which the
trust property or some part thereof is situated. A copy of such notice shall
be sent by certified mail to the beneficiary at the address of the beneficiary
set forth in the trust deed or,
if the trust deed has been assigned, to the address of the most recent assignee
reflected in a recorded assignment of the trust deed. The amount
of such secured optional future advances shall be limited to not less than
the amount actually advanced at the time of receipt of such notice by the
beneficiary.
(ii) If any optional future advance is made by the beneficiary
to the trustor or his or her successor in title after receiving written notice
of the filing for record of any trust deed, mortgage, lien, or claim against
such trust property, then the amount of such optional future advance shall
be junior to such trust deed, mortgage, lien, or claim. The notice under this
subdivision shall be sent by certified mail to the beneficiary at the address
of the beneficiary set forth in the trust deed or, if the trust deed has been assigned, to the address
of the most recent assignee reflected in a recorded assignment of the trust
deed.
(iii) Subdivisions (b)(i) and (ii) of this subsection shall
not limit or determine the priority of optional future advances as against
construction liens governed by section 52-139 .
(4) The reduction to zero or elimination of the obligation
evidenced by any of the transfers in trust authorized by this section shall
not invalidate the operation of this section as to any future advances unless
a notice or release to the contrary is filed for record as provided by law.
All right, title, interest, and claim in and to the trust property acquired
by the trustor or his or her successors in interest subsequent to the execution
of the trust deed shall inure to the trustee as security for the obligation
or obligations for which the trust property is conveyed in like manner as
if acquired before execution of the trust deed.