00                      CS FOR HOUSE BILL NO. 421(L&C)                                                                    
01 "An Act relating to reconveyances of deeds of trust."                                                                   
02 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                                
03    * Section 1.  AS 34.20 is amended by adding a new section to read:                                                 
04            Sec. 34.20.115.  Procedure for reconveyance.  (a)  Unless the beneficiary has                              
05       requested that a title insurance company reconvey a trust deed before the title                                   
06       insurance company mails or delivers the notice under (b) of this section, a title                                 
07       insurance company shall comply with the requirements of this section before                                       
08       reconveying the trust deed.                                                                                       
09            (b)  Not less than 30 days after payment in full of the obligation secured by a                              
10       trust deed and receipt of satisfactory evidence of payment in full, a title insurance                             
11       company shall                                                                                                     
12                 (1)  mail, by certified mail with postage prepaid, return receipt                                       
13       requested, to the beneficiary or a servicer, a notice of intent to reconvey; the notice                           
14       shall be sent to the beneficiary's or servicer's address stated in the trust deed, to an                          
15       address for the beneficiary or servicer stated in the last recorded assignment of the                             

01       trust deed, if any, and to an address for a beneficiary or servicer shown in a request for                        
02       notice recorded under (g) of this section; or                                                                     
03                 (2)  hand deliver to the beneficiary or servicer a notice of intent to                                  
04       reconvey.                                                                                                         
05            (c)  The notice required by (b) of this section must be in substantially the                                 
06       following form and accompanied by a copy of the reconveyance to be recorded:                                      
07                    NOTICE OF INTENT TO RECONVEY                                                                         
08            TO:  (Beneficiary or servicer for beneficiary)                                                               
09            FROM:  (Title insurance company)                                                                             
10            DATE:  ..............................                                                                        
11            Notice is hereby given to you as follows:                                                                    
12                      (1)  This notice concerns the trust deed described as                                              
13            follows:                                                                                                     
14                 Trustor:  ..............................                                                                
15                 Beneficiary:  ..............................                                                            
16                 Recording information:                                                                                  
17                      Serial number:  ..............................                                                     
18                      or                                                                                                 
19                      Book number:  ..............................                                                       
20                      Page number:  ..............................                                                       
21                      (2)  The undersigned title insurance company claims to                                             
22            have fully paid or received satisfactory evidence of the payment in full                                     
23            of the obligation secured by the trust deed described above.                                                 
24                      (3)  Unless, within 60 days following the date stated                                              
25            above, the undersigned has received, by certified mail, return receipt                                       
26            requested, directed to the address noted below, a notice stating that you                                    
27            have not received payment in full of all obligations secured by the trust                                    
28            deed or that you otherwise object to reconveyance of the trust deed, the                                     
29            undersigned will fully release and reconvey the trust deed under                                             
30            AS 34.20.115.                                                                                                
31                      (4)  A copy of the reconveyance or release of the trust                                            

01            deed is enclosed with this notice.                                                                           
02                         (Title insurance company)                                                                       
03                              (Address)                                                                                  
04            (d)  After at least 60 days have elapsed after the mailing or delivery of the                                
05       notice of intent to reconvey under (b) of this section, if a title insurance company has                          
06       not received an objection to the reconveyance, the title insurance company may                                    
07       execute and record a reconveyance of the trust deed.                                                              
08            (e)  The reconveyance authorized by (d) of this section must be acknowledged                                 
09       under AS 09.63 and be in substantially the following form:                                                        
10                    RECONVEYANCE OF TRUST DEED                                                                           
11                 .............................., a title insurance company authorized to                                 
12            transact business in Alaska, does, by this document, reconvey, without                                       
13            warranty, to the person or persons legally entitled to the trust property,                                   
14            the following trust property covered by a trust deed naming                                                  
15            .............................. as trustor and .............................. as beneficiary,                 
16            which was recorded on .............................. at serial number                                        
17            .............................. or at book .............................. and page                            
18            ..............................:                                                                              
19                 The following described property located in the                                                         
20            .............................. Judicial District, State of Alaska:                                           
21                          (property description)                                                                         
22                 The undersigned title insurance company certifies that                                                  
23                      (1)  the undersigned title insurance company has fully                                             
24            paid or received satisfactory evidence of the payment in full of the                                         
25            obligation secured by the trust deed;                                                                        
26                      (2)  not less than 30 days following the payment in full                                           
27            of the trust deed, the undersigned hand delivered or mailed by certified                                     
28            mail, return receipt requested, to the record beneficiary under the trust                                    
29            deed or the servicer for the record beneficiary, at the beneficiary's or                                     
30            servicer's record address a notice of intent to reconvey as required by                                      
31            AS 34.20.115; and                                                                                            

01                      (3)  at least 60 days have elapsed after the mailing or                                            
02            delivery of the notice of intent to reconvey and the undersigned title                                       
03            insurance company has not received an objection to the reconveyance.                                         
04                                   Dated ................................................                                
05                                   ...........................................................                           
06                                   (Title insurance company)                                                             
07                                   (Acknowledgment)                                                                      
08            (f)  A reconveyance of a trust deed, when executed and acknowledged in                                       
09       substantially the form prescribed in (e) of this section, may be recorded and, when                               
10       recorded, constitutes a reconveyance of the trust deed identified in the reconveyance,                            
11       regardless of any deficiency in the reconveyance procedure that is not disclosed in the                           
12       recorded reconveyance, except for forgery of the title insurance company's signature.                             
13       The reconveyance of a trust deed under this section does not discharge a personal                                 
14       obligation that was secured by the trust deed at the time of its reconveyance.                                    
15            (g)  A person who wants to receive a copy of a notice given under (b) of this                                
16       section after the deed of trust is recorded and before the reconveyance is recorded                               
17       under (d) of this section may record a request for a copy of the notice in the office of                          
18       the recorder in the judicial district in which a part of the real property is located.  The                       
19       request must be acknowledged, must state the name and address of the person                                       
20       requesting the copy of the notice, and must identify the deed of trust by stating the                             
21       names of the parties to the deed of trust, the date of recordation, and the serial number                         
22       or book and page numbers where the deed of trust is recorded.                                                     
23            (h)  If, at any point during the procedure required by this section, the                                     
24       beneficiary requests the title insurance company to reconvey the trust deed, the title                            
25       insurance company is not required to proceed with the rest of the procedure required                              
26       by this section and may execute and record a reconveyance of the trust deed.                                      
27            (i)  In this section,                                                                                        
28                 (1)  "servicer" means a person who handles, for a beneficiary of a trust                                
29       deed, the receipt of the beneficiary's payments under the trust deed;                                             
30                 (2)  "title insurance company" means a title insurance company or a                                     
31       title insurance limited producer; in this paragraph, "title insurance company" and "title                         

01       insurance limited producer" have the meanings given in AS 21.66.480.