CSHB 421(JUD): "An Act relating to reconveyances of deeds of trust."
00 CS FOR HOUSE BILL NO. 421(JUD) 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 and the servicer, a notice of intent to reconvey; the notice 14 shall be sent to the beneficiary's address and the servicer's address 15 (A) stated in the trust deed;
01 (B) stated in the last recorded assignment of the trust deed, if 02 any; 03 (C) shown in a request for notice recorded under (g) of this 04 section; and 05 (D) if any, personally known to the title insurance company; or 06 (2) hand deliver to the beneficiary and to the servicer a notice of intent 07 to reconvey. 08 (c) The notice required by (b) of this section must be in substantially the 09 following form and accompanied by a copy of the reconveyance to be recorded: 10 NOTICE OF INTENT TO RECONVEY 11 TO: (Beneficiary or servicer for beneficiary) 12 FROM: (Title insurance company) 13 DATE: .............................. 14 Notice is hereby given to you as follows: 15 (1) This notice concerns the trust deed described as 16 follows: 17 Trustor: .............................. 18 Beneficiary: .............................. 19 Recording information for the trust deed: 20 Serial number: .............................. 21 or 22 Book number: .............................. 23 Page number: .............................. 24 Recording information for current assignment of trust deed: 25 Serial number: ............................ 26 or 27 Book number: ............................ 28 Page number: ............................... 29 (2) The undersigned title insurance company claims to 30 have fully paid or received satisfactory evidence of the payment in full 31 of the obligation secured by the trust deed described above.
01 (3) Unless, within 90 days following the date stated 02 above, the undersigned has received, by certified mail, return receipt 03 requested, directed to the address noted below, a notice stating that you 04 have not received payment in full of all obligations secured by the trust 05 deed or that you otherwise object to reconveyance of the trust deed, the 06 undersigned will fully release and reconvey the trust deed under 07 AS 34.20.115. 08 (4) A copy of the reconveyance or release of the trust 09 deed is enclosed with this notice. 10 (Title insurance company) 11 (Address) 12 (Phone number) 13 (d) After at least 90 days have elapsed after the mailing or delivery of the 14 notice of intent to reconvey under (b) of this section, if a title insurance company has 15 not received an objection to the reconveyance, the title insurance company may 16 execute and record a reconveyance of the trust deed. 17 (e) The reconveyance authorized by (d) of this section must be acknowledged 18 under AS 09.63 and be in substantially the following form: 19 RECONVEYANCE OF TRUST DEED 20 .............................., a title insurance company authorized to 21 transact business in Alaska, does, by this document, reconvey, without 22 warranty, to the person or persons legally entitled to the trust property, 23 the following trust property covered by a trust deed naming 24 .............................. as trustor and .............................. as beneficiary, 25 which was recorded on .............................. at serial number 26 .............................. or at book .............................. and page 27 ..............................: 28 The following described property located in the 29 .............................. Judicial District, State of Alaska: 30 (property description) 31 The undersigned title insurance company certifies that
01 (1) the undersigned title insurance company has fully 02 paid or received satisfactory evidence of the payment in full of the 03 obligation secured by the trust deed; 04 (2) not less than 30 days following the payment in full 05 of the trust deed, the undersigned hand delivered or mailed by certified 06 mail, return receipt requested, to the record beneficiary under the trust 07 deed and the servicer for the record beneficiary, at the beneficiary's and 08 servicer's record addresses, and to any address personally known to this 09 title insurance company, a notice of intent to reconvey as required by 10 AS 34.20.115; and 11 (3) at least 90 days have elapsed after the mailing or 12 delivery of the notice of intent to reconvey and the undersigned title 13 insurance company has not received an objection to the reconveyance. 14 Dated ................................................ 15 ........................................................... 16 (Title insurance company) 17 (Acknowledgment) 18 (f) A reconveyance of a trust deed, when executed and acknowledged in 19 substantially the form prescribed in (e) of this section, may be recorded and, when 20 recorded, constitutes a reconveyance of the trust deed identified in the reconveyance, 21 regardless of any deficiency in the reconveyance procedure that is not disclosed in the 22 recorded reconveyance, except for forgery of the title insurance company's signature. 23 The reconveyance of a trust deed under this section does not discharge a personal 24 obligation that was secured by the trust deed at the time of its reconveyance. 25 (g) A person who wants to receive a copy of a notice given under (b) of this 26 section after the deed of trust is recorded and before the reconveyance is recorded 27 under (d) of this section may record a request for a copy of the notice in the office of 28 the recorder in the judicial district in which a part of the real property is located. The 29 request must be acknowledged, must state the name and address of the person 30 requesting the copy of the notice, and must identify the deed of trust by stating the 31 names of the parties to the deed of trust, the date of recordation, and the serial number
01 or book and page numbers where the deed of trust is recorded. 02 (h) If, at any point during the procedure required by this section, the 03 beneficiary requests the title insurance company to reconvey the trust deed, the title 04 insurance company is not required to proceed with the rest of the procedure required 05 by this section and may execute and record a reconveyance of the trust deed. 06 (i) Except as provided in (a) and (h) of this section, if a title insurance 07 company reconveys a trust deed without having satisfactory evidence of payment in 08 full required under (b) of this section or without providing the prior notice to the 09 beneficiary and the servicer as required under this section, the title insurance company 10 is liable to the beneficiary and to the heirs, successors in interest, representatives, and 11 assigns of the beneficiary for all damages occasioned by the neglect or the wilful act, 12 and the title insurance company is liable to the state for a penalty of $300. 13 (j) In this section, 14 (1) "beneficiary" means both the record owner of the beneficiary's 15 interest under a trust deed and a successor in interest; 16 (2) "satisfactory evidence of payment in full," with regard to an 17 obligation secured by a trust deed or an encumbrance on the property covered by the 18 trust deed, means a payoff letter, or, along with reasonable documentary evidence that 19 the check was intended to effect full payment, 20 (A) the original cancelled check; or 21 (B) a copy, including a voucher copy, of a check, payable to 22 the beneficiary or a servicer; 23 (3) "servicer" means a person who handles, for a beneficiary of a trust 24 deed, the receipt of the beneficiary's payments under the trust deed; 25 (4) "title insurance company" means a title insurance company or a 26 title insurance limited producer; in this paragraph, "title insurance company" and "title 27 insurance limited producer" have the meanings given in AS 21.66.480.