71st OREGON LEGISLATIVE ASSEMBLY--2001 Regular Session
Enrolled
House Bill 2610
Sponsored by COMMITTEE ON JUDICIARY (at the request of Oregon
Land Title Association)
CHAPTER ................
AN ACT
Relating to release of trust deed; creating new provisions; and
amending ORS 86.720.
Be It Enacted by the People of the State of Oregon:
SECTION 1. ORS 86.720 is amended to read:
86.720. (1) Within 30 days after performance of the obligation
secured by the trust deed, the beneficiary shall deliver a
written request to the trustee to reconvey the estate of real
property described in the trust deed to the grantor. Within 30
days after the beneficiary delivers the written request to
reconvey to the trustee, the trustee shall reconvey the estate of
real property described in the trust deed to the grantor. In the
event the obligation is performed and the beneficiary refuses to
request reconveyance or the trustee refuses to reconvey the
property, the beneficiary or trustee so refusing shall be liable
as provided by ORS 86.140 in the case of refusal to execute a
discharge or satisfaction of a mortgage on real property. The
trustee may charge a reasonable fee for all services involved in
the preparation, execution and recordation of any reconveyance
executed pursuant to this section.
(2) If a full reconveyance of a trust deed has not been
executed and recorded pursuant to the provisions of subsection
(1) of this section within 60 calendar days of the date the
obligation { + secured by the trust deed + } was fully
satisfied, then:
(a) If the obligation was satisfied by a title insurance
company or agent or by payment through an escrow transacted by
{ - the - } { + a + } title insurance company or agent, upon
the written request of the grantor or the grantor's successor in
interest, the tender of reasonable charges and the compliance
with the notice requirements of subsection (3) of this section,
the title insurance company or agent shall prepare, execute and
record a release of trust deed.
(b) { - In all cases not described in paragraph (a) of this
subsection, upon the written request of the grantor or the
grantor's successor in interest, the tender of reasonable charges
and the - } { + Upon + } compliance with the notice
requirements of subsection (3) of this section, { - the - }
{ + any + } title insurance company or agent may prepare,
execute and record a release of trust deed.
Enrolled House Bill 2610 (HB 2610-INTRO) Page 1
(3) Prior to the issuance and recording of a release pursuant
to this section, the title insurance company or agent shall give
notice of the intention to record a release of trust deed to the
{ - trustee (except when the title company or agent is the
trustee), grantor and - } beneficiary of record { - , or their
successors in interest of record - } { + and, if different, the
party to whom the full satisfaction payment was made + }.
{ - Notice shall be effective upon receipt. Such - }
{ + The + } notice shall:
(a) Provide that the parties to whom { - such - } { +
the + } notice is sent shall have a period of 30 days { + from
the date of mailing + } to send to the title { + insurance + }
company or agent their written objections to the execution and
recording of the release of trust deed; { - and - }
(b) Be { - delivered - } { + sent + } by
{ - certified - } { + first class + } mail with
{ - return receipt and - } postage prepaid, addressed to the
named interested parties at their last-known addresses { + ; and
(c) Identify the trust deed by the name of the original grantor
and any successor in interest on whose behalf payment was made
and by the recording reference + }.
(4) The release of trust deed shall recite on the first page
that it has been executed and recorded pursuant to the provisions
of this section. The release shall be properly acknowledged and
shall set forth:
(a) The name of the beneficiary to whom the payment was made;
(b) The name of the original grantor of the trust deed and any
successor in interest on whose behalf payment was made;
(c) The recording reference to the trust deed that is to be
released;
(d) A recital that the obligation secured by the trust deed has
been paid in full;
(e) The date and amount of payment;
(f) The date of { - receipt - } { + mailing + } of notice
required by this section; and
(g) A recital that no written objections were received by the
title insurance company or agent.
(5) The release of trust deed executed pursuant to this section
shall be entitled to recordation and, when recorded, shall be
deemed to be the equivalent of a reconveyance of a trust deed.
(6) The title insurance company or agent shall not record or
cause to be recorded a release of trust deed when any of the
following circumstances exist:
(a) The 30-day period following notice given under this section
has not expired; or
(b) Written objection to such recordation has been received by
the title insurance company or agent from any of the parties to
whom notice was sent.
(7) The trustee, title insurance company or agent may charge a
reasonable fee for all services involved in the preparation,
execution, recordation and compliance with this section, to
effect the release of trust deed.
(8) Subsection (2) of this section does not excuse the
beneficiary or trustee from compliance with subsection (1) of
this section.
(9) In addition to any other remedy provided by law, a title
insurance company or agent preparing, executing or recording a
release of trust deed shall be liable to any party for damages
that { - any person may sustain - } { + the party
sustains + } by reason of the negligence or willful misconduct of
Enrolled House Bill 2610 (HB 2610-INTRO) Page 2
the title insurance company or agent in connection with the
issuance, execution or recording of the release pursuant to this
section. Except as provided in subsection (10) of this section,
the court may award reasonable attorney fees to the prevailing
party in an action under this section.
(10) The court may not award attorney fees to a prevailing
defendant under the provisions of subsection (9) of this section
if the action under this section is maintained as a class action
pursuant to ORCP 32.
(11) As used in this section, 'agent' means an authorized
issuer of title insurance policies of a title insurance company
who is licensed as an agent for that purpose pursuant to ORS
chapter 744.
(12) Subsections (2) to (11) of this section shall be
applicable only to full reconveyances of the property described
in the trust deed and not to reconveyances of parts or portions
of the property.
(13) Subsections (1) to (12) of this section are applicable to
all trust deeds, whether executed before, on or after November 4,
1993.
(14) A title insurance company or agent is not required to
prepare, execute and record a release of trust deed under
subsections (2) to (12) of this section if the obligation secured
by the trust deed was satisfied prior to November 4, 1993.
SECTION 2. { + The amendments to ORS 86.720 by section 1 of
this 2001 Act apply to the release of a trust deed executed on or
after the effective date of this 2001 Act. + }
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Passed by House March 20, 2001
...........................................................
Chief Clerk of House
...........................................................
Speaker of House
Passed by Senate May 7, 2001
...........................................................
President of Senate
Enrolled House Bill 2610 (HB 2610-INTRO) Page 3
Received by Governor:
......M.,............., 2001
Approved:
......M.,............., 2001
...........................................................
Governor
Filed in Office of Secretary of State:
......M.,............., 2001
...........................................................
Secretary of State
Enrolled House Bill 2610 (HB 2610-INTRO) Page 4