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33-715. Payoff demands; definitions

A. On the written demand of an entitled person or that person's authorized agent, a beneficiary or the beneficiary's authorized agent shall prepare and deliver a payoff demand statement to the person who has requested it within fourteen days after receipt of the demand.

B. The payoff demand statement shall provide the amounts required as of the date of preparation and shall include the information reasonably necessary to calculate the payoff amount on a per diem basis for the time that the per diem amount remains unchanged as provided in the note but not to exceed thirty days.

C. The entitled person or that person's authorized agent may rely on a payoff demand statement for the purpose of establishing the amount necessary to pay the obligation in full and obtain a release of the mortgage or deed of trust that secures the obligation through and including the time set forth in the payoff demand statement as provided in subsection I, paragraph 5.

D. The entitled person or that person's authorized agent may rely on an amended payoff demand statement if the beneficiary delivers that amended payoff demand statement to the entitled person or that person's authorized agent before the earlier of:

1. The transfer of title to the mortgaged or trust property or any portion of the property.

2. The recordation of a mortgage or deed of trust describing the mortgaged or trust property or any portion of the property.

E. For notes created or renegotiated after the effective date of this section, any sums that were due the beneficiary and that were not included in the payoff demand statement or in any amended statement constitute an unsecured obligation of the obligor pursuant to the terms of the note and are recoverable by the beneficiary pursuant to the terms of the note and as otherwise provided by law.

F. A beneficiary who willfully fails to prepare and deliver a payoff demand statement for fourteen or more days after receipt of a written demand is liable to the entitled person for all damages sustained for failure to deliver the statement. The beneficiary is also liable to the entitled person for five hundred dollars whether or not actual damages are sustained. Each failure of the beneficiary to prepare and deliver the payoff demand statement when required to do so pursuant to this section constitutes a separate cause of action. A judgment that awards an entitled person a forfeiture or damages or both for any failure to prepare and deliver a payoff demand statement bars recovery of any other damages or forfeiture for any other failure to prepare and deliver a statement with respect to the same obligation, if the other demand for the statement was made within six months before or after the demand was made that resulted in the award. For purposes of this subsection, "willfully" means a failure to comply with this section without just cause or excuse.

G. If the beneficiary has more than one branch, office or other place of business, the payoff statement demand shall be made to the branch or office address provided in the payment billing notice or payment book. Unless the payoff demand statement provides otherwise, the statement is deemed to apply only to the unpaid balance of the single obligation that is named in the demand and that is secured by the mortgage or deed of trust that is payable at the address that is provided in the payment billing notice or payment book.

H. The demand for and preparation and delivery of a payoff demand statement pursuant to this section does not change any date or time period that is prescribed in the note or that is otherwise provided by law.

I. The beneficiary of a mortgagee may assess a fee of no more than thirty dollars for furnishing each payoff demand statement. This is conclusively presumed to be reasonable.

J. For the purposes of this section, unless the context otherwise requires:

1. "Beneficiary" means a mortgagee or beneficiary of a mortgage or deed of trust or an assignee of a mortgagee or beneficiary.

2. "Deliver" or "delivery" means depositing or causing to be deposited into the United States mail an envelope with postage prepaid that contains a copy of the documents to be delivered and that is addressed to the person whose name and address are provided in the payoff demand. Delivery includes transmitting those documents by telefacsimile machine to the person. Delivery includes transmitting those documents electronically pursuant to title 44, chapter 26 if the payoff demand specifically requests and authorizes that the documents be transmitted in electronic form.

3. "Entitled person" means the trustor or mortgagor of the mortgaged or trust property or any part of that property, any successor in interest to the trustor or mortgagor, any person with a lien or encumbrance of record on the mortgaged or trust property and an escrow agent that is licensed pursuant to title 6.

4. "Payoff demand" means a written demand for a payoff demand statement made by an entitled person or that person's authorized agent.

5. "Payoff demand statement" means a written statement that is prepared in response to a written demand made by an entitled person or that person's authorized agent that sets forth the amounts required by the beneficiary to fully satisfy all of the obligations secured by the loan that is the subject of the demand.