57-1-21 - Trustees of trust deeds -- Qualifications.
57-1-21. Trustees of trust deeds -- Qualifications.
(1) (a) The trustee of a trust deed shall be:
(i) any active member of the Utah State Bar who maintains a place within the state wherethe trustor or other interested parties may meet with the trustee to:
(A) request information about what is required to reinstate or payoff the obligationsecured by the trust deed;
(B) deliver written communications to the lender as required by both the trust deed andby law;
(C) deliver funds to reinstate or payoff the loan secured by the trust deed; or
(D) deliver funds by a bidder at a foreclosure sale to pay for the purchase of the propertysecured by the trust deed;
(ii) any depository institution as defined in Section 7-1-103, or insurance companyauthorized to do business and actually doing business in Utah under the laws of Utah or theUnited States;
(iii) any corporation authorized to conduct a trust business and actually conducting a trustbusiness in Utah under the laws of Utah or the United States;
(iv) any title insurance company or agency that:
(A) holds a certificate of authority or license under Title 31A, Insurance Code, to conductinsurance business in the state;
(B) is actually doing business in the state; and
(C) maintains a bona fide office in the state;
(v) any agency of the United States government; or
(vi) any association or corporation that is licensed, chartered, or regulated by the FarmCredit Administration or its successor.
(b) For purposes of this Subsection (1), a person maintains a bona fide office within thestate if that person maintains a physical office in the state:
(i) that is open to the public;
(ii) that is staffed during regular business hours on regular business days; and
(iii) at which a trustor of a trust deed may in person:
(A) request information regarding a trust deed; or
(B) deliver funds, including reinstatement or payoff funds.
(c) This Subsection (1) is not applicable to a trustee of a trust deed existing prior to May14, 1963, nor to any agreement that is supplemental to that trust deed.
(d) The amendments in Laws of Utah 2002, Chapter 209, to this Subsection (1) applyonly to a trustee that is appointed on or after May 6, 2002.
(2) The trustee of a trust deed may not be the beneficiary of the trust deed, unless thebeneficiary is qualified to be a trustee under Subsection (1)(a)(ii), (iii), (v), or (vi).
(3) The power of sale conferred by Section 57-1-23 may only be exercised by the trusteeof a trust deed if the trustee is qualified under Subsection (1)(a)(i) or (iv).
(4) A trust deed with an unqualified trustee or without a trustee shall be effective tocreate a lien on the trust property, but the power of sale and other trustee powers under the trustdeed may be exercised only if the beneficiary has appointed a qualified successor trustee underSection 57-1-22.
Amended by Chapter 250, 2008 General Session