- November 05, 1997
- All Stewart Title Owned Offices and Agents in Colorado
- Request for Release of Deed of Trust
Senate Bill 97-213 provided for new procedures for Release of Deeds of Trust through the Public Trustee. This bill went into effect on September 1, 1997. The statute creates a new option, for certain qualified entities, whereby the original evidence of debt is not presented in order to process a Release of Deed of Trust. The following is a list of the entities that are entitled to submit a certification to the public trustee instead of presentation of the original evidence of debt:
(I) A bank, as defined in Section 11-1-102(2), C.R.S.;
(II) An industrial bank, as defined in Section 11-22-101(1), C.R.S.;
(III) A savings and loan association licensed to do business in Colorado;
(IV) A supervised lender, as defined in Section 5-3-501(2), C.R.S., that is licensed to make supervised loans pursuant to Section 5-3-503, C.R.S., and that is either: (a) a public entity*, as defined in Paragraph (c) of this Subsection (3.5); or (b) an entity in which all of the outstanding voting securities are held, directly or indirectly, by a public entity;
(V) An entity in which all of the outstanding voting securities are held, directly or indirectly, by a public entity* also owning, directly or indirectly, all of the voting securities of a supervised lender, as defined in Section 5-3-501(2), C.R.S., that is licensed to make supervised loans pursuant to Section 5-3-503, C.R.S.;
(VI) A federal housing administration approved mortgagee;
(VII) A federally chartered credit union doing business in Colorado or a state chartered credit union, as defined in section 11-30-101, C.R.S.;
(VIII) An agency of the Federal Government; or
(IX) A federally created corporation that originates, guarantees, or purchases loans.
(*The term "public entity" is defined as an entity that has issued voting securities that are listed on a national securities exchange registered under the Federal Securities Exchange Act of 1934).
As a result of these revisions, new release forms have been developed for use by those entities that qualify for and want to exercise this new option. The new Bradford Release Form No. 1197 (and Partial Release Form No. 1198) are acceptable for use in all Colorado Counties, except Denver. Denver County has a separate form of Release and will only accept their own form when the original evidence of debt will not be presented. The old Release forms including the standard release with presentation of the original evidence of debt or release with separate indemnification agreement and resolution, will still be accepted by the Public Trustees.
As additional issues or questions arise regarding specific procedures to be followed in connection with the new release procedures, please don't hesitate to contact Mike Cranmer or Bob Adams.
THIS BULLETIN IS FURNISHED TO INFORM YOU OF CURRENT DEVELOPMENTS. AS A REMINDER, YOU ARE CHARGED WITH KNOWLEDGE OF THE CONTENT ON VIRTUAL UNDERWRITER AS IT EXISTS FROM TIME TO TIME AS IT APPLIES TO YOU, AS WELL AS ANY OTHER INSTRUCTIONS. OUR UNDERWRITING AGREEMENTS DO NOT AUTHORIZE OUR ISSUING AGENTS TO ENGAGE IN SETTLEMENTS OR CLOSINGS ON BEHALF OF STEWART TITLE GUARANTY COMPANY. THIS BULLETIN IS NOT INTENDED TO DIRECT YOUR ESCROW OR SETTLEMENT PRACTICES OR TO CHANGE PROVISIONS OF APPLICABLE UNDERWRITING AGREEMENTS. CONFIDENTIAL, PROPRIETARY, OR NONPUBLIC PERSONAL INFORMATION SHOULD NEVER BE SHARED OR DISSEMINATED EXCEPT AS ALLOWED BY LAW. IF APPLICABLE STATE LAW OR REGULATION IMPOSES ADDITIONAL REQUIREMENTS, YOU SHOULD CONTINUE TO COMPLY WITH THOSE REQUIREMENTS.