Under current law, with limited exceptions, a public trustee must release a deed of trust upon the satisfaction of certain preconditions, one of which is the production of the original canceled evidence of debt such as a note or bond as evidence that the indebtedness secured by the deed of trust has been paid. To this requirement, the act adds another exception. That is, a holder of the original evidence of debt may request the release of a deed of trust without producing or exhibiting the original evidence of debt if the holder:
- Agrees to indemnify and defend the public trustee against any claim for damages resulting from the action of the public trustee taken in accordance with the request;
- Provides the public trustee a current address for the original grantor, assuming party, or current owner when requesting the release of the deed of trust; and
- Files the request for the release of the deed of trust electronically via the county's electronic recording system.
The act also removes language requiring a title insurance company to be "qualified" as well as licensed in Colorado for certain purposes relating to the release of a deed of trust.
Further, the act makes necessary changes to the statutory form that is used to request a deed of trust without producing the evidence of debt.
(Note: This summary applies to this bill as enacted.)