33-707

33-707. Acknowledgment of satisfaction;
recording

A. If a mortgagee, trustee or person entitled to payment receives full satisfaction
of a mortgage or deed of trust, he shall acknowledge satisfaction of the mortgage or deed
of trust by delivering to the person making satisfaction or by recording a sufficient
release or satisfaction of mortgage or deed of release and reconveyance of the deed of
trust, which release, satisfaction of mortgage or deed of release and reconveyance shall
contain the docket and page number or recording number of the mortgage or deed of
trust. If a mortgagee, trustee or person entitled to payment receives an amount less
than full satisfaction of a mortgage or deed of trust, but has agreed in writing to
release the mortgage or deed of trust, the mortgagee, trustee or person shall acknowledge
release of the mortgage or deed of trust by delivering to the person making payment of
the agreed amount that is less than full satisfaction or by recording a sufficient
release of the mortgage or release and reconveyance of the deed of trust, which release
or release and reconveyance shall contain the docket and page number or recording number
of the mortgage or deed of trust. It shall not be necessary for the trustee to join in
the acknowledgment or satisfaction, or in the release, satisfaction of mortgage or deed
of release and reconveyance. The recorded release or satisfaction of mortgage or deed of
release and reconveyance constitutes conclusive evidence of full or partial satisfaction
and release of the mortgage or deed of trust in favor of purchasers and encumbrancers for
value and without actual notice.

B. When a mortgage or deed of trust is satisfied by a release or satisfaction of
mortgage or deed of release and reconveyance, except where the record of such deed of
trust or mortgage has been destroyed or reduced to microfilm, the recorder shall record
the release or satisfaction of the deed of trust or mortgage showing the book and page or
recording number where the deed of trust or mortgage is recorded.

C. If the record of such mortgage or deed of trust has been destroyed and the
record thereof reduced to microfilm, it shall be sufficient evidence of satisfaction of
any such mortgage or deed of trust for the release or satisfaction of mortgage or deed of
release and reconveyance to be recorded and indexed as such. The instrument shall
sufficiently identify the mortgage or deed of trust by parties and by book and page or
recording number of the official records. Such instrument shall be treated as a release
or satisfaction of mortgage or deed of release and reconveyance and recorded.

D. If the note secured by a mortgage or deed of trust has been lost or destroyed,
the assignee, mortgagee or beneficiary shall, before acknowledging satisfaction, make an
affidavit that he is the lawful owner of the note and that it has been paid, but cannot
be produced for the reason that it has been lost or destroyed, and the affidavit shall be
recorded. If the record of such mortgage or deed of trust has been destroyed and the
record thereof reduced to microfilm, such affidavit shall be recorded and indexed as
releases, satisfactions of mortgage and deeds of release and reconveyance are recorded
and indexed and shall have the same force and effect as a release or satisfaction of a
mortgage or deed of release and reconveyance as provided in subsection A of this section.

E. If a full release or satisfaction of mortgage or deed of release and
reconveyance of deed of trust that, according to its terms, recites that it secures an
obligation having a stated indebtedness not greater than one million dollars exclusive of
interest, or a partial release or satisfaction of mortgage or partial deed of release and
reconveyance of deed of trust that, according to its terms, recites that the payment
required for the partial satisfaction or release does not exceed one million dollars
exclusive of interest, or a release of mortgage or deed of release and reconveyance of
deed of trust by a mortgagee, trustee or person who has agreed in writing to release the
mortgage or deed of trust in exchange for receipt of an amount less than full
satisfaction of the mortgage or deed of trust and that, according to its terms, recites
that it secures an obligation having a stated indebtedness not greater than one million
dollars exclusive of interest, has not been executed and recorded pursuant to subsection
A or C of this section within sixty days of full or partial satisfaction of the
obligation secured by such mortgage or deed of trust, or within sixty days of the receipt
by the mortgagee, trustee or other person of an amount less than full satisfaction if
agreed in writing, a title insurer as defined in section 20-1562 may prepare, execute and
record a full or partial release or satisfaction of mortgage or deed of full or partial
release and reconveyance of deed of trust. No earlier than sixty days after full or
partial satisfaction and at least thirty days prior to the issuance and recording of any
such release or satisfaction of mortgage or deed of release and reconveyance pursuant to
this subsection, the title insurer shall mail by certified mail with postage prepaid,
return receipt requested, to the mortgagee of record or to the trustee and beneficiary of
record and their respective successors in interest of record at their last known address
shown of record and to any persons who according to the records of the title insurer
received payment of the obligation at the address shown in such records, a notice of its
intention to release the mortgage or deed of trust accompanied by a copy of the release
or satisfaction of mortgage or deed of release and reconveyance to be recorded which
shall set forth:

1. The name of the beneficiary or mortgagee or any successors in interest of record
of such mortgagee or beneficiary and, if known, the name of any servicing agent.

2. The name of the original mortgagor or trustor.

3. The name of the current record owner of the property and if the release or
satisfaction of mortgage or deed of release and reconveyance is a partial release, the
name of the current record owner of the parcel described in the partial release or
satisfaction of mortgage or deed of partial release and reconveyance of deed of trust.

4. The recording reference to the deed of trust or mortgage.

5. The date and amount of payment, if known.

6. A statement that the title insurer has actual knowledge that the obligation
secured by the mortgage or deed of trust has been paid in full, or if the release or
satisfaction of mortgage or deed of release and reconveyance of deed of trust is a
partial release, a statement that the title insurer has actual knowledge that the partial
payment required for the release of the parcel described in the partial release or
satisfaction has been paid or, if the release of mortgage or deed or release and
reconveyance of deed of trust results from a mortgagee's, trustee's of other person's
written agreement to accept an amount less than full satisfaction of the obligation, a
statement that the title insurer has actual knowledge that the agreed upon payment has
been made in full.

F. The release or satisfaction of mortgage or release and reconveyance of deed of
trust may be executed by a duly appointed attorney-in-fact of the title insurer, but such
delegation shall not relieve the title insurer from any liability pursuant to this
section.

G. A full or partial release or satisfaction of mortgage or deed of full or partial
release and reconveyance of deed of trust issued pursuant to subsection E of this section
shall be entitled to recordation and, when recorded, shall constitute a full or partial
release or satisfaction of mortgage or deed of release and reconveyance of deed of trust
issued pursuant to subsection A or C of this section.

H. Where an obligation secured by a deed of trust or mortgage was paid in full
prior to September 21, 1991, and no release or satisfaction of mortgage or deed of
release and reconveyance of deed of trust was issued and recorded by November 20, 1991, a
release or satisfaction of mortgage or deed of release and reconveyance of deed of trust
as provided for in subsection E of this section may be prepared and recorded without the
notice prescribed by subsection E of this section.

I. A release or satisfaction of mortgage or a release and reconveyance of deed of
trust by a title insurer under the provisions of subsection E of this section shall not
constitute a defense nor release any person from compliance with subsections A through D
of this section or from liability under section 33-712.

J. In addition to any other remedy provided by law, a title insurer preparing or
recording the release and satisfaction of mortgage or the release and reconveyance of
deed of trust pursuant to subsection E of this section shall be liable to any party for
actual damage, including attorney fees, which any person may sustain by reason of the
issuance and recording of the release and satisfaction of mortgage or release and
reconveyance of deed of trust.

K. The title insurer shall not record a release and satisfaction of mortgage or
release and reconveyance of deed of trust if, prior to the expiration of the thirty day
period specified in subsection E of this section, the title insurer receives a notice
from the mortgagee, trustee, beneficiary, holder or servicing agent which states that the
mortgage or deed of trust continues to secure an obligation, or in the case of a partial
release or satisfaction of mortgage or deed of partial release and reconveyance of deed
of trust, a notice that states that the partial payment required to release the parcel
described in the partial release or satisfaction has not been paid.

L. The title insurer may charge a reasonable fee to the owner of the land or other
person requesting a release and satisfaction of mortgage or release and reconveyance of
deed of trust for services, including but not limited to search of title, document
preparation and mailing services rendered, and may in addition collect official fees.