33-715

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.