33-813

33-813. Default in performance of contract
secured; reinstatement; cancellation of recorded notice of
sale

A. If, prior to the maturity date fixed by the contract or contracts, all or a
portion of a principal sum or interest of the contract or contracts secured by a trust
deed becomes due or is declared due by reason of a breach or default in the performance
of the contract or contracts or of the trust deed, the trustor or the trustor's successor
in interest, any person having a subordinate lien or encumbrance of record thereon or any
beneficiary under a subordinate trust deed, before 5:00 p.m. mountain standard time on
the last day other than a Saturday or legal holiday before the date of sale or the filing
of an action to foreclose the trust deed, may reinstate by paying to the beneficiary, the
trustee or the trustee's agent in a form acceptable to the beneficiary or the trustee the
entire amount then due under the terms of the contract or contracts or trust deed, other
than the portion of the principal as would not then be due had no default occurred, by
curing all other defaults and by paying the amounts due under subsection B of this
section.

B. The beneficiary shall notify the trustee in writing of the performance and the
name of the person who performed the conditions. The proceedings shall be cancelled and
the contract or contracts and trust deed shall be deemed reinstated and in force as if no
breach or default had occurred upon performance of those of the following which may be
applicable:

1. Payment of the entire amount then due.

2. Payment of costs and expenses incurred in enforcing the terms of such contract
or trust deed. These costs and expenses may include the following:

(a) Reasonable costs for mailing and photocopying.

(b) Actual expenses incurred for recording, publication, posting of notice of sale,
auctioneer's fee, postponement fees and title costs.

(c) Other reasonable costs and expenses.

3. Payment of the recording fee for a cancellation of notice of sale.

4. Payment of the trustee's fees, in an amount not to exceed six hundred dollars or
one-half of one per cent of the entire unpaid principal sum secured, whichever is
greater.

5. Payment of expenses and reasonable attorney fees that are not otherwise provided
for in this section and that are incurred in protecting and preserving the beneficiary's
interest in the trust property.

C. On request from the trustor or any person entitled to notice pursuant to section
33-809, subsection B, at any time that the trust deed is subject to reinstatement, the
trustee shall provide a good faith estimate of the sums that appear necessary to
reinstate the trust deed.

D. On written request from the trustor or any person entitled to notice pursuant to
section 33-809, subsection B that is delivered to the trustee after the recording of the
notice of trustee's sale, the trustee shall inform the person of the exact amount
necessary to reinstate the trust deed, separately specifying costs, fees and any other
amounts that are required to be paid as a condition to reinstatement of the trust deed.
The trustee shall provide that information within five business days after receipt of the
written request. If the written request is received by the trustee during the five
business days before the day of the sale, the trustee shall provide the information to
the person as soon as practicable. This subsection does not require the extension of the
period for reinstatement of the trust deed prescribed in subsection A of this section.

E. If the trust deed is reinstated as provided in subsection B of this section, the
trustee shall have a cancellation of the notice of sale recorded in the same county
recorder's office where the notice of sale was recorded. A trustee who, for thirty days
after reinstatement, fails to have proper notice of the cancellation of the notice of
sale recorded is liable to the person who performed the conditions resulting in
reinstatement for all actual damages resulting from such failure.

F. If the trust deed is paid in full or if the sale is not held or is not properly
postponed pursuant to this chapter, the trustee shall record a cancellation of the notice
of sale. The cancellation of the notice of sale shall be recorded in the office of the
county recorder in which the notice of sale was recorded.

G. An acknowledged recorded cancellation of a recorded notice of sale under a trust
deed shall be sufficient if it is in substantially the following form:

Cancellation of Notice of Sale

The undersigned hereby cancels the notice of sale recorded
_______________, ____, on trust property legally described as:

(legal description of trust property)

which notice of sale refers to a trust deed executed by __________________ as
trustor, in which ____________ is named as beneficiary and __________________
as trustee, and recorded _______________, _____, in docket or book ________,
at page __________, records of ______________ county, Arizona.

Dated this _____________ day of __________, ____.

_____________________________

Signature of trustee

(Acknowledgement)