City and County of Denver Public Trustee Releases: The Process Simplified Presented by: Sindee Wagner Chief Deputy Public Trustee 720-865-2677 sindee.wagner@denvergov.org

Good Morning We are glad that you could make it. We hope this seminar is helpful to you in your business. We are always available to answer additional questions.

Release Introduction Colorado is a Deed of Trust state. If the Public Trustee is named on the original Deed of Trust, then the release must be processed through the Public Trustee’s office. If the Public Trustee is not named on the original Deed of Trust, or if the Deed of Trust secures an obligation other than an evidence of debt, then the lien is considered a Mortgage. You should consult legal counsel about how mortgages are released.

Release Instructions (cont’d) Releases of deeds of trust can only be released in the county in which they are recorded. In the event that a deed of trust is recorded in a different county than it should have been, the deed of trust has to be re-recorded in the correct county and then released in the correct county. In the event that a deed of trust is properly recorded in multiple counties, separate releases of deeds of trust must be completed and recorded in each county where recorded.

Did You Know? Bail Bonds constitute a lien against the property and are accompanied by a note and deed of trust. As long as the Public Trustee is listed on the deed of trust, the deed of trust can be released through the Public Trustee’s office Make sure that the note and deed of trust are marked paid in full by the bail bond company. The court document showing the bond has been satisfied must be recorded as page two of the release.

What is an evidence of debt? CRS 38-38-100.3 (8) "Evidence of debt" is a document that evidences a promise to pay or a right to the payment of a monetary obligation, such as a promissory note, bond, negotiable instrument, a loan, credit, or similar agreement, or a monetary judgment entered by a court of competent jurisdiction.

What is a Deed of Trust? CRS 38-38-100.3 (7) "Deed of Trust" means a security instrument containing a grant to a public trustee together with a power of sale.

What is “Holder of an evidence of debt”? CRS 38-38-100.3 (10) "Holder of an evidence of debt" means the person in actual possession of or person entitled to enforce an evidence of debt; except that "holder of an evidence of debt" does not include a person acting as a nominee solely for the purpose of holding the evidence of debt or deed of trust as an electronic registry without any authority to enforce the evidence of debt or deed of trust. For the purposes of articles 37 to 40 of title 38, CRS, the following persons are presumed to be the holder of an evidence of debt:

Holder of Evidence of Debt (cont’d.) (a) The person who is the obligee of and who is in possession of an original evidence of debt; (b) The person in possession of an original evidence of debt together with the proper endorsement or assignment thereof to such person in accordance with section 38-38-101 (6); (c) The person in possession of a negotiable instrument evidencing a debt, which has been duly negotiated to such person or to bearer or indorsed in blank; or (d) The person in possession of an evidence of debt with authority, which may be granted by the original evidence of debt or deed of trust, to enforce the evidence of debt as agent, nominee, or trustee or in a similar capacity for the obligee of the evidence of debt.

What is a Qualified Holder? 38-38-100.3 : (20) "Qualified holder" means a holder of an evidence of debt, certificate of purchase, certificate of redemption, or confirmation deed that is also one of the following: (a) A bank as defined in section 11-101-401 (5), C.R.S.; (b) A federally chartered savings and loan association doing business in Colorado or a savings and loan association chartered under the "Savings and Loan Association Law," articles 40 to 46 of title 11, C.R.S.; (c) A supervised lender as defined in section 5-1-301 (46), C.R.S., that is licensed to make supervised loans pursuant to section 5-2-302, C.R.S., and that is either:

Qualified Holder (cont’d) (d) (I) A public entity, which is an entity that has issued voting securities that are listed on a national security exchange registered under the federal "Securities Exchange Act of 1934", as amended; or (d)(II) An entity in which all of the outstanding voting securities are held, directly or indirectly, by a public entity; (e) An entity in which all of the outstanding voting securities are held, directly or indirectly, by a public entity that also owns, directly or indirectly, all of the voting securities of a supervised lender as defined in section 5-1-301 (46), C.R.S., that is licensed to make supervised loans pursuant to section 5-2-302, C.R.S.; (f) A federal housing administration approved mortgagee; (g) A federally chartered credit union doing business in Colorado or a state-chartered credit union as described in section 11-30-101, C.R.S.; (h) An agency or department of the federal government;

Qualified Holder (cont’d) (i) An entity created or sponsored by the federal or state government that originates, insures, guarantees, or purchases loans or a person acting on behalf of such an entity to enforce an evidence of debt or the deed of trust securing an evidence of debt; or (j) Any entity listed in paragraphs (a) to (i) of this subsection (20) acting in the capacity of agent, nominee except as otherwise specified in subsection (10) of this section, or trustee for another person. What?? Typically, a Bank or a Credit Union is a Qualified Holder, but if you are neither, you should consult with legal counsel.

What is the difference between a Deed of Trust and a Note? A Deed of Trust signifies a lien against the property. The Deed of Trust has information on the property including the legal description. This document must be recorded to be released. A Note is the document that identifies the debt and various payment arrangements that must be met to satisfy the lien. The note lists payment amounts, dates and interest to be paid on the lien. This document is rarely recorded.

What is a Release? A release of deed of Trust simply removes the lien of the deed of trust from the property. A release of deed of trust is required anytime that the lien is satisfied (Paid off) A release of deed of trust can happen when A property owner pays off the debt on the property in full A Re Finance happens A Bond is paid in full (bonds usually have a deed of trust with them)

Recording a release Releases must be recorded to take the deed of trust lien off of the property. Releases can be processed in person at the Public Trustee’s office By Mail in hard copy OR Electronically Electronically is the fastest and best way to record a release.

Why Electronic Processing? For several reasons The original documents never leave your office or file cabinet. Time saver – Cost effective Quicker turnaround (usually within a day or two, as opposed to two weeks by mail or manually) No mailing or driving to the office to complete the transaction Tracking and automatic receipt of the recorded release

How do you E-Record? Contact any of these three companies for more information of e-recording process/costs  Cost Contact Info CSC (Corporation Service Company)  Contact CSC for pricing, using contact info at right.www.eRecording.com 855-200-1150 (toll-free) eSecureFile (a Property Info company) Standard fee is $3.50 per document. However, a special pricing structure has been established for new customers filing documents with Denver County: 2014: $2.50 per document 2015: $3.00 per document 2016: $3.50 per document To qualify, you must say that you were referred by Denver County or that you saw this offer on Denver's website!http://portal.propertyinfo.com/esecurefile 888-608-1808 (toll-free) Simplifile Annual fee $395 and $5 per document, or, No annual fee and $10 per documentwww.Simplifile.com 800-460-5657 (toll-free) 

Two different release forms (make sure you are using the correct form ) Release of Deed of Trust WITH production of evidence of debt (Requires original Note and copy of the recorded Deed of Trust, always used with private lenders) Release of Deed of Trust WITHOUT production of evidence of debt (Requires a copy of the recorded Deed of Trust, only for Qualified Holders of the lien)

What if there is no original note? Then the releasing party must get a lost instrument bond from a surety company for 1 and ½ times the original loan amount. One surety company local in Colorado is Rocky Mountain Surety They can be reached at 303-670-9600 or info@rockymountainsurety.com for terms and fees associated with obtaining a lost instrument bond.

Copy of Recorded DOT OK (only for qualified holders) Qualified holders need to supply the Public Trustee’s office with a copy of the recorded DOT being released along with the Release of DOT form that states WITHOUT evidence of debt. The release form indemnifies the Public Trustee and assures that the releasing party will defend the Public Trustee as required by CRS 38-39-102 (3)(a)(1).

Indemnification Defined Legal Dictionary describes Indemnification as: Indemnify: To compensate for loss or damage; to provide security for financial reimbursement to an individual in case of a specified loss incurred by the person. Insurance companies indemnify their policyholders against damage caused by such things as fire, theft, and flooding, which are specified by the terms of the contract between the company and the insured. To guarantee against any loss which another might suffer. Two parties settle a dispute over a contract, and one of them may agree to pay any claims which may arise from the contract, holding the other harmless.

Two types of Releases Partial Release: If the legal description on the DOT lists separate parcels, plots, or lots (Such as in the case of Condominiums or Townhouses), and if only a portion of the legal description is being released, then a partial release is required. Full Release: If the legal description on the DOT has been paid for in full, then a full release is required.

Release forms Release forms can be found in our office Online at www.denverclerkandrecorder.org At Bradford Publishing in Denver, or perhaps a local office supply store in your area.

How to complete the forms

Identical for both forms (Please note the IMPORTANT box in red below)

With Evidence of debt (3rd section)

Without Evidence of Debt (3rd Section)

Bottom section Identical

Bottom of both forms

Notary Required The signature of the releasing party, regardless of the form being used, must be notarized for execution and recording of the release. If the form is not notarized, the form will be rejected and returned to the submitter.

Costs For processing and executing a release of Deed of Trust is $15.00 Recording of a one page release is $11.00 An additional $5.00 is required for each additional page included in the release (Additional pages usually consist of the legal description of the property) For a total of $26.00 for a one page release, $31.00 for a two page release, $36.00 for a three page release, etc…

Release recorded in error In the event that a release of Deed of Trust is submitted and recorded in error, the Public Trustee cannot fix this error. The submitter will need to file a legal action with District Court to get the situation remedied. Funds submitted with recordings submitted in error will not be refunded.

Reasons for a release to be rejected

Reasons for rejected release (cont’d)

Reasons for rejected release (cont’d)

Reasons for rejected release (cont’d)

Reasons for rejected release (cont’d) It is important to note that in the event that copies of the note and deed of trust are sent in with the release, the copies will not be returned to you. If an original note and deed of trust are sent in, please provide a self addressed, stamped envelope large enough to accommodate both documents.

We hope this was helpful Call with any questions, comments or concerns at 720-865-2633. Thank you for your time and consideration and have a good day.