Montana Substitution of Trustee and Deed of Full Reconveyance - for Trust Indenture/Deed of Trust

This form is initiated by the current beneficiary/lender, appoints a successor trustee who reconveys the Trust Indenture/Deed of Trust. This is typically performed when the loan/note has been paid in full/satisfied and the original trustee can't or won't reconvey the Trust Indenture/Deed of Trust in question.

71-1-306. Qualifications of trustee -- successor trustee.
(1) The trustee of a trust indenture under this part must be:
(a) an attorney who is licensed to practice law in Montana;
(b) a bank, trust company, or savings and loan association authorized to do business in Montana under the laws of Montana or the United States; or
(c) a title insurer or title insurance producer or agency authorized to do business in Montana under the laws of Montana.

(2) The beneficiary may appoint a successor trustee at any time by filing for record, in the office of the clerk and recorder of each county in which the trust property or some part of the trust property is situated, a substitution of trustee. The substitution must identify the trust indenture by stating the names of the original parties to the trust indenture and the date of recordation and the book and page where the information is recorded, must state the name and mailing address of the new trustee, and must be executed and acknowledged by all of the beneficiaries designated in the trust indenture or their successors in interest. From the time the substitution is filed for record, the new trustee is vested with all the power, duties, authority, and title of the trustee named in the trust indenture and of any successor trustee.

71-1-307 Reconveyance upon performance -- liability for failure to reconvey (1) Upon performance of the obligation secured by the trust indenture, the trustee, upon written request of the beneficiary or servicer, shall reconvey the interest in real property described in the trust indenture to the grantor. If the obligation is performed and the beneficiary or servicer refuses to request reconveyance or the trustee refuses to reconvey the property within 90 days of the request, the beneficiary, servicer, or trustee who refuses is liable to the grantor for the sum of $500 and all actual damages resulting from the refusal to reconvey.

(2) If a beneficiary or servicer has received a notice of intent to reconvey pursuant to 71-1-308 and has not timely requested a reconveyance or has not objected to the reconveyance within the 90-day period established in 71-1-308, the beneficiary or servicer is liable to the title insurer or title insurance producer for the sum of $500 and all damages resulting from the failure.

(3) In an action by a grantor, title insurer, or title insurance producer to collect any sums due under this section, the court shall award attorney fees and costs to the prevailing party.

For use in Montana only.