(1) Any mortgage may, by its terms, secure future advances up to a total maximum principal amount expressly set forth in such mortgage. Such mortgage shall be effective to secure payment of all advances, both obligatory and optional, up to the stated maximum principal amount to the same extent and with the same effect and priority as if such total maximum principal amount had been fully disbursed on or before the date such mortgage was recorded.
(2) Such mortgage shall also secure, to the same extent and with the same effect and priority, the following additional amounts regardless of whether such additional amounts, when added to the principal amount of the indebtedness, exceed the maximum principal amount stated in the mortgage:
(a) All increases in the principal amount that result from negative amortization or the addition of deferred interest;
(b) All disbursements made for the payment of taxes, levies, or insurance with respect to the property subject to the mortgage or made to protect such property from waste, damage, or abuse;
(c) If the mortgage or evidence of debt secured by the mortgage so provides, all reasonable expenses associated with collection of the indebtedness or foreclosure of the mortgage; and
(d) Interest on any of the items specified in paragraphs (a) to (c) of this subsection (2) in accordance with the terms of the mortgage or the evidence of debt secured by the mortgage.
(3) Subsection (1) of this section shall not apply to any subsequent advance against a mortgage instrument after a mortgagee has initially advanced principal up to the maximum amount stated in the mortgage, unless the mortgage instrument clearly states that it was made pursuant to a revolving credit arrangement.
(4) This section shall have no application to the priority of general mechanics' liens arising pursuant to article 22 of this title, and the priority of such general mechanics' liens with respect to a mortgage which secures future advances shall be determined without reference to this section.
(5) As used in this section, unless the context otherwise requires, mortgage means a mortgage, deed of trust, or other instrument creating a lien on real property to secure the payment of an indebtedness.
Source: L. 2002: Entire section added, p. 377, � 1, effective August 7.
38-39-107. Form of written request for release of a deed of trust with production of the evidence of debt. A written request to a public trustee made pursuant to section 38-39-102 (1)(a) to release a deed of trust with production of the original canceled evidence of debt may be in substantially the following form:
Original Note and Deed of Trust Returned to:
When recorded return to:
Prepared/Received by:
REQUEST FOR FULL [ ] / PARTIAL [ ]
RELEASE OF DEED OF TRUST AND RELEASE
BY HOLDER OF THE EVIDENCE OF DEBT WITH
PRODUCTION OF EVIDENCE OF DEBT PURSUANT
TO � 38-39-102 (1)(a), COLORADO REVISED STATUTES
___________________________ Date
___________________________ Original Grantor (Borrower)
___________________________
___________________________ Current Address of Original Grantor,
___________________________ Assuming Party, or Current Owner
[ ] Check here if current address is unknown.
___________________________ Original Beneficiary (Lender)
___________________________
___________________________ Date of Deed of Trust
___________________________ Date of Recording and/or Re-Recording of Deed of Trust
___________________________ Recording Information
County Rcpt. No. and/or Film No. and/or Book/Page No. and/or Torrens Reg. No.
TO THE PUBLIC TRUSTEE OF COUNTY
(The County of the Public Trustee who is the appropriate grantee to whom the above Deed of Trust should grant an interest in the property described in the Deed of Trust)
PLEASE EXECUTE AND RECORD A RELEASE OF THE DEED OF TRUST DESCRIBED ABOVE. The indebtedness secured by the Deed of Trust has been fully or partially paid and/or the purpose of the Deed of Trust has been fully or partially satisfied in regard to the property encumbered by the Deed of Trust as described therein as to a full release or, in the event of a partial release, only that portion of the real property described as:
_________________________________________________________
(IF NO LEGAL DESCRIPTION IS LISTED THIS WILL BE DEEMED A FULL RELEASE.)
Name and address of current holder of the evidence of debt secured by deed of trust (lender)
_________________________________________________________
Name, title, and address of officer, agent, or attorney of current holder
___________________________________________________________
Signature Signature
State of , County of
The foregoing Request for Release was acknowledged before me on
(Date) by* (Notary Seal)
_______________________________Date Commission Expires
*If applicable, insert title of officer and name of current holder
____________________________________
Notary Public Witness my hand and official seal
RELEASE OF DEED OF TRUST
WHEREAS, the Grantor(s) named above, by Deed of Trust, granted certain real property described in the Deed of Trust to the Public Trustee of the County referenced above, in the State of Colorado, to be held in trust to secure the payment of the indebtedness referred to therein; and
WHEREAS, the indebtedness secured by the Deed of Trust has been fully or partially paid and/or the purpose of the Deed of Trust has been fully or partially satisfied according to the written request of the current holder of the evidence of debt;
NOW THEREFORE, in consideration of the premises and the payment of the statutory sum, receipt of which is hereby acknowledged, I, as the Public Trustee in the County named above, do hereby fully and absolutely release, cancel, and forever discharge the Deed of Trust or that portion of the real property described above in the Deed of Trust, together with all privileges and appurtenances thereto belonging.
___________________________________
Public Trustee
____________________________________
Deputy Public Trustee
(Public Trustee use only; use appropriate label)
(Public Trustee's seal)
(If applicable: Notary Seal)
___________________________________________________________
(If applicable, name and address of person creating new legal description as required by � 38-35-106.5, Colorado Revised Statutes.)
Source: L. 2007: Entire section added, p. 403, � 1, effective July 1. L. 2008: Entire section amended, p. 569, � 2, effective April 21. L. 2009: Entire section amended, (HB 09-1207), ch. 164, p. 722, � 22, effective September 1.
38-39-108. Form of written request for release of a deed of trust without production of the evidence of debt. A written request to a public trustee made pursuant to section 38-39-102 (1)(a) and (3) to release a deed of trust without production of the original canceled evidence of debt may be in substantially the following form:
Original Note and Deed of Trust Returned to:
When recorded return to:
Prepared/Received by:
REQUEST FOR FULL [ ] / PARTIAL [ ]
RELEASE OF DEED OF TRUST AND RELEASE BY
HOLDER OF THE EVIDENCE OF DEBT WITHOUT
PRODUCTION OF EVIDENCE OF DEBT PURSUANT TO
�38-39-102 (1)(a) and (3), COLORADO REVISED STATUTES
___________________________ Date
___________________________ Original Grantor (Borrower)
___________________________
___________________________ Current Address of Original Grantor,
___________________________ Assuming Party, or Current Owner
[ ] Check here if current address is unknown.
___________________________ Original Beneficiary (Lender)
___________________________
___________________________ Date of Deed of Trust
___________________________ Date of Recording and/or
Re-Recording of Deed of Trust
___________________________ Recording Information
County Rcpt. No. and/or Film No. and/or Book/Page No. and/or Torrens Reg. No.
TO THE PUBLIC TRUSTEE OF __________________ COUNTY
(The County of the Public Trustee who is the appropriate grantee to whom the above Deed of Trust should grant an interest in the property described in the Deed of Trust)
PLEASE EXECUTE AND RECORD A RELEASE OF THE DEED OF TRUST DESCRIBED ABOVE. The indebtedness secured by the Deed of Trust has been fully or partially paid and/or the purpose of the Deed of Trust has been fully or partially satisfied in regard to the property encumbered by the Deed of Trust as described in the Deed of Trust as to a full release or, in the event of a partial release, only that portion of the real property described as:
_________________________________________________________
(IF NO LEGAL DESCRIPTION IS LISTED THIS WILL BE DEEMED A FULL RELEASE.)
Pursuant to � 38-39-102 (3), Colorado Revised Statutes, in support of this Request for Release of Deed of Trust, the undersigned, as the holder of the evidence of debt secured by the Deed of Trust described above, or as a title insurance company authorized to request the release of a Deed of Trust pursuant to � 38-39-102 (3)(c), Colorado Revised Statutes, in lieu of the production or exhibition of the original evidence of debt with this Request for Release, certifies as follows:
1. The purpose of the Deed of Trust has been fully or partially satisfied.
2. The original evidence of debt is not being exhibited or produced with this request for release of Deed of Trust.
3. It is one of the following entities (check applicable box):
a. [ ] The holder of the original evidence of debt that is a qualified holder, as specified in � 38-39-102 (3)(a), Colorado Revised Statutes, that agrees that it is obligated to indemnify the Public Trustee for any and all damages, costs, liabilities, and reasonable attorney fees incurred as a result of the action of the Public Trustee taken in accordance with this Request for Release;
b. [ ] The holder of the evidence of debt requesting the release of a Deed of Trust without producing or exhibiting the original evidence of debt that delivers to the Public Trustee a corporate surety bond as specified in � 38-39-102 (3)(b), Colorado Revised Statutes;
c. [ ] A title insurance company licensed in Colorado, as specified in � 38-39-102 (3)(c), Colorado Revised Statutes, that agrees that it is obligated to indemnify the Public Trustee pursuant to statute as a result of the action of the Public Trustee taken in accordance with this Request for Release and that has caused the indebtedness secured by the Deed of Trust to be satisfied in full, or in the case of a partial release, to the extent required by the holder of the indebtedness; or
d. [ ] A holder, as specified in � 38-39-102 (3)(d)(I), Colorado Revised Statutes, that agrees that it is obligated to indemnify the Public Trustee pursuant to statute as a result of the action of the Public Trustee taken in accordance with this Request for Release and that has caused the indebtedness secured by the Deed of Trust to be satisfied in full, or in the case of a partial release, to the extent required by the holder of the indebtedness.
_________________________________________________________
Name and address of the holder of the evidence of debt secured by the Deed of Trust (lender) or name and address of the title insurance company authorized to request the release of a Deed of Trust.
_________________________________________________________
Name, title, and address of officer, agent, or attorney of the holder of the evidence of debt secured by the Deed of Trust (lender).
___________________________________________________________
Signature __________________Signature ___________________
State of __________________, County of _________________
The foregoing Request for Release was acknowledged before me
on _________(Date) by* ____________ (Notary Seal)
_______________________________ Date Commission Expires
*If applicable, insert title of officer and name of current holder
____________________________________
Notary Public Witness my hand and official seal
RELEASE OF DEED OF TRUST
WHEREAS, the Grantor(s) named above, by Deed of Trust, granted certain real property described in the Deed of Trust to the Public Trustee of the County referenced above, in the State of Colorado, to be held in trust to secure the payment of the indebtedness referred to in the Deed of Trust; and
WHEREAS, the indebtedness secured by the Deed of Trust has been fully or partially paid and/or the purpose of the Deed of Trust has been fully or partially satisfied according to the written request of the holder of the evidence of debt or title insurance company authorized to request the release of the Deed of Trust;
NOW THEREFORE, in consideration of the premises and the payment of the statutory sum, receipt of which is hereby acknowledged, I, as the Public Trustee in the County named above, do hereby fully and absolutely release, cancel, and forever discharge the Deed of Trust or that portion of the real property described above in the Deed of Trust, together with all privileges and appurtenances belonging to the real property.
____________________________________
Public Trustee
____________________________________
Deputy Public Trustee
(Public Trustee use only; use appropriate label)
(Public Trustee's seal)
(If applicable: Notary Seal)
___________________________________________________________
(If applicable, name and address of person creating new legal description as required by � 38-35-106.5, Colorado Revised Statutes.)
Source: L. 2007: Entire section added, p. 405, � 1, effective July 1. L. 2008: Entire section amended, p. 570, � 3, effective April 21. L. 2009: Entire section amended, (HB 09-1207), ch. 164, p. 724, � 23, effective September 1. L. 2022: Entire section amended, (SB 22-229), ch. 408, p. 2886, � 2, effective August 10.