Under current law, with limited exceptions, a public trustee must
release a deed of trust upon the satisfaction of certain preconditions, one of which is the production of the original canceled evidence of debt such as a note or bond as evidence that the indebtedness secured by the deed of trust has been paid. To this requirement, section 1 of the bill adds another exception. That is, a holder of the original evidence of debt may
request the release of a deed of trust without producing or exhibiting the original evidence of debt if the holder:
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Agrees to indemnify and defend the public trustee against any claim for damages resulting from the action of the public trustee taken in accordance with the request;
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Provides the public trustee a current address for the original grantor, assuming party, or current owner when requesting the release of the deed of trust; and
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Files the request for the release of the deed of trust electronically via the county's electronic recording system. Section 1 also removes language requiring a title insurance
company to be qualified as well as licensed in Colorado for certain purposes relating to the release of a deed of trust. Section 2 makes necessary changes to the statutory form that is
used to request a deed of trust without producing the evidence of debt.
