Bulletin: UT2017002

Date:
July 20, 2017
To:
All Utah Issuing Offices
RE:
LEGISLATIVE UPDATE - Utah 2017 Legislation

Dear Associates:

The following is a summary of legislation that was passed during the 2017 legislative session. It was a quiet year for us in that not many bills passed that really affect what we do each day. The Transfer On Death Deed bill ("TODD"), for example, was not passed. That bill would have provided another tool for property owners to use to transfer their property and avoid probate. I think we will see this bill again in 2018. 

SB 208. Utah Uniform Commercial Real Estate Receivership Act. Utah is the first state to adopt the Uniform Commercial Real Estate Receivership Act, which was adopted by the National Conference of Commissioners on Uniform State Laws in 2015. This act was codified in UCA 78B-21-101 et. seq. Prior to this statute, the law regarding receivers was very vague with respect to the appointment, powers, and duties of a receiver. The new Act applies to all real property and associated personal property except for 1-4 family residences. There are some exceptions but, generally, the Act applies only to commercial property. Under the Act, standards are established under which a court may appoint a receiver. The receiver may be appointed both before and after judgment. It further provides rules of conduct for a court-appointed receiver and for the owner whose property is subject to a receivership. In sum, the Act should be beneficial to our industry when we are dealing with property subject to a court-appointed receiver.

HB 21. Uniform Powers of Appointment Act. This Bill codifies common law with regard to powers of appointment that are routinely used in trusts. (Do not confuse this Act with the Uniform Power of Attorney Act passed last year.) The Bill can be found at UCA 75-10-101 et. seq. Under the Uniform Powers of Appointment Act, a person who is appointed to act for another (the Act calls such persons a "powerholder") may not transfer a power of appointment. Further, if a powerholder dies without exercising or releasing a power, the power lapses. The powerholder can only act if the instrument creating the power is valid under state law; and if the terms of the instrument exercising the power manifest the powerholder's intent to exercise the power and satisfy the requirements of exercise imposed by the donor (trustor). Much of the Bill simply codifies the language in most trust agreements. 

HB 42. Insurance Modifications. As part of the annual Omnibus Insurance Bill, changes were made to several insurance statutes. 31A-23a-407: adds the language "a title insurer that contracts with or appoints..." 31A-23a-412: producers are required to provide the insurance commissioner with one or more telephone numbers of their principle place of business. 31A-23a-412(5)(a): records are required to be kept 3 years plus the current year. 31a-23a-115: an insurer will notify a producer if the producer's appointment is terminated as required under rules established by the commissioner. Another year passed without any attempts to change the controlled business statute found at UCA 31A-23a-503.

There were several bills passed (again) dealing with homeowner associations and property tax assessments and valuations. I did not include them since they do not directly impact our industry. If you have questions or comments regarding the Utah 2017 legislative session contact Glen Roberts at groberts@stewart.com.

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THIS BULLETIN IS FURNISHED TO INFORM YOU OF CURRENT DEVELOPMENTS. AS A REMINDER, YOU ARE CHARGED WITH KNOWLEDGE OF THE CONTENT ON VIRTUAL UNDERWRITER  AS IT EXISTS FROM TIME TO TIME AS IT APPLIES TO YOU, AS WELL AS ANY OTHER INSTRUCTIONS. OUR UNDERWRITING AGREEMENTS DO NOT AUTHORIZE OUR ISSUING AGENTS TO ENGAGE IN SETTLEMENTS OR CLOSINGS ON BEHALF OF STEWART TITLE GUARANTY COMPANY. THIS BULLETIN IS NOT INTENDED TO DIRECT YOUR ESCROW OR SETTLEMENT PRACTICES OR TO CHANGE PROVISIONS OF APPLICABLE UNDERWRITING AGREEMENTS. CONFIDENTIAL, PROPRIETARY, OR NONPUBLIC PERSONAL INFORMATION SHOULD NEVER BE SHARED OR DISSEMINATED EXCEPT AS ALLOWED BY LAW. IF APPLICABLE STATE LAW OR REGULATION IMPOSES ADDITIONAL REQUIREMENTS, YOU SHOULD CONTINUE TO COMPLY WITH THOSE REQUIREMENTS.

References

Bulletins Replaced:
None
Related Bulletins:
None
Underwriting Manual:
None
Exceptions Manual:
None
Forms:
None