2008 Legislation
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HOUSE BILL NO. 491<br /> – Trust deeds, real property defined

HOUSE BILL NO. 491

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Bill Status



H0491aaS........................................................by BUSINESS
TRUST DEEDS - Amends existing law relating to trust deeds to revise the
definition of "real property."

02/08    House intro - 1st rdg - to printing
02/11    Rpt prt - to Bus
02/22    Rpt out - rec d/p - to 2nd rdg
02/25    2nd rdg - to 3rd rdg
02/28    3rd rdg - PASSED - 64-1-5
      AYES -- Anderson, Andrus, Barrett, Bayer, Bedke, Bell, Bilbao, Black,
      Block, Bock, Boe, Bolz, Bowers, Brackett, Bradford, Chadderdon,
      Chavez, Chew, Clark, Collins, Crane, Eskridge, Hart, Harwood,
      Henbest, Henderson, Jaquet, Killen, King, Kren, Labrador, LeFavour,
      Loertscher, Luker, Marriott, Mathews, McGeachin, Mortimer, Moyle,
      Nielsen, Nonini, Pasley-Stuart, Patrick, Pence, Raybould, Ringo,
      Roberts, Ruchti, Rusche, Sayler, Schaefer, Shepherd(08), Shirley,
      Shively, Smith(24), Smith(30)(Stanek), Snodgrass, Stevenson, Thayn,
      Thomas, Trail, Vander Woude, Wood(27), Mr. Speaker
      NAYS -- Durst
      Absent and excused -- Hagedorn, Lake, Shepherd(02), Wills, Wood(35)
    Floor Sponsor - Patrick
    Title apvd - to Senate
02/29    Senate intro - 1st rdg - to Com/HuRes
03/14    Rpt out - to 14th Ord
03/17    Rpt out amen - to 1st rdg as amen
03/18    1st rdg - to 2nd rdg as amen
03/19    2nd rdg - to 3rd rdg as amen
    Rls susp - PASSED - 34-0-1
      AYES -- Andreason, Bair, Bastian, Bilyeu, Broadsword, Burkett,
      Cameron, Coiner, Corder, Darrington, Davis, Fulcher, Geddes, Goedde,
      Hammond, Heinrich, Hill, Jorgenson, Kelly, Keough, Langhorst, Little,
      Lodge, Malepeai(Sagness), McGee, McKague, McKenzie, Pearce,
      Richardson, Schroeder, Siddoway, Stegner, Stennett, Werk
      NAYS -- None
      Absent and excused -- Gannon
    Floor Sponsor - Davis
    Title apvd - to House
03/20    House concurred in Senate amens - to engros
    Rpt engros - 1st rdg - to 2nd rdg as amen
03/21    2nd rdg - to 3rd rdg as amen
03/25    3rd rdg as amen - PASSED - 63-0-7
      AYES -- Anderson, Andrus, Barrett, Bayer, Bell, Bilbao, Block, Bock,
      Boe, Bolz, Bowers, Brackett, Bradford, Chadderdon, Chew, Clark,
      Collins, Crane, Durst, Eskridge, Hagedorn, Hart, Harwood, Henbest,
      Henderson, Jaquet, Killen, King, Kren, Labrador, Lake, LeFavour,
      Loertscher, Luker, Marriott, Mathews, Mortimer, Nielsen, Nonini,
      Pasley-Stuart, Patrick, Pence, Raybould, Ringo, Roberts, Rusche,
      Sayler, Schaefer, Shepherd(02), Shepherd(08), Shirley, Shively,
      Smith(30), Smith(24), Snodgrass, Stevenson, Thayn, Thomas, Trail,
      Vander Woude, Wills, Wood(35), Mr. Speaker
      NAYS -- None
      Absent and excused -- Bedke, Black, Chavez, McGeachin, Moyle, Ruchti,
      Wood(27)
    Floor Sponsor - Patrick
    Title apvd - to enrol - Rpt enrol - Sp/Pres signed
03/26    To Governor
04/01    Governor signed
         Session Law Chapter 365
         Effective: 07/01/08

Bill Text




                                                                       
  ]]]]              LEGISLATURE OF THE STATE OF IDAHO             ]]]]
 Fifty-ninth Legislature                   Second Regular Session - 2008

                                                                       

                              IN THE HOUSE OF REPRESENTATIVES

                                     HOUSE BILL NO. 491

                                   BY BUSINESS COMMITTEE

  1                                        AN ACT
  2    RELATING TO TRUST DEEDS; AMENDING SECTION 45-1502, IDAHO CODE, TO REVISE DEFI-
  3        NITIONS.

  4    Be It Enacted by the Legislature of the State of Idaho:

  5        SECTION 1.  That Section 45-1502, Idaho Code, be, and the same  is  hereby
  6    amended to read as follows:

  7        45-1502.  DEFINITIONS -- TRUSTEE'S CHARGE. As used in this act:
  8        (1)  "Beneficiary"  means  the  person  named or otherwise designated in a
  9    trust deed as the person for whose benefit a trust deed is given, or his  suc-
 10    cessor in interest, and who shall not be the trustee.
 11        (2)  "Grantor" means the person conveying real property by a trust deed as
 12    security for the performance of an obligation.
 13        (3)  "Trust  deed"  means  a deed executed in conformity with this act and
 14    conveying real property to a trustee in trust to secure the performance of  an
 15    obligation of the grantor or other person named in the deed to a beneficiary.
 16        (4)  "Trustee"  means a person to whom the legal title to real property is
 17    conveyed by trust deed, or his successor in interest.
 18        (5)  "Real property" means any right, title, interest and claim in and  to
 19    real  property  owned  by  the grantor at the date of execution of the deed of
 20    trust or acquired thereafter by said grantor or his  successors  in  interest.
 21    Provided,  nevertheless,  real property as so defined which may be transferred
 22    in trust under this act shall be limited  to  either  (a)  any  real  property
 23    located within an incorporated city or village at the time of the transfer, or
 24    (b)  any  real  property not exceeding forty eighty (480) acres, regardless of
 25    its location,. and in either event where the trust deed states that  the  real
 26    property  involved  is  within  either of the above provisions, such statement
 27    shall be binding upon all parties and conclusive as  to  compliance  with  the
 28    provisions  of  this act relative to the power to make such transfer and trust
 29    and power of sale conferred in this act.
 30        (6)  The trustee shall be entitled to a reasonable charge  for  duties  or
 31    services performed pursuant to the trust deed and this chapter, including com-
 32    pensation for reconveyance services notwithstanding any provision of a deed of
 33    trust prohibiting payment of a reconveyance fee by the grantor or beneficiary,
 34    or  any  provision  of a deed of trust which limits or otherwise restricts the
 35    amount of a reconveyance fee to be charged and collected  by  the  trustee.  A
 36    trustee  shall  be  entitled  to  refuse to reconvey a deed of trust until the
 37    trustee's reconveyance fees and recording costs for recording the reconveyance
 38    instruments are paid in full. The trustee shall not be entitled to a  foreclo-
 39    sure  fee  in  the  event  of  judicial  foreclosure or work done prior to the
 40    recording of a notice of default. If the default is cured prior to the time of
 41    the last newspaper publication of the notice of sale,  the  trustee  shall  be
 42    paid a reasonable fee.

Amendment




                                                                       
  ]]]]              LEGISLATURE OF THE STATE OF IDAHO             ]]]]
 Fifty-ninth Legislature                   Second Regular Session - 2008

                                                                       

                                                     Moved by    Davis

                                                     Seconded by Stegner


                                       IN THE SENATE
                              SENATE AMENDMENT TO H.B. NO. 491

  1                               AMENDMENTS TO SECTION 1
  2        On page 1 of the printed bill, in line 22, delete "either" and insert:  ":
  3    either";  in  line 23, following "transfer" delete ", or" and insert: ";, or";
  4    in line 25, delete ",." and insert: ","; and in line  29,  delete  "act."  and
  5    insert:  "act provided that such real property is not principally used for the
  6    agricultural production of crops, livestock, dairy or aquatic  goods;  or  (c)
  7    any  real  property  not  exceeding  forty (40) acres regardless of its use or
  8    location.".

Engrossed Bill (Original Bill with Amendment(s) Incorporated)




                                                                       
  ]]]]              LEGISLATURE OF THE STATE OF IDAHO             ]]]]
 Fifty-ninth Legislature                   Second Regular Session - 2008

                                                                       

                              IN THE HOUSE OF REPRESENTATIVES

                        HOUSE BILL NO. 491, As Amended in the Senate

                                   BY BUSINESS COMMITTEE

  1                                        AN ACT
  2    RELATING TO TRUST DEEDS; AMENDING SECTION 45-1502, IDAHO CODE, TO REVISE DEFI-
  3        NITIONS.

  4    Be It Enacted by the Legislature of the State of Idaho:

  5        SECTION 1.  That Section 45-1502, Idaho Code, be, and the same  is  hereby
  6    amended to read as follows:

  7        45-1502.  DEFINITIONS -- TRUSTEE'S CHARGE. As used in this act:
  8        (1)  "Beneficiary"  means  the  person  named or otherwise designated in a
  9    trust deed as the person for whose benefit a trust deed is given, or his  suc-
 10    cessor in interest, and who shall not be the trustee.
 11        (2)  "Grantor" means the person conveying real property by a trust deed as
 12    security for the performance of an obligation.
 13        (3)  "Trust  deed"  means  a deed executed in conformity with this act and
 14    conveying real property to a trustee in trust to secure the performance of  an
 15    obligation of the grantor or other person named in the deed to a beneficiary.
 16        (4)  "Trustee"  means a person to whom the legal title to real property is
 17    conveyed by trust deed, or his successor in interest.
 18        (5)  "Real property" means any right, title, interest and claim in and  to
 19    real  property  owned  by  the grantor at the date of execution of the deed of
 20    trust or acquired thereafter by said grantor or his  successors  in  interest.
 21    Provided,  nevertheless,  real property as so defined which may be transferred
 22    in trust under this act shall be limited to:  either  (a)  any  real  property
 23    located  within  an incorporated city or village at the time of the transfer;,
 24    or (b) any real property not exceeding forty eighty (480) acres, regardless of
 25    its location, and in either event where the trust deed states  that  the  real
 26    property  involved  is  within  either of the above provisions, such statement
 27    shall be binding upon all parties and conclusive as  to  compliance  with  the
 28    provisions  of  this act relative to the power to make such transfer and trust
 29    and power of sale conferred in this act provided that such  real  property  is
 30    not  principally  used  for  the  agricultural production of crops, livestock,
 31    dairy or aquatic goods; or (c) any real  property  not  exceeding  forty  (40)
 32    acres regardless of its use or location.
 33        (6)  The  trustee  shall  be entitled to a reasonable charge for duties or
 34    services performed pursuant to the trust deed and this chapter, including com-
 35    pensation for reconveyance services notwithstanding any provision of a deed of
 36    trust prohibiting payment of a reconveyance fee by the grantor or beneficiary,
 37    or any provision of a deed of trust which limits or  otherwise  restricts  the
 38    amount  of  a  reconveyance  fee to be charged and collected by the trustee. A
 39    trustee shall be entitled to refuse to reconvey a  deed  of  trust  until  the
 40    trustee's reconveyance fees and recording costs for recording the reconveyance
 41    instruments  are paid in full. The trustee shall not be entitled to a foreclo-
 42    sure fee in the event of judicial  foreclosure  or  work  done  prior  to  the
 43    recording of a notice of default. If the default is cured prior to the time of

                                       2

  1    the  last  newspaper  publication  of the notice of sale, the trustee shall be
  2    paid a reasonable fee.

Statement of Purpose / Fiscal Impact



                       STATEMENT OF PURPOSE

                             RS 17840

This legislation changes the size of real property that is
eligible to be financed with a deed of trust in Idaho from forty
(40) acres to eighty (80) acres, and clarifies the eighty (80)
acre limit.




                           FISCAL NOTE

There is no impact to the General Fund






CONTACT:
Representative Jim Patrick
(208) 332-1043


STATEMENT OF PURPOSE/FISCAL NOTE                         H 491