Rep. Norm Thurston — Voting Record

Bill

Number

H.B. 440 (2025GS)

Sponsor

Rep. Teuscher, Jordan D.

Final action

House/ filed 3/7/2025

Outcome

Failed / filed without passage

Summary

What it does

• This bill:
• codifies the types of modifications that may be made to a mortgage loan that will not materially prejudice interest holders; and
• contains safe harbor provisions for mortgage modifications that do not materially prejudice the holders of a junior interest.

Every vote on this bill

Bill text

9
70D-4-101
70D-4-201
70D-4-301
70D-4-401
70D-4-501
70D-4-601
Uniform Mortgage Modification Act
2025 GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Jordan D. Teuscher
Senate Sponsor: Michael K. McKell
LONG TITLE
General Description:
This bill provides for modifications that may be made to recorded mortgages and 
obligations.
Highlighted Provisions:
This bill:
codifies the types of modifications that may be made to a mortgage loan that will not 
materially prejudice interest holders; and
contains safe harbor provisions for mortgage modifications that do not materially 
prejudice the holders of a junior interest. 
Money Appropriated in this Bill:
None
Other Special Clauses:
None
Utah Code Sections Affected:
ENACTS:
70D-4-101
, Utah Code Annotated 1953
70D-4-201
, Utah Code Annotated 1953
70D-4-301
, Utah Code Annotated 1953
70D-4-401
, Utah Code Annotated 1953
70D-4-501
, Utah Code Annotated 1953
70D-4-601
, Utah Code Annotated 1953
Be it enacted by the Legislature of the state of Utah:
Section 1, Section 
70D-4-101
 is enacted to read:
70D-4-101. Definitions.
(1)
"Electronic" means relating to technology having electrical, digital, magnetic, wireless, 
optical, electromagnetic, or similar capabilities.
(2)
"Financial covenant" means an undertaking to demonstrate an obligor's creditworthiness 
or the adequacy of security provided by an obligor.
(3)
"Modification" includes change, amendment, revision, correction, addition, 
supplementation, elimination, waiver, and restatement.
(4)
(a)
"Mortgage" means an agreement that creates a consensual interest in real property 
to secure payment or performance of an obligation regardless of how the agreement 
is denominated, including a mortgage, deed of trust, trust deed, security deed, 
indenture, or deed to secure debt, and regardless of whether the agreement also 
creates a security interest in personal property.
(b)
"Mortgage" does not include an agreement that creates a consensual interest to 
secure a liability owed by a unit owner to a condominium association, owners 
association, or cooperative housing association for association dues, fees, or 
assessments.
(5)
"Mortgage modification" means modification of:
(a)
a mortgage;
(b)
an agreement that creates an obligation, including a promissory note, loan 
agreement, or credit agreement; or
(c)
an agreement that creates other security or credit enhancement for an obligation, 
including an assignment of leases or rents or a guaranty.
(6)
"Obligation" means a debt or other duty or liability secured by a mortgage.
(7)
"Obligor" means a person that:
(a)
owes payment or performance of an obligation;
(b)
signs a mortgage; or
(c)
is otherwise accountable, or whose property serves as collateral, for payment or 
performance of an obligation.
(8)
"Person" means an individual, estate, business or nonprofit entity, government or 
governmental subdivision, agency, instrumentality, or other legal entity.
(9)
"Recognized index" means an index to which changes in the interest rate may be linked 
that is readily available to, and verifiable by, the obligor and is beyond the control of the 
person to whom the obligation is owed.
(10)
"Record" means information:
(a)
inscribed on a tangible medium; or
(b)
stored in an electronic or other medium and retrievable in perceivable form.
(11)
"Sign" means, with present intent to authenticate or adopt a record:
(a)
to execute or adopt a tangible symbol; or
(b)
to attach to or logically associate with the record an electronic symbol, sound, or 
process.
Section 2, Section 
70D-4-201
 is enacted to read:
70D-4-201. Scope.
(1)
Except as provided in Subsection (3), this chapter applies to a mortgage modification.
(2)
This chapter does not affect the following law of this state:
(a)
law governing the required content of a mortgage;
(b)
a statute of limitations or other law governing the expiration or termination of a right 
to enforce an obligation or a mortgage;
(c)
a recording statute;
(d)
a statute governing the priority of a tax lien or other governmental lien;
(e)
a statute of frauds; or
(f)
except as provided in Subsection 70D-4-301(2)(h), law governing the priority of a 
future advance.
(3)
This chapter does not apply to:
(a)
a release of, or addition to, property encumbered by a mortgage;
(b)
a release of, addition of, or other change in an obligor; or
(c)
an assignment or other transfer of a mortgage or an obligation.
Section 3, Section 
70D-4-301
 is enacted to read:
70D-4-301. Effect of mortgage modification.
(1)
For a mortgage modification described in Subsection (2):
(a)
the mortgage continues to secure the obligation as modified;
(b)
the priority of the mortgage is not affected by the modification;
(c)
the mortgage retains the mortgage's priority regardless of whether a record of the 
mortgage modification is recorded; and
(d)
the modification is not a novation.
(2)
Subsection (1) applies to one or more of the following:
(a)
an extension of the maturity date of an obligation;
(b)
a decrease in the interest rate of an obligation;
(c)
if there is any change as specified in Subsection 
(2)(c)(i)
 through (iv) that does not 
result in an increase in the interest rate as calculated on the date the modification 
becomes effective:
(i)
a change to a different recognized index if the previous index is no longer 
available;
(ii)
a change in the differential between the index and the interest rate;
(iii)
a change from a floating or adjustable rate to a fixed rate; and 
(iv)
a change from a fixed rate to a floating or adjustable rate based on a recognized 
index;
(d)
a capitalization of unpaid interest or other unpaid obligation;
(e)
a forgiveness, forbearance, or other reduction of principal, accrued interest, or other 
monetary obligation;
(f)
a modification of a requirement for maintaining an escrow or reserve account for 
payment of an obligation, including taxes, insurance premiums, or another obligation;
(g)
a modification of a requirement for acquiring or maintaining insurance;
(h)
a modification of an existing condition to advance funds;
(i)
a modification of a financial covenant; and
(j)
a modification of the payment amount or schedule resulting from another 
modification described in this Subsection 
(2)
.
(3)
The effect of a mortgage modification not described in Subsection (2) is governed by 
other law.
Section 4, Section 
70D-4-401
 is enacted to read:
70D-4-401. Uniformity of application and construction.
In applying and construing this uniform act, a court shall consider the promotion of 
uniformity of the law among jurisdictions that enact it.
Section 5, Section 
70D-4-501
 is enacted to read:
70D-4-501. Relation to Electronic Signatures in Global and National Commerce 
Act.
This chapter modifies, limits, or supersedes the Electronic Signatures in Global and 
National Commerce Act, 15 U.S.C. Sec. 7001 et seq. , but does not modify, limit, or supersede 
15 U.S.C. Sec. 7001(c), or authorize electronic delivery of any of the notices described in 15 
U.S.C. Sec. 7003(b).
Section 6, Section 
70D-4-601
 is enacted to read:
70D-4-601. Transitional Provision.
This chapter applies to a mortgage modification made on or after May 7, 2025, 
regardless of when the mortgage or the obligation was created.
Section 7. 
Effective date.
This bill takes effect on 
May 7, 2025
.
2-6-25 3:41 PM