Rep. Norm Thurston — Voting Record

Bill

Number

S.B. 294 (2025GS)

Sponsor

Sen. McKell, Michael K.

Final action

Governor Signed 3/27/2025

Outcome

Became law — signed by Gov. Spencer J. Cox

Summary

What it does

• This bill:
• modifies the exclusions to the definition of title loan;
• defines terms;
• establishes the scope of the Uniform Special Deposits Act;
• allows parties to an agreement under the Uniform Special Deposits Act to choose a forum in Utah for settling a dispute, regardless of whether the dispute occurred in Utah;
• provides that sections of the Uniform Special Deposits Act may vary by agreement or amendment;
• establishes requirements for a special deposit;
• requires that a special deposit serve a permissible purpose;
• provides the conditions under which a bank shall pay a beneficiary funds in the balance of a special deposit;
• establishes the interest of a depositor or beneficiary in a special deposit;
• allows a court to grant relief to prevent a bank from paying a depositor or beneficiary of a special deposit if a payment would result in fraud;
• provides that except in certain circumstances, a bank may not exercise a right of recoupment or set off against a special deposit;
• establishes the duties and liabilities of a bank in regards to a special deposit;
• provides that a special deposit terminates five years after the date on which the special deposit was first funded;

Every vote on this bill

Bill text

29
7-24-102
7-28-101
7-28-102
7-28-103
7-28-104
7-28-105
7-28-106
7-28-107
7-28-108
7-28-109
7-28-110
7-28-111
7-28-112
7-28-113
7-28-114
7-28-115
7-28-116
70D-4-101
70D-4-201
70D-4-301
70D-4-401
70D-4-501
70D-4-601
0
Finance Amendments
2025 GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Michael K. McKell
House Sponsor: Jordan D. Teuscher
LONG TITLE
General Description:
This bill enacts provisions related to finance.
Highlighted Provisions:
This bill:
modifies the exclusions to the definition of title loan;
defines terms;
establishes the scope of the Uniform Special Deposits Act;
allows parties to an agreement under the Uniform Special Deposits Act to choose a forum 
in Utah for settling a dispute, regardless of whether the dispute occurred in Utah;
provides that sections of the Uniform Special Deposits Act may vary by agreement or 
amendment;
establishes requirements for a special deposit;
requires that a special deposit serve a permissible purpose;
provides the conditions under which a bank shall pay a beneficiary funds in the balance of 
a special deposit;
establishes the interest of a depositor or beneficiary in a special deposit;
allows a court to grant relief to prevent a bank from paying a depositor or beneficiary of a 
special deposit if a payment would result in fraud;
provides that except in certain circumstances, a bank may not exercise a right of 
recoupment or set off against a special deposit;
establishes the duties and liabilities of a bank in regards to a special deposit;
provides that a special deposit terminates five years after the date on which the special 
deposit was first funded;
describes the application of governing law over special deposits;
provides that the provisions of this act only apply to an agreement executed after the 
effective date of this bill, unless the parties to a special deposit amend the agreement;
provides that the provisions of this act are severable if a provision of the act is found 
invalid;
establishes the scope of the Uniform Mortgage Modification Act;
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:
AMENDS:
7-24-102
, as last amended by Laws of Utah 2015, Chapter 284
ENACTS:
7-28-101
, Utah Code Annotated 1953
7-28-102
, Utah Code Annotated 1953
7-28-103
, Utah Code Annotated 1953
7-28-104
, Utah Code Annotated 1953
7-28-105
, Utah Code Annotated 1953
7-28-106
, Utah Code Annotated 1953
7-28-107
, Utah Code Annotated 1953
7-28-108
, Utah Code Annotated 1953
7-28-109
, Utah Code Annotated 1953
7-28-110
, Utah Code Annotated 1953
7-28-111
, Utah Code Annotated 1953
7-28-112
, Utah Code Annotated 1953
7-28-113
, Utah Code Annotated 1953
7-28-114
, Utah Code Annotated 1953
7-28-115
, Utah Code Annotated 1953
7-28-116
, Utah Code Annotated 1953
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 
7-24-102
 is amended to read:
7-24-102
. Definitions.
As used in this chapter:
(1)
"Nationwide database" means the Nationwide Mortgage Licensing System and 
Registry, authorized under 12 U.S.C. Sec. 5101 for federal licensing of mortgage loan 
originators.
(2)
"Rollover" means the extension or renewal of the term of a title loan.
(3)
(a)
"Title lender" means a person that extends a title loan.
(b)
"Title lender" includes a person that:
(i)
arranges a title loan on behalf of a title lender;
(ii)
acts as an agent for a title lender; or
(iii)
assists a title lender in the extension of a title loan.
(4)
(a)
"Title loan" means a loan secured by the title to a:
(i)
motor vehicle, as defined in Section 
41-6a-102
;
(ii)
mobile home, as defined in Section 
41-6a-102
; or
(iii)
motorboat, as defined in Section 
73-18-2
.
(b)
"Title loan" includes a title loan extended at the same premise on which any of the 
following are sold:
(i)
a motor vehicle, as defined in Section 
41-6a-102
;
(ii)
a mobile home, as defined in Section 
41-6a-102
; or
(iii)
a motorboat, as defined in Section 
73-18-2
.
(c)
"Title loan" does not include:
(i)
a purchase money loan;
(ii)
a loan made in connection with the sale of a:
(A)
motor vehicle, as defined in Section 
41-6a-102
;
(B)
mobile home, as defined in Section 
41-6a-102
; or
(C)
motorboat, as defined in Section 
73-18-2
;
 or
(iii)
a loan extended by an institution listed in Section 
7-24-305
.
; or
(iv)
a loan with a repayment term that is longer than 364 days.
Section 2, Section 
7-28-101
 is enacted to read:
28. UNIFORM SPECIAL DEPOSITS ACT
7-28-101
. Definitions.
As used in this chapter:
(1)
"Account agreement" means an agreement that:
(a)
is in a record between a bank and one or more depositors;
(b)
may have one or more beneficiaries as additional parties; and
(c)
states the intention of the parties to establish a special deposit governed by this 
chapter.
(2)
(a)
"Bank" means a person engaged in the business of banking.
(b)
"Bank" includes a savings bank, savings and loan association, credit union, and trust 
company.
(c)
Each branch or separate office of a bank is a separate bank for the purpose of this 
chapter.
(3)
"Beneficiary" means a person that:
(a)
is identified as a beneficiary in an account agreement; or
(b)
if not identified as a beneficiary in an account agreement, may be entitled to payment 
from a special deposit:
(i)
under the account agreement; or
(ii)
on termination of the special deposit.
(4)
"Contingency" means an event or circumstance stated in an account agreement that is 
not certain to occur but shall occur before the bank is obligated to pay a beneficiary.
(5)
"Creditor process" means attachment, garnishment, levy, notice of lien, sequestration, or 
similar process issued by or on behalf of a creditor or other claimant.
(6)
"Depositor" means a person that establishes or funds a special deposit.
(7)
"Good faith" means honesty in fact and observance of reasonable commercial standards 
of fair dealing.
(8)
"Knowledge of a fact" means:
(a)
with respect to a beneficiary, actual knowledge of the fact; or
(b)
with respect to a bank holding a special deposit:
(i)
if the bank:
(A)
has established a reasonable routine for communicating material information 
to an individual to whom the bank has assigned responsibility for the special 
deposit; and
(B)
maintains reasonable compliance with the routine, actual knowledge of the 
fact by that individual; or
(ii)
if the bank has not established and maintained reasonable compliance with a 
routine described in Subsection 
(8)(b)(i)
 or otherwise exercised due diligence, 
implied knowledge of the fact that would have come to the attention of an 
individual to whom the bank has assigned responsibility for the special deposit.
(9)
"Obligated to pay a beneficiary" means a beneficiary is entitled under the account 
agreement to receive from the bank a payment when:
(a)
a contingency has occurred; and
(b)
the bank has knowledge the contingency has occurred.
(10)
(a)
"Permissible purpose" means a governmental, regulatory, commercial, 
charitable, or testamentary objective of the parties stated in an account agreement.
(b)
"Permissible purpose" includes an objective to:
(i)
hold funds:
(A)
in escrow, including for a purchase and sale, lease, buyback, or other 
transaction;
(B)
as a security deposit of a tenant;
(C)
that may be distributed to a person as remuneration, retirement or other 
benefit, or compensation under a judgment, consent decree, court order, or 
other decision of a tribunal; or
(D)
for distribution to a defined class of persons after identification of the class 
members and the class members' interest in the funds;
(ii)
provide assurance with respect to an obligation created by contract, such as 
earnest money to ensure a transaction closes;
(iii)
settle an obligation that arises in the operation of a payment system, securities 
settlement system, or other financial market infrastructure;
(iv)
provide assurance with respect to an obligation that arises in the operation of a 
payment system, securities settlement system, or other financial market 
infrastructure; or
(v)
hold margin, other cash collateral, or funds that support the orderly functioning of 
financial market infrastructure or the performance of an obligation with respect to 
the infrastructure.
(11)
(a)
"Person" means an individual, estate, business or nonprofit entity, government or 
governmental subdivision, agency, or instrumentality, or other legal entity.
(b)
"Person" includes a protected series, however denominated, of an entity if the 
protected series is established under law that limits, or limits if conditions specified 
under law are satisfied, the ability of a creditor of the entity or of any other protected 
series of the entity to satisfy a claim from assets of the protected series.
(12)
"Record" means information:
(a)
inscribed on a tangible medium; or
(b)
stored in an electronic or other medium and retrievable in perceivable form.
(13)
"Special deposit" means a deposit that satisfies Section 
7-28-104
.
(14)
(a)
"State" means a state of the United States, the District of Columbia, Puerto Rico, 
the United States Virgin Islands, or any other territory or possession subject to the 
jurisdiction of the United States.
(b)
"State" includes an agency or instrumentality of the state.
Section 3, Section 
7-28-102
 is enacted to read:
7-28-102
. Scope -- Choice of law -- Forum.
(1)
This chapter applies to a special deposit under an account agreement that states the 
intention of the parties to establish a special deposit governed by this chapter, regardless 
of whether a party to the account agreement or a transaction related to the special 
deposit, or the special deposit itself, has a reasonable relation to this state.
(2)
The parties to an account agreement may choose a forum in this state for settling a 
dispute arising out of the special deposit, regardless of whether a party to the account 
agreement or a transaction related to the special deposit, or the special deposit itself, has 
a reasonable relation to this state.
(3)
This chapter does not affect:
(a)
a right or obligation relating to a deposit other than a special deposit under this 
chapter; or
(b)
the voidability of a deposit or transfer that is fraudulent or voidable under other law.
Section 4, Section 
7-28-103
 is enacted to read:
7-28-103
. Variation by agreement or amendment.
(1)
(a)
The effect of Sections 
7-28-101
 through 
7-28-105
, Sections 
7-28-107
 through 
7-28-110
, and Section 
7-28-113
 may not be varied by agreement, except as provided 
in those sections.
(b)
Subject to Subsection 
(2)
, the effect of Sections 
7-28-106
, 
7-28-111
, and 
7-28-112
may be varied by agreement.
(2)
A provision in an account agreement or other record that substantially excuses liability 
or substantially limits remedies for failure to perform an obligation under this chapter is 
not sufficient to vary the effect of a provision of this chapter.
(3)
If a beneficiary is a party to an account agreement, the bank and the depositor may 
amend the agreement without the consent of the beneficiary only if the agreement 
expressly permits the amendment.
(4)
If a beneficiary is not a party to an account agreement and the bank and the depositor 
know the beneficiary has knowledge of the agreement's terms, the bank and the 
depositor may amend the agreement without the consent of the beneficiary only if the 
amendment does not adversely and materially affect a payment right of the beneficiary.
(5)
If a beneficiary is not a party to an account agreement and the bank and the depositor do 
not know whether the beneficiary has knowledge of the agreement's terms, the bank and 
the depositor may amend the agreement without the consent of the beneficiary only if 
the amendment is made in good faith.
Section 5, Section 
7-28-104
 is enacted to read:
7-28-104
. Requirements for special deposit.
A deposit is a special deposit if the deposit is:
(1)
a deposit of funds in a bank under an account agreement;
(2)
for the benefit of at least two beneficiaries, one or more of which may be a depositor;
(3)
denominated in a medium of exchange that is currently authorized or adopted by a 
domestic or foreign government;
(4)
for a permissible purpose stated in the account agreement; and
(5)
subject to a contingency.
Section 6, Section 
7-28-105
 is enacted to read:
7-28-105
. Permissible purpose.
(1)
A special deposit must serve at least one permissible purpose stated in the account 
agreement from the time the special deposit is created in the account agreement until 
termination of the special deposit.
(2)
If, before termination of the special deposit, the bank or a court determines the special 
deposit no longer satisfies Subsection (1), Sections 
7-28-107
 through 
7-28-110
 cease to 
apply to any funds deposited in the special deposit after the special deposit ceases to 
satisfy Subsection (1).
(3)
If, before termination of a special deposit, the bank determines the special deposit no 
longer satisfies Subsection (1), the bank may take action the bank believes is necessary 
under the circumstances, including terminating the special deposit.
Section 7, Section 
7-28-106
 is enacted to read:
7-28-106
. Payment to beneficiary by bank.
(1)
Unless the account agreement provides otherwise, the bank is obligated to pay a 
beneficiary if there are sufficient actually and finally collected funds in the balance of 
the special deposit.
(2)
Except as provided in Subsection 
(3)
, the obligation to pay the beneficiary is excused if 
the funds available in the special deposit are insufficient to cover such payment.
(3)
(a)
Unless the account agreement provides otherwise, if the funds available in the 
special deposit are insufficient to cover an obligation to pay a beneficiary, a 
beneficiary may elect to be paid the funds that are available or, if there is more than 
one beneficiary, a pro rata share of the funds available.
(b)
Payment to the beneficiary making the election under this Subsection 
(3)
 discharges 
the bank's obligation to pay a beneficiary and does not constitute an accord and 
satisfaction with respect to another person obligated to the beneficiary.
(4)
Unless the account agreement provides otherwise, the obligation of the bank obligated 
to pay a beneficiary is immediately due and payable.
(5)
The bank may discharge the bank's obligation under this section by:
(a)
crediting another transaction account of the beneficiary; or
(b)
taking other action that:
(i)
is permitted under the account agreement for the bank to obtain a discharge; or
(ii)
otherwise would constitute a discharge under law.
(6)
If the bank obligated to pay a beneficiary has incurred an obligation to discharge the 
obligation of another person, the obligation of the other person is discharged if action by 
the bank under Subsection 
(5)
 would constitute a discharge of the obligation of the other 
person under law that determines whether an obligation is satisfied.
Section 8, Section 
7-28-107
 is enacted to read:
7-28-107
. Property interest of depositor or beneficiary.
(1)
Neither a depositor nor a beneficiary has a property interest in a special deposit.
(2)
(a)
Any property interest with respect to a special deposit is only in the right to 
receive payment if the bank is obligated to pay a beneficiary and not in the special 
deposit itself.
(b)
Any property interest under this Subsection 
(2)
 is determined under other law.
Section 9, Section 
7-28-108
 is enacted to read:
7-28-108
. When creditor process enforceable against bank.
(1)
Subject to Subsection 
(2)
, creditor process with respect to a special deposit is not 
enforceable against the bank holding the special deposit.
(2)
Creditor process is enforceable against the bank holding a special deposit with respect 
to an amount the bank is obligated to pay a beneficiary or a depositor if the process:
(a)
is served on the bank;
(b)
provides sufficient information to permit the bank to identify the depositor or the 
beneficiary from the bank's books and records; and
(c)
gives the bank a reasonable opportunity to act on the process.
(3)
(a)
Creditor process served on a bank before the creditor process is enforceable 
against the bank under Subsection 
(2)
 does not create a right of the creditor against 
the bank or a duty of the bank to the creditor.
(b)
Other law determines whether creditor process creates a lien enforceable against the 
beneficiary on a contingent interest of a beneficiary, including a depositor as a 
beneficiary, even if not enforceable against the bank.
Section 10, Section 
7-28-109
 is enacted to read:
7-28-109
. Injunction or similar relief.
A court may enjoin, or grant similar relief that would have the effect of enjoining, a 
bank from paying a depositor or beneficiary only if payment would constitute a material fraud 
or facilitate a material fraud with respect to a special deposit.
Section 11, Section 
7-28-110
 is enacted to read:
7-28-110
. Recoupment or set off.
(1)
Except as provided in Subsection 
(2)
 or (3), a bank may not exercise a right of 
recoupment or set off against a special deposit.
(2)
An account agreement may authorize the bank to debit the special deposit:
(a)
when the bank becomes obligated to pay a beneficiary, in an amount that does not 
exceed the amount necessary to discharge the obligation;
(b)
for a fee assessed by the bank that relates to an overdraft in the special deposit 
account;
(c)
for costs incurred by the bank that relate directly to the special deposit; or
(d)
to reverse an earlier credit posted by the bank to the balance of the special deposit 
account, if the reversal occurs under an event or circumstance warranted under other 
law of this state governing mistake and restitution.
(3)
The bank holding a special deposit may exercise a right of recoupment or set off against 
an obligation to pay a beneficiary, even if the bank funds payment from the special 
deposit.
Section 12, Section 
7-28-111
 is enacted to read:
7-28-111
. Duties and liability of bank.
(1)
A bank does not have a fiduciary duty to any person with respect to a special deposit.
(2)
When the bank holding a special deposit becomes obligated to pay a beneficiary, a 
debtor-creditor relationship arises between the bank and beneficiary.
(3)
The bank holding a special deposit has a duty to a beneficiary to comply with the 
account agreement and this chapter.
(4)
(a)
If the bank holding a special deposit does not comply with the account agreement 
or this chapter, the bank is liable to a depositor or beneficiary only for damages 
proximately caused by the noncompliance.
(b)
Except as provided by other law of this state, the bank is not liable for consequential, 
special, or punitive damages.
(5)
The bank holding a special deposit may rely on records presented in compliance with 
the account agreement to determine whether the bank is obligated to pay a beneficiary.
(6)
(a)
If the account agreement requires payment on presentation of a record, the bank 
shall determine within a reasonable time whether the record is sufficient to require 
payment.
(b)
If the agreement requires action by the bank on presentation of a record, the bank is 
not liable for relying in good faith on the genuineness of the record if the record 
appears on the record's face to be genuine.
(7)
Unless the account agreement provides otherwise, the bank is not required to determine 
whether a permissible purpose stated in the agreement continues to exist.
Section 13, Section 
7-28-112
 is enacted to read:
7-28-112
. Term and termination.
(1)
Unless otherwise provided in the account agreement, a special deposit terminates five 
years after the date the special deposit was first funded.
(2)
Unless otherwise provided in the account agreement, if the bank cannot identify or 
locate a beneficiary entitled to payment when the special deposit is terminated, and a 
balance remains in the special deposit, the bank shall pay the balance to the depositor or 
depositors as a beneficiary or beneficiaries.
(3)
A bank that pays the remaining balance as provided under Subsection 
(2)
 has no further 
obligation with respect to the special deposit.
Section 14, Section 
7-28-113
 is enacted to read:
7-28-113
. Principles of law and equity.
Title 70A, Uniform Commercial Code, consumer protection law, law governing deposits 
generally, law related to escheat and abandoned or unclaimed property, and the principles of 
law and equity, including law related to capacity to contract, principal and agent, estoppel, 
fraud, misrepresentation, duress, coercion, mistake, and bankruptcy, supplement this chapter 
except to the extent inconsistent with this chapter.
Section 15, Section 
7-28-114
 is enacted to read:
7-28-114
. 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 this uniform act.
Section 16, Section 
7-28-115
 is enacted to read:
7-28-115
. Transitional provision.
This chapter applies to:
(1)
a special deposit made under an account agreement executed on or after May 7, 2025; 
and
(2)
a deposit made under an agreement executed before May 7, 2025, if:
(a)
all parties entitled to amend the agreement agree to make the deposit a special 
deposit governed by this chapter; and
(b)
the special deposit referenced in the amended agreement satisfies Section 
7-28-104
.
Section 17, Section 
7-28-116
 is enacted to read:
7-28-116
. Severability.
If a provision of this chapter or the chapter's application to a person or circumstance is 
held invalid, the invalidity does not affect another provision or application that can be given 
effect without the invalid provision.
Section 18, Section 
70D-4-101
 is enacted to read:
4. UNIFORM MORTGAGE MODIFICATION ACT
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 19, 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 20, 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 21, 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 22, 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 23, 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 24. 
Effective Date.
This bill takes effect on 
May 7, 2025
.
3-14-25 8:47 AM