Colorado § 38-39-103 - Effect of release or partial release before maturity of evidence of debt - release is good as to recitals.

§ 38-39-103. Effect of release or partial release before maturity of evidence of debt - release is good as to recitals.

(1) In any executed and recorded release or partial release of any deed of trust affecting the title to real estate in this state, whether or not such release is executed before the maturity of the indebtedness so secured, the recital of the following shall constitute evidence thereof, so as to give full effect to such release:

(a) That the indebtedness secured by such deed of trust has been fully or partially paid; or

(b) That the purpose of the deed of trust has been fully or partially satisfied.

(2) Any release of deed of trust shall be good and valid as to the recitals therein, whether made to the original grantor of said deed of trust or to a subsequent purchaser of the property described in such release of deed of trust.

Source: L. 90: Entire article R&RE, p. 1676, § 3, effective October 1. L. 92: (1) amended, p. 2095, § 6, effective July 1.

Editor's note: This section is similar to former §§ 38-37-124 and 38-37-125, as they existed prior to 1990.

ANNOTATION

Law reviews. For article, "Curative Statutes of Colorado Respecting Titles to Real Estate", see 16 Dicta 71 (1940). For article, "Curative Statutes of Colorado Respecting Titles to Real Estate", see 26 Dicta 321 (1949). For article, "Standard Pleading Samples to Be Used in Quiet Title Litigation", see 30 Dicta 39 (1953).

Annotator's note. Since § 38-39-103 is similar to § 38-37-124 as it existed prior to the 1990 repeal and reenactment of article 37 and this article, relevant cases construing that provision have been included in the annotations to this section.

Section has no retroactive effect. Harker v. Scudder, 15 Colo. App. 69, 61 P. 197 (1900).

Compliance with this section is necessary to effect a release or partial release of a deed of trust. Himes v. Schiro, 711 P.2d 1281 (Colo. App. 1985); In re Hampden Ctr., Ltd., 123 B.R. 892 (Bankr. D. Colo. 1991).

And thus the attempt by a manager of a title company to amend the legal description on a recorded deed of trust to exclude a particular parcel of land by adding a statement that the trust deed was being re-recorded "to correct" the legal description did not remove encumbrance created by deed nor effect a partial release of such land. Himes v. Schiro, 711 P.2d 1281 (Colo. App. 1985); In re Hampden Ctr., Ltd., 123 B.R. 892 (Bankr. D. Colo. 1991).