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Issue  29  Article  69
Published:  12/1/1997

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Deed of Trust Cancellation - Using Substitution of Trustee Form
Chris Burti, Vice President and Legal Counsel

Cancellation of a satisfied deed of trust is becoming an ever increasingly difficult process for real property professionals. The days of security instruments being stored in the vault of the local lender are long gone. With centralized mortgage loan processing (often in another state) and multiple assignments more and more loan documents are becoming lost. Sometimes in such cases, for one reason or another, lenders are unwilling to execute a Mortgagee’s Notice of Satisfaction pursuant to N.C.G.S. 45-37 (a) (5) and N.C.G.S 47-46.1. When such a method of cancellation is unavailable a substitution of Trustee coupled with a direction to cancel and hold harmless may be a useful tool. After execution and recording the substitute trustee (usually the attorney seeking cancellation) can then cancel the instrument.

A suggested form provided courtesy of Frank W. Wishart, Jr. Esq. Of Sanford N.C. follows. It is prepared as one page in order to reduce recording cost.

SUBSTITUTION OF TRUSTEE |

N.C.G.S. 45-10 |

|

Prepared by/Return to: |

|

|

| Recording Time, Book and Page

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STATE OF NORTH CAROLINA, _______________________COUNTY

THIS SUBSTITUTION OF TRUSTEE is made this __________ day of _________________,

19_____, by __________________________________________________________

(hereinafter "Beneficiary, or its successors and assigns"). WHEREAS as security for the Note referred to therein, ___________________________________________________________

executed a Deed of Trust (the "Deed of Trust") to _____________________________________

as Trustee, which is recorded at Book _________, Page _________, in the Office of the Register of Deeds of _______________ County, North Carolina, in which _________________________

______________________________ is named as beneficiary, or its successors and assigns;

AND WHEREAS, the Beneficiary, or its successors and assigns, under the Deed of Trust and being the owner and hold of the Note thereby secured desires to remove the Trustee named above and appoint a Substitute Trustee; NOW THEREFORE, pursuant to N.C.G.S. 45-10, Beneficiary, or its successors and assigns, does hereby appoint ___________________________ as Substitute Trustee in the Deed of Trust and vests the Substitute Trustee with all rights, powers and duties conferred upon the original trustee in the Deed of Trust. FURTHER, Beneficiary or its successors and assigns, being the owner and holder of the Note and Deed of Trust does hereby certify that said Note and Deed of Trust have not been subsequently assigned and were satisfied in full. Beneficiary or its successors and assigns, hereby directs said Substitute Trustee to cancel the above referenced Deed of Trust by authority given herein. Beneficiary or its successors and assigns further agrees to hold harmless and indemnify the Substitute Trustee for taking such action.

IN TESTIMONY WHEREOF, the Beneficiary, or its successors and assigns, has caused this instrument to be executed by its officers (and/or authorized bank officer) and its corporate seal to be affixed hereto the day and year first above written.

____________________________________

(Corporate Seal) By: ____________________________________

____________________________________

ATTEST: NAME AND OFFICIAL TITLE

___________________________________

__________Secretary

=============

STATE OF NORTH CAROLINA, _______________________COUNTY

I, _________________________________, a Notary Public of ______________ County, North Carolina, do hereby certify that __________________________________ personally came before me this day and acknowledged that he/she is the _________ Secretary of _____________

________________________________, a corporation, and that by authority duly given and as the act of the corporation the foregoing instrument was signed in its name by its authorized officer, sealed with its corporate seal, and attested by himself/herself as its _________ Secretary. Witness my hand and notarial seal this _______ day of ______________________, 19____.

 

(Notarial Seal) ____________________________________

Notary Public

My Commission Expires: ______________

===========

The forgoing certificate of ___________________________, is/are certified to be correct. This instrument and this certificate are duly registered this the _____ day of ______________________, 19____ at _______A.M.,P.M., Book ________, Page ________.

_____________ COUNTY REGISTER OF DEEDS

By: ______________________________________

Deputy/Assistant - Register of Deeds


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