H-3872              _______________________________________________

                                                   HOUSE BILL NO. 1740

                        _______________________________________________

State of Washington                              49th Legislature                              1986 Regular Session

By Representatives Barnes, Padden and Crane

Read first time 1/23/86 and referred to Committee on Judiciary.

AN ACT Relating to deeds of trust; and amending RCW 61.24.010.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

        Sec. 1.  Section 1, chapter 74, Laws of 1965 as last amended by section 1, chapter 161, Laws of 1981 and RCW 61.24.010 are each amended to read as follows:

          (1) The terms "record" and "recorded" as used in this chapter, shall include the appropriate registration proceedings, in the instance of registered land.

          (2) The trustee of a deed of trust under this chapter shall be:

          (a) Any domestic corporation incorporated under Title 23A, 30, 31, 32, or 33 RCW; or

          (b) Any title insurance company authorized to insure title to real property under the laws of this state, or its agents; or

          (c) Any attorney who is an active member of the Washington state bar association at the time he is named trustee; or

          (d) Any agency or instrumentality of the United States government; or

          (e) Any national bank, savings bank, or savings and loan association chartered under the laws of the United States.

          (3) The trustee shall resign at the request of the beneficiary and may resign at its own election.  Upon the resignation, incapacity, disability, or death  of the trustee, the beneficiary shall nominate in writing a successor trustee.  Upon recording in the mortgage records of the county or counties in which the trust deed is recorded, of the appointment of a successor trustee, the successor trustee shall be vested with all powers of the original trustee.

(4) The trustee under this chapter is a fiduciary for the beneficiary of a deed of trust.  The trustee is not a fiduciary for the grantor of a deed of trust.  The trustee does not need the grantor's permission after the original deed is signed to act as trustee and does not need the grantor's permission to receive compensation from the beneficiary if the compensation is needed to expedite the trustee's foreclosing the deed of trust in the event of the grantor's default.  However, the trustee shall be truthful with the grantor or any agent of the grantor about the trustee's intentions with respect to foreclosure and must act in good faith in doing a foreclosure.  If the trustee is not truthful, or does not act in good faith in foreclosing a deed of trust, the trustee is liable for any damages caused by the wrongful act.