76-2803. Secured creditor; record deed of reconveyance or release or satisfaction of security interest; failure to act; liability; beneficiary under deed of trust; liability.

(1) A secured creditor shall, after the secured creditor receives full payment or performance of the secured obligation and receives a written request by the trustor, mortgagor, or grantor, as applicable, or the trustor's, mortgagor's, or grantor's successor in interest or designated representative or by the holder of a junior trust deed, junior mortgage, or other junior security interest, record, or cause to be recorded, a deed of reconveyance or a release or satisfaction of a mortgage or other security instrument, as applicable, in the real property records of each county in which the trust deed, mortgage, or other security instrument, as applicable, is recorded. If a trust deed, mortgage, or other security instrument, as applicable, secures a line of credit or future advances, the secured obligation is fully paid or performed if, in addition to full payment or performance, the secured creditor has received a written notification from the obligor or obligors under a line of credit requesting the secured creditor to terminate the line of credit or the secured creditor has received a written notice sufficient to terminate the effectiveness of the provision for future advances as provided under section 76-238.01 or 76-1002.

(2) A secured creditor who fails to record or cause to be recorded a deed of reconveyance or a release or satisfaction of mortgage or other security instrument within sixty days after receiving full payment or performance of the secured obligation and receiving a written request as required under subsection (1) of this section is liable to (a) the trustor, mortgagor, or grantor, or the successor in interest of such trustor, mortgagor, or grantor, as applicable, if such written request was made by such trustor, mortgagor, or grantor, or a designated representative of such trustor, mortgagor, or grantor, for the greater of five thousand dollars or actual damages caused by such failure, plus reasonable attorney's fees and costs or (b) a successor in interest of the trustor, mortgagor, or grantor or of a landowner, purchaser, or holder of a junior trust deed, junior mortgage, or other junior security interest, as applicable, if such written request was made by such successor in interest of the trustor, mortgagor, or grantor, or by such landowner, purchaser, or holder of a junior trust deed, junior mortgage, or other junior security interest, for actual damages caused by such failure plus reasonable attorney's fees and costs. The court may further order the trustee to reconvey the property or the mortgagee or grantee to record a release or satisfaction of the mortgage or other security instrument. This subsection does not apply if the secured creditor received full payment or performance before July 19, 2018.

(3) A secured creditor is not liable under this section if the secured creditor (a) established a reasonable procedure to achieve compliance with its obligations under this section, (b) complied with that procedure in good faith, and (c) was unable to comply with its obligations due to circumstances beyond its control.

(4) A beneficiary under a deed of trust shall not be liable under this section if the beneficiary (a) satisfied the conditions set forth under subsection (3) of this section and (b) delivered to the trustee under such deed of trust a written request to execute a deed of reconveyance and the trustee failed to execute such deed of reconveyance, provided that the beneficiary delivered such request within the time provided herein for recording of a deed of reconveyance and the beneficiary subsequently appointed a successor trustee who executed and recorded or caused to be recorded a deed of reconveyance within a reasonable time thereafter.

(5) Successor in interest of a trustor, mortgagor, or grantor shall include the current owner of the real property and the person issuing a payoff check in accordance with the terms of a payoff letter from a beneficiary or mortgagee.

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