If the bank is the beneficiary on a deed of trust (mortgage) can they self-appoint to be the substitute/successor trustee?
The Nebraska Trust Deeds Act, 76-1003 of sections 76-1001 to 76-1018, defines the categories of persons and entities that may act as trustees. The scope includes all state and federally chartered banks, and allows Bank to act as both beneficiary and trustee in security instruments.
Because Bank is current beneficiary and qualified to be a successor trustee, would you conclude that Bank be permitted to self-appoint? Neb.Rev.Stat. 76-1004 specifically speaks to a beneficiary appointing successor trustee and no part of the Act contains prohibitive language disallowing self-appointment. This statute also contains a template to be used when recording successor trustee with the register of deeds.
Also note that Neb.Rev.Stat. 76-1014.01 states it is the beneficiary’s (Bank) obligation to deliver reconveyance, executed by the trustee, to the trustor. “If a trustee fails or refuses to execute a reconveyance required by the beneficiary, the beneficiary shall appoint a successor trustee that will execute a reconveyance.”
The Act covers both first and second mortgages, Neb.Rev.Stat. 76-1002(2).
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