Sections 2-32 of this bill enact the Uniform Easement Relocation Act promulgated by the Uniform Law Commission in 2020. Sections 34-50 of this bill enact the Uniform Mortgage Modification Act promulgated by the Uniform Law Commission in 2024.
Generally, the Uniform Easement Relocation Act allows the owner of real property burdened by certain types of easements to seek judicial approval to relocate an easement if the relocation does not materially impair the utility of the easement to the easement holder or the physical condition, use or value of the benefitted property. Sections 4-21 define certain terms for the purposes of the Act. Section 22 prohibits relocation under the Act of an easement: (1) where the holder is a publicly regulated or publicly owned utility; (2) which has been set aside for certain conservation purposes; (3) which is a negative easement that imposes a duty not to engage in a specified use of the property; or (4) if the proposed location encroaches on certain land or interferes with the use or enjoyment or certain other easements.
Section 24: (1) requires a property owner who wishes to relocate an easement under the Act to file a civil action and serve a summons and complaint on the easement holder and certain other interested persons; and (2) sets forth the required contents of such a complaint. Sections 23 and 25 set forth: (1) the factors a court must consider before approving the relocation of an easement under the Act; and (2) the required contents of a court order approving such a relocation. If the court approves the relocation of an easement, section 27 requires all parties to the civil action to act in good faith to facilitate relocation. Section 26 requires the property owner seeking to relocate an easement to bear all reasonable expenses of the relocation.
Before proceeding with the relocation of an easement which has been approved by a court, section 25 requires the property owner to record a certified copy of the court order approving the relocation in the land records of each jurisdiction where the property is located. Section 28 deems such an easement relocated upon recording of the certified court order.
If the relocation requires the construction of an improvement as a condition for relocation, section 28 authorizes the easement holder to continue to use the existing easement according to the terms of the court order until the property owner sends certain required notice that the easement holder is able to enter, use and enjoy the easement in the new location. Specifically, once the relocation is substantially complete and the easement holder is able to enter, use and enjoy the easement in the new location, section 28 requires the property owner relocating the easement to: (1) execute an affidavit certifying that the easement has been relocated; (2) record the affidavit in the land records of each jurisdiction in which the property is located; and (3) send a copy of the recorded affidavit by certified mail to the easement holder and parties to the civil action.
Sections 29 and 30 provide that: (1) the Act does not affect any other method of relocating an easement which is permitted under existing law; and (2) the right of a property owner to relocate an easement under the Act with court approval may not be waived, excluded or restricted by agreement even in circumstances where the instrument which created the easement contains certain restrictions. Section 29 also provides that a relocation under the Act does not constitute a new transfer or grant of an interest in property, and thus is not a breach or default of certain existing agreements.
Generally, the Uniform Mortgage Modification Act establishes safe harbor provisions for several common categories of modifications which are not prejudicial to junior interest holders and which do not affect the priority of the mortgage. Modifications which are outside the scope of the Act remain governed by existing law applicable to those modifications. Sections 36-46 define certain terms for the purposes of the Act. Sections 47 and 48 establish the types of modifications to which the Act does and does not apply. Section 48 provides that, for a modification to which the Act applies: (1) the mortgage continues to secure the obligation as modified; (2) the priority of the mortgage is not affected by the modification; (3) the mortgage retains its priority even if the modification is not recorded in the land records of a jurisdiction in which the property is located; and (4) the modification is not a novation.
Section 48 also establishes the categories of modifications to which the Act applies, which include: (1) an extension of the maturity date of the obligation; (2) a decrease in the interest rate; (3) certain changes in the methods of calculating interest which do not result in an increase as calculated on the date the modification becomes effective; (4) a capitalization of interest or other unpaid monetary obligations; (5) a forgiveness, forbearance or other reduction of a secured debt or other monetary obligation; (6) a modification of a requirement for maintaining certain escrow or reserve accounts; (7) a modification of a requirement for acquiring or maintaining insurance; (8) a modification of an existing condition to advance funds; (9) a modification of a financial covenant; and (10) a modification of the payment amount or schedule resulting from another modification to which the Act applies.
Section 47 provides that the Act does not affect existing law governing the required content of a mortgage, statutes of limitation, recording, priority of certain liens, certain electronic transactions or the priority of certain future advances. Section 47 also excludes certain modifications from the Act.
Sections 31 and 49 require a court to consider the uniformity of law among jurisdictions that enact the Uniform Easement Relocation Act or the Uniform Mortgage Modification Act in applying and construing the provisions of those Acts. Sections 32 and 50 clarify the relation of the Uniform Easement Relocation Act and the Uniform Mortgage Modification Act to the federal Electronic Signatures in Global and National Commerce Act. (15 U.S.C. §§ 7001 et seq.)