5409.17_20 Page 1 of 9 FOREST SERVICE HANDBOOK Denver, CO FSH 5409.17 - RIGHTS OF WAY ACQUISITION R2 Supplement No. 5409.17-93-2 Effective March 31, 1993 POSTING NOTICE. Supplements to this title are numbered consecutively. Post by document name. Remove entire document and replace with this supplement. Retain this transmittal as the first page of this document. The last supplement to this Handbook was Supplement 5409.17-93-1 to Chapter 10. Document Name 5409.17_20 Superseded New (Number of Pages) 10 Digest: Adds material from 5400 and R2 Rights-of-Way Working Tools to appropriate place in handbook. ELIZABETH ESTILL Regional Forester R2 SUPPLEMENT 5409.17-93-2 EFFECTIVE 3/31/93 5409.17_20 Page 2 of 9 FSH 5409.17 - RIGHTS OF WAY ACQUISITION R2 SUPPLEMENT 5409.17-93-2 EFFECTVE 3/31/93 CHAPTER 20 - TITLE CLEARANCE AND APPROVAL 21 - TITLE EVIDENCE. 21.15 - Period of Search. The Regional Attorney has not authorized the use of lastowner searches for acquiring easements in Region 2. Title Commitments or Preliminary Title Insurance Policies are required for Preliminary Title Opinions and Title Insurance Policies conforming to Department of Justice Standards and dated after recording of the easement deed, are required for Final Title Opinions. Request Final Title Policies on ALTA 1963 or ALTA 1991 forms when ordering the initial commitment or preliminary policy. Title Commitments may be accepted in any format. There are no standard U.S. Policy formats for Title Commitments. There may be instances where an Abstract of Title can be used. These shall be discussed with R-2 Lands on a case by case basis. 21.3 - Curing Title Defects. 21.32 - Mortgage Liens. Deeds of trust are most commonly used in Colorado, except that the Federal Land Bank continues to use mortgages. In other States, mortgages are customarily used. A deed of trust differs from a mortgage in that a deed of trust conveys the property to a trustee in trust for the holder of the indebtedness. To obtain a partial release of a deed of trust, the holder of the indebtedness must request the release by letter, or by signing the request at the bottom of the form of partial release. This authorizes the Public Trustee to execute the partial release. Requirements concerning the authority to execute a request for a partial release of a deed of trust are left to the discretion of the Public Trustee. Generally, the Public Trustee does not require evidence showing that the Board of Directors of a corporation has authorized the president or the secretary to execute the request, or that an executor or administrator has been empowered by the Court to sign legal instruments for an estate. When a deed of trust is subordinated to the easement, the subordination agreement should be executed by the individual or corporation who loaned the money, not the public trustee. Most individuals and many loan organizations may have their own forms and procedures for granting subordination agreements or partial releases. In such situations, the grantee is generally requested to submit a suitable instrument for review and approval. Sample forms of subordination agreements for both individuals and corporations are shown in exhibits 01, 02, 03, 04, 05 and 06. In some cases the easement deed will not be of record at the time the subordination agreement is requested. In such instances, the descriptions of the land crossed and the easement being acquired shall be included in the subordination agreement as shown in exhibit 02. R2 SUPPLEMENT 5409.17-93-2 EFFECTIVE 3/31/93 5409.17_20 Page 3 of 9 Exhibits 03 and 04 illustrate acceptable forms for partial release of mortgages and deeds of trust. These forms may be used for either individuals or corporations. Exhibits 05 and 06 illustrate acceptable forms for subordination of deeds of trust. Exhibit 06 is to be used where the deed of trust is subordinated prior to recording of the right-of-way easement. Subordination agreements or partial releases should be recorded. 21.32 - Exhibit 01 SUBORDINATION AGREEMENT KNOW ALL MEN BY THESE PRESENTS, That as owner and holder of a certain real estate mortgage, made and executed by of County, State of , recorded (Date) , in Volume of Mortgages at page in the office of the County Clerk and Recorder of County, (State) , for value received, does hereby agree that the lien of said mortgage shall be subordinate to the interests of the United States of America and its assigns under that certain right-of-way deed dated (Date) , executed by recorded (Date) , in Volume , of Deeds at Page in the office of the County Clerk and Recorder of County, (State) , conveying an easement for a road over and across the (Description of lands crossed by easement) , County, (State) , consisting of acres. PROVIDED, That if said right-of-way is abandoned by the United States and the easement reverts to the mortgagors or their assigns, this agreement shall be of no force and effect. Mortgage Holder ACKNOWLEDGEMENT State of ) ) ss: County of ) The foregoing was acknowledged before me this 19 , by . day of , (Signature) (Seal) (Type or Print Name Beneath Signature) My Commission Expires: . R2 SUPPLEMENT 5409.17-93-2 EFFECTIVE 3/31/93 5409.17_20 Page 4 of 9 21.32 - Exhibit 02 SUBORDINATION AGREEMENT WHEREAS, The (Mortgage Holder's Name) of (City) , a corporation organized and existing under the laws of the State of , and fully authorized to do business in the State of , is the owner and holder of a mortgage deed executed by (Landowners Name) dated , and filed under the date of , in Book , at Page , of the records of County, State of , securing an indebtedness as more particularly identified therein; and WHEREAS, the United States of America, acting by and through the Forest Service, Department of Agriculture, will acquire a right-of-way deed and easement from (Landowners Name) , dated , for highway purposes, over, upon and across a portion of the lands covered by the aforementioned mortgage deed, and which right-of-way is more particularly described as follows: (Description of Right-of-way) NOW, THEREFORE, in consideration of ($ ) and other good and valuable considerations, the receipt of which is hereby acknowledged, the (Mortgage Holder's Name) , does hereby subordinate its lien and the indebtedness secured thereby and all rights acquired under said mortgage to the right, title and interest of the United States of America in and to the property (to be) acquired by the above-mentioned right-of-way deed. The (Mortgage Holder's Name) , by this instrument agrees that the interests, rights, and privileges acquired by the United States of America by said right-of-way deed may be exercised in accordance with the terms and conditions thereof, free and clear of the rights of (Mortgage Holder's Name) under said mortgage deed. IN WITNESS WHEREOF, The said (Mortgage Holder's Name) has caused its corporate seal to be hereunto affixed and these presents to be signed and delivered in its corporate name by and through its duly authorized officers this day of , 19 . (Corporate Seal) By: , Secretary , (Title) ACKNOWLEDGEMENT (Use Appropriate Acknowledgement Format) R2 SUPPLEMENT 5409.17-93-2 EFFECTIVE 3/31/93 5409.17_20 Page 5 of 9 21.32 - Exhibit 03 PARTIAL RELEASE OF MORTGAGE KNOW ALL MEN BY THESE PRESENTS, That the owner of a certain mortgage executed by on the day of , 19 , in Book at Page of the records of County, (State) , in consideration of One Dollar ($1.00) and other good and valuable considerations, the receipt of which is hereby acknowledged, does hereby release from the lien of the said mortgage the following described property: (Describe Right-of-way) Only the above described property is released from the lien of the aforesaid mortgage. This release shall not affect or modify the obligations secured by the said mortgage and the said obligations shall continue in force and effect until fully paid, satisfied and discharged. day of IN WITNESS WHEREOF, This partial release has been executed this , 19 . Mortgage Holder ACKNOWLEDGEMENT (Use Appropriate Acknowledgement Format) R2 SUPPLEMENT 5409.17-93-2 EFFECTIVE 3/31/93 5409.17_20 Page 6 of 9 21.32 - Exhibit 04 PARTIAL RELEASE OF DEED OF TRUST KNOW ALL MEN BY THESE PRESENTS, That Whereas, (Name) of (City) , County of , in the State of , by Deed of Trust Dated , 19 , and recorded in the office of the County Clerk and Recorder of the County of , in the State of , on , 19 in Book at Page conveyed to the Public Trustee in and for the County of , certain property as in said instrument described in trust to secure the payment of the indebtedness mentioned therein; AND WHEREAS, The said grantor has conveyed a right-of-way across the security property and it is desired to release a part of the security mentioned in said Deed of Trust; NOW THEREFORE, At the request of the legal holder of said indebtedness, secured by said Deed of Trust, and in consideration of the premises, and the sum of Two Dollars ($2.00), to me in hand paid, the receipt whereof is hereby acknowledged, I as such Public Trustee do hereby release and quitclaim unto the present owner or owners of said real estate and unto the heirs and assigns of said owner or owners forever, all the right, title and interest which I have under and by virtue of said Deed of Trust particularly described, reference to which is hereby made for greater certainty so far only as the same pertains to the following described property, situate in the County of , State of , to wit: (Right-of way Description) TO HAVE AND TO HOLD THE SAME, Together with all and singular the privileges and appurtenances thereto belonging forever, and do by these presents release, cancel and forever discharge said Deed of Trust, so far as pertains to the property above specifically described only; otherwise to remain in full force and effect as to the balance of the property included in said Deed of Trust, and this partial release shall in no way affect or modify the obligations secured by said Deed of Trust. WITNESS, my hand and seal this day of Public Trustee for the County of , , A.D. 19 (State) . . The Public Trustee in and for the said County: Please execute this partial release as the purposes of said trust have been satisfied so far as pertains to the property specifically described in the foregoing Partial Release. (Title) The legal holder of said indebtedness secured by said Deed of Trust. ACKNOWLEDGEMENT (Use Appropriate Acknowledgement Format) R2 SUPPLEMENT 5409.17-93-2 EFFECTIVE 3/31/93 5409.17_20 Page 7 of 9 21.32 - Exhibit 05 SUBORDINATION AGREEMENT KNOW ALL MEN BY THESE PRESENTS, That (Name) as beneficiary under a Deed of Trust, made and executed by (Name) of County, (State) , recorded (Date) , in Volume at Page of the records of County, (State) , for value received, does hereby agree that the lien of said Deed of Trust shall be subordinate to the interests of the United States of America and its assigns under that certain right-of-way deed dated , executed by (Name) , recorded (Date) , in Volume , of Deeds at Page in the office of the County Clerk and Recorder of County, (State) , conveying an easement for a road over and across the (Description of Easement) , County, (State) , consisting of acres. PROVIDED, That if said right-of-way is abandoned by the United States and the easement reverts to the Public Trustee or his assigns, this agreement shall be of no further force or effect. 1/ ACKNOWLEDGEMENT (Use Appropriate Acknowledgement Format) 1/ To be executed by the money lenders. R2 SUPPLEMENT 5409.17-93-2 EFFECTIVE 3/31/93 5409.17_20 Page 8 of 9 21.32 - Exhibit 06 (For Deed of Trust) SUBORDINATION AGREEMENT KNOW ALL MEN BY THESE PRESENTS, That (Name) as beneficiary under a Deed of Trust, made and executed by (Name) of County, (State) , recorded (Date) , in Volume at Page of the official records, in the office of the County Clerk and Recorder of County, (State) , for value received does hereby agree that the lien of said Deed of Trust shall be subordinate to the interests of the United States of America and its assigns under that certain right-of-way deed dated executed by (Name) and conveying an easement for a road over and across (Description of lands crossed by easement) , County, (State) , consisting of acres, which is described as follows: (Description of Right-of-way) PROVIDED, That if said right-of-way is abandoned by the United States and the easement reverts to the Public Trustee or his assigns, this agreement shall be of no further force or effect. 1/ ACKNOWLEDGEMENT (Use Appropriate Acknowledgement Format) 1/ To be executed by the money lenders. R2 SUPPLEMENT 5409.17-93-2 EFFECTIVE 3/31/93 5409.17_20 Page 9 of 9 21.41 - Waiver of Tax Liens. Form R2-5400-12 must be used exclusively in requests for waiver-of-mortgage and tax liens. 23.34 - Outstanding Rights. 1. Possessory Interests of Tenants, Lessees, and Squatters. Unrecorded interests may be cured by obtaining a consent worded essentially as follows: I (or, we) hereby consent to the granting of a road right-of-way by (owner) to the United States of America across (description of land) owned by the said grantor and occupied by me (or us) as a (lessee, tenant, or other) . Date Signatures If the person or persons signing the consent are in possession under a recorded agreement, the consent should be acknowledged before a Notary Public so that it may also be recorded. 2. Easements. Consent to cross unrecorded third party easements should be worded essentially as follows: I (or we) the undersigned owner of an easement for a (describe use) (across) (describe property) do hereby consent to the crossing or encroachment upon the said easement by another easement granted to the United States of American for the construction and maintenance of a road designated as , subject to the following conditions: Date Signatures If there are no conditions attached, the words "subject to the following conditions" would be stricken. If the third party easement is evidenced by a recorded instrument, the consent must be acknowledged before a Notary Public so that it may also be recorded.