New Mexico Statutes 48-10-7. Appointment of successor trustee by beneficiary
A. If a person appointed as trustee fails to qualify, is unwilling, unqualified or unable to serve or resigns as trustee, the beneficiary may appoint a successor trustee and the appointment shall constitute a substitution of trustee.
Terms Used In New Mexico Statutes 48-10-7
- Beneficiary: A person who is entitled to receive the benefits or proceeds of a will, trust, insurance policy, retirement plan, annuity, or other contract. Source: OCC
- Deed: The legal instrument used to transfer title in real property from one person to another.
- Trustee: A person or institution holding and administering property in trust.
- Trustor: The person who makes or creates a trust. Also known as the grantor or settlor.
B. The beneficiary may remove a trustee at any time for any reason or cause and appoint a successor trustee, and the appointment shall constitute a substitution of trustee.
C. Substitutions shall be made by recording notice of the substitution in the office of the county clerk of each county in which all or any part of the trust real estate is situated at the time of the substitution. The beneficiary shall give written notice through registered or certified mail, postage prepaid, to the trustor, the trustee and the successor trustee. A notice of substitution of trustee shall be sufficient if acknowledged by all beneficiaries as provided in the deed of trust and prepared in substantially the following form:
“NOTICE OF SUBSTITUTION OF TRUSTEE The undersigned beneficiary hereby appoints successor trustee under the deed of trust executed by as trustor, in which is named beneficiary and as trustee, and recorded , 20 , in County, New Mexico, in book , page , and legally describing the trust real estate as:
(legal description of trust real estate) Dated this day of , 20 .
Signature of Beneficiary (Here add Acknowledgment).”.
D. A notice of substitution of trustee is effective immediately on execution as provided in Subsection C of this section.
E. A person appointed as a trustee under a deed of trust may resign as trustee at any time. The resignation shall be without liability, provided the person has not agreed in writing to be appointed trustee or has not acted in the capacity of trustee. The trustee may only resign as provided in the deed of trust and the Deed of Trust Act. If a trustee fails to qualify or is unwilling or unable to serve or resigns, the validity of the deed of trust shall not be affected, except that no action required to be performed by the trustee as provided in the Deed of Trust Act or as provided in the deed of trust may be taken until a successor trustee is appointed by the beneficiary as provided in this section. If the beneficiary fails or refuses to appoint a successor trustee, the terms of Section 47-1- 42 NMSA 1978 shall be applicable. Resignation by a trustee is made by recordation of a notice of resignation in the office of the county clerk of each county in which all or any part of the trust real estate is situated at the time of the resignation. Written notice shall be given through registered or certified mail, postage prepaid, to the trustor and the beneficiary. A notice of resignation of trustee is sufficient if acknowledged by the trustee and prepared in substantially the following form:
“NOTICE OF RESIGNATION OF TRUSTEE The undersigned trustee hereby resigns as trustee under the deed of trust executed by , as trustor, in which is named beneficiary, and recorded , 20 , in County, New Mexico, in book , page , and legally describing the trust real estate as:
(legal description of trust real estate) Dated this day of , 20 .
Signature of Trustee (Here add Acknowledgment).”.