Legal RLI LPR Form

LEGAL RLI LPR FORM

This Release of Lien and Limited Power to Record Lien Release (the Agreement) is made as of the day of , , by and between Lienholder: with mailing address ("Lienholder"), and Owner/Requestor: with mailing address ("Owner").

RECITALS

WHEREAS, Lienholder is the holder of a security instrument or lien recorded as Instrument No. in the official records of County, State of , which encumbers the real property described as:

WHEREAS, Owner has requested that Lienholder execute and deliver a full release, reconveyance, or satisfaction of such lien upon receipt of the consideration and satisfaction of any conditions set forth herein; and

WHEREAS, the parties desire to set forth their respective rights and obligations with respect to the release of the lien and to grant a limited power of attorney to effectuate recordation of any instrument necessary to evidence that release.

NOW, THEREFORE, in consideration of the mutual covenants contained herein and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows:

1. RELEASE OF LIEN

1.1 Release. Upon satisfaction of the conditions set forth in Section 3, Lienholder hereby irrevocably releases, cancels and discharges the lien, mortgage, deed of trust or encumbrance recorded as Instrument No. against the Property described above, and agrees to execute and deliver a recordable release, satisfaction or reconveyance document in a form reasonably acceptable to Owner and consistent with Lienholder's rights.

1.2 Effect of Release. Upon recordation of the release instrument, the lien described above shall be extinguished to the extent of the lienholder’s interest as described in the release document, and Lienholder shall have no further claim against the Property arising from the released instrument.

2. LIMITED POWER OF ATTORNEY TO RECORD

2.1 Grant of Power. Lienholder hereby appoints Owner, and Owner's designated agent or representative, as Lienholder's true and lawful attorney-in-fact, with limited authority to prepare, execute, acknowledge, deliver and record, in Lienholder's name or in the name of Lienholder's nominee, any release, reconveyance, satisfaction or other instrument reasonably necessary to evidence the release described in Section 1, solely for the purpose of recordation.

2.2 Scope and Limitations. The power granted pursuant to this Section 2 is limited to the specific acts set forth herein and shall not authorize the agent to amend, modify, or otherwise alter the substance of the release without prior written consent of Lienholder. This limited power of attorney shall be exercisable only after the conditions precedent set forth in Section 3 have been satisfied.

3. CONSIDERATION AND CONDITIONS

3.1 Consideration. The obligations of Lienholder hereunder are conditioned upon receipt by Lienholder of the following consideration, which Lienholder acknowledges as adequate and sufficient: payment in the amount of and any other deliverables set forth herein.

3.2 Conditions Precedent. Lienholder shall not be required to execute or deliver a release instrument until Owner has timely delivered to Lienholder written evidence of satisfaction of account obligations, any required indemnities, and any additional documentation reasonably requested by Lienholder to verify the satisfaction of the lien.

4. REPRESENTATIONS AND WARRANTIES

4.1 By Lienholder. Lienholder represents and warrants that it is the lawful holder of the lien described in this Agreement, that to Lienholder's actual knowledge there are no other liens or encumbrances held by Lienholder against the Property except as disclosed in writing to Owner, and that the person executing this Agreement on behalf of Lienholder is duly authorized to do so.

4.2 By Owner. Owner represents and warrants that it has full authority to request the release, that all information provided to Lienholder is true and correct, and that Owner will cooperate in good faith to facilitate recordation of the release document.

5. INDEMNITY

Owner shall indemnify, defend and hold harmless Lienholder and its officers, directors, employees and agents from and against any and all claims, liabilities, losses, damages, costs and expenses (including reasonable attorneys' fees) arising out of or related to (a) false or misleading information provided by Owner, (b) unauthorized or improper use of the limited power of attorney granted under Section 2, or (c) Owner's failure to satisfy the conditions set forth in Section 3.

6. NOTICES

Notices to Lienholder:

Notices to Owner:

All notices, demands or communications required or permitted under this Agreement shall be in writing and shall be deemed to have been duly given when delivered personally, sent by nationally recognized overnight courier, or three (3) business days after deposit in the U.S. mail, postage prepaid, to the addresses set forth above or to such other address as a party designates by notice in accordance with this Section.

7. GOVERNING LAW

This Agreement shall be governed by and construed in accordance with the laws of the State of , without regard to conflicts of law principles.

8. ENTIRE AGREEMENT

This Agreement constitutes the entire agreement between the parties with respect to the subject matter hereof and supersedes all prior and contemporaneous negotiations, understandings and agreements, whether written or oral. No oral modifications shall be binding.

9. SEVERABILITY

If any provision of this Agreement is held to be invalid, illegal or unenforceable by a court of competent jurisdiction, such provision shall be severed and the remaining provisions shall remain in full force and effect.

10. AMENDMENTS; WAIVER; COUNTERPARTS

No amendment or modification of this Agreement shall be effective unless in writing and signed by both parties. No waiver of any breach shall be deemed a waiver of any subsequent breach. This Agreement may be executed in counterparts, each of which shall be deemed an original and all of which together shall constitute one and the same instrument.

11. AUTHORITY TO EXECUTE

Each person executing this Agreement on behalf of a party represents and warrants that he or she is duly authorized to execute and deliver this Agreement on behalf of such party and that this Agreement is binding upon such party in accordance with its terms.

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