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					               POLICY BULLETIN – Number 2009-3

To: All MERS Members                                                       June 30, 2009

The addition of Section 4 to Rule 5 of the MERS Rules of Membership has been
approved by the MERS Board of Directors and is now effective. The change had
previously been circulated to the Members for a ninety day comment period (see Policy
Bulletin 2009-1) which has now expired.
The current Rules of Membership can be downloaded in their entirety from the MERS
corporate website at www.mersinc.org.
The new section reads as follows:
“Section 4      Whenever a Member receives notice of a foreclosure proceeding, service
of process on a lawsuit naming MERS as a defendant, or a code violation notice, that is
forwarded to the Member by MERS on a property where MERS holds a lien or held a lien
for that Member, the Member has an affirmative duty to MERS to review the document
and respond accordingly. This includes retaining counsel to defend MERS against any
possibility of a monetary judgment against MERS. If the lawsuit or document involves a
foreclosure action with MERS holding a lien on behalf of the Member, and the Member
determines not to contest the foreclosure or answer the lawsuit, the Member should
inform the foreclosing party to send subsequent documents in the lawsuit or foreclosure
to MERS c/o of the Member’s address.
If MERS determines that MERS receipt of mail involving a foreclosure proceeding,
lawsuit or code violation resulted from a violation of any of the MERS Rules or
Procedures, then MERS shall be entitled to charge the Member a fee of $12.00 for each
filing or document in the proceeding or for each piece of mail received related to the code
violation that MERS forwards to the Member beyond the initial service of process or
notification that MERS received on behalf of that Member.”

Please review Rule 5 in its entirety and provide a copy of the Rule to all departments
responsible for complying with it. Thank you for your cooperation.

				
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