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First Substitute H.B. 256

Representative Thomas V. Hatch proposes to substitute the following bill:


             1     
JUDGMENTS LIEN REVISION

             2     
2000 GENERAL SESSION

             3     
STATE OF UTAH

             4     
Sponsor: Thomas V. Hatch

             5      AN ACT RELATING TO THE JUDICIAL CODE; CHANGING THE PLACE TO FILE
             6      JUDGMENT LIENS FROM THE DISTRICT COURT TO THE COUNTY RECORDER'S
             7      OFFICE; AND PROVIDING AN EFFECTIVE DATE.
             8      This act affects sections of Utah Code Annotated 1953 as follows:
             9      AMENDS:
             10          57-3-106, as renumbered and amended by Chapter 61 and last amended by Chapter 85,
             11      Laws of Utah 1998
             12          78-5-119, as enacted by Chapter 157, Laws of Utah 1989
             13          78-22-1, as last amended by Chapter 75, Laws of Utah 1999
             14          78-22-1.5, as last amended by Chapter 327, Laws of Utah 1998
             15      Be it enacted by the Legislature of the state of Utah:
             16          Section 1. Section 57-3-106 is amended to read:
             17           57-3-106. Original documents required -- Captions -- Legibility.
             18          (1) (a) Unless otherwise provided, documents presented for recording in the office of the
             19      county recorder shall:
             20          (i) be originals; and
             21          (ii) contain a brief caption stating the nature of the document.
             22          (b) If a document is a master form, as defined in Section 57-3-201 , the caption required
             23      by Subsection (1)(a)(ii) shall state that the document is a master form.
             24          (2) Court judgments presented for recording in accordance with Section 78-22-1 shall be
             25      originals or certified copies.


             26          [(2)] (3) Documents presented for recording shall also be sufficiently legible for the
             27      recorder to make certified copies.
             28          [(3)] (4) (a) A document which is of record in the office of the appropriate county recorder
             29      in compliance with this chapter, may not be recorded again in that same county recorder's office
             30      unless the original document has been reexecuted by all parties who executed the document.
             31      Unless exempt by statute, original documents which are reexecuted must also contain the
             32      appropriate acknowledgment, proof of execution, jurat or other notarial certification for all parties
             33      who are reexecuting the document as required by Title 46, Chapter 1, Notaries Public Reform Act,
             34      and Title 57, Chapter 2, Acknowledgments. Documents submitted for rerecording shall contain
             35      a brief statement explaining the reason for rerecording.
             36          (b) A county recorder may refuse to accept a document for rerecording if that document
             37      does not conform to the requirements of this section.
             38          (c) Subsection [(3)] (4) of this section applies only to documents executed after July 1,
             39      1998.
             40          [(4)] (5) Documents of record in the office of a county recorder, containing minor
             41      typographical or clerical errors, may be augmented, amended, or corrected by the recording of an
             42      affidavit or other appropriate instrument.
             43          Section 2. Section 78-5-119 is amended to read:
             44           78-5-119. Judgment not a lien unless so docketed.
             45          (1) A judgment rendered in a justice court does not create a lien upon any lands of the
             46      judgment debtor unless the judgment or an abstract of the judgment is [filed and docketed]
             47      recorded in the office of the [clerk of the district court] county recorder of the county in which the
             48      lands are located.
             49          (2) When [filed and docketed] recorded, the judgment is a lien upon the real property of
             50      the judgment debtor that is not exempt from execution and is situated in that county for eight years
             51      from the date the judgment was entered unless the judgment is earlier satisfied.
             52          Section 3. Section 78-22-1 is amended to read:
             53           78-22-1. Duration of judgment -- Judgment as lien upon real property -- Abstract
             54      of judgment -- Small claims judgment not lien -- Appeal of judgment.
             55          (1) Judgments shall continue for eight years from the date entered by the court unless
             56      previously satisfied or unless enforcement of the judgment is stayed in accordance with law.


             57          (2) Prior to July 1, 1997, except as limited by Subsections (4) and (5), the entry of
             58      judgment by a district court [is] shall become a lien upon [the] any real property of the judgment
             59      debtor, not exempt from execution, owned or acquired during the existence of the judgment, and
             60      located in the county in which the judgment is entered.
             61          (3) Prior to and after July 1, 1997, an abstract of judgment issued by the court in which the
             62      judgment is entered may be recorded in any court of this state and shall have the same force and
             63      effect as a judgment entered in that court.
             64          (4) Prior to July 1, 1997, and after May 15, 1998, a judgment entered in the small claims
             65      division of any court shall not qualify as a lien upon real property unless abstracted to the civil
             66      division of the district court and recorded in accordance with Subsection (3).
             67          (5) (a) If any judgment is appealed, upon deposit with the court where the notice of appeal
             68      is filed of cash or other security in a form and amount considered sufficient by the court that
             69      rendered the judgment to secure the full amount of the judgment, together with ongoing interest
             70      and any other anticipated damages or costs, including attorney's fees and costs on appeal, the lien
             71      created by Subsection (2) shall be terminated as provided in Subsection (5)(b).
             72          (b) Upon the deposit of sufficient security as provided in Subsection (5)(a), the court shall
             73      enter an order terminating the lien created by the judgment under Subsection (2) and granting the
             74      judgment creditor a perfected lien in the deposited security as of the date of the original judgment.
             75          (6) After July 1, 2000, except as limited by Subsections (4) and (5), the entry of judgment
             76      by a district court shall become a lien upon any real property of the judgment debtor, not exempt
             77      from execution, owned or acquired during the existence of the judgment, and located in the county
             78      in which the judgment is entered, upon the date the judgment or abstract of judgment is recorded
             79      in the office of the county recorder of the county in which real property owned by the judgment
             80      debtor is located.
             81          (7) When a judgment has been recorded, the county recorder shall:
             82          (a) enter the judgment in the appropriate index as required under the provisions of Section
             83      17-21-6 ; and
             84          (b) if the judgment contains a legal description, abstract the judgment against the real
             85      property described in the judgment.
             86          Section 4. Section 78-22-1.5 is amended to read:
             87           78-22-1.5. Definitions -- Judgment recorded.


             88          (1) For purposes of this section, "Registry of Judgments" means the index where a
             89      judgment shall be recorded and searchable by the name of the judgment debtor through electronic
             90      means or by tangible document.
             91          (2) On or after July 1, 1997, a judgment rendered or recorded in a district court does not
             92      create a lien upon or affect the title to real property unless the judgment is recorded in the Registry
             93      of Judgments of the office of the clerk of the district court of the county in which the property is
             94      located.
             95          (3) In addition to the requirement of Subsection (2), any judgment that is recorded in the
             96      Registry of Judgments on or after September 1, 1998, shall include a separate information
             97      statement of the judgment creditor that contains:
             98          (a) the correct name and last-known address of each judgment debtor and the address at
             99      which each judgment debtor received service of process;
             100          (b) the name and address of the judgment creditor;
             101          (c) the amount of the judgment as entered in the Registry of Judgments;
             102          (d) if known, the judgment debtor's social security number, date of birth, and driver's
             103      license number if a natural person; and
             104          (e) whether or not a stay of enforcement has been ordered by the court and the date the stay
             105      expires.
             106          (4) On or after July 1, 2000, a judgment entered or recorded in a district court does not
             107      create a lien upon or affect the title to real property unless the judgment is recorded in the office
             108      of the county recorder in the county in which property of the judgment debtor is located.
             109          [(4)] (5) For the information required in Subsection (3), the judgment creditor shall:
             110          (a) provide the information on the separate information statement if known or available
             111      to the judgment creditor from its records, its attorney's records, or the court records in the action
             112      in which the judgement was entered; or
             113          (b) state on the separate information statement that the information is unknown or
             114      unavailable.
             115          [(5)] (6) (a) Any judgment that requires payment of money and is recorded on or after
             116      September 1, 1998, and is not accompanied by the separate information statement as required in
             117      Subsections (3) and [(4)] (5) may be amended by recording a document entitled "Amendment to
             118      Recorded Judgment" in the Registry of Judgments in compliance with Subsections (3) and [(4)]


             119      (5).
             120          (b) The amendment to the recorded judgment shall state the date of recording the original
             121      judgment in the Registry of Judgments.
             122          (c) Recording an amendment to a recorded judgment has no effect on the computation of
             123      time as provided in Section 78-22-1 .
             124          [(6)] (7) A judgment that requires payment of money recorded on or after September 1,
             125      1998, has as its priority the date of compliance with Subsections (3) and [(4)] (5).
             126          Section 5. Effective date.
             127          This act takes effect on July 1, 2000.


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