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H.B. 305

             1     

JUDGMENT LIEN AMENDMENTS

             2     
2001 GENERAL SESSION

             3     
STATE OF UTAH

             4     
Sponsor: Thomas V. Hatch

             5      This act modifies provisions of the Utah Code related to judgment liens. The act provides
             6      that a judgment, an abstract of a judgment, or an abstract of a final administrative order
             7      constitutes a lien when it is recorded in the office of the county recorder. The act outlines
             8      requirements for documents presented for recording in the office of the county recorder.
             9      The act designates the duration of a judgment recorded in the office of the county recorder.
             10      The act requires that a judgment recorded in the office of the county recorder that becomes
             11      a lien on the real property of a judgment debtor shall be entered in the appropriate index
             12      in the office of the county recorder. The act modifies provisions related to the registration
             13      of judgments in the Registry of Judgments. The act modifies provisions related to foreign
             14      judgment liens. The act also makes technical corrections. This act provides an effective
             15      date.
             16      This act affects sections of Utah Code Annotated 1953 as follows:
             17      AMENDS:
             18          21-7-2, as last amended by Chapter 181, Laws of Utah 1991
             19          38-5-1, as last amended by Chapter 85, Laws of Utah 1971
             20          38-7-2, as last amended by Chapter 167, Laws of Utah 1996
             21          57-3-106, as last amended by Chapter 320, Laws of Utah 2000
             22          62A-11-207, as last amended by Chapter 198, Laws of Utah 1996
             23          78-5-119, as enacted by Chapter 157, Laws of Utah 1989
             24          78-22-1, as last amended by Chapter 161, Laws of Utah 2000
             25          78-22-1.5, as last amended by Chapter 327, Laws of Utah 1998
             26          78-22a-5, as last amended by Chapter 172, Laws of Utah 1986
             27      Be it enacted by the Legislature of the state of Utah:


             28          Section 1. Section 21-7-2 is amended to read:
             29           21-7-2. Payment of fees prerequisite to service -- Exception.
             30          (1) (a) The state and county officers mentioned in this title may not perform any official
             31      service unless the fees prescribed for that service are paid in advance.
             32          (b) When the fee is paid, the officer shall perform the services required.
             33          (c) An officer is liable upon [his] an officer's official bond for every failure or refusal to
             34      perform an official duty when the fees are tendered.
             35          (2) Except as provided for payment of [filing] recording fees [of] for county and municipal
             36      improvement district [filings] recordings in compliance with Sections 17A-3-207 and 17A-3-307 ,
             37      and as provided for payment of recording fees for judgments recorded in compliance with Sections
             38      57-3-106 and 78-5-119 , no fees may be charged:
             39          (a) to the officer's state, or any county or subdivision of the state;
             40          (b) to any public officer acting for the state, county, or subdivision;
             41          (c) in cases of habeas corpus;
             42          (d) in criminal causes before final judgment;
             43          (e) for administering and certifying the oath of office;
             44          (f) for swearing pensioners and their witnesses; or
             45          (g) for filing and recording bonds of public officers.
             46          Section 2. Section 38-5-1 is amended to read:
             47           38-5-1. Registering with clerk of district court -- Recording with county recorder
             48      -- Effect.
             49          (1) Transcripts of judgments or decrees rendered in the district court of the United States
             50      within the state [of Utah] may be [filed and docketed] registered in the office of the clerk of the
             51      state district court of any county in this state[, and when so filed and docketed, such judgments or
             52      decrees shall have the same force and effect as a lien as judgments rendered and docketed in a
             53      district court of this state in and for such county].
             54          (2) If a judgment or an abstract of judgment or decree under Subsection (1) is recorded in
             55      the office of the county recorder in which land of a judgment debtor is located, that judgment or
             56      decree becomes a lien on the land of the judgment debtor.
             57          Section 3. Section 38-7-2 is amended to read:
             58           38-7-2. Notice of lien required -- Registering with district court -- Recording with


             59      county recorder -- Mailing to injured person, heirs or legal representative, and insurance
             60      carrier.
             61           A hospital lien upon damages recovered or to be recovered for personal injuries or death
             62      [shall be] is effective if:
             63          (1) a verified written notice is [filed] registered in the district court of the county in which
             64      the hospital asserting the lien is located and a judgment or an abstract of judgment is recorded with
             65      the county recorder as required in Sections 57-3-106 and 78-5-119 containing:
             66          (a) an itemized statement of the services rendered to the injured person and the dates of
             67      the services;
             68          (b) the name and address of the hospital making the claim;
             69          (c) the name of the person, firm, or corporation alleged to be liable to the injured party for
             70      the injuries and damages sustained; and
             71          (d) the full name and address of the injured person;
             72          (2) the hospital sends by certified mail with return receipt requested, prior to the payment
             73      of any money to the injured person or [his] the injured person's attorney [or], heirs, or legal
             74      representatives as compensation for the injuries [and/or] or damages, or both, sustained, a copy of
             75      the written notice, together with a statement of the date of filing, to the person, firm, or corporation
             76      alleged to be liable to the injured party for the injuries [and/or] or damages, or both sustained; and
             77          (3) the hospital mails a copy of the written notice by certified mail with return receipt
             78      requested to the home office of any insurance carrier that has insured the person, firm, or
             79      corporation against liability, if the name and address is known.
             80          Section 4. Section 57-3-106 is amended to read:
             81           57-3-106. Original documents required -- Captions -- Legibility.
             82          (1) (a) Unless otherwise provided, documents presented for recording in the office of the
             83      county recorder shall:
             84          (i) be originals; and
             85          (ii) contain a brief caption stating the nature of the document.
             86          (b) If a document is a master form, as defined in Section 57-3-201 , the caption required
             87      by Subsection (1)(a)(ii) shall state that the document is a master form.
             88          (2) A court judgment or an abstract of a court judgment presented for recording in
             89      compliance with Section 78-22-1 shall be an original or a certified copy as defined in Section


             90      57-1-1 and shall include the information identifying the judgment debtor as required in
             91      Subsections 78-22-1.5 (4) and (5).
             92          (3) A foreign judgment or an abstract of a foreign judgment recorded in the office of a
             93      county recorder shall include the affidavit of the judgment as required in Section 78-22a-3 .
             94          (4) A court judgment or an abstract of a court judgment recorded in the office of a county
             95      recorder in compliance with Section 78-5-119 that does not include the debtor identifying
             96      information referred to in Subsection (2) is not a lien upon the lands of the judgment debtor until
             97      the recorded judgment is perfected by the recording of an amendment to the judgment as provided
             98      in Subsection 78-22-1.5 (6).
             99          (5) Any satisfaction of a judgment recorded to release a judgment in the office of the
             100      county recorder shall recite the date of recording, the entry number, and the book and page of the
             101      instrument creating the judgment.
             102          [(2)] (6) Documents presented for recording shall also be sufficiently legible for the
             103      recorder to make certified copies.
             104          [(3)] (7) (a) A document which is of record in the office of the appropriate county recorder
             105      in compliance with this chapter may not be recorded again in that same county recorder's office
             106      unless the original document has been reexecuted by all parties who executed the document.
             107      Unless exempt by statute, original documents which are reexecuted must also contain the
             108      appropriate acknowledgment, proof of execution, jurat or other notarial certification for all parties
             109      who are reexecuting the document as required by Title 46, Chapter 1, Notaries Public Reform Act,
             110      and Title 57, Chapter 2, Acknowledgments. Documents submitted for rerecording shall contain
             111      a brief statement explaining the reason for rerecording.
             112          (b) A county recorder may refuse to accept a document for rerecording if that document
             113      does not conform to the requirements of this section.
             114          (c) Subsection [(3) of this section] (7) applies only to documents executed after July 1,
             115      1998.
             116          [(4)] (8) Minor typographical or clerical errors in a document of record may be corrected
             117      by the recording of an appropriate instrument.
             118          Section 5. Section 62A-11-207 is amended to read:
             119           62A-11-207. Registration of an abstract of final administrative order -- Real
             120      property lien when recorded in the office of the county recorder -- Effect of order --


             121      Execution.
             122          (1) An abstract of a final administrative order may be [docketed] registered in the district
             123      court of any county in the state. The time of receipt of the abstract shall be noted by the clerk on
             124      the abstract and entered in the [docket] "Registry of Judgments," as defined in Subsection
             125      78-22-1.5 (1).
             126          (2) [From the time] Upon recordation of the abstract [is docketed] referred to in Subsection
             127      (1) in the [judgment docket of a district court, any administrative judgment included in] office of
             128      the county recorder in which the land of the obligor is located, the order [abstracted] constitutes
             129      a lien upon the real property of the obligor situated in that county that shall run for a period of eight
             130      years from the [date] time the order is [entered] registered in the district court under Subsection
             131      (1), unless previously satisfied.
             132          (3) The final administrative order fixing the liability of the obligor shall have the same
             133      effect as any other money judgment [entered in a district court].
             134          (4) Attachment, garnishment, or execution on a judgment included in or accruing under
             135      an administrative order [filed and docketed] registered in a district court and recorded in the office
             136      of the county recorder in accordance with this section shall be in the same manner and with the
             137      same effect as an attachment, garnishment, or execution on a judgment of a district court, except
             138      that a writ of garnishment on earnings shall continue to operate and require the garnishee to
             139      withhold the nonexempt portion of the earnings at each succeeding earnings disbursement interval
             140      until released in writing by the office or by court order. Any satisfaction of judgment recorded to
             141      release a judgment shall be recorded in the office of the appropriate county recorder under the
             142      requirements of Section 57-3-106 .
             143          (5) The lien and enforcement remedies provided by this section are in addition to any other
             144      lien or remedy provided by law.
             145          Section 6. Section 78-5-119 is amended to read:
             146           78-5-119. Judgment not a lien unless so recorded.
             147          (1) A judgment rendered in a justice court does not create a lien upon any lands of the
             148      judgment debtor unless the judgment or an abstract of the judgment that contains the identifying
             149      information of the judgment debtor as required in Subsections 78-22-1.5 (4) and (5) is [filed and
             150      docketed] recorded in the office of the [clerk of the district court] county recorder of the county
             151      in which the lands of the judgment debtor are located.


             152          (2) [When filed and docketed, the judgment is a lien upon the real property of the
             153      judgment debtor that is not exempt from execution and is situated in that county] The lien runs for
             154      eight years from the date the judgment was entered in the "Registry of Judgments," as defined in
             155      Subsection 78-22-1.5 (1) unless the judgment is earlier satisfied.
             156          (3) A judgment or abstract of judgment recorded in the office of a county recorder in
             157      compliance with this section that does not contain the debtor identifying information as required
             158      in Subsections 78-22-1.5 (4) and (5) is not a lien upon the lands of the judgment debtor until the
             159      recorded judgment is perfected by the recording of an amendment to the judgment as provided in
             160      Subsection 78-22-1.5 (6).
             161          Section 7. Section 78-22-1 is amended to read:
             162           78-22-1. Duration of judgment -- Judgment as a lien upon real property -- Abstract
             163      of judgment -- Small claims judgment not a lien -- Appeal of judgment -- Child support
             164      orders.
             165          (1) Except as provided in Subsection [(6)] (7), judgments shall continue for eight years
             166      from the time of registration by a district court unless previously satisfied or unless enforcement
             167      of the judgment is stayed in accordance with law.
             168          (2) Prior to July 1, 1997, except as limited by Subsections (4) and [(5)] (6), the entry of
             169      judgment by a district court is a lien upon the real property of the judgment debtor, not exempt
             170      from execution, owned or acquired during the existence of the judgment, located in the county in
             171      which the judgment is entered.
             172          (3) Prior to and after July 1, 1997, but before July 1, 2001, an abstract of judgment issued
             173      by the court in which the judgment is entered may be [recorded] registered in any court of this state
             174      and shall have the same force and effect as a judgment entered in that court.
             175          (4) Prior to July 1, 1997, and after May 15, 1998, subject to Subsection (5) a judgment
             176      entered in the small claims division of any court shall not qualify as a lien upon real property
             177      unless abstracted to the civil division of the district court and recorded in accordance with
             178      Subsection (3).
             179          (5) After July 1, 2001, a judgment entered in the small claims division of any court shall
             180      not qualify as a lien upon real property unless abstracted to the civil division of the district court
             181      and recorded in the office of the county recorder as required in Section 78-5-119 .
             182          [(5)] (6) (a) If any judgment is appealed, upon deposit with the court where the notice of


             183      appeal is filed of cash or other security in a form and amount considered sufficient by the court that
             184      rendered the judgment to secure the full amount of the judgment, together with ongoing interest
             185      and any other anticipated damages or costs, including attorney's fees and costs on appeal, the lien
             186      created by Subsection (2) shall be terminated as provided in Subsection [(5)] (6)(b).
             187          (b) Upon the deposit of sufficient security as provided in Subsection [(5)] (6)(a), the court
             188      shall enter an order terminating the lien created by the judgment under Subsection (2) and granting
             189      the judgment creditor a perfected lien in the deposited security as of the date of the original
             190      judgment.
             191          [(6)] (7) Enforcement of a child support order may be pursued at any time within four
             192      years after the date the youngest child reaches majority.
             193          (8) (a) After July 1, 2001, except as limited by Subsections (4) and (6), the recordation of
             194      a judgment in the office of the county recorder as required in Section 78-5-119 becomes a lien
             195      upon any real property of the judgment debtor, not exempt from execution, owned or acquired
             196      during the existence of the judgment.
             197          (b) The duration of a judgment recorded in the office of a county recorder shall run from
             198      the time of registration in the district court under Subsection (1).
             199          (9) (a) A judgment referred to in Subsection (8) shall be entered in the appropriate index
             200      in the office of the county recorder as required in Section 17-21-6 .
             201          (b) A judgment containing a legal description shall be abstracted in the appropriate tract
             202      index in the office of the county recorder.
             203          Section 8. Section 78-22-1.5 is amended to read:
             204           78-22-1.5. Definitions -- Judgment recorded in Registry of Judgments.
             205          (1) For purposes of this section, "Registry of Judgments" means the index where a
             206      judgment shall be [recorded] registered and searchable by the name of the judgment debtor through
             207      electronic means or by tangible document.
             208          (2) On or after July 1, 1997, a judgment rendered or recorded in a district court does not
             209      create a lien upon or affect the title to real property unless the judgment is recorded in the Registry
             210      of Judgments of the office of the clerk of the district court of the county in which the property is
             211      located.
             212          (3) On or after July 1, 2001, a judgment registered in a district court does not create a lien
             213      upon or affect the title to real property unless the judgment or an abstract of judgment is recorded


             214      in the office of the county recorder in which the real property of the judgment debtor is located.
             215          [(3)] (4) In addition to the requirement of [Subsection] Subsections (2) and (3), any
             216      judgment that is [recorded] registered in the Registry of Judgments on or after September 1, 1998,
             217      or any judgment or abstract of judgment that is recorded in the office of a county recorder after
             218      July 1, 2001, shall include [a] the information identifying the judgment debtor on the judgment or
             219      abstract of judgment or a copy of the separate information statement of the judgment creditor that
             220      contains:
             221          (a) the correct name and last-known address of each judgment debtor and the address at
             222      which each judgment debtor received service of process;
             223          (b) the name and address of the judgment creditor;
             224          (c) the amount of the judgment as entered in the Registry of Judgments;
             225          (d) if known, the judgment debtor's social security number, date of birth, and driver's
             226      license number if a natural person; and
             227          (e) whether or not a stay of enforcement has been ordered by the court and the date the stay
             228      expires.
             229          [(4)] (5) For the information required in Subsection [(3)] (4), the judgment creditor shall:
             230          (a) provide the information on the separate information statement if known or available
             231      to the judgment creditor from its records, its attorney's records, or the court records in the action
             232      in which the judgement was entered; or
             233          (b) state on the separate information statement that the information is unknown or
             234      unavailable.
             235          [(5)] (6) (a) Any judgment that requires payment of money and is [recorded] registered in
             236      a district court on or after September 1, 1998, [and] or any judgment or abstract of judgment
             237      recorded in the office of a county recorder after July 1, 2001, that is not accompanied by the
             238      separate information statement as required in Subsections [(3)] (4) and [(4)] (5) may be amended
             239      by [recording] registering a document entitled "Amendment to [Recorded] Judgment" in the
             240      Registry of Judgments and in the office of a county recorder in compliance with Subsections [(3)]
             241      (4) and [(4)] (5).
             242          (b) The amendment to [the recorded] a registered judgment shall state the date of
             243      [recording] entry of the original judgment in the Registry of Judgments. The amendment to a
             244      judgment recorded in the office of a county recorder shall state the time of recording, the entry


             245      number, and the book and page of the original judgment.
             246          (c) [Recording an] An amendment to a recorded judgment has no effect on the
             247      computation of time as provided in Section 78-22-1 .
             248          [(6)] (7) A judgment that requires payment of money recorded on or after September 1,
             249      1998, has as its priority the date of compliance with Subsections [(3)] (4) and [(4)] (5).
             250          Section 9. Section 78-22a-5 is amended to read:
             251           78-22a-5. Lien.
             252          [(1)] A foreign judgment [filed] registered in a district court under this chapter becomes
             253      a lien as provided in Section 78-22-1 if:
             254          (1) a stay of execution has not been granted[.];
             255          (2) [If] the requirements of this chapter are satisfied[, the foreign judgment becomes a lien
             256      upon]; and
             257          (3) the judgment [debtor's property on the date it is docketed] is recorded in the office of
             258      the county recorder where the property of the judgment debtor is located, as provided in Section
             259      78-22-1 .
             260          Section 10. Effective date.
             261          This act takes effect on July 1, 2001.




Legislative Review Note
    as of 2-9-01 3:10 PM


A limited legal review of this legislation raises no obvious constitutional or statutory concerns.

Office of Legislative Research and General Counsel


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