First Substitute H.B. 281

Representative Greg J. Curtis proposes to substitute the following bill:

1 AMENDMENTS TO JUDGMENT LIENS
2 1999 GENERAL SESSION
3 STATE OF UTAH
4 Sponsor: Greg J. Curtis
5 AN ACT RELATING TO THE JUDICIAL CODE; PROVIDING FOR THE TERMINATION OF
6 JUDGMENT LIENS WHICH ARE APPEALED UPON THE FILING OF ADEQUATE
7 SECURITY; MAKING TECHNICAL CHANGES; AND PROVIDING AN EFFECTIVE DATE.
8 This act affects sections of Utah Code Annotated 1953 as follows:
9 AMENDS:
10 78-22-1, as last amended by Chapter 327, Laws of Utah 1998
11 Be it enacted by the Legislature of the state of Utah:
12 Section 1. Section 78-22-1 is amended to read:
13 78-22-1. Duration of judgment -- Judgment as lien upon real property -- Abstract
14 of judgment -- Small claims judgment not lien -- Appeal of judgment.
15 (1) Judgments shall continue for eight years unless previously satisfied or unless
16 enforcement of the judgment is stayed in accordance with law.
17 (2) Prior to July 1, 1997, except as limited by [Subsection] Subsections (4) and (5), the
18 entry of judgment by a district court is a lien upon the real property of the judgment debtor, not
19 exempt from execution, owned or acquired during the existence of the judgment, located in the
20 county in which the judgment is entered.
21 (3) Prior to and after July 1, 1997, an abstract of judgment issued by the court in which the
22 judgment is entered may be recorded in any court of this state and shall have the same force and
23 effect as a judgment entered in that court.
24 (4) Prior to July 1, 1997, and after May 15, 1998, a judgment entered in the small claims
25 division of any court shall not qualify as a lien upon real property unless abstracted to the civil

26 division of the district court and recorded in accordance with Subsection (3).
27 (5) (a) If any judgment is appealed, upon deposit with the court where the notice of the
28 appeal is filed of cash or other security in a form and amount considered sufficient by the court that
29 rendered the judgement to secure the full amount of the judgment, together with ongoing interest
30 and any other anticipated damages or costs, including attorney's fees and costs on appeal, the lien
31 created by Subsection (2) shall be terminated as provided in Subsection (5)(b).
32 (b) Upon the deposit of sufficient security as provided in Subsection (5)(a), the court shall
33 enter an order terminating the lien created by the judgment under Subsection (2) and granting the
34 judgment creditor a perfected lien in the deposited security as of the date of the original judgment.
35 Section 2. Effective date.
36 If approved by two-thirds of all the members elected to each house, this act takes effect
37 upon approval by the governor, or the day following the constitutional time limit of Utah
38 Constitution Article VII, Section 8, without the governor's signature, or in the case of a veto, the
39 date of veto override.