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H.B. 305 Enrolled

                 

JUDGMENT LIEN AMENDMENTS

                 
2001 GENERAL SESSION

                 
STATE OF UTAH

                 
Sponsor: Thomas V. Hatch

                  This act modifies provisions of the Utah Code related to judgment liens. The act provides
                  that a judgment or an abstract of a judgment constitutes a lien when it is recorded in the
                  office of the county recorder. The act exempts state agencies from the recording
                  requirement. The act outlines requirements for documents presented for recording in the
                  office of the county recorder. The act designates the duration of a judgment recorded in the
                  office of the county recorder. The act requires that a judgment recorded in the office of the
                  county recorder that becomes a lien on the real property of a judgment debtor shall be
                  entered in the appropriate index in the office of the county recorder. The act modifies
                  provisions related to the filing of judgments in the Registry of Judgments. The act modifies
                  provisions related to foreign judgment liens. The act also makes technical corrections. This
                  act provides an effective date. This act provides a coordination clause.
                  This act affects sections of Utah Code Annotated 1953 as follows:
                  AMENDS:
                      21-7-2, as last amended by Chapter 181, Laws of Utah 1991
                      38-5-1, as last amended by Chapter 85, Laws of Utah 1971
                      38-12-102 (Effective 07/01/01), as last amended by Chapter 252, Laws of Utah 2000
                      57-3-106, as last amended by Chapter 320, Laws of Utah 2000
                      78-5-119, as enacted by Chapter 157, Laws of Utah 1989
                      78-22-1, as last amended by Chapter 161, Laws of Utah 2000
                      78-22-1.5, as last amended by Chapter 327, Laws of Utah 1998
                      78-22a-5, as last amended by Chapter 172, Laws of Utah 1986
                  Be it enacted by the Legislature of the state of Utah:
                      Section 1. Section 21-7-2 is amended to read:
                       21-7-2. Payment of fees prerequisite to service -- Exception.
                      (1) (a) The state and county officers mentioned in this title may not perform any official


                  service unless the fees prescribed for that service are paid in advance.
                      (b) When the fee is paid, the officer shall perform the services required.
                      (c) An officer is liable upon [his] the officer's official bond for every failure or refusal to
                  perform an official duty when the fees are tendered.
                      (2) Except as provided for payment of [filing] recording fees [of] for county and municipal
                  improvement district [filings] recordings in compliance with Sections 17A-3-207 and 17A-3-307 ,
                  and as provided for payment of recording fees for judgments recorded in compliance with Section
                  57-3-106 , no fees may be charged:
                      (a) to the officer's state, or any county or subdivision of the state;
                      (b) to any public officer acting for the state, county, or subdivision;
                      (c) in cases of habeas corpus;
                      (d) in criminal causes before final judgment;
                      (e) for administering and certifying the oath of office;
                      (f) for swearing pensioners and their witnesses; or
                      (g) for filing and recording bonds of public officers.
                      Section 2. Section 38-5-1 is amended to read:
                       38-5-1. Filing with clerk of district court -- Recording with county recorder -- Effect.
                      (1) Transcripts of judgments or decrees rendered in the district court of the United States
                  within the state [of Utah] may be filed [and docketed] in the office of the clerk of the state district
                  court of any county in this state, and when so filed [and docketed], such judgments or decrees shall
                  have the same force and effect as a [lien as judgments] judgment rendered [and docketed] in a
                  district court of this state in and for such county.
                      (2) Except as provided in Subsection (3), if a judgment or an abstract of judgment or decree
                  under Subsection (1) is recorded in the office of the county recorder, that judgment or decree
                  becomes a lien on the real property of the judgment debtor in that county owned or acquired during
                  the time the judgment is effective.
                      (3) State agencies are exempt from the recording requirement of Subsection (2).
                      Section 3. Section 38-12-102 (Effective 07/01/01) is amended to read:

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                       38-12-102 (Effective 07/01/01). Notice requirements for lien filings -- Exceptions.
                      (1) No later than 30 days after the day on which a lien claimant or the lien claimant's
                  authorized agent files for recordation a notice of lien meeting the requirements of Subsection (2)
                  with a county recorder, county clerk, or clerk of the court, a lien claimant or the lien claimant's agent
                  shall send by certified mail a written copy of the notice of lien to the last-known address of the
                  person against whom the notice of lien is filed.
                      (2) The notice of lien shall contain the following information:
                      (a) the name and address of the person against whom the lien is filed;
                      (b) (i) a statement that certain property owned by the person against whom the lien is filed
                  is subject to a lien;
                      (ii) the amount of the judgment, settlement, or compromise if the lien is based on a charge
                  against or interest in a judgment, settlement, or compromise; or
                      (iii) the amount of state taxes owed;
                      (c) the article number contained on the certified mail receipt;
                      (d) the date the notice of lien was filed; and
                      (e) the name and address of the lien claimant.
                      (3) The notice requirements of Subsections (1) and (2) do not apply to [a]:
                      (a) a mechanics' lien as provided in Title 38, Chapter 1, Mechanics' Liens;
                      (b) a lessors' lien as provided in Title 38, Chapter 3, Lessors' Liens;
                      (c) a federal tax lien as provided in Title 38, Chapter 6, Federal Tax Liens;
                      (d) a hospital lien as provided in Title 38, Chapter 7, Hospital Lien Law;
                      (e) a self-service storage facilities lien as provided in Title 38, Chapter 8, Self-Service
                  Storage Facilities;
                      (f) an oil, gas, or mining lien as provided in Title 38, Chapter 10, Oil, Gas, and Mining
                  Liens;
                      (g) a claim against the Residence Lien Recovery Fund as provided in Title 38, Chapter 11,
                  Residence Lien Restriction and Lien Recovery Fund Act;
                      (h) a trust deed;

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                      (i) a mortgage;
                      (j) any interests subject to a security agreement as defined in Section 70A-9a-102 ; [or]
                      (k) any other liens subject to the same or stricter notice requirements than those imposed by
                  Subsections (1) and (2)[.]; or
                      (l) a court judgment or abstract of a court judgment presented for recording in the office of
                  a county recorder.
                      Section 4. Section 57-3-106 is amended to read:
                       57-3-106. Original documents required -- Captions -- Legibility.
                      (1) (a) Unless otherwise provided, documents presented for recording in the office of the
                  county recorder shall:
                      (i) be originals; and
                      (ii) contain a brief caption stating the nature of the document.
                      (b) If a document is a master form, as defined in Section 57-3-201 , the caption required by
                  Subsection (1)(a)(ii) shall state that the document is a master form.
                      (2) A court judgment or an abstract of a court judgment presented for recording in the office
                  of the county recorder in compliance with Section 78-22-1 shall:
                      (a) be an original or certified copy; and
                      (b) include the information identifying the judgment debtor as referred to in Subsection
                  78-22-1.5 (4) either:
                      (i) in the judgment or abstract of judgment; or
                      (ii) as a separate information statement of the judgment creditor as referred to in Subsection
                  78-22-1.5 (5).
                      (3) Judgments, abstracts of judgments, and separate information statements of the judgment
                  creditor do not require an acknowledgment or a legal description to be recorded.
                      (4) A foreign judgment or an abstract of a foreign judgment recorded in the office of a
                  county recorder shall include the affidavit as required in Section 78-22a-3 .
                      (5) Any document recorded in the office of the county recorder to release or assign a
                  judgment lien shall include:

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                      (a) the name of any judgment creditor, debtor, assignor, or assignee;
                      (b) the date of recording; and
                      (c) the entry number of the instrument creating the judgment lien.
                      [(2)] (6) Documents presented for recording shall also be sufficiently legible for the recorder
                  to make certified copies.
                      [(3)] (7) (a) A document which is of record in the office of the appropriate county recorder
                  in compliance with this chapter may not be recorded again in that same county recorder's office
                  unless the original document has been reexecuted by all parties who executed the document. Unless
                  exempt by statute, original documents which are reexecuted must also contain the appropriate
                  acknowledgment, proof of execution, jurat or other notarial certification for all parties who are
                  reexecuting the document as required by Title 46, Chapter 1, Notaries Public Reform Act, and Title
                  57, Chapter 2, Acknowledgments. Documents submitted for rerecording shall contain a brief
                  statement explaining the reason for rerecording.
                      (b) A county recorder may refuse to accept a document for rerecording if that document does
                  not conform to the requirements of this section.
                      (c) Subsection [(3) of this section] (7) applies only to documents executed after July 1, 1998.
                      [(4)] (8) Minor typographical or clerical errors in a document of record may be corrected by
                  the recording of an appropriate instrument.
                      Section 5. Section 78-5-119 is amended to read:
                       78-5-119. Judgment not a lien unless so recorded.
                      (1) [A] Except as provided under Subsection (3), a judgment rendered in a justice court does
                  not create a lien upon any [lands] real property of the judgment debtor unless [an] the judgment or
                  abstract of the judgment:
                      (a) is [filed and docketed] recorded in the office of the [clerk of the district court] county
                  recorder of the county in which the [lands are] real property of the judgment debtor is located[.]; and
                      (b) contains the information identifying the judgment debtor as referred to in Subsection
                  78-22-1.5 (4) either:
                      (i) in the judgment or abstract of judgment; or

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                      (ii) as a separate information statement of the judgment creditor as referred to in Subsection
                  78-22-1.5 (5).
                      (2) [When filed and docketed, the judgment is a lien upon the real property of the judgment
                  debtor that is not exempt from execution and is situated in that county] The lien runs for eight years
                  from the date the judgment was entered in the district court under Section 78-22-1 unless the
                  judgment is earlier satisfied.
                      (3) State agencies are exempt from the recording requirement of Subsection (1).
                      Section 6. Section 78-22-1 is amended to read:
                       78-22-1. Duration of judgment -- Judgment as a lien upon real property -- Abstract
                  of judgment -- Small claims judgment not a lien -- Appeal of judgment -- Child support orders.
                      (1) Except as provided in Subsection (6), judgments shall continue for eight years from the
                  date of entry in a court unless previously satisfied or unless enforcement of the judgment is stayed
                  in accordance with law.
                      (2) Prior to July 1, 1997, except as limited by Subsections (4) and (5), the entry of judgment
                  by a district court [is] creates a lien upon the real property of the judgment debtor, not exempt from
                  execution, owned or acquired during the existence of the judgment, located in the county in which
                  the judgment is entered.
                      (3) [Prior to and after July 1, 1997, an] An abstract of judgment issued by the court in which
                  the judgment is entered may be [recorded] filed in any court of this state and shall have the same
                  force and effect as a judgment entered in that court.
                      (4) Prior to July 1, 1997, and after May 15, 1998, a judgment entered in the small claims
                  division of any court shall not qualify as a lien upon real property unless abstracted to the civil
                  division of the district court and recorded in accordance with Subsection (3).
                      (5) (a) If any judgment is appealed, upon deposit, with the court where the notice of appeal
                  is filed, of cash or other security in a form and amount considered sufficient by the court that
                  rendered the judgment to secure the full amount of the judgment, together with ongoing interest and
                  any other anticipated damages or costs, including attorney's fees and costs on appeal, the lien created
                  by [Subsection (2)] the judgment shall be terminated as provided in Subsection (5)(b).

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                      (b) Upon the deposit of sufficient security as provided in Subsection (5)(a), the court shall
                  enter an order terminating the lien created by the judgment [under Subsection (2)] and granting the
                  judgment creditor a perfected lien in the deposited security as of the date of the original judgment.
                      (6) Enforcement of a child support order may be pursued at any time within four years after
                  the date the youngest child reaches majority.
                      (7) (a) After July 1, 2002, a judgment entered by a district court or a justice court in the state
                  becomes a lien upon real property if:
                      (i) the judgment or an abstract of the judgment containing the information identifying the
                  judgment debtor as described in Subsection 78-22-1.5 (4) is recorded in the office of the county
                  recorder; or
                      (ii) the judgment or an abstract of the judgment and a separate information statement of the
                  judgment creditor as described in Subsection 78-22-1.5 (5) is recorded in the office of the county
                  recorder.
                      (b) The judgment shall run from the date of entry by the district court or justice court.
                      (c) The real property subject to the lien includes all the real property of the judgment debtor:
                      (i) in the county in which the recording under Subsection (7)(a)(i) or (ii) occurs; and
                      (ii) owned or acquired at any time by the judgment debtor during the time the judgment is
                  effective.
                      (d) State agencies are exempt from the recording requirement of Subsection (7)(a).
                      (8) (a) A judgment referred to in Subsection (7) shall be entered under the name of the
                  judgment debtor in the judgment index in the office of the county recorder as required in Section
                  17-21-6 .
                      (b) A judgment containing a legal description shall also be abstracted in the appropriate tract
                  index in the office of the county recorder.
                      Section 7. Section 78-22-1.5 is amended to read:
                       78-22-1.5. Definitions -- Judgment recorded in Registry of Judgments.
                      (1) For purposes of this section, "Registry of Judgments" means the index where a judgment
                  shall be [recorded] filed and searchable by the name of the judgment debtor through electronic                   means

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                  or by tangible document.
                      (2) On or after July 1, 1997, a judgment [rendered or recorded] entered in a district court
                  does not create a lien upon or affect the title to real property unless the judgment is [recorded] filed
                  in the Registry of Judgments of the office of the clerk of the district court of the county in which the
                  property is located.
                      (3) (a) On or after July 1, 2002, except as provided in Subsection (3)(b), a judgment entered
                  in a district court does not create a lien upon or affect the title to real property unless the judgment
                  or an abstract of judgment is recorded in the office of the county recorder in which the real property
                  of the judgment debtor is located.
                      (b) State agencies are exempt from the recording requirement of Subsection (3)(a).
                      [(3)] (4) In addition to the [requirement] requirements of [Subsection] Subsections (2) and
                  (3)(a), any judgment that is [recorded] filed in the Registry of Judgments on or after September 1,
                  1998, or any judgment or abstract of judgment that is recorded in the office of a county recorder after
                  July 1, 2002, shall include [a]:
                      (a) the information identifying the judgment debtor on the judgment or abstract of judgment;
                  or
                      (b) a copy of the separate information statement of the judgment creditor that contains:
                      [(a)] (i) the correct name and last-known address of each judgment debtor and the address
                  at which each judgment debtor received service of process;
                      [(b)] (ii) the name and address of the judgment creditor;
                      [(c)] (iii) the amount of the judgment as [entered] filed in the Registry of Judgments;
                      [(d)] (iv) if known, the judgment debtor's social security number, date of birth, and driver's
                  license number if a natural person; and
                      [(e)] (v) whether or not a stay of enforcement has been ordered by the court and the date the
                  stay expires.
                      [(4)] (5) For the information required in Subsection [(3)] (4), the judgment creditor shall:
                      (a) provide the information on the separate information statement if known or available to
                  the judgment creditor from its records, its attorney's records, or the court records in the action in

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                  which the judgement was entered; or
                      (b) state on the separate information statement that the information is unknown or
                  unavailable.
                      [(5)] (6) (a) Any judgment that requires payment of money and is [recorded] entered in a
                  district court on or after September 1, 1998, [and is] or any judgment or abstract of judgment
                  recorded in the office of a county recorder after July 1, 2002, that does not [accompanied by the
                  separate] include the debtor identifying information [statement] as required in [Subsections (3) and
                  (4) may be amended by recording a document entitled "Amendment to Recorded Judgment" in the
                  Registry of Judgments] Subsection (4) is not a lien until a separate information statement of the
                  judgment creditor is recorded in the office of a county recorder in compliance with [Subsections (3)
                  and (4)] Subsections (4) and (5).
                      [(b) The amendment to the recorded judgment shall state the date of recording the original
                  judgment in the Registry of Judgments. ]
                      [(c) Recording an amendment to a recorded judgment has no effect on the computation of
                  time as provided in Section 78-22-1 .]
                      (b) The separate information statement of the judgment creditor referred to in Subsection
                  (6)(a) shall include:
                      (i) the name of any judgment creditor, debtor, assignor, or assignee;
                      (ii) the date of recording; and
                      (iii) the entry number of the original judgment or abstract of judgment.
                      [(6)] (7) A judgment that requires payment of money recorded on or after September 1,
                  1998, but prior to July 1, 2002, has as its priority the date of [compliance with Subsections (3) and
                  (4)] entry.
                      Section 8. Section 78-22a-5 is amended to read:
                       78-22a-5. Lien.
                      (1) A foreign judgment [filed] entered in a district court under this chapter becomes a lien
                  as provided in Section 78-22-1 if:
                      (a) a stay of execution has not been granted[.];

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                      [(2) If] (b) the requirements of this chapter are satisfied[, the foreign]; and
                      (c) the judgment [becomes a lien upon the] is recorded in the office of the county recorder
                  where the property of the judgment [debtor's property on the date it is docketed] debtor is located,
                  as provided in Section 78-22-1 .
                      (2) The lien becomes effective at the time and date of recording.
                      Section 9. Effective date.
                      This act takes effect on July 1, 2002.
                      Section 10. Coordination clause.
                      If this bill and H.B. 19, Fees Recodification, both pass, it is the intent of the Legislature that
                  the Office of Legislative Research and General Counsel in preparing the Utah Code database for
                  publication, shall renumber Section 21-7-2 in this bill as Section 63-38-3.3 and amend it to read:
                      " [21-7-2] 63-38-3.3. Payment of fees prerequisite to service -- Exception.
                      (1) (a) [The state] State and county officers [mentioned in this title] required by law to
                  charge fees may not perform any official service unless the fees prescribed for that service are paid
                  in advance.
                      (b) When the fee is paid, the officer shall perform the services required.
                      (c) An officer is liable upon [his] the officer's official bond for every failure or refusal to
                  perform an official duty when the fees are tendered.
                      (2) Except as provided for payment of [filing] recording fees [of] for county and municipal
                  improvement district [filings] recordings in compliance with Sections 17A-3-207 and 17A-3-307 ,
                  and as provided for payment of recording fees for judgments recorded in compliance with Sections
                  57-3-106 and 78-5-119, no fees may be charged:
                      (a) to the officer's state, or any county or subdivision of the state;
                      (b) to any public officer acting for the state, county, or subdivision;
                      (c) in cases of habeas corpus;
                      (d) in criminal causes before final judgment;
                      (e) for administering and certifying the oath of office;
                      (f) for swearing pensioners and their witnesses; or

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                      (g) for filing and recording bonds of public officers."

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