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First Substitute H.B. 305

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


             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 exempts
             8      state agencies from the recording requirement. The act outlines requirements for documents
             9      presented for recording in the office of the county recorder. The act designates the duration
             10      of a judgment recorded in the office of the county recorder. The act requires that a
             11      judgment recorded in the office of the county recorder that becomes a lien on the real
             12      property of a judgment debtor shall be entered in the appropriate index in the office of the
             13      county recorder. The act modifies provisions related to the filing of judgments in the
             14      Registry of Judgments. The act modifies provisions related to foreign judgment liens. The
             15      act also makes technical corrections. This act provides an effective date. This act provides
             16      a coordination clause.
             17      This act affects sections of Utah Code Annotated 1953 as follows:
             18      AMENDS:
             19          21-7-2, as last amended by Chapter 181, Laws of Utah 1991
             20          38-5-1, as last amended by Chapter 85, Laws of Utah 1971
             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] in the office of the clerk of the state district
             51      court of any county in this state[, and when so filed and docketed, such judgments or decrees shall
             52      have the same force and effect as a lien as judgments rendered and docketed in a district court of
             53      this state in and for such county].
             54          (2) Except as provided in Subsection (3), if a judgment or an abstract of judgment or
             55      decree under Subsection (1) is recorded in the office of the county recorder in which land of a
             56      judgment debtor is located, that judgment or decree becomes a lien on the real property of the


             57      judgment debtor.
             58          (3) State agencies are exempt from the recording requirement of Subsection (2), and need
             59      only register a transcript of judgment or decree under Subsection (1) to create a lien on the real
             60      property of a judgment debtor.
             61          Section 3. Section 57-3-106 is amended to read:
             62           57-3-106. Original documents required -- Captions -- Legibility.
             63          (1) (a) Unless otherwise provided, documents presented for recording in the office of the
             64      county recorder shall:
             65          (i) be originals; and
             66          (ii) contain a brief caption stating the nature of the document.
             67          (b) If a document is a master form, as defined in Section 57-3-201 , the caption required
             68      by Subsection (1)(a)(ii) shall state that the document is a master form.
             69          (2) A court judgment or an abstract of a court judgment presented for recording in
             70      compliance with Section 78-22-1 shall be an original or a certified copy as defined in Section
             71      57-1-1 and shall include the information identifying the judgment debtor as required in
             72      Subsections 78-22-1.5 (4) and (5).
             73          (3) Originals recorded in compliance with this section do not need an acknowledgment.
             74          (4) A foreign judgment or an abstract of a foreign judgment recorded in the office of a
             75      county recorder shall include the affidavit of the judgment as required in Section 78-22a-3 .
             76          (5) A court judgment or an abstract of a court judgment recorded in the office of a county
             77      recorder in compliance with Section 78-5-119 that does not include the debtor identifying
             78      information referred to in Subsection (2) is not a lien upon the real property of the judgment debtor
             79      until the recorded judgment is perfected by the recording of an amendment to the judgment as
             80      provided in Subsection 78-22-1.5 (6).
             81          (6) Any satisfaction of a judgment recorded to release a judgment in the office of the
             82      county recorder shall recite the date of recording, the entry number, and the book and page of the
             83      instrument creating the judgment.
             84          [(2)] (7) Documents presented for recording shall also be sufficiently legible for the
             85      recorder to make certified copies.
             86          [(3)] (8) (a) A document which is of record in the office of the appropriate county recorder
             87      in compliance with this chapter may not be recorded again in that same county recorder's office


             88      unless the original document has been reexecuted by all parties who executed the document.
             89      Unless exempt by statute, original documents which are reexecuted must also contain the
             90      appropriate acknowledgment, proof of execution, jurat or other notarial certification for all parties
             91      who are reexecuting the document as required by Title 46, Chapter 1, Notaries Public Reform Act,
             92      and Title 57, Chapter 2, Acknowledgments. Documents submitted for rerecording shall contain
             93      a brief statement explaining the reason for rerecording.
             94          (b) A county recorder may refuse to accept a document for rerecording if that document
             95      does not conform to the requirements of this section.
             96          (c) Subsection [(3) of this section] (7) applies only to documents executed after July 1,
             97      1998.
             98          [(4)] (9) Minor typographical or clerical errors in a document of record may be corrected
             99      by the recording of an appropriate instrument.
             100          Section 4. Section 62A-11-207 is amended to read:
             101           62A-11-207. Filing of an abstract of final administrative order -- Real property lien
             102      when recorded in the office of the county recorder -- Effect of order -- Execution.
             103          (1) An abstract of a final administrative order may be [docketed] filed in the district court
             104      of any county in the state. The time of receipt of the abstract shall be noted by the clerk on the
             105      abstract and entered in the [docket] "Registry of Judgments," as defined in Subsection
             106      78-22-1.5 (1).
             107          (2) [From the time] Except as provided under Subsection 38-5-1 (3), upon recordation of
             108      the abstract [is docketed] referred to in Subsection (1) in the [judgment docket of a district court,
             109      any administrative judgment included in] office of the county recorder in which the real property
             110      of the obligor is located, the order [abstracted] constitutes a lien upon the real property of the
             111      obligor situated in that county that shall run for a period of eight years from the [date] time the
             112      order is [entered] filed in the district court under Subsection (1), unless previously satisfied.
             113          (3) The final administrative order fixing the liability of the obligor shall have the same
             114      effect as any other money judgment [entered in a district court].
             115          (4) Attachment, garnishment, or execution on a judgment included in or accruing under
             116      an administrative order filed [and docketed] in a district court and recorded in the office of the
             117      county recorder in accordance with this section shall be in the same manner and with the same
             118      effect as an attachment, garnishment, or execution on a judgment of a district court, except that


             119      a writ of garnishment on earnings shall continue to operate and require the garnishee to withhold
             120      the nonexempt portion of the earnings at each succeeding earnings disbursement interval until
             121      released in writing by the office or by court order. Any satisfaction of judgment recorded to
             122      release a judgment shall be recorded in the office of the appropriate county recorder under the
             123      requirements of Section 57-3-106 .
             124          (5) The lien and enforcement remedies provided by this section are in addition to any other
             125      lien or remedy provided by law.
             126          Section 5. Section 78-5-119 is amended to read:
             127           78-5-119. Judgment not a lien unless so recorded.
             128          (1) [A] Except as provided under Subsection 38-5-1 (3), a judgment rendered in a justice
             129      court does not create a lien upon any [lands] real property of the judgment debtor unless the
             130      judgment or an abstract of the judgment that contains the identifying information of the judgment
             131      debtor as required in Subsections 78-22-1.5 (4) and (5) is [filed and docketed] recorded in the office
             132      of the [clerk of the district court] county recorder of the county in which the [lands] real property
             133      of the judgment debtor are located.
             134          (2) [When filed and docketed, the judgment is a lien upon the real property of the
             135      judgment debtor that is not exempt from execution and is situated in that county] The lien runs for
             136      eight years from the date the judgment was [entered] filed in the "Registry of Judgments," as
             137      defined in Subsection 78-22-1.5 (1) unless the judgment is earlier satisfied.
             138          (3) A judgment or abstract of judgment recorded in the office of a county recorder in
             139      compliance with this section that does not contain the debtor identifying information as required
             140      in Subsections 78-22-1.5 (4) and (5) is not a lien upon the real property of the judgment debtor until
             141      the recorded judgment is perfected by the recording of an amendment to the judgment as provided
             142      in Subsection 78-22-1.5 (6).
             143          Section 6. Section 78-22-1 is amended to read:
             144           78-22-1. Duration of judgment -- Judgment as a lien upon real property -- Abstract
             145      of judgment -- Small claims judgment not a lien -- Appeal of judgment -- Child support
             146      orders.
             147          (1) Except as provided in Subsection [(6)] (7), judgments shall continue for eight years
             148      from the time of filing by a district court unless previously satisfied or unless enforcement of the
             149      judgment is stayed in accordance with law.


             150          (2) Prior to July 1, 1997, except as limited by Subsections (4) and [(5)] (6), the entry of
             151      judgment by a district court is a lien upon the real property of the judgment debtor, not exempt
             152      from execution, owned or acquired during the existence of the judgment, located in the county in
             153      which the judgment is entered.
             154          (3) Prior to and after July 1, 1997, but before July 1, 2001, an abstract of judgment issued
             155      by the court in which the judgment is entered may be [recorded] filed in any court of this state and
             156      shall have the same force and effect as a judgment entered in that court.
             157          (4) Prior to July 1, 1997, and after May 15, 1998, subject to Subsection (5) a judgment
             158      entered in the small claims division of any court shall not qualify as a lien upon real property
             159      unless abstracted to the civil division of the district court and recorded in accordance with
             160      Subsection (3).
             161          (5) After July 1, 2001, a judgment entered in the small claims division of any court shall
             162      not qualify as a lien upon real property unless abstracted to the civil division of the district court
             163      and recorded in the office of the county recorder as required in Section 78-5-119 .
             164          [(5)] (6) (a) If any judgment is appealed, upon deposit with the court where the notice of
             165      appeal is filed of cash or other security in a form and amount considered sufficient by the court that
             166      rendered the judgment to secure the full amount of the judgment, together with ongoing interest
             167      and any other anticipated damages or costs, including attorney's fees and costs on appeal, the lien
             168      created by Subsection (2) shall be terminated as provided in Subsection [(5)] (6)(b).
             169          (b) Upon the deposit of sufficient security as provided in Subsection [(5)] (6)(a), the court
             170      shall enter an order terminating the lien created by the judgment under Subsection (2) and granting
             171      the judgment creditor a perfected lien in the deposited security as of the date of the original
             172      judgment.
             173          [(6)] (7) Enforcement of a child support order may be pursued at any time within four
             174      years after the date the youngest child reaches majority.
             175          (8) (a) After July 1, 2001, except as limited by Subsections (4) and (6), the recordation of
             176      a judgment from any district court in the state in the office of a county recorder as required in
             177      Section 78-5-119 becomes a lien upon any real property of the judgment debtor, located in the
             178      same county in which the judgment is recorded, owned or acquired during the existence of the
             179      judgment.
             180          (b) The duration of a judgment recorded in the office of a county recorder shall run from


             181      the time of registration in the district court under Subsection (1).
             182          (9) (a) A judgment referred to in Subsection (8) shall be entered in the appropriate index
             183      in the office of the county recorder as required in Section 17-21-6 .
             184          (b) A judgment containing a legal description shall be abstracted in the appropriate tract
             185      index in the office of the county recorder.
             186          Section 7. Section 78-22-1.5 is amended to read:
             187           78-22-1.5. Definitions -- Judgment recorded in Registry of Judgments.
             188          (1) For purposes of this section, "Registry of Judgments" means the index where a
             189      judgment shall be [recorded] filed and searchable by the name of the judgment debtor through
             190      electronic means or by tangible document.
             191          (2) On or after July 1, 1997, a judgment rendered or recorded in a district court does not
             192      create a lien upon or affect the title to real property unless the judgment is recorded in the Registry
             193      of Judgments of the office of the clerk of the district court of the county in which the property is
             194      located.
             195          (3) On or after July 1, 2001, except as provided in Subsection 38-5-1 (3), a judgment filed
             196      in a district court does not create a lien upon or affect the title to real property unless the judgment
             197      or an abstract of judgment is recorded in the office of the county recorder in which the real
             198      property of the judgment debtor is located.
             199          [(3)] (4) In addition to the requirement of [Subsection] Subsections (2) and (3), any
             200      judgment that is [recorded] filed in the Registry of Judgments on or after September 1, 1998, or
             201      any judgment or abstract of judgment that is recorded in the office of a county recorder after July
             202      1, 2001, shall include [a] the information identifying the judgment debtor on the judgment or
             203      abstract of judgment or a copy of the separate information statement of the judgment creditor that
             204      contains:
             205          (a) the correct name and last-known address of each judgment debtor and the address at
             206      which each judgment debtor received service of process;
             207          (b) the name and address of the judgment creditor;
             208          (c) the amount of the judgment as entered in the Registry of Judgments;
             209          (d) if known, the judgment debtor's social security number, date of birth, and driver's
             210      license number if a natural person; and
             211          (e) whether or not a stay of enforcement has been ordered by the court and the date the stay


             212      expires.
             213          [(4)] (5) For the information required in Subsection [(3)] (4), the judgment creditor shall:
             214          (a) provide the information on the separate information statement if known or available
             215      to the judgment creditor from its records, its attorney's records, or the court records in the action
             216      in which the judgement was entered; or
             217          (b) state on the separate information statement that the information is unknown or
             218      unavailable.
             219          [(5)] (6) (a) Any judgment that requires payment of money and is [recorded] filed in a
             220      district court on or after September 1, 1998, [and] or any judgment or abstract of judgment
             221      recorded in the office of a county recorder after July 1, 2001, that is not accompanied by the
             222      separate information statement as required in Subsections [(3)] (4) and [(4)] (5) may be amended
             223      by [recording] filing a document entitled "Amendment to [Recorded] Judgment" in the Registry
             224      of Judgments and in the office of a county recorder in compliance with Subsections [(3)] (4) and
             225      [(4)] (5).
             226          (b) The amendment to [the recorded] a filed judgment shall state the date of [recording]
             227      entry of the original judgment in the Registry of Judgments. The amendment to a judgment
             228      recorded in the office of a county recorder shall state the time of recording, the entry number, and
             229      the book and page of the original judgment.
             230          (c) [Recording an] An amendment to a recorded judgment has no effect on the
             231      computation of time as provided in Section 78-22-1 .
             232          [(6)] (7) A judgment that requires payment of money recorded on or after September 1,
             233      1998, has as its priority the date of compliance with Subsections [(3)] (4) and [(4)] (5).
             234          Section 8. Section 78-22a-5 is amended to read:
             235           78-22a-5. Lien.
             236          [(1)] A foreign judgment filed in a district court under this chapter becomes a lien as
             237      provided in Section 78-22-1 if:
             238          (1) a stay of execution has not been granted[.];
             239          (2) [If] the requirements of this chapter are satisfied[, the foreign judgment becomes a lien
             240      upon]; and
             241          (3) the judgment [debtor's property on the date it is docketed] is recorded in the office of
             242      the county recorder where the property of the judgment debtor is located, as provided in Section


             243      78-22-1 .
             244          Section 9. Effective date.
             245          This act takes effect on July 1, 2001.
             246          Section 10. Coordination clause.
             247          If this bill and H.B. 19, Fees Recodification, both pass, it is the intent of the Legislature that
             248      the Office of Legislative Research and General Counsel in preparing the Utah Code database for
             249      publication, shall renumber Section 21-7-2 in this bill as Section 63-38-3.3 and amend it to read:
             250          " [21-7-2] 63-38-3.3. Payment of fees prerequisite to service -- Exception.
             251          (1) (a) [The state] State and county officers [mentioned in this title] required by law to
             252      charge fees may not perform any official service unless the fees prescribed for that service are paid
             253      in advance.
             254          (b) When the fee is paid, the officer shall perform the services required.
             255          (c) An officer is liable upon [his] the officer's official bond for every failure or refusal to
             256      perform an official duty when the fees are tendered.
             257          (2) Except as provided for payment of [filing] recording fees [of] for county and municipal
             258      improvement district [filings] recordings in compliance with Sections 17A-3-207 and 17A-3-307 ,
             259      and as provided for payment of recording fees for judgments recorded in compliance with Sections
             260      57-3-106 and 78-5-119, no fees may be charged:
             261          (a) to the officer's state, or any county or subdivision of the state;
             262          (b) to any public officer acting for the state, county, or subdivision;
             263          (c) in cases of habeas corpus;
             264          (d) in criminal causes before final judgment;
             265          (e) for administering and certifying the oath of office;
             266          (f) for swearing pensioners and their witnesses; or
             267          (g) for filing and recording bonds of public officers."


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