H.B. 56

1

REPEAL PROVISIONS RELATED TO
2 ASSUMPTION OF INDEBTEDNESS ON
3 RESIDENTIAL REAL PROPERTY
4 2008 GENERAL SESSION
5 STATE OF UTAH
6 Chief Sponsor: Kevin S. Garn
7 Senate Sponsor: Scott K. Jenkins
8
9 LONG TITLE
10 Committee Note:
11 The Business and Labor Interim Committee recommended this bill.
12 General Description:
13 This bill repeals provisions related to assumption of indebtedness on residential real
14 property.
15 Highlighted Provisions:
16 This bill:
17 . repeals provisions related to assumption of indebtedness on residential real
18 property; and
19 . makes technical and conforming changes.
20 Monies Appropriated in this Bill:
21 None
22 Other Special Clauses:
23 None
24 Utah Code Sections Affected:
25 AMENDS:
26 7-7-44, as enacted by Laws of Utah 1983, Chapter 8
27 REPEALS:

28 57-15-1, as enacted by Laws of Utah 1981, Chapter 224
29 57-15-2, as enacted by Laws of Utah 1981, Chapter 224
30 57-15-3, as enacted by Laws of Utah 1981, Chapter 224
31 57-15-4, as enacted by Laws of Utah 1981, Chapter 224
32 57-15-5, as enacted by Laws of Utah 1981, Chapter 224
33 57-15-6, as last amended by Laws of Utah 1995, Chapter 20
34 57-15-7, as enacted by Laws of Utah 1981, Chapter 224
35 57-15-8, as enacted by Laws of Utah 1981, Chapter 224
36 57-15-8.5, as last amended by Laws of Utah 2007, Chapter 56
37 57-15-9, as enacted by Laws of Utah 1981, Chapter 224
38 57-15-10, as enacted by Laws of Utah 1981, Chapter 224
39 57-15-11, as enacted by Laws of Utah 1985, Chapter 2
40
41 Be it enacted by the Legislature of the state of Utah:
42 Section 1. Section 7-7-44 is amended to read:
43 7-7-44. Chapter controls over inconsistent laws -- Laws on assumption of real
44 estate security interests not suspended or repealed.
45 [(1) Except as otherwise specified in Subsection (2), if any provisions] If a provision of
46 this chapter [are] is inconsistent with [the provisions] a provision of any other state law
47 affecting [associations] an association existing as of [the effective date of this act] March 18,
48 1983, the [provisions] provision of this chapter [shall control] controls.
49 [(2) Nothing in this chapter may be construed to supersede or repeal, or interpreted or
50 applied, now or in the past or future, to supersede or repeal Title 57, Chapter 15.]
51 Section 2. Repealer.
52 This bill repeals:
53 Section 57-15-1, Legislative findings.
54 Section 57-15-2, Provision for acceleration or increased interest on assumption
55 unenforceable -- Exception.
56 Section 57-15-3, Substantial impairment of lender's prospect of prompt and full
57 payment.
58 Section 57-15-4, Charge assessed by secured party for assumption -- Limitation.

59 Section 57-15-5, Property subject to chapter.
60 Section 57-15-6, Exempt lenders.
61 Section 57-15-7, Calling entire balance on impairment of security.
62 Section 57-15-8, Procedure for assumption -- Request to lender -- Effect of failure
63 to request -- Approval or refusal by lender -- Information furnished by lender.
64 Section 57-15-8.5, Acceleration or maturing an indebtedness -- Conditions
65 authorizing -- Exemption of loans sold to federal agencies.
66 Section 57-15-9, Liability for damages caused by violation.
67 Section 57-15-10, Severability of provisions.
68 Section 57-15-11, Limitation on enforcement of due-on-sale clauses.




Legislative Review Note
as of 11-15-07 8:56 AM

Office of Legislative Research and General Counsel