S.B. 272

This document includes Senate 2nd Reading Floor Amendments incorporated into the bill on Fri, Feb 25, 2011 at 3:17 PM by rday. --> This document includes House Floor Amendments incorporated into the bill on Wed, Mar 9, 2011 at 5:01 PM by lerror. --> 1

SECURED CREDITOR AMENDMENTS
2 2011 GENERAL SESSION
3 STATE OF UTAH
4 Chief Sponsor: Daniel R. Liljenquist
5 House Sponsor: Kay L. McIff
6
7 LONG TITLE
8 General Description:
9 This bill modifies the Utah Consumer Credit Code to address secured creditors and
10 deficiency judgments.
11 Highlighted Provisions:
12 This bill:
13 . modifies provisions related to when the restrictions on deficiency judgements in
14 consumer credit sales do not apply;
15 . addresses acceptance of the surrender of collateral; and
16 . makes technical changes.
17 Money Appropriated in this Bill:
18 None
19 Other Special Clauses:
20 None
21 Utah Code Sections Affected:
22 AMENDS:
23 70C-7-101, as enacted by Laws of Utah 1985, Chapter 159
24
25 Be it enacted by the Legislature of the state of Utah:
26 Section 1. Section 70C-7-101 is amended to read:
27 70C-7-101. Restriction on deficiency judgments in consumer credit sales.

Text Box

House Floor Amendments 3-9-2011 le/po

- 2 -

Senate 2nd Reading Amendments 2-25-2011 rd/po 28

(1) If a seller repossesses or voluntarily accepts the surrender or return of goods
29 [which] that were the subject of a consumer credit sale and in which the seller has a security
30 interest to secure a debt arising from the sale of goods or services or a combined sale of goods
31 and services, and the cash price of the sale was $3,000 or less, any debt remaining from the sale
32 shall be fully satisfied and the seller has no further obligation to the buyer with respect to the
33 goods taken or accepted.
34 (2) If the seller brings an action against the buyer for a debt arising from a consumer
35 credit sale of goods or services, when under this section the creditor would not be entitled to a
36 deficiency judgment if it repossessed the collateral, and obtains judgment:
37 (a) it may not repossess the collateral; and
38 (b) the collateral is not subject to levy or sale on execution or similar proceedings
39 pursuant to the judgment.
40 (3) (a) S. [ This section does ] Subsections (1) and (2) do .S not apply if the goods
40a [which] that were the subject of the sale
41 and [which] that secured a debt arising from a consumer credit sale are damaged to a
42 significant degree after the goods are delivered to the buyer through no fault of the creditor.
43 (b) Subsection (2) does not apply if, after default and [demand] before the filing of an
44 action against the buyer, the buyer [has wrongfully failed to make] fails to surrender and
45 deliver the collateral [available] to the creditor.
46 H. [ (c) S. [This section does] Subsections (1) and (2) do .S not apply if the buyer no longer
46a has the goods that were the
47 subject of the sale. ]
48 [ (d) ] (c) .H S. [ This section does ] Subsections (1) and (2) do .S not apply if
48a1 an action taken by
48a the buyer would make the
49 collection of a judgment unenforceable, including the filing of bankruptcy.
50 (4) Notwithstanding any other provision of this section, a creditor has no obligation to
51 accept the surrender of collateral.

Legislative Review Note
as of 2-14-11 5:57 PM

Office of Legislative Research and General Counsel