H.B. 315 Enrolled

             1     

JUDGMENT LIEN AMENDMENTS

             2     
2014 GENERAL SESSION

             3     
STATE OF UTAH

             4     
Chief Sponsor: R. Curt Webb

             5     
Senate Sponsor: Kevin T. Van Tassell

             6     
             7      LONG TITLE
             8      General Description:
             9          This bill requires that a separate information sheet be filed when filing a judgment lien.
             10      Highlighted Provisions:
             11          This bill:
             12          .    requires the filing of a separate information sheet with a judgment lien.
             13      Money Appropriated in this Bill:
             14          None
             15      Other Special Clauses:
             16          None
             17      Utah Code Sections Affected:
             18      AMENDS:
             19           57-3-106 , as last amended by Laws of Utah 2011, Chapter 88
             20           78A-7-105 , as last amended by Laws of Utah 2012, Chapter 205
             21           78B-5-201 , as last amended by Laws of Utah 2011, Chapter 88
             22           78B-5-202 , as last amended by Laws of Utah 2011, Chapter 88
             23     
             24      Be it enacted by the Legislature of the state of Utah:
             25          Section 1. Section 57-3-106 is amended to read:
             26           57-3-106. Original documents required -- Captions -- Legibility.
             27          (1) A person may not present and a county recorder may refuse to accept a document
             28      for recording if the document does not comply with this section.
             29          (2) (a) Unless otherwise provided, a document presented for recording in the office of


             30      the county recorder shall:
             31          (i) be an original;
             32          (ii) contain a brief caption on the first page of the document stating the nature of the
             33      document; and
             34          (iii) contain a legal description of the property as required under Section 57-3-105 .
             35          (b) If a document is a master form, as defined in Section 57-3-201 , the caption required
             36      by Subsection (2)(a)(ii) shall state that the document is a master form.
             37          (3) A court judgment or an abstract of a court judgment presented for recording in the
             38      office of the county recorder in compliance with Section 78B-5-202 shall:
             39          (a) be an original or certified copy; and
             40          (b) include the information identifying the judgment debtor as referred to in Subsection
             41      78B-5-201 (4)(b) either:
             42          (i) in the judgment or abstract of judgment; or
             43          (ii) as a separate information statement of the judgment creditor as referred to in
             44      Subsection 78B-5-201 (5).
             45          (4) A judgment, abstract of judgment, or separate information statement of the
             46      judgment creditor does not require an acknowledgment, a legal description, or notarization to
             47      be recorded.
             48          (5) A foreign judgment or an abstract of a foreign judgment recorded in the office of a
             49      county recorder shall include the affidavit as required in Section 78B-5-303 .
             50          (6) Any document recorded in the office of the county recorder to release, assign,
             51      renew, or extend a judgment lien shall include:
             52          (a) the name of any judgment creditor, debtor, assignor, or assignee;
             53          (b) the date on which the instrument creating the lien was recorded in the office of the
             54      county recorder;
             55          (c) the entry number and book and page of the recorded instrument creating the
             56      judgment lien; and
             57          (d) the date on which the document is recorded.


             58          (7) A document presented for recording shall be sufficiently legible for the recorder to
             59      make certified copies of the document.
             60          (8) (a) (i) A document that is of record in the office of the appropriate county recorder
             61      in compliance with this chapter may not be recorded again in that same county recorder's office
             62      unless the original document has been reexecuted by all parties who executed the document.
             63          (ii) Unless exempt by statute, an original document that is reexecuted shall contain the
             64      appropriate acknowledgment, proof of execution, jurat, or other notarial certification for all
             65      parties who are reexecuting the document as required by Title 46, Chapter 1, Notaries Public
             66      Reform Act, and Title 57, Chapter 2, Acknowledgments.
             67          (iii) A document submitted for rerecording shall contain a brief statement explaining
             68      the reason for rerecording.
             69          (b) A person may not present and a county recorder may refuse to accept a document
             70      for rerecording if that document does not conform to this section.
             71          (c) This Subsection (8) applies only to documents executed after July 1, 1998.
             72          (9) Minor typographical or clerical errors in a document of record may be corrected by
             73      the recording of an affidavit or other appropriate instrument.
             74          (10) (a) Except as required by federal law, or by agreement between a borrower under
             75      the trust deed and a grantee under the trustee's deed, and subject to Subsection (10)(b), neither
             76      the recordation of an affidavit under Subsection (9) nor the reexecution and rerecording of a
             77      document under Subsection (8):
             78          (i) divests a grantee of any real property interest;
             79          (ii) alters an interest in real property; or
             80          (iii) returns to the grantor an interest in real property conveyed by statute.
             81          (b) A person who reexecutes and rerecords a document under Subsection (8), or
             82      records an affidavit under Subsection (9), shall include with the document or affidavit a notice
             83      containing the name and address to which real property valuation and tax notices shall be
             84      mailed.
             85          Section 2. Section 78A-7-105 is amended to read:


             86           78A-7-105. Territorial jurisdiction -- Voting.
             87          (1) The territorial jurisdiction of county justice courts extends to the limits of the
             88      precinct for which the justice court is created and includes all cities or towns within the
             89      precinct, except cities where a municipal justice court exists.
             90          (2) The territorial jurisdiction of municipal justice courts extends to the corporate
             91      limits of the municipality in which the justice court is created.
             92          (3) Justice court judges have the same authority regarding matters within their
             93      jurisdiction as judges of courts of record.
             94          (4) A justice court may issue all extraordinary writs and other writs as necessary to
             95      carry into effect its orders, judgments, and decrees.
             96          (5) (a) Except as provided in this Subsection (5), a judgment rendered in a justice court
             97      does not create a lien upon any real property of the judgment debtor unless the judgment or
             98      abstract of the judgment:
             99          (i) is recorded in the office of the county recorder of the county in which the real
             100      property of the judgment debtor is located; and
             101          (ii) contains the information identifying the judgment debtor in the judgment or
             102      abstract of judgment as required in Subsection 78B-5-201 (4)(b) or as a separate information
             103      statement of the judgment creditor as required in Subsection 78B-5-201 (5).
             104          (b) The lien runs for eight years from the date the judgment was entered in the district
             105      court under Section 78B-5-202 unless the judgment is earlier satisfied.
             106          (c) State agencies are exempt from the recording requirement of Subsection (5)(a).
             107          Section 3. Section 78B-5-201 is amended to read:
             108           78B-5-201. Definitions -- Judgment recorded in Registry of Judgments.
             109          (1) For purposes of this part, "Registry of Judgments" means the index where a
             110      judgment is filed and searchable by the name of the judgment debtor through electronic means
             111      or by tangible document.
             112          (2) On or after July 1, 1997, a judgment entered in a district court does not create a lien
             113      upon or affect the title to real property unless the judgment is filed in the Registry of Judgments


             114      of the office of the clerk of the district court of the county in which the property is located.
             115          (3) (a) On or after July 1, 2002, except as provided in Subsection (3)(b), a judgment
             116      entered in a district court does not create a lien upon or affect the title to real property unless
             117      the judgment or an abstract of judgment is recorded in the office of the county recorder in
             118      which the real property of the judgment debtor is located.
             119          (b) State agencies are exempt from the recording requirement of Subsection (3)(a).
             120          (4) In addition to the requirements of Subsections (2) and (3)(a), any judgment that is
             121      filed in the Registry of Judgments on or after September 1, 1998, or any judgment or abstract
             122      of judgment that is recorded in the office of a county recorder after July 1, 2002, shall include:
             123          (a) the information identifying the judgment debtor as required under Subsection (4)(b)
             124      on the judgment or abstract of judgment; or
             125          (b) a copy of the separate information statement of the judgment creditor that contains:
             126          (i) the correct name and last-known address of each judgment debtor and the address at
             127      which each judgment debtor received service of process;
             128          (ii) the name and address of the judgment creditor;
             129          (iii) the amount of the judgment as filed in the Registry of Judgments;
             130          (iv) if known, the judgment debtor's Social Security number, date of birth, and driver's
             131      license number if a natural person; and
             132          (v) whether or not a stay of enforcement has been ordered by the court and the date the
             133      stay expires.
             134          (5) For the information required in Subsection (4), the judgment creditor shall:
             135          (a) provide the information on the separate information statement if known or available
             136      to the judgment creditor from its records, its attorney's records, or the court records in the
             137      action in which the [judgement] judgment was entered; or
             138          (b) state on the separate information statement that the information is unknown or
             139      unavailable.
             140          (6) (a) Any judgment that requires payment of money and is entered in a district court
             141      on or after September 1, 1998, or any judgment or abstract of judgment recorded in the office


             142      of a county recorder after July 1, 2002, that does not include the debtor identifying information
             143      as required in Subsection (4) is not a lien until a separate information statement of the
             144      judgment creditor is recorded in the office of a county recorder in compliance with Subsections
             145      (4) and (5).
             146          (b) The separate information statement of the judgment creditor referred to in
             147      Subsection (6)(a) shall include:
             148          (i) the name of any judgment creditor, debtor, assignor, or assignee;
             149          (ii) the date on which the judgment was recorded in the office of the county recorder as
             150      described in Subsection (4); and
             151          (iii) the county recorder's entry number and book and page of the recorded judgment.
             152          (7) A judgment that requires payment of money recorded on or after September 1,
             153      1998, but prior to July 1, 2002, has as its priority the date of entry, except as to parties with
             154      actual or constructive knowledge of the judgment.
             155          (8) A judgment or notice of judgment wrongfully filed against real property is subject
             156      to Title 38, Chapter 9, Wrongful Liens and Wrongful Judgment Liens.
             157          (9) (a) To release, assign, renew, or extend a lien created by a judgment recorded in the
             158      office of a county recorder, a person shall, in the office of the county recorder of each county in
             159      which an instrument creating the lien is recorded, record a document releasing, assigning,
             160      renewing, or extending the lien.
             161          (b) The document described in Subsection (9)(a) shall include:
             162          (i) the date of the release, assignment, renewal, or extension;
             163          (ii) the name of any judgment creditor, debtor, assignor, or assignee; and
             164          (iii) for the county in which the document is recorded in accordance with Subsection
             165      (9)(a):
             166          (A) the date on which the instrument creating the lien was recorded in that county's
             167      office of the county recorder; and
             168          (B) in accordance with Section 57-3-106 , that county recorder's entry number and book
             169      and page of the recorded instrument creating the judgment lien.


             170          Section 4. Section 78B-5-202 is amended to read:
             171           78B-5-202. Duration of judgment -- Judgment as a lien upon real property --
             172      Abstract of judgment -- Small claims judgment not a lien -- Appeal of judgment -- Child
             173      support orders.
             174          (1) Judgments shall continue for eight years from the date of entry in a court unless
             175      previously satisfied or unless enforcement of the judgment is stayed in accordance with law.
             176          (2) Prior to July 1, 1997, except as limited by Subsections (4) and (5), the entry of
             177      judgment by a district court creates a lien upon the real property of the judgment debtor, not
             178      exempt from execution, owned or acquired during the existence of the judgment, located in the
             179      county in which the judgment is entered.
             180          (3) An abstract of judgment issued by the court in which the judgment is entered may
             181      be filed in any court of this state and shall have the same force and effect as a judgment entered
             182      in that court.
             183          (4) Prior to July 1, 1997, and after May 15, 1998, a judgment entered in the small
             184      claims division of any court may not qualify as a lien upon real property unless abstracted to
             185      the civil division of the district court and recorded in accordance with Subsection (3).
             186          (5) (a) If any judgment is appealed, upon deposit with the court where the notice of
             187      appeal is filed of cash or other security in a form and amount considered sufficient by the court
             188      that rendered the judgment to secure the full amount of the judgment, together with ongoing
             189      interest and any other anticipated damages or costs, including attorney fees and costs on appeal,
             190      the lien created by the judgment shall be terminated as provided in Subsection (5)(b).
             191          (b) Upon the deposit of sufficient security as provided in Subsection (5)(a), the court
             192      shall enter an order terminating the lien created by the judgment and granting the judgment
             193      creditor a perfected lien in the deposited security as of the date of the original judgment.
             194          (6) (a) A child support order or a sum certain judgment for past due support may be
             195      enforced:
             196          (i) within four years after the date the youngest child reaches majority; or
             197          (ii) eight years from the date of entry of the sum certain judgment entered by a tribunal.


             198          (b) The longer period of duration shall apply in every order.
             199          (c) A sum certain judgment may be renewed to extend the duration.
             200          (7) (a) After July 1, 2002, a judgment entered by a district court or a justice court in the
             201      state becomes a lien upon real property if:
             202          (i) the judgment or an abstract of the judgment containing the information identifying
             203      the judgment debtor as described in Subsection 78B-5-201 (4)(b) is recorded in the office of the
             204      county recorder; or
             205          (ii) the judgment or an abstract of the judgment and a separate information statement of
             206      the judgment creditor as described in Subsection 78B-5-201 (5) is recorded in the office of the
             207      county recorder.
             208          (b) The judgment shall run from the date of entry by the district court or justice court.
             209          (c) The real property subject to the lien includes all the real property of the judgment
             210      debtor:
             211          (i) in the county in which the recording under Subsection (7)(a)(i) or (ii) occurs; and
             212          (ii) owned or acquired at any time by the judgment debtor during the time the judgment
             213      is effective.
             214          (d) State agencies are exempt from the recording requirement of Subsection (7)(a).
             215          (8) (a) A judgment referred to in Subsection (7) shall be entered under the name of the
             216      judgment debtor in the judgment index in the office of the county recorder as required in
             217      Section 17-21-6 .
             218          (b) A judgment containing a legal description shall also be abstracted in the appropriate
             219      tract index in the office of the county recorder.
             220          (9) (a) To release, assign, renew, or extend a lien created by a judgment recorded in the
             221      office of a county recorder, a person shall, in the office of the county recorder of each county in
             222      which an instrument creating the lien is recorded, record a document releasing, assigning,
             223      renewing, or extending the lien.
             224          (b) The document described in Subsection (9)(a) shall include:
             225          (i) the date of the release, assignment, renewal, or extension;


             226          (ii) the name of any judgment creditor, debtor, assignor, or assignee; and
             227          (iii) for the county in which the document is recorded in accordance with Subsection
             228      (9)(a):
             229          (A) the date on which the instrument creating the lien was recorded in that county's
             230      office of the county recorder; and
             231          (B) in accordance with Section 57-3-106 , that county recorder's entry number and book
             232      and page of the recorded instrument creating the judgment lien.


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