1     
JOINT CREDIT OBLIGATIONS AMENDMENTS

2     
2015 GENERAL SESSION

3     
STATE OF UTAH

4     
Chief Sponsor: Kraig Powell

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Senate Sponsor: ____________

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7     LONG TITLE
8     General Description:
9          This bill addresses credit reporting for joint obligations.
10     Highlighted Provisions:
11          This bill:
12          ▸     modifies a provision related to divorced or separated co-obligors and credit
13     reporting.
14     Money Appropriated in this Bill:
15          None
16     Other Special Clauses:
17          None
18     Utah Code Sections Affected:
19     AMENDS:
20          15-4-6.5, as last amended by Laws of Utah 2000, Chapter 252
21     

22     Be it enacted by the Legislature of the state of Utah:
23          Section 1. Section 15-4-6.5 is amended to read:
24          15-4-6.5. Divorce or separate maintenance of co-obligors.
25          (1) On the entering of a decree of divorce or separate maintenance of joint debtors in
26     contract, the claim of a creditor remains unchanged unless otherwise provided by the contract
27     or until a new contract is entered into between the creditor and the debtors individually.
28          (2) In addition to the creditor's duties as a secured party under Title 70A, Chapter 9a,
29     Uniform Commercial Code -[-] Secured Transactions, and the creditor's duties as a trustee or
30     beneficiary of a trust deed under Title 57, Chapter 1, Conveyances, a creditor, who has been
31     notified by service of a copy of a court order under Section 30-3-5 or 30-4-3 that the debtors
32     are divorced or living separately under an order for separate maintenance, and who has been
33     expressly advised of the separate, current addresses of the debtors either by the court order or
34     by other written notice, shall provide to the debtors individually all statements, notices, and
35     other similar correspondence required by law or by the contract.
36          (3) (a) Except as provided in Subsection (3)(b), a creditor may continue to make
37     negative credit reports of joint debtors under Section 70C-7-107 and may report the repayment
38     practices or credit history of joint debtors under Title 7, Chapter 14, Credit Information
39     Exchange.
40          (b) With respect to a debtor who is not ordered by the court under Sections 30-3-5 or
41     30-4-3 to make payments on a joint obligation, no negative credit report under Section
42     70C-7-107, and no report of the debtor's repayment practices or credit history under Title 7,
43     Chapter 14, Credit Information Exchange, may be made regarding the joint obligation after the
44     creditor is served notice of the court's order as required under Subsection (2)[, unless the
45     creditor has made a demand on the debtor for payment because of the failure to make payments
46     by the other debtor, who is ordered by the court to make the payments].




Legislative Review Note
     as of 1-13-15 10:56 AM

Office of Legislative Research and General Counsel