7 LONG TITLE
8 General Description:
9 This bill modifies the Agreements to Confess Judgments Act.
10 Highlighted Provisions:
11 This bill:
12 ▸ allows parties to enter into a confession of judgment before a default except in
13 employment contracts and certain consumer credit contracts; and
14 ▸ provides that the default event for a confession of judgment is the default giving rise
15 to the underlying action.
16 Money Appropriated in this Bill:
18 Other Special Clauses:
20 Utah Code Sections Affected:
22 78B-23-102, as enacted by Laws of Utah 2019, Chapter 132
24 Be it enacted by the Legislature of the state of Utah:
25 Section 1. Section 78B-23-102 is amended to read:
26 78B-23-102. Certain agreements to confess judgment void.
27 (1) Except as provided in Subsection (2), parties may execute an agreement or
28 stipulation to confess judgment before a default giving rise to an action.
30 consumer credit contract involving real estate, an agreement or stipulation to confess judgment
31 is void if the agreement or stipulation is executed:
34 agreement or stipulation is to be confessed.
35 (b) To satisfy the requirements of Subsection (2)(a)(ii), the parties need only execute
36 the agreement or stipulation after the default giving rise to the underlying action and not after
37 any subsequent default on the agreement or stipulation.