Bill Amendment: AZ HB2617 | 2021 | Fifty-fifth Legislature 1st Regular
Bill Title: Judgments; liens; homestead
Status: 2021-05-19 - Chapter 368 [HB2617 Detail]
Download: Arizona-2021-HB2617-SENATE_-_Livingston_flr_amend_ref_FIN_adopted.html
Livingston Floor Amendment
Reference to: FINANCE Committee amendment
Amendment drafted by: Leg Council
FLOOR AMENDMENT EXPLANATION
1. Extinguishes a judgement creditor's lien on homestead property in specified circumstances if the anticipated payment to the judgment debtor is 80 percent of the amount of the homestead exemption, rather than if the gross proceeds of a homestead property sale exceed the amount of the homestead exemption but are insufficient to pay all priority liens.
2. Determines that a judgment lien is not created on a judgment creditor's homestead property if:
a) a court of competent jurisdiction, including the U.S. Bankruptcy Court, has discharged or enjoined enforcement of the judgment before January 1, 2022; or
b) there is a bankruptcy petition that is pending before January 1, 2022, for which a discharge is ultimately granted.
3. Applies the following to the priority of a valid judgment lien recorded before January 1, 2022, at the time of a sale, transfer or refinance of a homestead property:
a) judgment liens are junior to all valid and unpaid consensual liens that existed on the property on or before December 31, 2021; and
b) the priority is determined by the date on which the judgment is recorded and is subject to specified statutory requirements.
4. Modifies the circumstance in which a title insurer may record a partial release of judgment without prior notice.
5. Entitles qualifying prevailing parties to any other remedy provided by law, if a court later determines that a judgement creditor's objection is without good cause.
6. Requires a judgement creditor who receives cash proceeds from refinancing a homestead property to be paid in full from those proceeds before the judgment debtor or another person receives any proceeds, except that monies used to pay direct costs associated with the refinance or to satisfy priority liens do not constitute cash proceeds.
7. Requires a title insurer to amend the notice mailed to the judgment creditor if the anticipated payment to the judgment debtor increases by more than $10,000.
8. Makes technical and conforming changes.
Fifty-fifth Legislature Livingston
First Regular Session H.B. 2617
LIVINGSTON FLOOR AMENDMENT
SENATE AMENDMENTS TO H.B. 2617
(Reference to FINANCE Committee amendment)
Page 1, line 9, after the period strike remainder of line
Strike lines 10 through 17, insert "After deducting from the proceeds of the sale the amount of any consensual liens and the reasonable costs of sale, if the anticipated payment to the judgment debtor is less than eighty percent of the amount of the homestead exemption prescribed by section 33-1101, a title insurer or its duly appointed attorney in fact may record a notice of partial release of judgment Without prior notice to judgment creditors. If the ANTICIPATED payment to the judgment DEBTOR is eighty percent of the amount of the homestead exemption PRESCRIBED by section 33-1101, the judgment CREDITOR'S lien on the homestead property is"
Page 2, between lines 12 and 13, insert:
"2. The title insurer shall amend the notice prescribed by paragraph 1 of this subsection if the anticipated payment to the judgment debtor increases by more than $10,000."
Renumber to conform
Line 20, strike "invalid" insert "without good cause"
Line 22, after "fees" insert "and any other remedy provided by law"
Page 3, line 12, strike "preparing or" insert "wrongfully"
Line 17, strike "seeks" insert "receives"
Line 20, after "proceeds" insert ", except that monies used to pay direct costs associated with the refinance or to satisfy liens with PRIORITY over a judgment lien on a homestead property do not constitute cash proceeds"
Page 3, line 25, after "notice" insert ", including a notice"
Line 26, after "section" insert a comma; strike the second "of"
Line 27, strike "release"
Line 33, after the period strike remainder of line
Page 4, line 1, strike "refinances that are" insert "A judgment lien is not created on the judgment debtor's homestead property if either:
1. A court of competent jurisdiction, including the United States bankruptcy court, has discharged or enjoined enforcement of the judgment before January 1, 2022.
2. There is a bankruptcy petition that is pending before January 1, 2022 for which a discharge is ultimately granted.
H. For any sale, transfer or refinance that is"
Reletter to conform
Line 4, after "section" insert a period strike remainder of line
Strike line 5, insert "At the time of the sale, transfer or refinance of a homestead property, The following apply to the priority of judgment liens created by this subsection for only the homestead property:
1. Judgment liens are junior to all valid and unpaid consensual liens that existed on the property on or before December 31, 2021.
2. Priority of judgment liens created by this subsection is determined by the date on which the judgment is recorded as prescribed by section 33-961 and, if applicable, is subject to subsection c of this section."
Amend title to conform
