Bill Text: CA AB121 | 2009-2010 | Regular Session | Chaptered
Bill Title: Judgment liens: continuation.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Passed) 2009-10-11 - Chaptered by Secretary of State - Chapter 410, Statutes of 2009. [AB121 Detail]
Download: California-2009-AB121-Chaptered.html
BILL NUMBER: AB 121 CHAPTERED
BILL TEXT
CHAPTER 410
FILED WITH SECRETARY OF STATE OCTOBER 11, 2009
APPROVED BY GOVERNOR OCTOBER 11, 2009
PASSED THE SENATE AUGUST 24, 2009
PASSED THE ASSEMBLY APRIL 20, 2009
INTRODUCED BY Assembly Member Hernandez
JANUARY 15, 2009
An act to amend Sections 697.510 and 697.670 of the Code of Civil
Procedure, relating to judgment liens.
LEGISLATIVE COUNSEL'S DIGEST
AB 121, Hernandez. Judgment liens: continuation.
Existing law provides that a judgment lien on specified personal
property is created by filing a notice of judgment lien in the office
of the Secretary of State. Existing law also provides that, unless
the money judgment is satisfied or the judgment lien is terminated or
released, the judgment lien continues for 5 years from the date of
filing.
This bill would authorize a continuation statement, as defined, to
be filed not more than 6 months before the expiration of the 5-year
period of the judgment lien. A continuation statement would extend
the effectiveness of the judgment lien for another 5 years commencing
on the date the lien would have expired. The bill would authorize
the filing of successive continuation statements. The bill would set
forth the circumstances under which the lien would be extinguished.
In that case, the bill would require the judgment creditor to file a
statement of release within 20 days after the judgment creditor
receives an authenticated demand from a judgment debtor. The bill
would also authorize the person who made the demand to apply for an
order releasing the judgment lien, as specified, if the judgment
creditor does not file a statement of release pursuant to that
provision. The bill would set forth related fees and definitions for
these provisions, and provide for attorney's fees in an action or
proceeding maintained pursuant to these provisions. The bill would
also specify that nothing in those provisions would be in derogation
of any other relief to which an aggrieved person may be entitled by
law. The bill would provide that a court order to release the
judgment lien may be filed in the office of the Secretary of State.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 697.510 of the Code of Civil Procedure is
amended to read:
697.510. (a) A judgment lien on personal property described in
Section 697.530 is created by filing a notice of judgment lien in the
office of the Secretary of State pursuant to this article. A
judgment lien may be created under this article only if the judgment
is a money judgment that was first entered in this state after June
30, 1983. Except as provided in subdivision (b) of Section 697.540, a
judgment lien may not be created under this article if the money
judgment is payable in installments unless all of the installments
under the judgment have become due and payable at the time the notice
of judgment lien is filed.
(b) Except as otherwise provided in subdivision (c), (e), or (g),
the judgment lien continues for five years from the date of filing.
(c) The effectiveness of a filed judgment lien lapses on the
expiration of the period described in subdivision (b) unless, before
the lapse, a continuation statement is filed pursuant to subdivision
(d). Upon lapse, the judgment lien created by the filing of a notice
pursuant to subdivision (a) ceases to be effective.
(d) A continuation statement may be filed only within the
six-month period prior to the expiration of the five-year period
specified in subdivision (b).
(e) A continuation statement that is not filed within the
six-month period prescribed by subdivision (d) is ineffective. Upon
timely filing of a continuation statement, the effectiveness of the
initial notice of judgment lien continues for a period of five years
commencing on the day on which the notice of judgment lien would have
become ineffective in the absence of the filing. Upon the expiration
of the five-year period, the notice of judgment lien lapses in the
same manner as provided in subdivision (c), unless, before the lapse,
another continuation statement is filed pursuant to subdivision (d).
Succeeding continuation statements may be filed in the same manner
to continue the effectiveness of the initial notice of judgment lien.
(f) For purposes of this section, "continuation statement" means
an amendment of a notice of judgment lien that does both of the
following:
(1) Identifies, by its file number, the initial notice of judgment
lien to which it relates.
(2) Indicates that it is a continuation statement for, or that it
is filed to continue the effectiveness of, the identified notice of
judgment lien.
(g) (1) Notwithstanding any other provision of this section, the
lien created by this section is extinguished at the earliest to occur
of the following:
(A) The money judgment is satisfied.
(B) The period of enforceability of the judgment, including any
extension thereof pursuant to Article 2 (commencing with Section
683.110) of Chapter 3 of Division 1, terminates.
(C) The judgment lien is terminated or released.
(2) If the lien created by this section is extinguished, the
judgment creditor shall file a statement of release within 20 days
after the judgment creditor receives an authenticated demand from the
judgment debtor. For the purposes of this subdivision,
"authenticated demand" means either a signed written demand or an
executed or otherwise encrypted demand delivered electronically that
identifies the judgment debtor and the demand for a statement of
release.
(h) If a judgment creditor does not file a statement of release
pursuant to subdivision (g), the person who made the demand may apply
to the court on noticed motion for an order releasing the judgment
lien. Notice of the motion shall be filed in the county where the
judgment was rendered and notice of the motion shall be served on the
judgment creditor. Service shall be made personally or by mail. Upon
presentation of evidence to the satisfaction of the court that the
judgment lien has been extinguished pursuant to subdivision (g), the
court shall order the judgment creditor to prepare and file the
statement of release or shall itself order the release of the
judgment lien. The court order may be filed in the office of the
Secretary of State and shall have the same effect as the statement of
release demanded under subdivision (g).
(i) The court shall award reasonable attorney's fees to the
prevailing party in any action or proceeding maintained pursuant to
this section.
(j) Nothing in this section is in derogation of any other relief
to which an aggrieved person may be entitled by law.
(k) The fees for filing and indexing a record under this section,
or for responding to a request for information from the filing
office, are as set forth in Section 9525 of the Commercial Code.
(l) The provisions of Sections 9522 and 9523 of the Commercial
Code shall apply to a notice of judgment lien to the same extent as
to a filed financing statement.
(m) Terms for which definitions are not set forth in Division 1
(commencing with Section 680.010) have the definitions set forth in
the Commercial Code.
SEC. 2. Section 697.670 of the Code of Civil Procedure is amended
to read:
697.670. (a) The Secretary of State may prescribe, provided that
a cost-savings would be achieved thereby:
(1) The forms for the notice of judgment lien on personal property
and the statement of continuation, release, or subordination
provided for in this article.
(2) The form for the statement provided for in Section 697.640 and
the situations when that form is required or is not required.
(b) A form prescribed by the Secretary of State for a notice or
statement pursuant to subdivision (a) is deemed to comply with this
article and supersedes any requirements specified in this article for
the notice or statement.
