Bill Text: CA AB457 | 2009-2010 | Regular Session | Introduced

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Liens.

Spectrum: Bipartisan Bill

Status: (Passed) 2009-08-06 - Chaptered by Secretary of State - Chapter 109, Statutes of 2009. [AB457 Detail]

Download: California-2009-AB457-Introduced.html

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BILL NUMBER: AB 457	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Monning
   (Coauthor: Assembly Member Emmerson)

                        FEBRUARY 24, 2009

   An act to repeal and add Section 3144 of the Civil Code, relating
to liens.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 457, as introduced, Monning. Liens.
   Existing law provides that a lien for a private work of
improvement does not bind any property for more than 90 days after
the recording of the claim of lien unless an action to foreclose the
lien is commenced within that time in a proper court. The lien may
continue in force, however, if credit is given and notice of the
credit is recorded in the office of the county recorder after the
recording of the lien and prior to the expiration of the 90-day
period, but not longer than one year from the time of completion of
the work of improvement.
   This bill would revise and clarify those provisions. The bill
would instead require the claimant to commence an action to enforce a
lien within 90 days after recordation of the claim of lien and to
record a notice of the pendency of the action, as specified, within
110 days after recordation of the claim of lien. If the claimant
fails to commence the action and record the notice within the time
required, the bill would provide that the claim of lien expires and
is unenforceable. These provisions would not apply if the claimant
and owner agree to extend credit and notice regarding the facts and
terms of the extension of credit is recorded either within 90 days
after recordation of the claim of lien or more than 90 days after
recordation but before a purchaser or encumbrancer for value and in
good faith acquires rights in the property. Under those
circumstances, the bill would provide that the lien expires and is
unenforceable if the claimant does not commence an action to enforce
the lien and record a notice of the pendency of the action within 90
days after the expiration of the credit, but, in no case, later than
one year after completion of the work of improvement.
   Vote: majority. Appropriation: no. Fiscal committee: no.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 3144 of the Civil Code is repealed. 
   3144.  (a) No lien provided for in this chapter binds any property
for a longer period of time than 90 days after the recording of the
claim of lien, unless within that time an action to foreclose the
lien is commenced in a proper court, except that, if credit is given
and notice of the fact and terms of such credit is recorded in the
office of the county recorder subsequent to the recording of such
claim of lien and prior to the expiration of such 90-day period, then
such lien continues in force until 90 days after the expiration of
such credit, but in no case longer than one year from the time of
completion of the work of improvement.
   (b) If the claimant fails to commence an action to foreclose the
lien within the time limitation provided in this section, the lien
automatically shall be null and void and of no further force and
effect. 
  SEC. 2.  Section 3144 is added to the Civil Code, to read:
   3144.  (a) The claimant shall commence an action to enforce a lien
within 90 days after recordation of the claim of lien and shall
record a notice of the pendency of the action under Title 4.5
(commencing with Section 405) of Part 2 of the Code of Civil
Procedure within 110 days after recordation of the claim of lien. If
the claimant does not commence an action and record notice of the
pendency of the action within the time provided in this subdivision,
the claim of lien expires and is unenforceable.
   (b) Subdivision (a) does not apply if the claimant and owner agree
to extend credit, and notice of the fact and terms of the extension
of credit is recorded (1) within 90 days after recordation of the
claim of lien or (2) more than 90 days after recordation of the claim
of lien but before a purchaser or encumbrancer for value and in good
faith acquires rights in the property. In that event the claimant
shall commence an action to enforce the lien and record a notice of
the pendency of the action within 90 days after the expiration of the
credit, but in no case later than one year after completion of the
work of improvement. If the claimant does not commence an action and
record a notice of the pendency of the action within the time
provided in this subdivision, the claim of lien expires and is
unenforceable.