Utah Modifies Provisions Regarding Exemptions under Certain Transactions and Revises Lien Judgment Provisions
by: Matthew Dailey
The state of Utah modified its provisions relating to exempted transactions under the State Consumer Credit Code and exemptions under the Financial Institution Mortgage Financing Regulation Act. It also revised provisions requiring a separate information sheet filed with a judgment lien and provides that a small claim judgment is not a lien. These revisions are effective on May 12, 2014.
Utah enacted a bill that modified provisions related to financial institutions and financial services. Some of the important changes enacted by the bill include:
• modify references to the Utah League of Credit Unions or Utah Bankers Association;
• clarifies dividend requirements;
• repeals provisions related to loans to or investment in affiliates;
• addresses stock ownership by banks;
• deletes references to the Office of Thrift Supervision;
• addresses voting requirements for voluntary mergers;
• modifies grandfathering of certain credit unions;
• modifies exempted transactions under the Utah Consumer Credit Code;
• addresses fees under the Utah Consumer Credit Code;
• modifies exemptions under the Financial Institution Mortgage Financing Regulation Act;
• removes a probable cause requirement for the commissioner of financial institutions
• requiring a lender, broker, or servicer to make records available to the commissioner;
• addresses fee restrictions;
• repeals anti-tying provisions;
• repeals surplus account provisions;
• repeals provisions related to charging off losses and replenishment of surplus accounts; and
• makes technical and conforming amendments.
According to 78B-5-201, any judgment that requires payment of money and is entered in a district court on or after September 1, 1998 or any judgment or abstract of judgment recorded in the office of a county recorder after July 1, 2002 is not a lien until a separate information statements of the creditor is recorded in the office of the county recorder.
The separate information statement must include the name of any judgment creditor, debtor, assignor or assignee. The date on which the judgment was recorded in the county recorder and the entry number and book and page of the judgment must be on the statement as well.
Also, the bill makes clear that a small claims judgment alone is not a lien. Unless the judgment is abstracted to the civil division of the district court then the judgment will not have the effect of a real property lien.
About the Author
Matthew Dailey, J.D. is Regulatory Compliance Consultant at Bankers Advisory. He is a graduate of Stonehill College and earned his Juris Doctor at the New England School of Law. He is admitted to the Massachusetts Bar. Matthew can be reached at matthew@bankersadvisory.com
Anna DeSimone founded Bankers Advisory in 1986 and is a nationally recognized authority in residential mortgage lending. She has received numerous industry awards and has authored more than 40 best practices guides and hundreds of articles.
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