nonconsensual liens;
invalidity
DPA |
Committee on Judiciary Committee |
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DPA |
Caucus and COW |
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DPA |
As Passed the House |
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As Transmitted to the Governor |
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SB 1347 expands the provision declaring most
nonconsensual liens to be invalid and without the force or effect of law to
apply to all persons. Currently, these
nonconsensual liens are invalid only if they are against a public officer’s or
a public employee’s property.
Before
1997, Arizona law did not prohibit individuals and groups from filing
commercial and common law liens against any owner of Arizona real estate. According to the Uniform Commercial Code,
these types of liens are fraudulent if not signed by both parties.
In
1997, the Arizona Legislature declared nonconsensual liens against a public
officer or employee a form of harassment.
The legislation further declared such liens invalid unless accompanied
by a court order or judgment. However,
nonconsensual liens against persons who are not public officers or employees
are still valid (Laws 1997, Ch. 191).
The
only nonconsensual liens that are considered valid without a court order or
judgment currently are those recorded in conformity to Arizona law by a
governmental entity or political subdivision or agency, a validly licensed
utility or water delivery company, a mechanic’s lien claimant or an entity
created under covenants, conditions, restrictions or declarations affecting
real property.
·
Eliminates
the provision that states if a lien is accepted for filing and is signed by the
attorney general or county attorney, the lien is invalid.
·
Makes
conforming changes.
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DOCUMENT FOOTER ---------
44th Legislature Analyst
Initials _______
Second Regular Session April
17, 2000
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