24 Jun Arizona Legislative Update
The Arizona legislature recently amended its laws governing consumer lenders and those relating to judgment liens on real property. Both bills discussed in this memorandum are effective August 6, 2016.
ARIZONA HOUSE BILL 2152
The law was amended to remove the following restrictions:
- That a licensed consumer lender (“Licensee”) may not give a consumer any prize, good, ware, merchandise or tangible property of an aggregate value of more than $25; and
- That a Licensee may not pay a fee, commission or bonus or give anything of value to any merchant, dealer, consumer or other person for referring consumer lender loan business, other than the fees permitted pursuant to the federal Real Estate Settlement Procedures Act.
The law was also amended to provide the following additional types of insurance which may be sold to the consumer in connection with a consumer lending loan and which the consumer may contract for:
· Accidental death and dismemberment insurance providing a benefit if death occurs as a result of an accident or if dismemberment occurs; and
· Disability income protection insurance providing a benefit if a total disability occurs during the terms of insurance.
A Licensee who is licensed to sell disability insurance may sell and include in the principal amount of a consumer lender loan the cost of the premium for accidental death and dismemberment insurance or disability income protection insurance, or both, if all of the following apply:
- The insurance policy or certificate is approved by the Director of the Department of Insurance;
- The purchase of the insurance is not a condition of the consumer lender loan;
- The consumer signs an application for the insurance that is separate from the consumer lender loan application; and
- The Licensee does not offer or discuss with the consumer the option of accidental death and dismemberment insurance or disability income protection insurance until after the consumer lender loan application is completed and the consumer lender loan is approved.
ARIZONA HOUSE BILL 2555
A certified copy of the judgment of any court in Arizona may be filed and recorded in the office of the county recorder in each county where the judgment creditor desires the judgment to become a lien on the real property of the judgment debtor. On recording in substantial compliance with the legal requirements, the judgment becomes a lien on the real property of the judgment debtor, including any part of the real property of the judgment debtor as otherwise provided by law. For failure to substantially comply, the judgment does not become a lien.
A civil judgment in favor of the State of Arizona is exempt from the requirement to record an information statement as prescribed by law and becomes a lien on the real property of the judgment debtor when it is recorded in the office of the county recorder. This applies retroactively to all judgments in favor of the State of Arizona without regard to when the judgment was recorded.
Any judgment or decree or any renewal that requires the payment of money and that is recorded, will not become a lien on real property until a separate information statement is attached to the judgment being recorded. Any such judgment, decree or renewal that is not accompanied by the separate information statement does not become a lien on real property until the judgment creditor records a document entitled “amendment to recorded judgment” that contains a separate information statement.
A civil judgment in favor of the State of Arizona is exempt from the above requirements. The above requirements apply retroactively to all judgments in favor of the state of Arizona without regard to when the judgment was recorded.