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ID S1355

Bill

Status

Passed

3/23/2022

Primary Sponsor

State Affairs Committee

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Origin

Senate

2022 Regular Session

AI Summary

  • Applies to regulated credit transactions made on or after July 1, 2022, secured by a subordinate lien on 1-4 family residential property where the owner occupies one unit as principal residence
  • Requires creditors or assignees to send written notice to consumers within 90 days after a foreclosure sale of a senior mortgage, notifying them of liability under the regulated credit transaction
  • Mandates notice must include a statement informing consumers that their liability is subject to a statute of limitations and advising them to seek legal counsel
  • Requires written notice to consumers at the time of account sale or assignment containing the same statute of limitations statement
  • Failure to provide required notice does not invalidate, alter, or impair a creditor's right to attempt collection of the obligation
  • Becomes effective July 1, 2022, and declared an emergency measure

Legislative Description

Adds to existing law to provide for restrictions on actions arising from a regulated credit transaction primarily secured by a mortgage or deed of trust on residential real property.

COMMERCIAL TRANSACTIONS

Last Action

Session Law Chapter 168 Effective: 07/01/2022

3/23/2022

Committee Referrals

Business3/8/2022
Commerce and Human Resources3/1/2022
Judiciary and Rules2/28/2022

Full Bill Text

No bill text available