AN ACT
Relating to personal property liens and security interests; amending RCW
61.12.162, 19.32.170, 60.08.040, 60.10.020, 60.10.040, 60.10.050, 60.34.040,
60.36.020, 60.36.050, 60.52.040, 60.72.040, 61.16.010, 61.16.020, and
61.16.030; adding new sections to chapter 60.10 RCW; recodifying RCW 61.12.162;
decodifying RCW 61.12.164 and 61.12.165; and repealing RCW 61.16.060.
BE IT ENACTED BY THE LEGISLATURE
OF THE STATE OF WASHINGTON:
Sec.
1. RCW
61.12.162 and 1969 c 82 s 1 are each amended to read as follows:
The
provisions of chapter 61.12 RCW, ((as now or hereafter amended,)) so far
as ((the same shall be)) they are applicable, ((shall))
govern in actions for the judicial foreclosure of liens on personal property
excluded by RCW 62A.9-104 from the provisions of the Uniform Commercial
Code, Title 62A RCW. The lien holder may proceed ((upon his)) on the
lien; and if there ((be)) is a separate obligation ((in
writing to pay the same,)) secured by ((said)) the lien, ((he))
the lienholder may bring suit ((upon such separate promise. When he))
on the obligation. If the lienor proceeds on the ((promise, if there
be a specific agreement therein contained, for the payment of a certain sum, or
there is a separate obligation for the said sum)) obligation, the court
shall, in addition to ((a decree of sale of lien property)) entering
a decree foreclosing the lien, render judgment ((shall be
rendered)) for the amount due ((upon said promise or other instrument,
the payment of which is thereby secured;)) on the obligation. The
decree shall direct the sale of the lien property, and if there is a
judgment on an obligation and the proceeds of ((said)) the
sale ((be)) are insufficient ((under the execution)) to
satisfy the judgment, the sheriff is authorized to proceed under the
same execution and levy ((upon)) on and sell other property
of the lien debtor, not exempt from execution, for the sum remaining
unsatisfied.
Redemption
rights and the rights and interest of a purchaser for value under this section
are governed by RCW 60.10.040 and 60.10.050.
NEW
SECTION. Sec. 2. A new
section is added to chapter 60.10 RCW to read as follows:
The
provisions of chapter 61.12 RCW, so far as they are applicable, shall also be
available to a secured party seeking to enforce a security interest by judicial
proceedings as authorized by RCW 62A.9-501(1). In such a proceeding, the court
shall enter a judgment foreclosing the security interest and shall render
judgment for the amount due on the secured obligation. The decree shall direct
the sale of property that is subject to the foreclosed security interest and is
within the court's jurisdiction, and if the proceeds of sale are insufficient
to satisfy the judgment, the sheriff is authorized to proceed under the same
execution and levy on other property of the judgment debtor, not exempt from
execution, for the sum remaining unsatisfied.
The
rights and interest of a purchaser for value are governed by RCW 60.10.040
except as otherwise provided in Title 62A RCW.
Sec.
3. RCW
19.32.170 and 1969 c 82 s 10 are each amended to read as follows:
Every
operator of a locker shall have a lien upon all the property of every kind in
his possession for all lockers' rentals, processing, handling or other charges
due. Such lien may be foreclosed under the procedures as provided in chapter
60.10 RCW ((and RCW 61.12.162)).
(1)
Locker owners and operators shall not be responsible for liability for
violations of game or other laws by renters unless the contents of the locker
are under the control of the locker plant operator.
Sec.
4. RCW
60.08.040 and 1969 c 82 s 11 are each amended to read as follows:
The
lien herein provided for may be enforced against all persons having a junior or
subsequent interest in any such chattel, by judicial procedure or by summary
procedure as set forth in chapter 60.10 RCW ((and RCW 61.12.162)) within
nine months after the filing of such lien notice, and if no such action shall
be commenced within such time such lien shall cease.
Sec.
5. RCW
60.10.020 and 1991 c 33 s 3 are each amended to read as follows:
Any
lien upon personal property, excluded by RCW 62A.9‑104 from the
provisions of the Uniform Commercial Code (Title 62A RCW), may be foreclosed
by: (1) An action in the district court having jurisdiction in the district in
which the property is situated in accordance with RCW ((61.12.162)) 60.10.---
(RCW 61.12.162 as recodified by this act), if the value of the claim does
not exceed the jurisdictional limit of the district court provided in RCW
3.66.020; or (2) an action in the superior court having jurisdiction in the
county in which the property is situated in accordance with RCW ((61.12.162))
60.10.--- (RCW 61.12.162 as recodified by this act), if the value of the
claim exceeds the jurisdictional limit of the district court provided in RCW
3.66.020; or (3) summary procedure as provided in this chapter.
Sec.
6. RCW 60.10.040
and 1969 c 82 s 5 are each amended to read as follows:
When a
lien is foreclosed in accordance with the provisions of ((RCW 61.12.162 and))
this chapter, the disposition transfers to a purchaser for value all of the
lien debtor's rights therein, discharges the lien under which it is made and
any security interest or lien subordinate thereto. The purchaser takes free of
all such rights and interests even though the lien holder fails to comply with
the requirements of this chapter ((or of any judicial proceedings under RCW
61.12.162)):
(1) In
the case of a public sale, if the purchaser has no knowledge of any defects in
the sale and if he does not buy in collusion with the lien holder, other
bidders or the person conducting the sale; or
(2) In
any other case, if the purchaser acts in good faith.
Sec.
7. RCW
60.10.050 and 1969 c 82 s 6 are each amended to read as follows:
At any
time before the lien holder has disposed of collateral or entered into a
contract for its disposition under ((RCW 61.12.162 and)) this chapter,
the lien debtor or any other secured party may redeem the collateral by
tendering fulfillment of all obligations to the holder that are secured
by the collateral as well as the expenses reasonably incurred by the lien
holder((,)) in holding and preparing the collateral for
disposition, in arranging for the sale, and ((his)) for
reasonable attorneys' fees and legal expenses.
Sec.
8. RCW
60.34.040 and 1969 c 82 s 12 are each amended to read as follows:
The
lien may be enforced within the same time and in the same manner as mechanics'
liens are foreclosed, when said lien is upon real property, or in the same
manner as provided in chapter 60.10 RCW ((and RCW 61.12.162)) when the
lien is upon personal property. The court may allow as part of the costs of
the action the money paid for filing or recording the claim and a reasonable
attorney fee.
Sec.
9. RCW
60.36.020 and 1969 c 82 s 19 are each amended to read as follows:
Such
liens may be enforced, in all cases of maritime contracts or service, by a suit
in admiralty, in rem, and the law regulating proceedings in admiralty shall
govern in all such suits; and in all cases of contracts or service not maritime,
by a civil action in any superior court of this state as provided in RCW ((61.12.162))
60.10.--- (RCW 61.12.162 as recodified by this act).
Sec.
10. RCW
60.36.050 and 1969 c 82 s 13 are each amended to read as follows:
The
liens hereby created may be foreclosed as provided in RCW ((61.12.162)) 60.10.---
(RCW 61.12.162 as recodified by this act).
Sec.
11. RCW
60.52.040 and 1969 c 82 s 14 are each amended to read as follows:
Liens
under this chapter may be foreclosed as provided in chapter 60.10 RCW ((and
RCW 61.12.162)).
Sec.
12. RCW
60.72.040 and 1969 c 82 s 15 are each amended to read as follows:
Said
lien may be foreclosed as provided in chapter 60.10 RCW ((and RCW 61.12.162)).
Sec.
13. RCW
61.16.010 and 1897 c 23 s 1 are each amended to read as follows:
Any
person to whom any real estate ((or chattel)) mortgage is given, or the
assignee of any such mortgage, may, by an instrument in writing, ((by him))
signed and acknowledged in the manner provided by law entitling mortgages to be
recorded, assign the same to the person therein named as assignee, and any
person to whom any such mortgage has been so assigned, may, after the
assignment has been recorded in the office of the auditor of the county wherein
such mortgage is of record, acknowledge satisfaction of the mortgage, and
discharge the same of record.
Sec.
14. RCW
61.16.020 and 1985 c 44 s 13 are each amended to read as follows:
Whenever
the amount due on any mortgage is paid, the mortgagee((, his)) or the
mortgagee's legal representatives or assigns((,)) shall, at the
request of any person interested in the property mortgaged, execute an
instrument in writing referring to the mortgage by the volume and page of the
record or otherwise sufficiently describing it and acknowledging satisfaction
in full thereof. Said instrument shall be duly acknowledged, and upon request
shall be recorded in the county wherein the mortgaged property is situated.
Every instrument of writing heretofore recorded and purporting to be a
satisfaction of mortgage, which sufficiently describes the mortgage which it
purports to satisfy so that the same may be readily identified, and which has
been duly acknowledged before an officer authorized by law to take
acknowledgments or oaths, is hereby declared legal and valid, and a certified
copy of the record thereof is hereby constituted prima facie evidence of such
satisfaction.
Sec.
15. RCW
61.16.030 and 1984 c 14 s 1 are each amended to read as follows:
If the
mortgagee fails to acknowledge satisfaction of the mortgage as provided in RCW 61.16.020
sixty days from the date of such request or demand, ((he)) the
mortgagee shall forfeit and pay to the mortgagor damages and a reasonable
attorneys' fee, to be recovered in any court having competent jurisdiction, and
said court, when convinced that said mortgage has been fully satisfied, shall
issue an order in writing, directing the auditor to cancel said mortgage, and
the auditor shall immediately record the order and cancel the mortgage as
directed by the court, upon the margin of the page upon which the mortgage is
recorded, making reference thereupon to the order of the court and to the page
where the order is recorded.
NEW
SECTION. Sec. 16. RCW
61.16.060 and 1937 c 133 s 2 are each repealed.
NEW
SECTION. Sec. 17. RCW
61.12.164 and 61.12.165 are each decodified.
NEW SECTION. Sec. 18. RCW
61.12.162 is recodified in chapter 60.10 RCW to follow RCW 60.10.020.
