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.
