42c8101h

 

 

CHAPTER 81

JUDGMENTS AND OTHER LIENS

 

Subchapter

A.  General Provisions

B.  Exemptions from Execution

C.  Priority of Liens

D.  Enforcement of Judgments

 

Enactment.  Chapter 81 was added July 9, 1976, P.L.586, No.142, effective 60 days from the date of final enactment of the act of April 28, 1978, P.L.202, No.53.

Chapter Heading.  The heading of Chapter 81 was amended April 28, 1978, P.L.202, No.53, effective in 60 days.

 

 

SUBCHAPTER A

GENERAL PROVISIONS

 

Sec.

8101.  Interest on judgments.

8102.  Contribution among joint judgment debtors.

8103.  Deficiency judgments.

8104.  Duty of judgment creditor to enter satisfaction.

42c8101s

§ 8101.  Interest on judgments.

Except as otherwise provided by another statute, a judgment for a specific sum of money shall bear interest at the lawful rate from the date of the verdict or award, or from the date of the judgment, if the judgment is not entered upon a verdict or award.

42c8102s

§ 8102.  Contribution among joint judgment debtors.

Whenever the property of several persons is subject to the lien of any judgment to the discharge of which such persons should by law or equity contribute, or to which one of such persons should have subrogation against another, the court may require the judgment creditor to levy upon and make sale of the property liable to execution for the payment of the judgment in the proportion or in the succession in which the properties of the several persons are in law or equity liable to contribute towards the discharge of the common incumbrance. The court may direct to what uses the judgment shall be assigned, and when assigned may direct all executions thereon, so as to subserve the rights and equities of all persons whose property is liable to execution.

42c8102v

(Oct. 5, 1980, P.L.693, No.142, eff. 60 days)

42c8103s

§ 8103.  Deficiency judgments.

(a)  General rule.--Whenever any real property is sold, directly or indirectly, to the judgment creditor in execution proceedings and the price for which such property has been sold is not sufficient to satisfy the amount of the judgment, interest and costs and the judgment creditor seeks to collect the balance due on said judgment, interest and costs, the judgment creditor shall petition the court to fix the fair market value of the real property sold. The petition shall be filed as a supplementary proceeding in the matter in which the judgment was entered. If the judgment was transferred from the county in which it was entered to the county where the execution sale was held, the judgment shall be deemed entered in the county in which the sale took place.

(b)  Effect of failure to give notice.--Any debtor and any owner of the property affected thereby, who is neither named in the petition nor served with a copy thereof or notice of the filing thereof as prescribed by general rule, shall be deemed to be discharged from all personal liability to the judgment creditor on the debt, interest and costs, but any such failure to name such person in the petition or to serve the petition or notice of the filing thereof shall not prevent proceedings against any respondent named and served.

(c)  Action on petition.--

(1)  If no answer is filed within the time prescribed by general rule, or if an answer is filed which does not controvert the allegation of the fair market value of the property as averred in the petition, the court shall determine and fix as the fair market value of the property sold the amount thereof alleged in the petition to be the fair market value.

(2)  If an answer is filed controverting the averment in the petition as to the fair market value of the property, but no testimony is produced at the hearing supporting such denial of the fair market value, the court shall determine and fix as the fair market value of the property sold the amount thereof alleged in the petition to be the fair market value.

(3)  If an answer is filed alleging as the fair market value an amount in excess of the fair market value of the property as averred in the petition, the judgment creditor may agree to accept as the fair market value of the property the value set up in the answer and in such case may file a stipulation releasing the debtors and the owners of the property affected thereby, from personal liability to the judgment creditor to the extent of the fair market value as averred in the answer, less the amount of any prior liens, costs, taxes and municipal claims not discharged by the sale, and also less the amount of any such items paid at distribution on the sale.

(4)  If an answer is filed and testimony produced setting forth that the fair market value of the property is more than the value stated in the petition, the court shall hear evidence of and determine and fix the fair market value of the property sold.

(5)  After the hearing, if any, and the determination by the court under paragraph (1), (2) or (4) of the fair market value of the property sold, then, except as otherwise provided in subsection (f), the debtor shall be released and discharged of such liability to the judgment creditor to the extent of the fair market value of said property determined by the court, less the amount of all prior liens, costs, taxes and municipal claims not discharged by the sale, and also less the amount of any such items paid at the distribution on the sale, and shall also be released and discharged of such liability to the extent of any amount by which the sale price, less such prior liens, costs, taxes and municipal claims, exceeds the fair market value as agreed to by the judgment creditor or fixed and determined by the court as provided in this subsection, and thereupon the judgment creditor may proceed by appropriate proceedings to collect the balance of the debt.

(d)  Action in absence of petition.--If the judgment creditor shall fail to present a petition to fix the fair market value of the real property sold within the time after the sale of such real property provided by section 5522 (relating to six months limitation), the debtor, obligor, guarantor or any other person liable directly or indirectly to the judgment creditor for the payment of the debt, or any person interested in any real estate which would, except for the provisions of this section, be bound by the judgment, may file a petition, as a supplementary proceeding in the matter in which the judgment was entered, in the court having jurisdiction, setting forth the fact of the sale, and that no petition has been filed within the time limited by section 5522 to fix the fair market value of the property sold, whereupon the court, after notice as prescribed by general rule, and being satisfied of such facts, shall direct the clerk to mark the judgment satisfied, released and discharged.

(e)  Waiver of benefit of section prohibited.--Any agreement made by any debtor at any time, either before or after or at the time of incurring any obligation, to waive the benefits of this section or to release any obligee from compliance with the provisions hereof shall be void.

(f)  Certain special allocations.--Notwithstanding the provisions of subsection (c)(5), if the judgment creditor is a nonconsumer judgment creditor and:

(1)  if the judgment has been entered with respect to a partial recourse obligation, the fair market value of the property determined as provided in subsection (c) will be applied first to discharge, as provided in subsection (c)(5), all liability for the nonrecourse portion of the obligation before any portion of such value is applied to discharge any liability for the recourse portion of the obligation; and

(2)  if the judgment has been entered with respect to an obligation of which only a portion is guaranteed, the fair market value of the property determined as provided in subsection (c) will be applied first to discharge, as provided in subsection (c), all liability for the portion of the obligation which is not guaranteed before any portion of such value is applied to discharge any liability for the portion of such obligation which is guaranteed.

(f.1)  Collateral located in more than one county.--

(1)  If the real property collateral is located in more than one county in this Commonwealth, a judgment creditor may elect not to file a valuation petition in the court in each of such counties as provided under subsection (a) and shall not be subject to the penalties for failure to file the petition under subsection (d) if the judgment creditor is a nonconsumer judgment creditor and the provisions of paragraphs (2) and (3) are satisfied.

(2)  The judgment creditor shall petition the deficiency court to determine and fix the fair market value of all of the real property collateral as provided under subsection (c)(1), (2), (3) and (4). The value shall be determined on a parcel-by-parcel basis, and the amount so fixed for each parcel comprising the real property collateral shall be the fair market value for the parcel for all purposes under this subsection unless redetermined as provided in paragraph (4).

(3)  The determination of the fair market value of the real property collateral by the deficiency court as provided in paragraph (2) shall be made before an execution sale is held with respect to any of the real property collateral.

(4)  (i)  If the execution sale of a parcel of real property is concluded and the judgment creditor is the purchaser of the parcel at the sale, then either the judgment creditor or the debtor may file a petition with the deficiency court seeking a redetermination of the fair market value of the parcel provided the petition is filed within the six-month period established under section 5522(b)(6).

(ii)  If the petition is filed in a timely manner, the deficiency court shall redetermine the fair market value of the parcel in the manner provided in subsection (c)(1), (2), (3) and (4). The redetermined value shall be the fair market value of the parcel for all purposes under this subsection.

(iii)  The filing of the petition for the redetermination shall not limit or affect the judgment creditor's ability to execute on the real property collateral unless and until the value is redetermined by the court. However, where the debtor alleges in its petition that an appropriate redetermination of value by the court with respect to property that has already been sold to the judgment creditor at an execution sale would be sufficient to satisfy the judgment in full, the deficiency court may issue a stay of further execution proceedings pending the court's ruling on the petition for redetermination of value.

(5)  In cases subject to this subsection, the debtor shall be released and discharged from liability for the payment of the debt in the manner provided in subsection (c)(5) to the extent of:

(i)  the fair market value determined by the deficiency court of all real property collateral purchased by the judgment creditor in execution proceedings on the judgment less the deductible items described in subsection (c)(5); and

(ii)  the amount distributed to the judgment creditor as a result of the sale of the real property collateral purchased in the proceedings by third parties.

(f.2)  Foreign collateral.--

(1)  No deficiency court shall have the power to fix the fair market value of real property located outside this Commonwealth and may not take into account the value of that property in considering whether or not a deficiency exists under this section.

(2)  This section shall not apply to the sale of any real property located outside this Commonwealth.

(g)  Definitions.--As used in this section, the following words and phrases shall have the meanings given to them in this subsection:

"Adjusted value."  The assessed value of a parcel of real property collateral determined for real estate tax purposes times the applicable common level ratio factor published by the State Tax Equalization Board.

"Consumer credit transaction."  A credit transaction in which the party to whom credit is offered or extended is a natural person and the money, property or services which are the subject of the transaction are primarily for personal, family or household purposes.

"Debtor."  A debtor, obligor, guarantor, surety and any other person liable directly or indirectly to a judgment creditor for the payment of a debt.

"Deficiency court."  With respect to cases covered by subsection (f.1), the court of common pleas located in the county where the highest adjusted value land is located.

"Highest adjusted value land."  The real property collateral located in a county that has a higher aggregate adjusted value than real property collateral located in any other county.

"Judgment."  The judgment which was enforced by the execution proceedings referred to in subsection (a), whether that judgment is a judgment in personam such as a judgment requiring the payment of money or a judgment de terris or in rem such as a judgment entered in an action of mortgage foreclosure or a judgment entered in an action or proceeding upon a mechanic's lien, a municipal claim, a tax lien or a charge on land.

"Judgment creditor."  The holder of the judgment which was enforced by the execution proceedings.

"Nonconsumer judgment creditor."  Any judgment creditor except a judgment creditor whose judgment was entered with respect to a consumer credit transaction.

"Nonrecourse portion of the obligation."  The portion as to which the judgment creditor's recourse is limited to the mortgaged property or other specified assets of the debtor which are less than all of such assets.

"Partial recourse obligation."  An obligation which includes both a nonrecourse portion and a recourse portion.

"Real property collateral."  All of the real property subject to a lien securing the obligation evidenced by the judgment and located within this Commonwealth.

"Recourse portion of the obligation."  All of the obligation except the nonrecourse portion thereof.

"Valuation petition."  A petition to fix the fair market value of real property sold as required by subsection (a).

42c8103v

(Dec. 21, 1998, P.L.1082, No.144, eff. imd.; Nov. 24, 2004, P.L.1243, No.152, eff. 60 days; Mar. 14, 2014, P.L.46, No.20, eff. imd.)

 

2014 Amendment.  Act 20 reenacted subsecs. (a), (b), (c)(3) and (5), (e), (f.1), (f.2) and (g), retroactive to January 24, 2005.

2013 Unconstitutionality.  Act 152 of 2004 was declared unconstitutional. Commonwealth v. Neiman, 84 A.3d 603 (Pa. 2013). The unconstitutionality took effect March 17, 2014.

Cross References.  Section 8103 is referred to in section 5522 of this title.

42c8104s

§ 8104.  Duty of judgment creditor to enter satisfaction.

(a)  General rule.--A judgment creditor who has received satisfaction of any judgment in any tribunal of this Commonwealth shall, at the written request of the judgment debtor, or of anyone interested therein, and tender of the fee for entry of satisfaction, enter satisfaction in the office of the clerk of the court where such judgment is outstanding, which satisfaction shall forever discharge the judgment.

(b)  Liquidated damages.--A judgment creditor who shall willfully or unreasonably fail without good cause or refuse for more than 90 days after written notice in the manner prescribed by general rules to comply with a request pursuant to subsection (a) shall pay to the judgment debtor as liquidated damages 1% of the original amount of the judgment for each month of delinquency beyond such 90 days, but not less than $250 nor more than $2,500. Such liquidated damages shall be recoverable pursuant to general rules, by supplementary proceedings in the matter in which the judgment was entered.

42c8104v

(June 25, 1997, P.L.321, No.32, eff. imd.)

 

1997 Amendment.  Act 32 amended subsec. (b).

42c8121h

 

 

SUBCHAPTER B

EXEMPTIONS FROM EXECUTION

 

Sec.

8121.  Scope of subchapter.

8122.  Waiver of exemption.

8123.  General monetary exemption.

8124.  Exemption of particular property.

8125.  Tangible personal property exhibited at international exhibitions.

8126.  Common carriers not liable.

8127.  Personal earnings exempt from process.

8128.  Transfer of claim to avoid policy of Commonwealth.

 

Cross References.  Subchapter B is referred to in section 7501 of this title; section 4361 of Title 23 (Domestic Relations).

42c8121s

§ 8121.  Scope of subchapter.

(a)  General rule.--Except as provided by subsection (b) the exemptions from execution specified in this subchapter are in addition to any other exemptions from execution granted by any other statute.

(b)  Specific sum of money.--Except as otherwise expressly provided by statute, where the provisions of this subchapter and of any other statute granting exemption from execution in terms of a specific sum of money are simultaneously applicable to execution against a judgment debtor, such exemptions shall not be aggregated, but the judgment debtor shall be entitled to the benefit of the applicable statute granting exemption in terms of the largest specific sum of money.

42c8122s

§ 8122.  Waiver of exemption.

Exemptions from attachment or execution granted by statute may not be waived by the debtor by express or implied contract before or after the commencement of the matter, the entry of judgment or otherwise.

42c8122v

(Apr. 28, 1978, P.L.202, No.53, eff. 60 days)

42c8123s

§ 8123.  General monetary exemption.

(a)  General rule.--In addition to any other property specifically exempted by this subchapter, property of the judgment debtor (including bank notes, money, securities, real property, judgments or other indebtedness due the judgment debtor) to the value of $300 shall be exempt from attachment or execution on a judgment. Within such time as may be prescribed by general rules the judgment debtor may claim the exemption in kind and may designate the specific items of property to which the exemption provided by this section shall be applicable unless the designated property is not capable of appropriate division, or the judgment debtor may claim the exemption in cash out of the proceeds of the sale.

(b)  Exception.--Subsection (a) shall not apply to any judgment:

(1)  For support.

(2)  Debtor who is not an individual.

(3)  Obtained for board for four weeks or less.

(4)  For $100 or less obtained for wages for manual labor.

(5)  Obtained in foreclosing a mortgage secured upon real property whether the judgment is by an action in mortgage foreclosure or an action on a note, bond or other evidence of indebtedness accompanying a mortgage. The exception to the general monetary exemption provided for in this paragraph shall be limited to the real property secured by the mortgage. The exception shall not apply to any deficiency judgment.

(c)  Executions issued by minor judiciary.--As to executions issued by the minor judiciary the amount of the exemption specified in subsection (a) shall be reduced by the value of any real or personal property of the judgment debtor which is generally subject to attachment or execution but which by law is not subject to attachments or executions issued by the minor judiciary.

42c8123v

(Apr. 28, 1978, P.L.202, No.53, eff. 60 days; June 8, 1979, P.L.42, No.14, eff. imd.; Dec. 20, 1982, P.L.1409, No.326, eff. 60 days)

 

1982 Amendment.  Act 326 amended subsecs. (a) and (c).

1979 Amendment.  Act 14 amended subsecs. (a) and (b). Section 2 of Act 14 provided that Act 14 shall be retroactive to June 27, 1978, and further provided that all amounts heretofore collected by officers enforcing orders under 42 Pa.C.S. § 8123 as purported monetary exemptions in mortgage foreclosure actions shall be refunded forthwith to the party entitled thereto.

Saved from Suspension.  Pennsylvania Rule of Civil Procedure No. 3159(b)(9), adopted April 20, 1998, provided that section 8123(b)(3) and (4) shall not be deemed suspended or affected by Rules 3101 through 3149 relating to enforcement of money judgments for the payment of money.

Cross References.  Section 8123 is referred to in sections 3315, 4315, 5315 of Title 68 (Real and Personal Property).

42c8124s

§ 8124.  Exemption of particular property.

(a)  Goods.--The following personal property of the judgment debtor shall be exempt from attachment or execution on a judgment:

(1)  Wearing apparel.

(2)  Bibles and school books.

(3)  Sewing machines belonging to seamstresses or used and owned by private families, but not including sewing machines kept for sale or hire.

(4)  Uniforms and accoutrements as provided by 51 Pa.C.S. § 4103 (relating to exemption of uniforms and equipment).

(b)  Retirement funds and accounts.--

(1)  Except as provided in paragraph (2), the following money or other property of the judgment debtor shall be exempt from attachment or execution on a judgment:

(i)  Certain amounts payable under the Public School Employees' Retirement Code as provided by 24 Pa.C.S. § 8533 (relating to taxation, attachment and assignment of funds).

(ii)  Certain amounts payable under the State Employees' Retirement Code as provided by 71 Pa.C.S. § 5953 (relating to taxation, attachment and assignment of funds).

(iii)  The retirement allowance provided for in the act of May 24, 1893 (P.L.129, No.82).

(iv)  Compensation or pension provided for in the act of May 20, 1915 (P.L.566, No.242).

(v)  Compensation or pension provided for in the act of May 28, 1915 (P.L.596, No.259).

(vi)  The retirement allowance, contributions and returned contributions under the act of February 1, 1974 (P.L.34, No.15), known as the "Pennsylvania Municipal Retirement Law."

(vii)  Any pension or annuity, whether by way of a gratuity or otherwise, granted or paid by any private corporation or employer to a retired employee under a plan or contract which provides that the pension or annuity shall not be assignable.

(viii)  Any retirement or annuity fund of any self-employed person (to the extent of payments thereto made while solvent, but not exceeding the amount actually excluded or deducted as retirement funding for Federal income tax purposes) and the appreciation thereon, the income therefrom and the benefits or annuity payable thereunder.

(ix)  Any retirement or annuity fund provided for under section 401(a), 403(a) and (b), 408, 408A, 409 or 530 of the Internal Revenue Code of 1986 (Public Law 99-514, 26 U.S.C. § 401(a), 403(a) and (b), 408, 408A, 409 or 530), the appreciation thereon, the income therefrom, the benefits or annuity payable thereunder and transfers and rollovers between such funds. This subparagraph shall not apply to:

(A)  Amounts contributed by the debtor to the retirement or annuity fund within one year before the debtor filed for bankruptcy. This shall not include amounts directly rolled over from other funds which are exempt from attachment under this subparagraph.

(B)  Amounts contributed by the debtor to the retirement or annuity fund in excess of $15,000 within a one-year period. This shall not include amounts directly rolled over from other funds which are exempt from attachment under this subparagraph.

(C)  Amounts deemed to be fraudulent conveyances.

(2)  The exemptions provided by paragraph (1)(i) through (vi) shall be subject to any inconsistent provision of the act of July 8, 1978 (P.L.752, No.140), known as the "Public Employee Pension Forfeiture Act."

(c)  Insurance proceeds.--The following property or other rights of the judgment debtor shall be exempt from attachment or execution on a judgment:

(1)  Certain amounts paid, provided or rendered by a fraternal benefit society as provided by 40 Pa.C.S. § 6531 (relating to benefits not attachable).

(2)  Claims and compensation payments under the act of June 2, 1915 (P.L.736, No.338), known as "The Pennsylvania Workmen's Compensation Law," except as otherwise provided in the act.

(3)  Any policy or contract of insurance or annuity issued to a solvent insured who is the beneficiary thereof, except any part thereof exceeding an income or return of $100 per month.

(4)  Any amount of proceeds retained by the insurer at maturity or otherwise under the terms of an annuity or policy of life insurance if the policy or a supplemental agreement provides that such proceeds and the income therefrom shall not be assignable.

(5)  Any policy of group insurance or the proceeds thereof.

(6)  The net amount payable under any annuity contract or policy of life insurance made for the benefit of or assigned to the spouse, children or dependent relative of the insured, whether or not the right to change the named beneficiary is reserved by or permitted to the insured. The preceding sentence shall not be applicable to the extent the judgment debtor is such spouse, child or other relative.

(7)  The net amount payable under any accident or disability insurance.

(8)  Certain amounts paid, provided or rendered by a fraternal benefit society as provided by section 305 of the act of July 29, 1977 (P.L.105, No.38), known as the "Fraternal Benefit Society Code."

(9)  Certain amounts paid, provided or rendered under the provisions of section 106(f) of the act of July 19, 1974 (P.L.489, No.176), known as the "Pennsylvania No-fault Motor Vehicle Insurance Act."

(10)  Certain amounts paid, provided or rendered under the provisions of section 703 of the act of December 5, 1936 (2nd Sp.Sess., 1937 P.L.2897, No.1), known as the "Unemployment Compensation Law."

42c8124v

(Apr. 28, 1978, P.L.202, No.53, eff. 60 days; Oct. 5, 1980, P.L.693, No.142, eff. 60 days; Dec. 20, 1982, P.L.1409, No.326, eff. 60 days; Oct. 12, 1990, P.L.531, No.128, eff. 60 days; Feb. 18, 1998, P.L.170, No.26, eff. imd.; Dec. 20, 2000, P.L.742, No.105, eff. 60 days)

 

2000 Amendment.  Act 105 amended subsec. (b)(1)(ix).

1982 Amendment.  Act 326 added subsec. (c)(9) and (10).

1980 Amendment.  Act 142 reenacted and amended subsec. (b), retroactive to the effective date of the act of July 8, 1978, P.L.752, No.140, known as the Public Employee Pension Forfeiture Act, and added subsec. (c)(8). Section 210(d) of Act 142 provided that, notwithstanding 1 Pa.C.S. § 1957 (relating to ineffective provisions not revived by reenactment in amendatory statutes), it is hereby declared to be the intent of (the amendment affecting subsec. (b)) to restore such provisions to their status prior to the partial repeal effected by section 5 of the Public Employee Pension Forfeiture Act except as otherwise expressly provided by such provisions as reenacted and amended hereby.

1984 Partial Repeal.  Section 8 of the act of February 12, 1984, P.L.26, No.11, relating to motor vehicle financial responsibility, repealed section 8124(c)(9) insofar as it is inconsistent with Act 11.

References in Text.  The act of July 19, 1974, P.L.489, No.176, known as the Pennsylvania No-fault Motor Vehicle Insurance Act, referred to in subsec. (c)(9), was repealed by the act of February 12, 1984, P.L.26, No.11. The subject matter is now contained in Chapter 17 of Title 75 (Vehicles).

Section 305 of the act of July 29, 1977, P.L.105, No.38, known as the Fraternal Benefit Society Code, referred to in subsec. (c)(8), was repealed by the act of Dec. 14, 1992, P.L.835, No.134, known as the Fraternal Benefit Societies Code, which was repealed by the act of July 10, 2002, P.L.749, No.110. The subject matter is now contained in section 2433 of the act of May 17, 1921, P.L.682, No.284, known as The Insurance Company Law of 1921.

Section 6531 of Title 40 (Insurance), referred to in subsec. (c)(1), was repealed by the act of Dec. 14, 1992, P.L.835, No.134, known as the Fraternal Benefit Societies Code, which was repealed by the act of July 10, 2002, P.L.749, No.110. The subject matter is now contained in section 2433 of the act of May 17, 1921, P.L.682, No.284, known as The Insurance Company Law of 1921.

The short title of the act of June 2, 1915, P.L.736, No.338, known as The Pennsylvania Workmen's Compensation Law, referred to in subsec. (c)(2), was amended by the act of July 2, 1993, P.L.190, No.44. The amended short title is now the Workers' Compensation Act.

42c8125s

§ 8125.  Tangible personal property exhibited at international exhibitions.

Tangible personal property on exhibition or deposited by exhibitors at any international exhibition held under the auspices of the Federal Government shall be exempt from distress, attachment, levy, sale or any other seizure for any cause whatsoever in the hands of the authorities of such exhibition or otherwise.

42c8126s

§ 8126.  Common carriers not liable.

No common carrier or other person engaged in the business of forwarding or transporting tangible personal property shall be liable in attachment as garnishee or otherwise when such tangible personal property is in transit and at the time of service of process is beyond the limits of this Commonwealth without default, collusion or fraud on the part of such person.

42c8127s

§ 8127.  Personal earnings exempt from process.

(a)  General rule and exceptions.--The wages, salaries and commissions of individuals shall while in the hands of the employer be exempt from any attachment, execution or other process except upon an action or proceeding:

(1)  Under 23 Pa.C.S. Pt. IV (relating to divorce).

(2)  For support.

(3)  For board for four weeks or less.

(3.1)  For amounts awarded to a judgment creditor-landlord arising out of a residential lease upon which the court has rendered judgment which is final. However, the amount subject to attachment shall have deducted from it any security deposit held by the judgment creditor-landlord and forfeited by the judgment debtor-tenant under section 511.1 of the act of April 6, 1951 (P.L.69, No.20), known as The Landlord and Tenant Act of 1951, unless the security deposit has been applied to payment of rent due on the same premises for which the judgment for attachment has been entered. The judgment creditor-landlord shall have the burden of proving that such security deposit has been applied to payment of rent due on the premises herein described. The sum attached shall be no more than 10% of the net wages per pay period of the judgment debtor-tenant or a sum not to place the debtor's net income below the poverty income guidelines as provided annually by the Federal Office of Management and Budget, whichever is less. For the purposes of this paragraph, "net wages" shall mean all wages paid less only the following items:

(i)  Federal, State and local income taxes.

(ii)  F.I.C.A. payments and nonvoluntary retirement payments.

(iii)  Union dues.

(iv)  Health insurance premiums.

(3.2)  In the case of wage attachment arising out of a residential lease, to implement the wage attachment, the judgment creditor-landlord shall comply with the Pennsylvania Rules of Civil Procedure and any applicable local rules. The judgment of the magisterial district judge, magistrate or any other court having jurisdiction over landlord and tenant matters or a judgment before the court of common pleas shall reflect that portion of the judgment which is for physical damages arising out of a residential lease.

(4)  Under the act of August 7, 1963 (P.L.549, No.290), referred to as the Pennsylvania Higher Education Assistance Agency Act.

(5)  For restitution to crime victims, costs, fines or bail judgments pursuant to an order entered by a court in a criminal proceeding.

(b)  Priority.--An order of attachment for support shall have priority over any other attachment, execution, garnishment or wage assignment.

(c)  Duty of employer.--

(1)  For any wage attachment arising out of a residential lease, the employer shall send the attached wages to the prothonotary of the court of common pleas within 15 days from the close of the last pay period in each month. The employer shall be entitled to deduct from the moneys collected from each employee the costs incurred from the extra bookkeeping necessary to record such transactions, not exceeding $5 of the amount of money so collected. If an employer is served with more than one attachment arising out of a residential lease against the same judgment debtor, then the attachments shall be satisfied in the order in which they were served. Each prior attachment shall be satisfied before any effect is given to a subsequent attachment, subject to subsection (a)(3.2). Upon receipt of the wages, the prothonotary of the court of common pleas shall record and send said wages to the judgment creditor-landlord.

(2)  For any wage attachment not arising out of a residential lease, the employer shall send the attached withheld wages to the prothonotary of the court of common pleas to be recorded, and upon receipt, the wages shall be sent to the creditor.

(d)  Duty of judgment creditor-landlord.--

(1)  Any judgment creditor-landlord who has received satisfaction of any judgment pursuant to this section shall enter satisfaction in the office of the clerk of the court where such judgment is outstanding, which satisfaction shall forever discharge the judgment.

(2)  A judgment creditor-landlord who shall fail or refuse for more than 30 days after receiving satisfaction to comply with paragraph (1) shall pay to the judgment debtor-tenant as liquidated damages 1% of the original amount of the judgment for each day of delinquency beyond such 30 days but not more than 50% of the original amount of the judgment. Such liquidated damages shall be recoverable pursuant to general rules, by supplementary proceedings in the matter in which the judgment was entered.

(e)  Prohibition against discharge.--The employer shall not take any adverse action against any individual solely because his wages, salaries or commissions have been attached.

(f)  Victim of abuse.--This section shall not apply and no wage attachment shall be issued against an abused person or victim, as defined in 23 Pa.C.S. § 6102 (relating to definitions), for physical damages related to residential leases when said person has obtained a civil protection order pursuant to 23 Pa.C.S. § 6101 et seq. (relating to protection from abuse), or has obtained a protective order pursuant to 18 Pa.C.S. § 4954 (relating to protective orders), or is a victim-witness as defined by 18 Pa.C.S. § 4951 (relating to definitions), in a criminal proceeding against a family or household member, as defined in 23 Pa.C.S. § 6102, and it is determined by the court that the physical damages were caused by the family or household member.

(g)  Application of section.--This section shall apply to all judgments which remain unsatisfied or arise on or after the effective date of this subsection.

(h)  Definition.--For purposes of this section, "physical damages" shall mean the abuse of the physical makeup of the leasehold premises. The term shall include, but not be limited to, the abuse of walls, floors, ceilings or any other physical makeup of the leasehold premises.

42c8127v

(Apr. 28, 1978, P.L.202, No.53, eff. 60 days; Dec. 20, 1982, P.L.1409, No.326, eff. 60 days; Dec. 19, 1990, P.L.1240, No.206, eff. 90 days; Feb. 15, 1996, P.L.13, No.5, eff. imd.; June 18, 1998, P.L.640, No.84, eff. 120 days; Dec. 9, 2002, P.L.1705, No.215, eff. imd.; Nov. 30, 2004, P.L.1618, No.207, eff. 60 days)

 

2004 Amendment.  Act 207 amended subsec. (a)(3.2). See section 29 of Act 207 in the appendix to this title for special provisions relating to construction of law.

2002 Amendment.  Act 215 amended subsecs. (a)(3.1) and (3.2), (c), (f) and (h).

1998 Amendment.  Act 84 amended subsec. (a).

Saved from Suspension.  Pennsylvania Rule of Civil Procedure No. 3159(b)(10), adopted April 20, 1998, provided that section 8127(b) shall not be deemed suspended or affected by Rules 3101 through 3149 relating to enforcement of money judgments for the payment of money.

42c8128s

§ 8128.  Transfer of claim to avoid policy of Commonwealth.

(a)  General rule.--It shall be unlawful for any creditor or obligee to commence an action on or to transfer any claim against a resident of this Commonwealth for the purpose of having such claim collected by proceedings in a forum which accords such resident less favorable exemptions from attachment or execution than are accorded by this Commonwealth, or for the purpose of depriving such resident of the right to have his personal earnings while in the hands of his employer exempt from application to the payment of his debts.

(b)  Remedy.--In addition to remedy by injunction or otherwise, a resident of this Commonwealth who is aggrieved by any action by a creditor or obligee in violation of subsection (a) shall have a right of action against the creditor or obligee for treble the amount recovered from such resident in violation of this section and reasonable counsel fees. The transfer of any claim against the resident and the commencement of any action thereon outside this Commonwealth shall be prima facie evidence of a purpose to violate the provisions of subsection (a).

(c)  Application to Title 15.--The provisions of this section shall also apply to the limitations set forth in 15 Pa.C.S. § 1929.1 (relating to limitations on asbestos-related liabilities relating to certain mergers or consolidations).

42c8128v

(Dec. 20, 1982, P.L.1409, No.326, eff. 60 days; Dec. 17, 2001, P.L.904, No.101, eff. imd.)

42c8141h

 

 

SUBCHAPTER C

PRIORITY OF LIENS

 

Sec.

8141.  Time from which liens have priority.

8142.  Endorsement of time.

8143.  Open-end mortgages.

8144.  Mortgages to secure certain advances.

 

Enactment.  Subchapter C was added April 28, 1978, P.L.202, No.53, effective in 60 days.

42c8141s

§ 8141.  Time from which liens have priority.

Liens against real property shall have priority over each other on the following basis:

(1)  Purchase money mortgages, from the time they are delivered to the mortgagee, if they are recorded within ten days after their date; otherwise, from the time they are left for record. A mortgage is a "purchase money mortgage" to the extent that it is:

(i)  taken by the seller of the mortgaged property to secure the payment of all or part of the purchase price; or

(ii)  taken by a mortgagee other than the seller to secure the repayment of money actually advanced by such person to or on behalf of the mortgagor at the time the mortgagor acquires title to the property and used by the mortgagor at that time to pay all or part of the purchase price, except that a mortgage other than to the seller of the property shall not be a purchase money mortgage within the meaning of this section unless expressly stated so to be.

(2)  Other mortgages and defeasible deeds in the nature of mortgages, from the time they are left for record.

(3)  Verdicts for a specific sum of money, from the time they are recorded by the court.

(4)  Adverse judgments and other orders, from the time they are rendered.

(5)  Amicable judgments, from the time the instruments on which they are entered are left for entry.

(6)  Writs which when issued and indexed by the office of the clerk of the court of common pleas create liens against real property, from the time they are issued.

(7)  Other instruments which when entered or filed and indexed in the office of the clerk of the court of common pleas create liens against real property, from the time they are left for entry or filing.

42c8141v

 

Cross References.  Section 8141 is referred to in section 8143 of this title.

42c8142s

§ 8142.  Endorsement of time.

(a)  Recorder of deeds.--The recorder of deeds shall endorse upon each mortgage and defeasible deed and on the record thereof, the time when each is left for record.

(b)  Recorded verdicts, etc.--The person who records a verdict or a judgment or other order rendered in open court shall endorse on the record thereof the time it was recorded.

(c)  Orders signed by a judge.--The judge who signs a judgment or other order shall endorse thereon the time he signed it.

(d)  Writs and amicable judgments.--The office of the clerk of the court of common pleas shall endorse upon:

(1)  Each instrument on which an amicable judgment is entered or which otherwise creates a lien against real property, the time it was left for entry or filing.

(2)  Each writ creating a lien against real property, the time it was issued.

(e)  Docket entries.--The office of the clerk of the court of common pleas shall note on the dockets in such office where each verdict, judgment, order, instrument or writ creating a lien against real property is entered, the time it was recorded, rendered, left for filing, or issued.

42c8143s

§ 8143.  Open-end mortgages.

(a)  General rule.--Whether or not it secures any other debt or obligation, an open-end mortgage, other than a purchase money mortgage as defined in section 8141 (relating to time from which liens have priority), may secure unpaid balances of advances made after such open-end mortgage is left for record. The validity and enforceability of the lien of an open-end mortgage shall not be affected by the fact that the first advance is made after the date of recording of the mortgage or that there may be no outstanding indebtedness for a period of time after an advance or advances may have been made and repaid.

(b)  Unobligated advance after notice.--An open-end mortgage securing unpaid balances of advances referred to in subsection (a) is a lien on the premises described therein from the time the mortgage is left for record for the full amount of the total unpaid indebtedness, including the unpaid balances of the advances that are made under the mortgage plus interest thereon, regardless of the time when the advances are made. However, if an advance is made after the holder of the mortgage receives written notice which complies with subsection (d) of a lien or encumbrance on the mortgaged premises which is subordinate to the lien of the mortgage and if the holder is not obligated to make the advance at the time the notice is received, then the lien of the mortgage for the unpaid balance of the advance so made is subordinate to the lien or encumbrance unless the advance so made is in order to pay toward, or to provide funds to the mortgagor to pay toward, all or part of the cost of completing any erection, construction, alteration or repair of any part of the mortgaged premises, the financing of which, in whole or in part, the mortgage was given to secure. If an advance is made after the holder of an open-end mortgage receives written notice of labor performed or to be performed or materials furnished or to be furnished for the erection, construction, alteration or repair of any part of the mortgaged premises and if the holder is not obligated to make the advance at the time the notice is received, then the lien of the mortgage for the unpaid balance of the advance so made is subordinate to a valid mechanic's lien for the labor actually performed or materials actually furnished as specified in the notice unless the advance so made is in order to pay toward, or to provide funds to the mortgagor to pay toward, all or part of the cost of completing any erection, construction, alteration or repair of any part of the mortgaged premises, the financing of which, in whole or in part, the mortgage was given to secure.

(c)  Mortgagor may limit indebtedness.--The mortgagor may limit the indebtedness secured by an open-end mortgage, and release the obligation of the mortgagee to make any further payments, to that in existence at the time of the delivery of a written notice to that effect to the recorder for record, if the notice is executed by the mortgagor, is acknowledged according to law and states the volume and initial page of the record or the recorder's file number of the mortgage, and a copy thereof is served upon the holder of the mortgage more than three days prior to the delivery of the notice to the recorder for record. The notice shall be recorded and indexed by the recorder as an amendment of the mortgage and shall be noted on the margin of the record of the mortgage, giving the book and page number where the notice is recorded. The right of the mortgagor to limit indebtedness secured by the mortgage is not applicable to interest subsequently accruing on indebtedness or advances made after the delivery of the notice to the recorder for record in order to pay for all or part of the cost of completing any erection, construction, alteration or repair of any part of the mortgaged premises, the financing of which, in whole or in part, the mortgage was given to secure.

(d)  Notice.--The written notices provided for in subsection (b) shall be signed by the holder of the lien or encumbrance or the person who has performed or intends to perform the labor or who has furnished or intends to furnish materials, or by his agent or attorney, and shall set forth a description of the real property to which the notice relates, the date, the parties to, the volume and initial page of the record or the recorder's file number of the mortgage over which priority is claimed for the lien or encumbrance and the amount and nature of the claim to which the lien or encumbrance relates or the nature of the labor performed or to be performed or materials furnished or to be furnished and the amount claimed or to be claimed therefor. The written notices provided for in subsections (b) and (c) shall be deemed to have been received by or served upon the holder of the mortgage when delivered to the holder personally or by registered or certified mail at the address of the holder appearing in the mortgage or an assignment thereof or, if no address is so given, at the principal place of business or residence of the holder or the agent of the holder within this Commonwealth or, if the holder has no principal place of business or residence or agent within this Commonwealth, when posted in some conspicuous place on the mortgaged premises.

(e)  Section not exclusive.--This section is not exclusive and shall not be construed to change existing law with respect to the priority of the lien of advances made pursuant to a mortgage except to the extent that it gives priority to the lien for advances under an open-end mortgage complying with the requirements of this section which would not have such priority in the absence of this section.

(f)  Definitions.--As used in this section, the following words and phrases shall have the meanings given to them in this subsection:

"Holder of the mortgage."  The holder of the mortgage as disclosed by the records of the recorder or recorders of the county or counties in which the mortgaged premises are situated.

"Indebtedness."  The unpaid principal balance of advances exclusive of interest and unpaid balances of advances and other extensions of credit secured by the mortgage made for the payment of taxes, assessments, maintenance charges, insurance premiums and costs incurred for the protection of the mortgaged premises.

"Mortgage."  Includes a mortgage, deed of trust or other instrument in the nature of a mortgage.

"Mortgagor."  Includes the mortgagor's successors in interest as disclosed by the records of the recorder or recorders of the county or counties in which the mortgaged premises are situated.

"Open-end mortgage."  A mortgage which secures advances, up to a maximum amount of indebtedness outstanding at any time stated in the mortgage, plus accrued and unpaid interest. Such a mortgage shall be identified at the beginning thereof as an "open-end mortgage" and shall clearly state that it secures future advances, which in the case of a home equity plan, the lender has a contractual obligation to make on the terms and conditions set forth in the mortgage and open-end loan agreement with the borrower. Such open-end mortgage shall be deemed to secure obligatory future advances even though the mortgage or loan agreement contains some or all of the limitations and conditions on the obligation to make advances which are permitted for home equity plans under the Home Equity Loan Consumer Protection Act of 1988 (Public Law 100-709, 102 Stat. 4725), as implemented by Regulation Z issued thereunder in 12 CFR 226.5(b) (relating to general disclosure requirements).

"Recorder."  The recorder of deeds or other official in charge of recording mortgages in each county in which the mortgaged premises are located.

42c8143v

(Oct. 12, 1990, P.L.525, No.126, eff. 60 days)

 

1990 Amendment.  Act 126 added section 8143. Section 2 of Act 126 provided that nothing contained in Act 126 shall be construed to affect the priority of advances made under any mortgage recorded before the effective date of Act 126.

42c8144s

§ 8144.  Mortgages to secure certain advances.

In addition to any other indebtedness, a mortgage may secure unpaid balances of advances made, with respect to the mortgaged premises, for the payment of taxes, assessments, maintenance charges, insurance premiums or costs incurred for the protection of the mortgaged premises or the lien of the mortgage, expenses incurred by the mortgagee by reason of default by the mortgagor under the mortgage or advances made under a construction loan to enable completion of the improvements for which the construction loan was originally made, if such mortgage states that it shall secure such unpaid balances. A mortgage complying with this section is a lien on the premises described therein from the time the mortgage is left for record or the time of delivery to the mortgagee of a purchase money mortgage which is recorded within ten days after its date for the full amount of the unpaid balances of such advances that are made under the mortgage, plus interest thereon, regardless of the time when the advances are made.

42c8144v

(Oct. 12, 1990, P.L.525, No.126, eff. 60 days)

 

1990 Amendment.  Act 126 added section 8144. Section 2 of Act 126 provided that nothing contained in Act 126 shall be construed to affect the priority of advances made under any mortgage recorded before the effective date of Act 126.

42c8151h

 

 

SUBCHAPTER D

ENFORCEMENT OF JUDGMENTS

 

Sec.

8151.  Notice to Department of Revenue of judicial sale of property.

8152.  Judicial sale as affecting lien of mortgage.

 

Enactment.  Subchapter D was added April 28, 1978, P.L.202, No.53, effective in 60 days.

42c8151s

§ 8151.  Notice to Department of Revenue of judicial sale of property.

(a)  General rule.--No judicial officer or officer enforcing orders of a court or magisterial district judge shall, as such, sell the property of any person without filing with the Department of Revenue at least 20 days prior to the sale a report or return with respect to such property containing such information as the department may specify by regulation.

(b)  Exceptions.--The department may by regulation exempt certain classes of transactions from the requirements of subsection (a) if it finds that such reports are not necessary to facilitate the collection of the public revenues. The requirements of subsection (a) shall not be applicable to any transaction where the court, after notice to the department, finds that the exigency of the case is such as to impel the omission of usual procedures.

42c8151v

(Nov. 30, 2004, P.L.1618, No.207, eff. 60 days)

 

2004 Amendment.  Act 207 amended subsec. (a). See section 29 of Act 207 in the appendix to this title for special provisions relating to construction of law.

Saved from Suspension.  Pennsylvania Rule of Civil Procedure for District Justices No. 482(7), as amended June 30, 1982, provided that section 8151 shall not be deemed suspended or affected. Rules 401 through 482 relate to execution of judgments for the payment of money rendered by district justices. Act 207 of 2004 changed justices of the peace to magisterial district judges. Rule 482 can now be found in the Rules of Conduct, Office Standards and Civil Procedure for Magisterial District Judges.

Pennsylvania Rule of Civil Procedure No. 3159(b)(8), adopted April 20, 1998, provided that section 8151 shall not be deemed suspended or affected by Rules 3101 through 3149 relating to enforcement of money judgments for the payment of money.

42c8152s

§ 8152.  Judicial sale as affecting lien of mortgage.

(a)  General rule.--Except as otherwise provided in this section, a judicial or other sale of real estate shall not affect the lien of a mortgage thereon, if the lien of the mortgage is or shall be prior to all other liens upon the same property except:

(1)  Other mortgages, ground rents and purchase money due the Commonwealth.

(2)  Taxes, municipal claims and assessments, not at the date of the mortgage duly entered as a lien in the office of the clerk of the court of common pleas.

(3)  Taxes, municipal claims and assessments whose lien though afterwards accruing has by law priority given it.

(b)  Property of a decedent, etc.--A judicial sale of the property shall divest the lien of a mortgage to the extent authorized by the court pursuant to the following provisions of Title 20 (relating to decedents, estates and fiduciaries):

Section 3353 (relating to order of court).

Section 3357 (relating to title of purchaser).

(c)  Sale on prior lien.--A judicial or other sale of real estate in proceedings under a prior judgment or a prior ground rent, or in foreclosure of a prior mortgage, shall discharge a mortgage later in lien.

(d)  Unseated lands.--Subsection (a) shall not apply to mortgages upon unseated lands or sales of unseated lands for taxes.

42c8152v

 

Cross References.  Section 8152 is referred to in sections 3315, 4315, 5315 of Title 68 (Real and Personal Property).