PRIOR PRINTER'S NOS. 950, 1042, 1239, PRINTER'S NO. 2440
1514, 1552
No. 818 Session of 2001
INTRODUCED BY O'PAKE, GREENLEAF, HOLL, BODACK, BOSCOLA, COSTA,
LAVALLE, LOGAN, MELLOW, MUSTO, TARTAGLIONE AND WAGNER,
MAY 2, 2001
SENATE AMENDMENTS TO HOUSE AMENDMENTS, NOVEMBER 26, 2002
AN ACT
1 Amending Title 42 (Judiciary and Judicial Procedure) of the <--
2 Pennsylvania Consolidated Statutes, further providing for law
3 enforcement records; and providing for limitations on
4 asbestos-related liabilities relating to certain mergers or
5 consolidations.
6 AMENDING TITLE 42 (JUDICIARY AND JUDICIAL PROCEDURE) OF THE <--
7 PENNSYLVANIA CONSOLIDATED STATUTES, PROVIDING FOR INDEX
8 CALCULATIONS; AND FURTHER PROVIDING FOR SIX MONTHS
9 LIMITATIONS, FOR LAW ENFORCEMENT RECORDS AND FOR DEFICIENCY
10 JUDGMENTS.
11 The General Assembly of the Commonwealth of Pennsylvania
12 hereby enacts as follows:
13 Section 1. Section 6308(b)(1) of Title 42 of the <--
14 Pennsylvania Consolidated Statutes is amended to read:
15 SECTION 1. TITLE 42 OF THE PENNSYLVANIA CONSOLIDATED <--
16 STATUTES IS AMENDED BY ADDING A SECTION TO READ:
17 § 1731. INDEX CALCULATION.
18 THE GOVERNING AUTHORITY, WHEN REQUIRED BY STATUTE TO
19 DETERMINE A CHANGE IN THE COST-OF-LIVING, SHALL MAKE SUCH
20 DETERMINATION BASED ON THE PERCENTAGE CHANGE IN THE CONSUMER
21 PRICE INDEX FOR ALL URBAN CONSUMERS (CPI-U): U.S. CITY AVERAGE
1 FOR THE MOST RECENT 12-MONTH PERIOD FOR WHICH FIGURES HAVE BEEN
2 OFFICIALLY REPORTED BY THE UNITED STATES DEPARTMENT OF LABOR,
3 BUREAU OF LABOR STATISTICS.
4 SECTION 2. SECTION 5522(B)(2) OF TITLE 42 IS AMENDED AND THE
5 SUBSECTION IS AMENDED BY ADDING A PARAGRAPH TO READ:
6 § 5522. SIX MONTHS LIMITATION.
7 * * *
8 (B) COMMENCEMENT OF ACTION REQUIRED.--THE FOLLOWING ACTIONS
9 AND PROCEEDINGS MUST BE COMMENCED WITHIN SIX MONTHS:
10 * * *
11 (2) A PETITION FOR THE ESTABLISHMENT OF A DEFICIENCY
12 JUDGMENT FOLLOWING EXECUTION AND DELIVERY OF THE SHERIFF'S
13 DEED FOR THE PROPERTY SOLD IN CONNECTION WITH THE EXECUTION
14 PROCEEDINGS REFERENCED IN THE PROVISIONS OF SECTION 8103(A)
15 (RELATING TO DEFICIENCY JUDGMENTS).
16 * * *
17 (6) A PETITION FOR REDETERMINATION OF FAIR MARKET VALUE
18 PURSUANT TO SECTION 8103(F.1)(4) FOLLOWING EXECUTION AND
19 DELIVERY OF THE SHERIFF'S DEED FOR THE PROPERTY SOLD IN
20 CONNECTION WITH THE EXECUTION PROCEEDINGS REFERENCED UNDER
21 SECTION 8103.
22 SECTION 3. SECTION 6308(B)(1) OF TITLE 42 IS AMENDED TO
23 READ:
24 § 6308. Law enforcement records.
25 * * *
26 (b) Public availability.--
27 (1) The contents of law enforcement records and files
28 concerning a child shall not be disclosed to the public
29 [except if the child is 14 or more years of age at the time
30 of the alleged conduct and if any of] unless any of the
20010S0818B2440 - 2 -
1 following apply:
2 (i) The child has been adjudicated delinquent by a
3 court as a result of an act or acts [which include the
4 elements of rape, kidnapping, murder, robbery, arson,
5 burglary, violation of section 13(a)(30) of the act of
6 April 14, 1972 (P.L.233, No.64), known as The Controlled
7 Substance, Drug, Device and Cosmetic Act, or other act
8 involving the use of or threat of serious bodily harm.]
9 committed:
10 (A) when the child was 14 years of age or older
11 and the conduct would be considered a felony if
12 committed by an adult; or
13 (B) when the child was 12 or 13 years of age and
14 the conduct would have constituted one or more of the
15 following offenses if committed by an adult:
16 (I) Murder.
17 (II) Voluntary manslaughter.
18 (III) Aggravated assault as defined in 18
19 Pa.C.S. § 2702(a)(1) or (2) (relating to
20 aggravated assault).
21 (IV) Arson as defined in 18 Pa.C.S. §
22 3301(a)(1) (relating to arson and related
23 offenses).
24 (V) Involuntary deviate sexual intercourse.
25 (VI) Kidnapping.
26 (VII) Rape.
27 (VIII) Robbery as defined in 18 Pa.C.S. §
28 3701(a)(1)(i), (ii) or (iii) (relating to
29 robbery).
30 (IX) Robbery of motor vehicle.
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1 (X) Attempt or conspiracy to commit any of
2 the offenses in this subparagraph.
3 (ii) A petition alleging delinquency has been filed
4 by a law enforcement agency alleging that the child has
5 committed an act or acts [which include the elements of
6 rape, kidnapping, murder, robbery, arson, burglary,
7 violation of section 13(a)(30) of The Controlled
8 Substance, Drug, Device and Cosmetic Act, or other act
9 involving the use of or threat of serious bodily harm]
10 subject to a hearing pursuant to section 6336(e) and the
11 child previously has been adjudicated delinquent by a
12 court as a result of an act or acts [which included the
13 elements of one of such crimes.] committed:
14 (A) when the child was 14 years of age or older
15 and the conduct would be considered a felony if
16 committed by an adult; or
17 (B) when the child was 12 or 13 years of age and
18 the conduct would have constituted one or more of the
19 following offenses if committed by an adult:
20 (I) Murder.
21 (II) Voluntary manslaughter.
22 (III) Aggravated assault as defined in 18
23 Pa.C.S. § 2702(a)(1) or (2) (relating to
24 aggravated assault).
25 (IV) Arson as defined in 18 Pa.C.S. §
26 3301(a)(1) (relating to arson and related
27 offenses).
28 (V) Involuntary deviate sexual intercourse.
29 (VI) Kidnapping.
30 (VII) Rape.
20010S0818B2440 - 4 -
1 (VIII) Robbery as defined in 18 Pa.C.S. §
2 3701(a)(1)(i), (ii) or (iii) (relating to
3 robbery).
4 (IX) Robbery of motor vehicle.
5 (X) Attempt or conspiracy to commit any of
6 the offenses in this subparagraph.
7 * * *
8 Section 2. Title 42 is amended by adding a section to read: <--
9 § 7104. Limitations on asbestos-related liabilities relating to
10 certain mergers or consolidations.
11 (a) Limitations on successor asbestos-related liabilities.--
12 (1) Except as further limited in paragraph (2), the
13 cumulative successor asbestos-related liabilities of a
14 domestic corporation that was incorporated in this
15 Commonwealth prior to May 1, 2001, shall be limited to the
16 fair market value of the total assets of the transferor
17 determined at the time of the merger or consolidation and
18 such corporation shall have no responsibility for successor
19 asbestos-related liabilities in excess of such limitation.
20 (2) If the transferor had assumed or incurred successor
21 asbestos-related liabilities in connection with a prior
22 merger or consolidation with a prior transferor, then the
23 fair market value of the total assets of the prior
24 transferor, determined at the time of such earlier merger or
25 consolidation, shall be substituted for the limitation set
26 forth in paragraph (1) for purposes of determining the
27 limitation of liability of a domestic corporation.
28 (b) Limitation on total assets available to satisfy
29 successor asbestos-related liabilities.--
30 (1) Except as further limited in paragraph (2), the
20010S0818B2440 - 5 -
1 assets of a domestic corporation that was incorporated in
2 this Commonwealth prior to May 1, 2001, shall be exempt from
3 restraint, attachment or execution on judgments related to
4 claims for successor asbestos-related liabilities to the
5 extent that the cumulative amounts which, after the time of
6 the merger or consolidation as to which the fair market value
7 of total assets is determined for purposes of this subsection
8 and subsection (a), are paid or committed to be paid by or on
9 behalf of the corporation, or by or on behalf of a
10 transferor, in connection with settlements, judgments or
11 other discharges of claims of asbestos-related liabilities,
12 exceeds the fair market value of the total assets of the
13 transferor, determined at the time of the merger or
14 consolidation.
15 (2) If the transferor had assumed or incurred successor
16 asbestos-related liabilities in connection with a prior
17 merger or consolidation with a prior transferor, then the
18 fair market value of the total assets of the prior
19 transferor, determined at the time of such earlier merger or
20 consolidation, shall be substituted for the limitation set
21 forth in paragraph (1) for purposes of determining the extent
22 of the exemption of the assets of a domestic corporation.
23 (c) Fair market value of total assets.--
24 (1) A domestic corporation may establish the fair market
25 value of total assets through any method that is reasonable
26 in the circumstances, including, but not limited to, by
27 reference to the purchase price paid for such assets in an
28 arm's length transaction and the value of such assets
29 recorded on a balance sheet. Any such showing by the domestic
30 corporation of a reasonable determination of the fair market
20010S0818B2440 - 6 -
1 value of assets shall be prima facie evidence of such fair
2 market value.
3 (2) Once a reasonable determination of the fair market
4 value of total assets has been thus established by a domestic
5 corporation, a claimant disputing that determination of value
6 shall then have the burden of establishing a different fair
7 market value of such assets.
8 (3) For the purpose of adjusting the limitations set
9 forth in subsections (a) and (b) to account for the passage
10 of time, the fair market value of total assets at the time of
11 a merger or consolidation shall be increased annually, until
12 the earlier of:
13 (i) the date of the settlement, judgment or other
14 discharge to which the limitations in subsections (a) and
15 (b) are being applied; or
16 (ii) the date on which such adjusted fair market
17 value is first exceeded by the cumulative amounts paid or
18 committed to be paid by or on behalf of the corporation,
19 or by or on behalf of a transferor, after the time of the
20 merger or consolidation as to which the fair market value
21 of total assets is determined for purposes of subsections
22 (a) and (b), in connection with settlements, judgments or
23 other discharges of the successor asbestos-related
24 liabilities,
25 at the rate equal to the prime rate as listed in the first
26 edition of the Wall Street Journal published for each
27 calendar year since such merger or consolidation, plus 1%,
28 not compounded.
29 (d) Transfer of claim to avoid policy of Commonwealth.--The
30 provisions of section 8128 (relating to transfer of claim to
20010S0818B2440 - 7 -
1 avoid policy of Commonwealth) shall apply to the limitation on
2 assets set forth in subsection (b).
3 (e) Application.--
4 (1) The limitations set forth in subsections (a) and (b)
5 shall apply to mergers or consolidations effected under the
6 laws of this Commonwealth or another jurisdiction consummated
7 before May 1, 2001.
8 (2) The limitations set forth in subsections (a) and (b)
9 shall apply to all asbestos claims, including existing
10 asbestos claims, and all litigation, including existing
11 litigation, and shall apply to successors of a domestic
12 corporation to which this section applies.
13 (3) The limitations set forth in subsections (a) and (b)
14 shall not apply to workers' compensation benefits paid by or
15 on behalf of an employer to an employee pursuant to the act
16 of June 2, 1915 (P.L.736, No.338), known as the Workers'
17 Compensation Act, or comparable workers' compensation law of
18 another jurisdiction.
19 (4) The limitations set forth in subsections (a) and (b)
20 shall not apply to any claim against a domestic corporation
21 that does not constitute a successor asbestos-related
22 liability.
23 (5) This section shall not apply to an insurance
24 corporation as defined in 15 Pa.C.S. § 3102 (relating to
25 definitions).
26 (6) The limitations set forth in subsections (a) and (b)
27 shall not apply to any obligations arising under the National
28 Labor Relations Act (49 Stat. 449, 29 U.S.C. § 151 et seq.),
29 or under any collective bargaining agreement.
30 (f) Definitions.--As used in this section, the following
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1 words and phrases shall have the meanings given to them in this
2 subsection:
3 "Asbestos claim." Any claim, wherever or whenever made, for
4 damages, losses, indemnification, contribution or other relief,
5 arising out of, based on or in any way related to asbestos,
6 including, but not limited to, property damage caused by the
7 installation, presence or removal of asbestos, the health
8 effects of exposure to asbestos, including any claim for
9 personal injury, death, mental or emotional injury, risk of
10 disease or other injury or the costs of medical monitoring or
11 surveillance. The term also includes any claim made by or on
12 behalf of any person exposed to asbestos or any representative,
13 spouse, parent, child or other relative of any such person.
14 "Domestic corporation." A domestic corporation as defined in
15 15 Pa.C.S. § 102 (relating to definitions).
16 "Successor asbestos-related liabilities." Any liabilities
17 whether known or unknown, asserted or unasserted, absolute or
18 contingent, accrued or unaccrued, liquidated or unliquidated or
19 due or to become due, related in any way to asbestos claims,
20 that were assumed or incurred by a corporation as a result of or
21 in connection with a merger or consolidation, or the plan of
22 merger or consolidation related thereto, with or into another
23 corporation effected under the laws of this Commonwealth or
24 another jurisdiction or which are related in any way to asbestos
25 claims based on the exercise of control or the ownership of
26 stock of such corporation prior to such merger or consolidation.
27 The term shall include liabilities which, after the time of the
28 merger or consolidation as to which the fair market value of
29 total assets is determined for purposes of subsections (a) and
30 (b), were or are paid or otherwise discharged or committed to be
20010S0818B2440 - 9 -
1 paid or otherwise discharged, by or on behalf of the
2 corporation, or by or on behalf of a transferor, in connection
3 with settlements, judgments or other discharges in this
4 Commonwealth or another jurisdiction.
5 "Transferor." A corporation from whom successor asbestos-
6 related liabilities are assumed or incurred.
7 Section 3. This act shall take effect immediately.
8 SECTION 4. SECTION 8103(A), (B), (C)(3) AND (5), (E) AND (G) <--
9 OF TITLE 42 ARE AMENDED AND THE SECTION IS AMENDED BY ADDING
10 SUBSECTIONS TO READ:
11 § 8103. DEFICIENCY JUDGMENTS.
12 (A) GENERAL RULE.--WHENEVER ANY REAL PROPERTY IS SOLD,
13 DIRECTLY OR INDIRECTLY, TO THE JUDGMENT CREDITOR IN EXECUTION
14 PROCEEDINGS AND THE PRICE FOR WHICH SUCH PROPERTY HAS BEEN SOLD
15 IS NOT SUFFICIENT TO SATISFY THE AMOUNT OF THE JUDGMENT,
16 INTEREST AND COSTS AND THE JUDGMENT CREDITOR SEEKS TO COLLECT
17 THE BALANCE DUE ON SAID JUDGMENT, INTEREST AND COSTS, THE
18 JUDGMENT CREDITOR SHALL PETITION THE COURT TO FIX THE FAIR
19 MARKET VALUE OF THE REAL PROPERTY SOLD. THE PETITION SHALL BE
20 FILED AS A SUPPLEMENTARY PROCEEDING IN THE MATTER IN WHICH THE
21 JUDGMENT WAS ENTERED. IF THE JUDGMENT WAS TRANSFERRED FROM THE
22 COUNTY IN WHICH IT WAS ENTERED TO THE COUNTY WHERE THE EXECUTION
23 SALE WAS HELD, THE JUDGMENT SHALL BE DEEMED ENTERED IN THE
24 COUNTY IN WHICH THE SALE TOOK PLACE.
25 (B) EFFECT OF FAILURE TO GIVE NOTICE.--ANY DEBTOR[, OBLIGOR,
26 GUARANTOR, MORTGAGOR, AND ANY OTHER PERSON DIRECTLY OR
27 INDIRECTLY LIABLE TO THE JUDGMENT CREDITOR FOR THE PAYMENT OF
28 THE DEBT,] AND ANY OWNER OF THE PROPERTY AFFECTED THEREBY, WHO
29 IS NEITHER NAMED IN THE PETITION NOR SERVED WITH A COPY THEREOF
30 OR NOTICE OF THE FILING THEREOF AS PRESCRIBED BY GENERAL RULE,
20010S0818B2440 - 10 -
1 SHALL BE DEEMED TO BE DISCHARGED FROM ALL PERSONAL LIABILITY TO
2 THE JUDGMENT CREDITOR ON THE DEBT, INTEREST AND COSTS, BUT ANY
3 SUCH FAILURE TO NAME SUCH PERSON IN THE PETITION OR TO SERVE THE
4 PETITION OR NOTICE OF THE FILING THEREOF SHALL NOT PREVENT
5 PROCEEDINGS AGAINST ANY RESPONDENT NAMED AND SERVED.
6 (C) ACTION ON PETITION.--
7 * * *
8 (3) IF AN ANSWER IS FILED ALLEGING AS THE FAIR MARKET
9 VALUE AN AMOUNT IN EXCESS OF THE FAIR MARKET VALUE OF THE
10 PROPERTY AS AVERRED IN THE PETITION, THE JUDGMENT CREDITOR
11 MAY AGREE TO ACCEPT AS THE FAIR MARKET VALUE OF THE PROPERTY
12 THE VALUE SET UP IN THE ANSWER AND IN SUCH CASE MAY FILE A
13 STIPULATION RELEASING THE DEBTORS[, OBLIGORS AND GUARANTORS,
14 AND ANY OTHER PERSONS LIABLE DIRECTLY OR INDIRECTLY FOR THE
15 DEBT,] AND THE OWNERS OF THE PROPERTY AFFECTED THEREBY, FROM
16 PERSONAL LIABILITY TO THE JUDGMENT CREDITOR TO THE EXTENT OF
17 THE FAIR MARKET VALUE AS AVERRED IN THE ANSWER, LESS THE
18 AMOUNT OF ANY PRIOR LIENS, COSTS, TAXES AND MUNICIPAL CLAIMS
19 NOT DISCHARGED BY THE SALE, AND ALSO LESS THE AMOUNT OF ANY
20 SUCH ITEMS PAID AT DISTRIBUTION ON THE SALE.
21 * * *
22 (5) AFTER THE HEARING, IF ANY, AND THE DETERMINATION BY
23 THE COURT UNDER PARAGRAPH (1), (2) OR (4) OF THE FAIR MARKET
24 VALUE OF THE PROPERTY SOLD, THEN, EXCEPT AS OTHERWISE
25 PROVIDED IN SUBSECTION (F), THE DEBTOR[, OBLIGOR, GUARANTOR
26 AND ANY OTHER PERSON LIABLE DIRECTLY OR INDIRECTLY TO THE
27 JUDGMENT CREDITOR FOR THE PAYMENT OF THE DEBT] SHALL BE
28 RELEASED AND DISCHARGED OF SUCH LIABILITY TO THE JUDGMENT
29 CREDITOR TO THE EXTENT OF THE FAIR MARKET VALUE OF SAID
30 PROPERTY DETERMINED BY THE COURT, LESS THE AMOUNT OF ALL
20010S0818B2440 - 11 -
1 PRIOR LIENS, COSTS, TAXES AND MUNICIPAL CLAIMS NOT DISCHARGED
2 BY THE SALE, AND ALSO LESS THE AMOUNT OF ANY SUCH ITEMS PAID
3 AT THE DISTRIBUTION ON THE SALE, AND SHALL ALSO BE RELEASED
4 AND DISCHARGED OF SUCH LIABILITY TO THE EXTENT OF ANY AMOUNT
5 BY WHICH THE SALE PRICE, LESS SUCH PRIOR LIENS, COSTS, TAXES
6 AND MUNICIPAL CLAIMS, EXCEEDS THE FAIR MARKET VALUE AS AGREED
7 TO BY THE JUDGMENT CREDITOR OR FIXED AND DETERMINED BY THE
8 COURT AS PROVIDED IN THIS SUBSECTION, AND THEREUPON THE
9 JUDGMENT CREDITOR MAY PROCEED BY APPROPRIATE PROCEEDINGS TO
10 COLLECT THE BALANCE OF THE DEBT.
11 * * *
12 (E) WAIVER OF BENEFIT OF SECTION PROHIBITED.--ANY AGREEMENT
13 MADE BY ANY DEBTOR[, OBLIGOR, SURETY OR GUARANTOR] AT ANY TIME,
14 EITHER BEFORE OR AFTER OR AT THE TIME OF INCURRING ANY
15 OBLIGATION, TO WAIVE THE BENEFITS OF THIS SECTION OR TO RELEASE
16 ANY OBLIGEE FROM COMPLIANCE WITH THE PROVISIONS HEREOF SHALL BE
17 VOID.
18 * * *
19 (F.1) COLLATERAL LOCATED IN MORE THAN ONE COUNTY.--
20 (1) IF THE REAL PROPERTY COLLATERAL IS LOCATED IN MORE
21 THAN ONE COUNTY IN THIS COMMONWEALTH, A JUDGMENT CREDITOR MAY
22 ELECT NOT TO FILE A VALUATION PETITION IN THE COURT IN EACH
23 OF SUCH COUNTIES AS PROVIDED UNDER SUBSECTION (A) AND SHALL
24 NOT BE SUBJECT TO THE PENALTIES FOR FAILURE TO FILE THE
25 PETITION UNDER SUBSECTION (D), IF THE JUDGMENT CREDITOR IS A
26 NONCONSUMER JUDGMENT CREDITOR AND THE PROVISIONS OF
27 PARAGRAPHS (2) AND (3) ARE SATISFIED.
28 (2) THE JUDGMENT CREDITOR SHALL PETITION THE DEFICIENCY
29 COURT TO DETERMINE AND FIX THE FAIR MARKET VALUE OF ALL OF
30 THE REAL PROPERTY COLLATERAL AS PROVIDED UNDER SUBSECTION
20010S0818B2440 - 12 -
1 (C)(1), (2), (3) AND (4). THE VALUE SHALL BE DETERMINED ON A
2 PARCEL-BY-PARCEL BASIS, AND THE AMOUNT SO FIXED FOR EACH
3 PARCEL COMPRISING THE REAL PROPERTY COLLATERAL SHALL BE THE
4 FAIR MARKET VALUE FOR THE PARCEL FOR ALL PURPOSES UNDER THIS
5 SUBSECTION UNLESS REDETERMINED AS PROVIDED IN PARAGRAPH (4).
6 (3) THE DETERMINATION OF THE FAIR MARKET VALUE OF THE
7 REAL PROPERTY COLLATERAL BY THE DEFICIENCY COURT, AS PROVIDED
8 IN PARAGRAPH (2), SHALL BE MADE BEFORE AN EXECUTION SALE IS
9 HELD WITH RESPECT TO ANY OF THE REAL PROPERTY COLLATERAL.
10 (4) (I) IF THE EXECUTION SALE OF A PARCEL OF REAL
11 PROPERTY IS CONCLUDED AND THE JUDGMENT CREDITOR IS THE
12 PURCHASER OF THE PARCEL AT THE SALE, THEN EITHER THE
13 JUDGMENT CREDITOR OR THE DEBTOR MAY FILE A PETITION WITH
14 THE DEFICIENCY COURT SEEKING A REDETERMINATION OF THE
15 FAIR MARKET VALUE OF THE PARCEL PROVIDED THE PETITION IS
16 FILED WITHIN THE SIX MONTH PERIOD ESTABLISHED UNDER
17 SECTION 5522(B)(6).
18 (II) IF THE PETITION IS FILED IN A TIMELY MANNER,
19 THE DEFICIENCY COURT SHALL REDETERMINE THE FAIR MARKET
20 VALUE OF THE PARCEL IN THE MANNER PROVIDED IN SUBSECTION
21 (C)(1), (2), (3) AND (4). THE REDETERMINED VALUE SHALL BE
22 THE FAIR MARKET VALUE OF THE PARCEL FOR ALL PURPOSES
23 UNDER THIS SUBSECTION.
24 (III) THE FILING OF THE PETITION FOR THE
25 REDETERMINATION SHALL NOT LIMIT OR AFFECT THE JUDGMENT
26 CREDITOR'S ABILITY TO EXECUTE ON THE REAL PROPERTY
27 COLLATERAL UNLESS AND UNTIL THE VALUE IS REDETERMINED BY
28 THE COURT. HOWEVER, WHERE THE DEBTOR ALLEGES IN ITS
29 PETITION THAT AN APPROPRIATE REDETERMINATION OF VALUE BY
30 THE COURT WITH RESPECT TO PROPERTY THAT HAS ALREADY BEEN
20010S0818B2440 - 13 -
1 SOLD TO THE JUDGMENT CREDITOR AT AN EXECUTION SALE WOULD
2 BE SUFFICIENT TO SATISFY THE JUDGMENT IN FULL, THE
3 DEFICIENCY COURT MAY ISSUE A STAY OF FURTHER EXECUTION
4 PROCEEDINGS, PENDING THE COURT'S RULING ON THE PETITION
5 FOR REDETERMINATION OF VALUE.
6 (5) IN CASES SUBJECT TO THIS SUBSECTION, THE DEBTOR
7 SHALL BE RELEASED AND DISCHARGED FROM LIABILITY FOR THE
8 PAYMENT OF THE DEBT IN THE MANNER PROVIDED IN SUBSECTION
9 (C)(5) TO THE EXTENT OF:
10 (I) THE FAIR MARKET VALUE DETERMINED BY THE
11 DEFICIENCY COURT OF ALL REAL PROPERTY COLLATERAL
12 PURCHASED BY THE JUDGMENT CREDITOR IN EXECUTION
13 PROCEEDINGS ON THE JUDGMENT LESS THE DEDUCTIBLE ITEMS
14 DESCRIBED IN SUBSECTION (C)(5); AND
15 (II) THE AMOUNT DISTRIBUTED TO THE JUDGMENT CREDITOR
16 AS A RESULT OF THE SALE OF THE REAL PROPERTY COLLATERAL
17 PURCHASED IN THE PROCEEDINGS BY THIRD PARTIES.
18 (F.2) FOREIGN COLLATERAL.--
19 (1) NO DEFICIENCY COURT SHALL HAVE THE POWER TO FIX THE
20 FAIR MARKET VALUE OF REAL PROPERTY LOCATED OUTSIDE THIS
21 COMMONWEALTH AND MAY NOT TAKE INTO ACCOUNT THE VALUE OF THAT
22 PROPERTY IN CONSIDERING WHETHER OR NOT A DEFICIENCY EXISTS
23 UNDER THIS SECTION.
24 (2) THIS SECTION SHALL NOT APPLY TO THE SALE OF ANY REAL
25 PROPERTY LOCATED OUTSIDE THIS COMMONWEALTH.
26 (G) DEFINITIONS.--AS USED IN THIS SECTION, THE FOLLOWING
27 WORDS AND PHRASES SHALL HAVE THE MEANINGS GIVEN TO THEM IN THIS
28 SUBSECTION:
29 "ADJUSTED VALUE." THE ASSESSED VALUE OF A PARCEL OF REAL
30 PROPERTY COLLATERAL DETERMINED FOR REAL ESTATE TAX PURPOSES
20010S0818B2440 - 14 -
1 TIMES THE APPLICABLE COMMON LEVEL RATIO FACTOR PUBLISHED BY THE
2 STATE TAX EQUALIZATION BOARD.
3 "CONSUMER CREDIT TRANSACTION." A CREDIT TRANSACTION IN WHICH
4 THE PARTY TO WHOM CREDIT IS OFFERED OR EXTENDED IS A NATURAL
5 PERSON AND THE MONEY, PROPERTY OR SERVICES WHICH ARE THE SUBJECT
6 OF THE TRANSACTION ARE PRIMARILY FOR PERSONAL, FAMILY OR
7 HOUSEHOLD PURPOSES.
8 "DEBTOR." A DEBTOR, OBLIGOR, GUARANTOR, SURETY AND ANY OTHER
9 PERSON LIABLE DIRECTLY OR INDIRECTLY TO A JUDGMENT CREDITOR FOR
10 THE PAYMENT OF A DEBT.
11 "DEFICIENCY COURT." WITH RESPECT TO CASES COVERED BY
12 SUBSECTION (F.1), THE COURT OF COMMON PLEAS LOCATED IN THE
13 COUNTY WHERE THE HIGHEST ADJUSTED VALUE LAND IS LOCATED.
14 "HIGHEST ADJUSTED VALUE LAND." THE REAL PROPERTY COLLATERAL
15 LOCATED IN A COUNTY THAT HAS A HIGHER AGGREGATE ADJUSTED VALUE
16 THAN REAL PROPERTY COLLATERAL LOCATED IN ANY OTHER COUNTY.
17 "JUDGMENT." THE JUDGMENT WHICH WAS ENFORCED BY THE EXECUTION
18 PROCEEDINGS REFERRED TO IN SUBSECTION (A), WHETHER THAT JUDGMENT
19 IS A JUDGMENT IN PERSONAM SUCH AS A JUDGMENT REQUIRING THE
20 PAYMENT OF MONEY OR A JUDGMENT DE TERRIS OR IN REM SUCH AS A
21 JUDGMENT ENTERED IN AN ACTION OF MORTGAGE FORECLOSURE OR A
22 JUDGMENT ENTERED IN AN ACTION OR PROCEEDING UPON A MECHANIC'S
23 LIEN, A MUNICIPAL CLAIM, A TAX LIEN OR A CHARGE ON LAND.
24 "JUDGMENT CREDITOR." THE HOLDER OF THE JUDGMENT WHICH WAS
25 ENFORCED BY THE EXECUTION PROCEEDINGS.
26 "NONCONSUMER JUDGMENT CREDITOR." ANY JUDGMENT CREDITOR
27 EXCEPT A JUDGMENT CREDITOR WHOSE JUDGMENT WAS ENTERED WITH
28 RESPECT TO A CONSUMER CREDIT TRANSACTION.
29 "NONRECOURSE PORTION OF THE OBLIGATION." THE PORTION AS TO
30 WHICH THE JUDGMENT CREDITOR'S RECOURSE IS LIMITED TO THE
20010S0818B2440 - 15 -
1 MORTGAGED PROPERTY OR OTHER SPECIFIED ASSETS OF THE DEBTOR WHICH
2 ARE LESS THAN ALL OF SUCH ASSETS.
3 "PARTIAL RECOURSE OBLIGATION." AN OBLIGATION WHICH INCLUDES
4 BOTH A NONRECOURSE PORTION AND A RECOURSE PORTION.
5 "REAL PROPERTY COLLATERAL." ALL OF THE REAL PROPERTY SUBJECT
6 TO A LIEN SECURING THE OBLIGATION EVIDENCED BY THE JUDGMENT AND
7 LOCATED WITHIN THIS COMMONWEALTH.
8 "RECOURSE PORTION OF THE OBLIGATION." ALL OF THE OBLIGATION
9 EXCEPT THE NONRECOURSE PORTION THEREOF.
10 "VALUATION PETITION." A PETITION TO FIX THE FAIR MARKET
11 VALUE OF REAL PROPERTY SOLD AS REQUIRED BY SUBSECTION (A).
12 SECTION 5. ALL ACTS AND PARTS OF ACTS ARE REPEALED INSOFAR
13 AS THEY ARE INCONSISTENT WITH THIS ACT.
14 SECTION 6. THIS ACT SHALL TAKE EFFECT AS FOLLOWS:
15 (1) THE AMENDMENT OF 42 PA.C.S. §§ 5522 AND 8103 SHALL
16 TAKE EFFECT IN 60 DAYS.
17 (2) THE REMAINDER OF THIS ACT SHALL TAKE EFFECT
18 IMMEDIATELY.
D23L42DMS/20010S0818B2440 - 16 -