Bulletin: UT2009001

Utah has enacted Senate Bill 182 (Utah Code Annotated 77-38a-401), which lifts any expiration date on criminal restitution orders. (In this context, a restitution order is that part of the penalty imposed upon a convicted criminal intended to restore the victim(s) of the crime to their position/condition as it existed prior to the criminal act. The order is generally imposed as a part of the sentencing procedure.)

Among the provisions of the statute, and of particular concern to title persons:

1. A restitution order is enforceable until it is fully paid, without a statute of limitation or expiration date.
   
   
2. Prior orders not fully paid prior to May 12, 2009, remain in full force and effect and do not expire by passage of time.
   
   
3. If a defendant fails to comply with the court order, the victims will be entitled to collection fees.
   
   
4. The orders include the collection fees, attorney fees incurred by the victims and interest accruing on the unpaid restitution order.

The criminal restitution order entered on a civil judgment docket, according to SB 182, will be enforceable until paid (without expiration by reason of passage of time) and have the same effect as a judgment in a civil action. It appears that the order will not need to be recorded in the county of the land in question, nor in the Registry of Judgments maintained by the clerk of the district court in the county in which the land in question is located.

For the present, we are asking that you search sellers and borrowers for 20 years, for possible restitution orders. Give serious consideration to showing any unsatisfied restitution order against a party to your transaction. If you discover an unsatisfied restitution order against a prior owner, please contact your underwriter with copies of all relevant documents before raising an exception.

There may be possible technical defenses in some circumstances. It is obviously better to deal with the restitution order in the commitment and before the closing than to try to rely on arguments in defending against a claim.

If you have questions related to this bulletin, please contact your local underwriting personnel or Stewart Legal Services.

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