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H0165................................by JUDICIARY, RULES AND ADMINISTRATION
REAL PROPERTY - MORTGAGE - Amends existing law to provide that the statute
of limitations for the foreclosure of a mortgage on real property is five
years from the maturity date of the secured obligation, or, if no maturity
date is stated in the secured obligation, five years from the accrual of
the cause of action giving rise to the right of foreclosure.
02/04 House intro - 1st rdg - to printing
02/05 Rpt prt - to Jud
02/18 Rpt out - rec d/p - to 2nd rdg
02/19 2nd rdg - to 3rd rdg
02/22 3rd rdg - PASSED - 68-0-2
AYES -- Alltus, Barraclough, Barrett, Bell, Bieter, Black, Boe,
Bruneel, Callister, Campbell, Chase, Clark, Crow, Cuddy, Deal,
Denney, Ellsworth, Field(13), Field(20), Gagner, Geddes, Gould,
Hadley, Hammond, Hansen(23), Hansen(29), Henbest, Hornbeck, Jaquet,
Jones, Judd, Kellogg, Kempton, Kendell, Kunz, Lake, Limbaugh,
Loertscher, Mader, Marley, McKague, Meyer, Montgomery, Mortensen,
Moyle, Pischner, Pomeroy, Reynolds, Ridinger, Ringo, Robison, Sali,
Schaefer, Sellman, Smith, Smylie, Stevenson, Stoicheff, Stone,
Taylor(Taylor), Tilman, Tippets, Trail, Wheeler, Williams, Wood,
Zimmermann, Mr Speaker
NAYS -- None
Absent and excused -- Linford, Watson
Floor Sponsor - Boe
Title apvd - to Senate
02/23 Senate intro - 1st rdg - to Jud
03/04 Rpt out - rec d/p - to 2nd rdg
03/05 2nd rdg - to 3rd rdg
03/10 3rd rdg - PASSED - 34-0-1
AYES--Andreason, Boatright, Branch, Bunderson, Burtenshaw, Cameron,
Crow, Danielson, Darrington, Davis, Deide, Dunklin, Frasure, Geddes,
Hawkins, Ingram, Ipsen, Keough, King, Lee, McLaughlin, Noh,
Richardson, Riggs, Risch, Sandy, Schroeder, Sorensen, Stegner,
Stennett, Thorne, Twiggs, Wheeler, Whitworth
NAYS--None
Absent and excused--Parry
Floor Sponsor - Davis
Title apvd - to House
03/11 To enrol
03/12 Rpt enrol - Sp signed
03/15 Pres signed
03/16 To Governor
03/18 Governor signed
Session Law Chapter 112
Effective: 07/01/99
H0165|||| LEGISLATURE OF THE STATE OF IDAHO |||| Fifty-fifth Legislature First Regular Session - 1999IN THE HOUSE OF REPRESENTATIVES HOUSE BILL NO. 165 BY JUDICIARY, RULES AND ADMINISTRATION COMMITTEE 1 AN ACT 2 RELATING TO STATUTES OF LIMITATIONS; AMENDING SECTION 5-214A, IDAHO CODE, TO 3 PROVIDE THAT THE STATUTE OF LIMITATIONS FOR THE FORECLOSURE OF A MORTGAGE 4 ON REAL PROPERTY IS FIVE YEARS FROM THE MATURITY DATE OF THE SECURED OBLI- 5 GATION, OR IF NO MATURITY DATE IS STATED IN THE SECURED OBLIGATION, FIVE 6 YEARS FROM THE ACCRUAL OF THE CAUSE OF ACTION GIVING RISE TO THE RIGHT OF 7 FORECLOSURE. 8 Be It Enacted by the Legislature of the State of Idaho: 9 SECTION 1. That Section 5-214A, Idaho Code, be, and the same is hereby 10 amended to read as follows: 11 5-214A. ACTION TO FORECLOSE MORTGAGE ON REAL PROPERTY.Within five12(5) years:131.An action for the foreclosure of a mortgage on real property 14 must be commenced within five (5) years from thedate of maturity, as15disclosed by the public record,maturity date of the obli- 16 gation or indebtedness secured by such mortgage .or by any17indenture or other instrument supplemental thereto, as changed by extension,18if any, of the time of maturity, filed for record before the expiration of19said period of five (5) years. If the public record does not disclose the date20of maturityIf the obligation or indebtedness secured by such 21 mortgage does not state a maturity date , then the date of the22execution of such mortgage or lienaccrual of the cause of action 23 giving rise to the right to foreclose shall be deemed the date of matu- 24 rity of such obligation or indebtedness. 252. Such extension may be by agreement or affidavit showing the date26of maturity of the obligation or indebtedness as extended describing the prop-27erty embraced in the mortgage and giving the book and page or recorder's28serial number where such mortgage appears of record. Such agreement or affida-29vit must be filed for record in the county or counties where the mortgage is30recorded and the recorder shall note on the record of such mortgage the matu-31rity date thereof as shown by such agreement or affidavit and shall also note32on such record the book and page where such agreement or affidavit is33recorded.
STATEMENT OF PURPOSE
RS 08831
The purpose of this legislation is to clarify the statute
of limitations applicable to mortgage foreclosures. Current law
provides that the 5-year statute of limitations for foreclosing a
mortgage begins to run upon the maturity date of the obligation
secured by the mortgage, as disclosed by the recorded mortgage. If
the recorded mortgage does not disclose the maturity date, the
statute of limitations begins to run on the day the mortgage is
signed. This means that if the mortgagee inadvertently fails to
state the maturity date in the mortgage, that mortgage will become
unenforceable in five (5) years, even though the secured promissory
note might have many years left in its term. The mortgagee will have
lost the right to foreclose the mortgage, even though there has been
no default in the obligation, and therefore, the mortgagee never had
the right to foreclose the mortgage. In other words, the mortgagee's
cause of action for foreclosure can be lost before it ever accrues.
This legislation provides that an action for foreclosure
of a mortgage must be commenced within five (5) years from the
maturity date of the obligation secured by the mortgage, without
regard to whether the maturity date is stated in the mortgage
itself. If the obligation secured by the mortgage does not state a
maturity date (for example, a promissory note payable on demand),
then the date of the accrual of the cause of action for foreclosure
shall be deemed the date of maturity of such obligation, beginning
the running of the 5-year statute of limitations.
FISCAL NOTE
This bill will have no impact on the general fund.
Contact:
Name: Patrick V. Collins
Hawley Troxell Ennis & Hawley LLP
Counsel for the Idaho Bankers Association
Phone: (208) 344-6000
STATEMENT OF PURPOSE/FISCAL NOTE H 165