A3237

Exempts creditors from paying municipal property registration fees if the property is under federal bankruptcy protection.

This bill amends existing law to exempt creditors from paying municipal property registration fees if the property is subject to an automatic stay under the federal Bankruptcy Code. The automatic stay is a provision that halts certain legal actions against a debtor once bankruptcy is filed. The bill specifies that a municipality cannot impose an annual fee on a creditor if the property is included in a bankruptcy under chapter 7 or 13 of the federal Bankruptcy Code and the automatic stay has not been vacated.