xXTheoryXx
Citizen
Speaker of the House
Representative
Commerce Department
Construction & Transport Department
xXTheoryXx
Speaker
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CONGRESS OF THE
COMMONWEALTH OF REDMONT
A BILL TO
To Establish a Framework for the Creation, Registration, Priority, and Enforcement of Property Liens
The people of the Commonwealth of Redmont, through their elected Representatives in the Congress and the force of law ordained to that Congress by the people through the constitution, do hereby enact the following provisions into law:
PART I: PRELIMINARIES
1 - Short Title and Enactment
(1) This Act may be cited as the 'Property Lien Act'.
(2) This Act shall be enacted 7 days after its signage, to allow the Department of Commerce reasonable time to establish the Lien Registry.
(3) This Act has been authored by Speaker of the House of Representatives xXTheoryXx.
(4) This Act has been co-sponsored by President of the Senate Talion77.
(5) This Act amends or is intended to coordinate with the following:
(a) Amends the Criminal Code Act.
(b) Amends the Redmont Civil Code Act.
(c) Coordinates with the Bankruptcy Act.
(d) Coordinates with the Legal Entity Act.
(e) Coordinates with the Debt Recovery Quick Fix Act.
(f) Coordinates with the Taxation Act.
(g) Coordinates with the Tenant Rights Act.
(b) Amends the Redmont Civil Code Act.
(c) Coordinates with the Bankruptcy Act.
(d) Coordinates with the Legal Entity Act.
(e) Coordinates with the Debt Recovery Quick Fix Act.
(f) Coordinates with the Taxation Act.
(g) Coordinates with the Tenant Rights Act.
2 - Reasons and Intent
(1) The Commonwealth has no comprehensive framework for the creation, registration, or enforcement of property liens. Secured lending currently operates on private agreement alone, with no public registry and no clear priority rules.
(2) Without a registry, third-party purchasers and creditors cannot reliably know what claims exist against a debtor's property. This drives up the cost of credit and increases the risk of fraud.
(3) Workers who perform services and are not paid have no automatic security against the property on which they worked. This bill creates a Mechanic's Lien to protect them.
(4) The Bankruptcy Act or subsequent acts assumes the existence of "Secured Claims" and "collateral" but no act defines how these come into being. This Act fills that gap.
(5) A clear, transparent lien framework benefits debtors (who know their rights), creditors (who can enforce predictably), and the wider economy (which receives more credit at lower cost).
3 - Definitions
(1) For the purposes of this Act, the following definitions shall apply:
(a) Lien. A legal claim against specific property held as security for the performance of an obligation, giving the Lienholder the right to enforce against that property if the obligation is not satisfied.
(b) Lienholder. The person, entity, or government in whose favor a Lien exists.
(c) Lien Debtor. The owner of property subject to a Lien.
(d) Collateral. The property subject to a Lien.
(e) Security Agreement. A written agreement between a Lien Debtor and a Lienholder creating a Consensual Lien.
(f) Consensual Lien. A Lien created by agreement between the Lien Debtor and the Lienholder.
(g) Statutory Lien. A Lien that arises automatically under this Act or another law, without the need for agreement.
(h) Judicial Lien. A Lien created by court order, including in connection with a money judgment.
(i) Mechanic's Lien. A Statutory Lien arising in favor of a worker, contractor, or service provider for unpaid wages or fees for work performed on property.
(j) Purchase Money Lien. A Consensual Lien securing financing used to acquire the specific Collateral subject to that Lien.
(k) Perfection. The completion of all steps required by this Act to render a Lien enforceable against third parties.
(l) Lien Registry. The public registry of Liens maintained by the Department of Commerce under Part III.
(m) Foreclosure. The process by which a Lienholder enforces a Lien by sale of the Collateral.
(n) Default. A failure by the Lien Debtor to perform the obligation secured by a Lien, as defined in the Security Agreement, by statute, or by court order.
(o) Fair Market Value. As defined in the Bankruptcy Act or subsequent acts, or where the Bankruptcy Act is not in force, the price at which an asset would change hands between a willing buyer and willing seller under arm's length conditions.
(b) Lienholder. The person, entity, or government in whose favor a Lien exists.
(c) Lien Debtor. The owner of property subject to a Lien.
(d) Collateral. The property subject to a Lien.
(e) Security Agreement. A written agreement between a Lien Debtor and a Lienholder creating a Consensual Lien.
(f) Consensual Lien. A Lien created by agreement between the Lien Debtor and the Lienholder.
(g) Statutory Lien. A Lien that arises automatically under this Act or another law, without the need for agreement.
(h) Judicial Lien. A Lien created by court order, including in connection with a money judgment.
(i) Mechanic's Lien. A Statutory Lien arising in favor of a worker, contractor, or service provider for unpaid wages or fees for work performed on property.
(j) Purchase Money Lien. A Consensual Lien securing financing used to acquire the specific Collateral subject to that Lien.
(k) Perfection. The completion of all steps required by this Act to render a Lien enforceable against third parties.
(l) Lien Registry. The public registry of Liens maintained by the Department of Commerce under Part III.
(m) Foreclosure. The process by which a Lienholder enforces a Lien by sale of the Collateral.
(n) Default. A failure by the Lien Debtor to perform the obligation secured by a Lien, as defined in the Security Agreement, by statute, or by court order.
(o) Fair Market Value. As defined in the Bankruptcy Act or subsequent acts, or where the Bankruptcy Act is not in force, the price at which an asset would change hands between a willing buyer and willing seller under arm's length conditions.
PART II: CREATION OF LIENS
1 - Consensual Liens
(1) A Consensual Lien is created when:
(a) The Lien Debtor and Lienholder enter into a written Security Agreement;
(b) The Security Agreement identifies the Collateral with reasonable specificity;
(c) The Security Agreement identifies the obligation secured; and
(d) The Lien Debtor has rights in the Collateral, or has the power to grant rights in the Collateral.
(b) The Security Agreement identifies the Collateral with reasonable specificity;
(c) The Security Agreement identifies the obligation secured; and
(d) The Lien Debtor has rights in the Collateral, or has the power to grant rights in the Collateral.
(2) A Security Agreement may secure present or future obligations.
(3) A Consensual Lien may be granted by any natural person or Incorporated Entity having capacity to contract.
2 - Statutory Liens
(1) The following Statutory Liens shall arise automatically as provided in this Section:
(a) Tax Lien. Where any tax, penalty, or government fee imposed by the Taxation Act or subsequent acts, or other law, is unpaid for more than 14 days after it becomes due, a Tax Lien shall arise in favor of the Commonwealth against all real property of the Lien Debtor, up to the amount owed.
(b) Mechanic's Lien. Where a worker, contractor, or service provider has performed work on property at the request or with the consent of the property owner, and has not been paid within 14 days of the work being completed, a Mechanic's Lien shall arise in favor of the worker against that property, up to the amount of unpaid wages or fees. A Mechanic's Lien shall not arise against government property, town property, or property held by any governmental entity as defined in the Legal Entity Act or subsequent acts. Workers and contractors with unpaid claims against a governmental entity must pursue payment through the courts or other lawful means.
(c) Landlord's Lien. Where rent owed to a landlord is unpaid for more than 14 days, a Landlord's Lien shall arise against the personal property of the tenant located on the leased premises, up to the amount of unpaid rent. This Lien is subject to the Tenant Rights Act or subsequent acts.
(d) Other Statutory Liens as may be expressly created by future Acts of Congress.
(b) Mechanic's Lien. Where a worker, contractor, or service provider has performed work on property at the request or with the consent of the property owner, and has not been paid within 14 days of the work being completed, a Mechanic's Lien shall arise in favor of the worker against that property, up to the amount of unpaid wages or fees. A Mechanic's Lien shall not arise against government property, town property, or property held by any governmental entity as defined in the Legal Entity Act or subsequent acts. Workers and contractors with unpaid claims against a governmental entity must pursue payment through the courts or other lawful means.
(c) Landlord's Lien. Where rent owed to a landlord is unpaid for more than 14 days, a Landlord's Lien shall arise against the personal property of the tenant located on the leased premises, up to the amount of unpaid rent. This Lien is subject to the Tenant Rights Act or subsequent acts.
(d) Other Statutory Liens as may be expressly created by future Acts of Congress.
(2) Statutory Liens shall be perfected by filing in the Lien Registry within 14 days of arising. Failure to file within that window does not extinguish the Lien between the parties, but renders it unenforceable against third parties.
(3) Special Requirements for Mechanic's Liens. Where a Mechanic's Lien is claimed for an amount exceeding $5,000 and the Lienholder cannot produce a written work agreement signed by the property owner or their authorised agent, the Lienholder may perfect the Mechanic's Lien only after obtaining a court order from the Federal Court of Redmont recognising the work performed and the amount owed. The 14-day filing window under Subsection (2) of this Section is tolled during any period in which an application for such court order is pending before the court.
3 - Judicial Liens
(1) A Judicial Lien arises when:
(a) A court of competent jurisdiction enters a money judgment against a person;
(b) The judgment creditor files a Notice of Judicial Lien with the Lien Registry; and
(c) The Notice identifies the property to be encumbered with reasonable specificity.
(b) The judgment creditor files a Notice of Judicial Lien with the Lien Registry; and
(c) The Notice identifies the property to be encumbered with reasonable specificity.
(2) A Judicial Lien may be sought as part of the Debt Recovery Quick Fix Act or subsequent acts process, or independently after judgment.
(3) A Judicial Lien attaches only to property in which the judgment debtor has present or future rights.
4 - Anti-Circumvention
(1) Any provision in a Security Agreement, loan contract, or similar instrument that purports to grant a Lienholder rights beyond those provided by this Act, or that purports to waive protections granted to the Lien Debtor by this Act, shall be void and unenforceable. Without limiting the generality of the foregoing, the following provisions are specifically void:
(a) Provisions that require the Lien Debtor to both surrender Collateral and satisfy a judgment for the same underlying obligation. A Lienholder enforcing a Lien shall be limited to the value of the Collateral recovered through foreclosure plus any deficiency claim, with the deficiency recoverable only as an unsecured personal obligation of the Lien Debtor under Part V Section 4(2);
(b) Provisions purporting to waive the Lien Debtor's right of redemption under Part V Section 2;
(c) Provisions purporting to waive the Lien Debtor's right to receive surplus proceeds under Part V Section 4(1)(d);
(d) Provisions purporting to authorise private foreclosure without court order, in violation of Part V Section 3(3); and
(e) Provisions purporting to allow the Lienholder to retain both the Collateral and the proceeds of any sale of the Collateral.
(b) Provisions purporting to waive the Lien Debtor's right of redemption under Part V Section 2;
(c) Provisions purporting to waive the Lien Debtor's right to receive surplus proceeds under Part V Section 4(1)(d);
(d) Provisions purporting to authorise private foreclosure without court order, in violation of Part V Section 3(3); and
(e) Provisions purporting to allow the Lienholder to retain both the Collateral and the proceeds of any sale of the Collateral.
(2) A Lienholder who attempts to enforce a provision void under Subsection (1) may be liable to the Lien Debtor for actual damages caused, and may be subject to charges under Part VII Section 30 (Unauthorized Private Foreclosure) of this Act where applicable.
(3) Severability of void provisions does not invalidate the remainder of an otherwise valid Security Agreement or loan contract; the agreement shall be enforced with the void provisions struck.
PART III: THE LIEN REGISTRY
1 - Establishment
(1) The Department of Commerce shall establish and maintain a public Lien Registry.
(2) The Registry shall be searchable by:
(a) The name of the Lien Debtor;
(b) The identifier of the Collateral (plot ID, or equivalent); and
(c) The name of the Lienholder.
(b) The identifier of the Collateral (plot ID, or equivalent); and
(c) The name of the Lienholder.
(3) The Registry shall be free to search and accessible to all citizens.
2 - Filing Requirements
(1) A filing to perfect a Lien shall include:
(a) The name of the Lien Debtor;
(b) The name of the Lienholder;
(c) A description of the Collateral sufficient to identify it;
(d) The amount or maximum amount secured;
(e) The date the Lien arose; and
(f) For Consensual Liens, a copy or summary of the Security Agreement.
(b) The name of the Lienholder;
(c) A description of the Collateral sufficient to identify it;
(d) The amount or maximum amount secured;
(e) The date the Lien arose; and
(f) For Consensual Liens, a copy or summary of the Security Agreement.
(2) The Department of Commerce may charge a reasonable filing fee, not to exceed $250 per filing, to cover administrative costs. The Department may set differential fees by Lien type, subject to this cap.
(3) No Lien shall be filed in the Lien Registry for an obligation of less than $100. Obligations below this threshold shall be pursued through ordinary debt collection mechanisms.
3 - Public Access and Errors
(1) Any person may search the Registry without charge.
(2) A Lien Debtor or any party adversely affected by a filing may apply to the Department of Commerce to correct or remove an erroneous filing. The Department shall act on such application within 14 days.
(3) An aggrieved party may appeal a Department decision under this Section to the Federal Court of Redmont.
4 - Nature of Registry and Burden of Proof
(1) The Lien Registry is a notice-only system by default. Registration of a Lien does not constitute Commonwealth verification, approval, or certification of its validity, enforceability, or priority, except where the Lien has been Authoritatively Certified under Section 5.
(2) The burden of proving the validity and enforceability of any Lien rests solely with the Lienholder, unless the Lien has been Authoritatively Certified, in which case the burden shifts as provided in Section 5.
(3) No Commonwealth department or agency is required to investigate or verify the underlying validity of any Lien beyond the records of the Lien Registry. Administrative actions taken in reliance on the Registry, including distribution of auction proceeds under Part V Section 5, do not constitute Commonwealth certification of validity, except where the Lien has been Authoritatively Certified.
(4) Disputes regarding any Lien must be determined by a court of competent jurisdiction unless otherwise provided by law.
5 - Authoritative Certification
(1) At the time of filing or thereafter, a Lienholder may apply for Authoritative Certification, which gives rise to a conclusive presumption of the Lien's formal validity in administrative proceedings and a rebuttable presumption in court. Certification is optional; the absence of certification does not affect the validity of a notice-only filing.
(2) Authoritative Certification requires verification by:
(a) Department of Commerce (Registry Verification). Within 7 days of application, DoC shall verify:
(i) The filing is complete under Section 2;
(ii) All required documents are attached and facially authentic;
(iii) The Lien Debtor and Lienholder are identified; and
(iv) No duplicate filings exist for the same Lien.
(b) Department of Construction and Transportation (Property Verification). Within 7 days of application, in parallel with Subsection (2)(a), DCT shall verify:
(i) The Lien Debtor holds title to or has a recorded interest in the identified property;
(ii) The property identification matches DCT plot records; and
(iii) No active eviction or transfer dispute exists that would render certification premature.
(c) Federal Court of Redmont (Legal Validity, high-value Liens only). Where the Lien secures an obligation exceeding $10,000, the Lienholder shall obtain a declaratory order from the Federal Court confirming:
(i) The validity of the underlying Security Agreement or other instrument creating the Lien;
(ii) The Lien Debtor's interest in the property; and
(iii) The amount owed.
This requirement does not apply to Liens of $10,000 or less, nor to Judicial Liens, where the underlying court order already serves this function.
(i) The filing is complete under Section 2;
(ii) All required documents are attached and facially authentic;
(iii) The Lien Debtor and Lienholder are identified; and
(iv) No duplicate filings exist for the same Lien.
(b) Department of Construction and Transportation (Property Verification). Within 7 days of application, in parallel with Subsection (2)(a), DCT shall verify:
(i) The Lien Debtor holds title to or has a recorded interest in the identified property;
(ii) The property identification matches DCT plot records; and
(iii) No active eviction or transfer dispute exists that would render certification premature.
(c) Federal Court of Redmont (Legal Validity, high-value Liens only). Where the Lien secures an obligation exceeding $10,000, the Lienholder shall obtain a declaratory order from the Federal Court confirming:
(i) The validity of the underlying Security Agreement or other instrument creating the Lien;
(ii) The Lien Debtor's interest in the property; and
(iii) The amount owed.
This requirement does not apply to Liens of $10,000 or less, nor to Judicial Liens, where the underlying court order already serves this function.
(3) Each verifying body shall act independently. A denial by any one body prevents Authoritative Certification, though the Lien remains valid as a notice-only filing.
(4) Where the Department of Commerce or Department of Construction and Transportation fails to act within its 7-day window without justification, the Lienholder may petition the Federal Court of Redmont for an order compelling action or for the Court to make the determination directly.
(5) The Authoritative Certification fee is $500, allocated as:
(a) $300 to the Department of Commerce; and
(b) $200 to the Department of Construction and Transportation.
(b) $200 to the Department of Construction and Transportation.
Federal Court filing fees for declaratory orders under Subsection (2)(c) are separately payable by the Lienholder to the Court. All fees collected by a department under this Section shall be ringfenced by that department to fund its verification function and shall not be diverted to other purposes.
(6) An Authoritatively Certified Lien shall be marked as such in the Registry. Administrative actions taken in reliance on such certification, including distribution of auction proceeds under Part V Section 5, may proceed without further verification by any Commonwealth department.
(7) Any party adversely affected by a certification decision may appeal to the Federal Court of Redmont within 14 days.
(8) Authoritative Certification does not foreclose subsequent challenges to the underlying obligation in court. The Authoritatively Certified status creates a rebuttable presumption that shifts the burden of disproving validity to the challenger.
PART IV: PERFECTION AND PRIORITY
1 - Perfection
(1) A Lien is perfected upon proper filing in the Lien Registry.
(2) An unperfected Lien remains enforceable between the Lien Debtor and the Lienholder, but is subordinate to:
(a) Any later-filed perfected Lien;
(b) Any subsequent good-faith purchaser of the Collateral for value without notice of the Lien; and
(c) The trustee in any bankruptcy of the Lien Debtor.
(b) Any subsequent good-faith purchaser of the Collateral for value without notice of the Lien; and
(c) The trustee in any bankruptcy of the Lien Debtor.
(3) A Lien shall be deemed perfected on the date of filing.
2 - Priority Rules
(1) As between competing perfected Liens on the same Collateral, priority is determined by the date and time of filing, with the earliest-filed Lien having highest priority. This is the First-to-File Rule.
(2) The First-to-File Rule is subject to the following exceptions:
(a) Mechanic's Lien Super-Priority. A Mechanic's Lien perfected within 14 days of arising shall take priority over all other Liens on the same Collateral that were filed within the 1 month period prior to the Mechanic's Lien arising. This protects workers from creditors who would otherwise scoop up all the debtor's property as security.
(b) Purchase Money Lien Super-Priority. A Purchase Money Lien perfected within 14 days of the Lien Debtor acquiring the Collateral shall take priority over all earlier-filed Liens against that specific Collateral.
(c) Tax Lien Priority. A Tax Lien shall take priority over all Consensual Liens and Judicial Liens filed after the date the underlying tax became due, regardless of when the Tax Lien itself was filed. This does not affect a Mechanic's Lien or Purchase Money Lien with super-priority.
(b) Purchase Money Lien Super-Priority. A Purchase Money Lien perfected within 14 days of the Lien Debtor acquiring the Collateral shall take priority over all earlier-filed Liens against that specific Collateral.
(c) Tax Lien Priority. A Tax Lien shall take priority over all Consensual Liens and Judicial Liens filed after the date the underlying tax became due, regardless of when the Tax Lien itself was filed. This does not affect a Mechanic's Lien or Purchase Money Lien with super-priority.
3 - Purchase Money Liens
(1) A Lien qualifies as a Purchase Money Lien if:
(a) The obligation secured is for funds advanced to enable the Lien Debtor to acquire the specific Collateral; and
(b) The funds were in fact applied to such acquisition.
(b) The funds were in fact applied to such acquisition.
(2) The Security Agreement must identify the Lien as a Purchase Money Lien at the time of filing.
PART V: ENFORCEMENT
1 - Default
(1) A Default occurs when the Lien Debtor fails to perform the secured obligation. The definition of Default may be specified in the Security Agreement, by statute, or by the terms of a court order.
(2) Upon Default, the Lienholder may commence enforcement proceedings under this Part.
2 - Notice and Cure
(1) Before enforcing a Lien, the Lienholder shall give written notice to the Lien Debtor stating:
(a) The nature of the Default;
(b) The amount required to cure;
(c) The date by which cure must be made, being not less than 14 days from the date of notice; and
(d) That foreclosure will follow if the Default is not cured.
(b) The amount required to cure;
(c) The date by which cure must be made, being not less than 14 days from the date of notice; and
(d) That foreclosure will follow if the Default is not cured.
(2) The Lien Debtor has the right to cure the Default by paying the amount owed plus reasonable costs at any time before the foreclosure sale concludes.
(3) Notice may be given by:
(a) In-game mail;
(b) Discord message; or
(c) Forum private message.
(b) Discord message; or
(c) Forum private message.
3 - Foreclosure Sale
(1) Where a Default is not cured within the notice period, the Lienholder may seek a foreclosure sale of the Collateral.
(2) Foreclosure shall be conducted by the Department of Construction and Transportation through its auction system, or by such other public auction mechanism as the Department of Commerce may approve.
(3) The Lienholder may not conduct a private foreclosure sale without an order of the Federal Court of Redmont.
(4) Notice of the foreclosure sale shall be posted in the Lien Registry and in #government-announcements (or successor channel) at least 14 days before the sale.
(5) The Lien Debtor may attend the sale, may bid, and may redeem the Collateral at any time before the hammer falls by paying the amount owed plus costs.
4 - Distribution of Proceeds
(1) Proceeds of a foreclosure sale shall be distributed in the following order:
(a) Costs of sale, including auction fees;
(b) The Lienholder conducting the foreclosure, up to the amount of their secured claim;
(c) Junior Lienholders, in order of priority, up to the amount of their secured claims; and
(d) Any surplus to the Lien Debtor.
(b) The Lienholder conducting the foreclosure, up to the amount of their secured claim;
(c) Junior Lienholders, in order of priority, up to the amount of their secured claims; and
(d) Any surplus to the Lien Debtor.
(2) Where the sale proceeds are insufficient to satisfy the foreclosing Lienholder's claim, the deficiency shall remain a personal obligation of the Lien Debtor, enforceable as an unsecured claim.
5 - Eviction and Liened Property
(1) The existence of a Lien shall not prevent, stay, or otherwise affect the eviction, auction, sellback, or other lawful transfer of property by the Department of Construction and Transportation. Such proceedings shall proceed in the ordinary course, and no injunction shall issue solely on the basis that the property is subject to a Lien.
(2) Before disbursing the proceeds of any plot auction, sellback, or other transfer, the Department of Construction and Transportation shall search the Lien Registry for perfected Liens against the property.
(3) Any perfected Liens against the auctioned property shall be paid from the proceeds in priority order under Part IV, before disbursement to the previous owner.
(4) Where proceeds have already been disbursed to the previous owner before a Lien comes to light, the Lienholder loses their security in the property and in the proceeds, but retains a personal claim against the previous owner, enforceable as an unsecured claim.
6 - Late-Filed Liens During Active Auction
(1) Where a Lien is filed against a plot already in active auction, the auction shall proceed to completion.
(2) Proceeds of the completed auction shall be held in escrow by the Department of Commerce pending determination of the Lien's validity and priority.
(3) Upon resolution, proceeds shall be distributed according to Section 5 of this Part.
PART VI: RELEASE, EXPIRATION, AND DISCHARGE
1 - Automatic Release
(1) A Lien shall automatically release upon satisfaction in full of the secured obligation.
(2) The Lienholder shall file a Release of Lien in the Lien Registry within 14 days of satisfaction.
(3) Failure to file a timely Release is a violation of this Act.
2 - Voluntary Release
(1) A Lienholder may release a Lien at any time by filing a Release of Lien in the Lien Registry.
3 - Expiration
(1) A perfected Lien expires 6 months after its filing date unless renewed.
(2) A Lien may be renewed for additional 6 month periods by filing a Notice of Renewal in the Lien Registry before the expiration date.
(3) An expired Lien may be re-filed, but loses its original priority date.
4 - Court-Ordered Discharge
(1) The Federal Court of Redmont may order the discharge of a Lien upon application by any interested party where:
(a) The Lien was created or filed by fraud or mistake;
(b) The secured obligation has been satisfied but the Lienholder refuses to file a Release;
(c) The Lien has been declared invalid; or
(d) The Lien is so old or unenforceable that it constitutes a cloud on title.
(b) The secured obligation has been satisfied but the Lienholder refuses to file a Release;
(c) The Lien has been declared invalid; or
(d) The Lien is so old or unenforceable that it constitutes a cloud on title.
(2) Court-ordered discharge orders are appealable to the Supreme Court of Redmont within 14 days.
5 - Survival of Liens After Eviction
(1) A Lien shall survive the eviction of the Lien Debtor from the Collateral.
(2) Any return of the Collateral to the original owner is subject to satisfaction of all surviving Liens.
(3) Where the Collateral has been auctioned following eviction, the original owner's claim is against the proceeds, subject to Lien priority under Part V Section 5 of this Act, not against the Collateral itself.
PART VII: CRIMINAL CODE ACT AMENDMENTS
1 - New Offences
(1) The Criminal Code Act or subsequent acts is hereby amended to include the following offences:
28 - False Lien Filing
Offence Type: Indictable
Penalty: Up to 300 Penalty Units; up to 30 minutes imprisonment; cancellation of the false filing
A person commits an offence if the person:
(a) knowingly files a Lien in the Lien Registry that does not arise under the Property Lien Act; or
(b) knowingly files a Lien for an amount materially greater than is owed; or
(c) knowingly files a Lien against property in which the Lien Debtor has no interest, with intent to harass or defraud.
Relevant Law: Act of Congress - Property Lien Act
29 - Failure to Release a Satisfied Lien
Offence Type: Summary
Penalty: Up to 100 Penalty Units; restitution of any damage caused
A person commits an offence if the person:
(a) being a Lienholder, fails to file a Release of Lien within 14 days of the secured obligation being satisfied; and
(b) the failure is willful or in reckless disregard of the Lien Debtor's interests.
Relevant Law: Act of Congress - Property Lien Act
30 - Unauthorized Private Foreclosure
Offence Type: Indictable
Penalty: Up to 200 Penalty Units; up to 30 minutes imprisonment; restitution of Fair Market Value of the Collateral
A person commits an offence if the person:
(a) seizes, sells, or otherwise disposes of Collateral subject to a Lien without following the foreclosure procedures of the Property Lien Act and without an order of the Federal Court.
Relevant Law: Act of Congress - Property Lien Act
Offence Type: Indictable
Penalty: Up to 300 Penalty Units; up to 30 minutes imprisonment; cancellation of the false filing
A person commits an offence if the person:
(a) knowingly files a Lien in the Lien Registry that does not arise under the Property Lien Act; or
(b) knowingly files a Lien for an amount materially greater than is owed; or
(c) knowingly files a Lien against property in which the Lien Debtor has no interest, with intent to harass or defraud.
Relevant Law: Act of Congress - Property Lien Act
29 - Failure to Release a Satisfied Lien
Offence Type: Summary
Penalty: Up to 100 Penalty Units; restitution of any damage caused
A person commits an offence if the person:
(a) being a Lienholder, fails to file a Release of Lien within 14 days of the secured obligation being satisfied; and
(b) the failure is willful or in reckless disregard of the Lien Debtor's interests.
Relevant Law: Act of Congress - Property Lien Act
30 - Unauthorized Private Foreclosure
Offence Type: Indictable
Penalty: Up to 200 Penalty Units; up to 30 minutes imprisonment; restitution of Fair Market Value of the Collateral
A person commits an offence if the person:
(a) seizes, sells, or otherwise disposes of Collateral subject to a Lien without following the foreclosure procedures of the Property Lien Act and without an order of the Federal Court.
Relevant Law: Act of Congress - Property Lien Act
PART VIII: COORDINATION WITH OTHER ACTS
1 - Bankruptcy Act
(1) Liens created under this Act constitute Secured Claims under the Bankruptcy Act or subsequent acts.
(2) The filing of a bankruptcy petition by or against a Lien Debtor invokes the automatic stay under the Bankruptcy Act or subsequent acts, halting foreclosure proceedings under Part V of this Act.
(3) During bankruptcy, the treatment of secured Collateral, including the Worker Carve-Out, is governed by the Bankruptcy Act or subsequent acts and supersedes the foreclosure procedures of this Act.
2 - Legal Entity Act
(1) The power of an Incorporated Entity to create a security interest under the Legal Entity Act or subsequent acts is exercised through this Act.
(2) Liens against the property of an Incorporated Entity that is in receivership are subject to the receivership procedures of the Legal Entity Act or subsequent acts.
3 - Debt Recovery Quick Fix Act
(1) A Judicial Lien may be obtained as part of debt recovery proceedings under the Debt Recovery Quick Fix Act or subsequent acts.
(2) Asset seizure under the Debt Recovery Quick Fix Act or subsequent acts does not displace the priority of a previously perfected Lien.
4 - Taxation Act
(1) Tax Liens under this Act do not affect the Department of Commerce's existing powers under the Taxation Act or subsequent acts, including powers of seizure, sale, and commandeer over financial institutions.
(2) Foreclosure sales conducted under Part V of this Act are exempt from the Eviction Tax and the Auction Levy under the Taxation Act or subsequent acts. Foreclosure sales are court-supervised distributions to satisfy lawful debts and are not ordinary evictions of inactive players walking away with proceeds.
(3) Where foreclosure sales are conducted through the Department of Construction and Transportation auction system, reasonable administrative costs incurred by the Department may be deducted from proceeds under Part V Section 4(1)(a) of this Act before distribution to Lienholders.
5 - Tenant Rights Act
(1) Landlord's Liens under this Act shall be exercised in accordance with the Tenant Rights Act or subsequent acts, including any provisions for tenant protections, notice, and dispute resolution.
6 - Redmont Civil Code Act
(1) This Act constitutes a specialised statutory framework. Where this Act and the Redmont Civil Code Act or subsequent acts address the same matter, this Act prevails to the extent of any inconsistency. Rights, remedies, causes of action, procedures, and limitation periods established by this Act are operative notwithstanding any provision of the Redmont Civil Code Act or subsequent acts to the contrary.
(2) Part II, Section 3(2) of the Redmont Civil Code Act, as amended by the Bankruptcy Act, is further amended as follows:
"(2) Any civil violation purportedly created by another Act of Congress shall be null and void unless incorporated as an amendment to this Code, except for rights, remedies, causes of action, and procedures established under the Bankruptcy Act or the Property Lien Act."
PART IX: TRANSITION AND SEVERABILITY
1 - Transition
(1) Liens or security interests existing under private agreement prior to this Act's enactment shall be deemed valid as between the parties.
(2) Pre-existing Liens must be filed in the Lien Registry within 1 month of this Act's enactment to be enforceable against third parties.
(3) The priority date of a pre-existing Lien filed during the transition period shall be the date of original creation, where supported by documentary evidence. After the transition period, the priority date shall be the date of filing.
2 - Department of Commerce Rulemaking
(1) The Department of Commerce shall have rulemaking authority to:
(a) Establish forms and technical specifications for filings;
(b) Set fee schedules subject to the cap in Part III Section 2;
(c) Govern the operation of the Lien Registry; and
(d) Issue guidance on the implementation of this Act.
(b) Set fee schedules subject to the cap in Part III Section 2;
(c) Govern the operation of the Lien Registry; and
(d) Issue guidance on the implementation of this Act.
(2) All rules must serve a legitimate government purpose and be reasonably tailored to that purpose.
3 - Severability
(1) If any provision of this Act is held invalid or unconstitutional, the remainder shall continue in full force and effect.
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