As promised, we are following up to let you know that the Arizona Bankers Association has voluntarily dismissed its court challenge to the Governor's repeal of the amendments to Arizona's anti-deficiency statute.
On October 20, 2009, the Arizona Bankers Association filed a Petition with the Arizona Supreme Court challenging HB2008, which repealed the changes to Arizona's anti-deficiency statute that were set to go into effect on September 30, 2009. The much debated changes would have required the borrower under a deed of trust whose property was sold at a trustee's sale to have demonstrated, among other things, that the borrower "used" the property for six consecutive months in order to qualify for the protection of the anti-deficiency statute. On September 4, 2009, Governor Brewer signed HB2008, which purported to repeal those changes.
The Arizona Bankers Association challenged the September 4, 2009 repeal on Constitutional grounds. The Association argued that the repeal was outside the scope of the special session in which it was passed and that it was unrelated to the other matters that were also passed during the session. The Arizona Association of Realtors, with the Governor's approval, intervened and filed an amicus brief in oppositin to the Petition and in support of the repeal.
But, on November 23, 2009, Governor Brewer signed Senate Bill 1004, which repealed the statutory changes (again). As a result, the Arizona Bankers Association has voluntarily dismissed its challenge to the original (September 4, 2009) repeal as that challenge is now moot.