Opinion ID: 507339
Heading Depth: 3
Heading Rank: 1

Heading: Arizona's Redemption Scheme

Text: 22 The Arizona law of redemption relevant to this appeal is quoted in the margin. The SBA is a subsequent lienholder under Arizona law because its lien is junior, or subsequent, to Home Federal's. See Ariz.Rev.Stat.Ann. Sec. 12-1281 (1982). Section 12-1284 requires a subsequent lienholder to file a notice of intent to redeem within the applicable period of redemption as provided in Sec. 12-1282. 5 When the property has not been abandoned, and thus section 12-1282(A) does not apply, the applicable period of redemption referred to in section 12-1284 is the six-month period established by section 12-1282(B). See Matcha v. Wachs, 132 Ariz. 378, 380, 646 P.2d 263, 265 (1982). 23 The Arizona Court of Appeals has explained the relationship between the notice provisions in sections 12-1282 and 12-1284 as follows: 24 Th[e] right to redeem [provided in section 12-1282] is not established until the lienholder files the Notice Of Intention To Redeem required by Section 12-1284. If this is not done, the lienholder loses his right to redeem and the rights of any subsequent lienholder, who has given notice, become senior to his. This is the meaning of the term senior creditor in Sec. 12-1282. The senior creditor refers to the creditor whose lien is highest in the order of those who have complied with section 12-1284. 25 S & M Trust Co. v. Valley Lumber Co., 5 Ariz.App. 373, 375-76, 427 P.2d 354, 356-57 (1967). 26 The judgment and decree of foreclosure identified the SBA as the second lienholder, junior only to Home Federal. Arizona law would permit the SBA to redeem only if it filed the notice and supporting documents required by sections 12-1284 and 12-1287. This requirement could have been met by filing the necessary notice any time within six months after the foreclosure sale. If the SBA were not protected by section 2410, it would have been able to redeem the property only for a five-day period after March 5, 1986. Section 2410 clearly alters the five-day redemption period. This is not disputed. If none of the creditors filed a notice of intent to redeem under section 12-1284, according to Arizona law the sheriff should have executed and delivered a deed to the property to Centuras on March 6, 1986. See Ariz.Rev.Stat.Ann. Sec. 12-1286; 6 S & M Trust Co., 5 Ariz.App. at 376, 427 P.2d at 357.