8.2.2.2 Applicability of 90-Day Time Limit to Federal Actions.

• Jurisdiction: Arizona

Whether the 90-day time limitation applies to a deficiency action brought by a federal agency depends on the nature of the loan. If the secured loan is issued by a private lender whose assets are later taken over by a federal agency, the federal agency is subject to the state law 90-day deadline for bringing a deficiency action. In RTC v. Olson, 768 F. Supp. 283 (D. Ariz. 1991), the court determined that Arizona’s 90-day statutory period for filing a deficiency action was a part of the substantive cause of action and, therefore, a statute of repose rather than a statute of limitation. Accordingly, an extended statute of limitation period applicable to the RTC under federal law did not apply.

On the other hand, where the loan was issued by a federal agency under a federal loan program that contains a longer statute of limitations, the...