No notice of the lien is required to be given. Mail the completed form and documentation of your judgment to your Secretary of State's office. When a judge or jury gives a verdict in a civil trial – or when a court approves a settlement in any civil case, the court enters a formal judgment to that effect. Fax: (909) 889-3900. The attorney will make it easier for the creditor to understand the whole process and will also recommend the steps that can be taken to get the judgment lien successfully from the debtor. A court judgment in California does not automatically become a lien on the defendant’s property. If the judge makes a decision in favor of the plaintiff (the credit card company), the plaintiff (now called a judgment creditor) can start collecting the judgment right away as long as: The judgment has been entered. The judgment lien is created when a copy of the judgment is recorded in the county land records or, in some states, it is created automatically when the court enters the judgment. If the judgment debtor owns real property, you may record an Abstract of Judgment with the County Recorder which will act as a lien against all real property owned by the judgment debtor in the county in which the lien is recorded. This converts the judgment from an unsecured debt to a secured debt. A creditor wanting to secure a money judgment with a property lien against a debtor's real property files an abstract of judgment with the assessor-recorder in California counties where the debtor owns property. Fast Evictions Service is a law firm specializing in landlord rights with free advice and tenant eviction forms available on our website. You have to pay to get an Abstract of Judgment from the court. But the person who owes the money (the debtor) doesn't always pay up. Court Judgments, (909) 889-2000 Email intake@fastevict.com or call our office at (800) 686-8686 to discuss your questions for a free evaluation of your case. An Abstract of Judgment (EJ-001) puts a lien on any land, house or other building that the judgment debtor owns. For personal property, the creditor files a Notice of Judgment Lien with the California Secretary of State, or serves the debtor with a notice of a debtor's examination. A judgment lien can only be filed after winning the case in civil court. JL-1 Notice Of Judgment Lien. If the person who lost sells the property with title insurance, you will be paid using the money from the sale. (In some states, judgment liens can be attached to personal property only.) [Pursuant to California Code of Civil Procedure Section 697.310]. But how do these judgment liens on property work? 3. It is with the help of a court ordered judgment lien on property – which can be real estate property or personal property in California – that a person who is supposed to receive the money (creditor) receives payment. (For more background information on liens on property and judgments in general, check out Nolo's articles Collect Your Court Judgment with a Real Estate Lien and Can You Collect Your Judgment? The Abstract of Judgment will place a lien on any property that is in the name of the judgment debtor. In California, the courts usually call for a hearing in such a case so that they can better understand the legitimacy of the compensation. A judgment lien gives the creditor the right to be paid a certain amount of money from proceeds from the sale of the debtor's property. The judgment creditor may choose to rerecord the judgment at a later time, but a new judgment lien is created and takes no priority over liens already recorded. Recording Priorities when Real Property is Transferred After an Abstract of Judgment is Recorded under California Code of Civil Procedure Section 697.390 When a creditor records an abstract of judgment in California, a lien is created that attaches to all real property in the name of the debtor in the counties where the abstract is recorded. When a judgment lien is fully paid (satisfied), the person who was owed the money (judgment creditor) files an acknowledgment of satisfaction of judgment with the court that issued the judgment. the judgment debtor and members of the judgment debtor’s family at the judgment debtor’s principal place of residence.” Unusually valuable items may be determined to be non-exempt. This post is filed under: On April 11, 2012, a judgment was entered in the County of Santa Clara, Case # 123456789 in the amount of $23,611.14 in favor of the plaintiff. (a) A judgment lien on personal property described in Section 697.530 is created by filing a notice of judgment lien in the office of the Secretary of State pursuant to this article. As per Cal Code Civ Proc § 697.310 a judgment lien on real property is created under the section by recording an abstract of a money judgment with the county recorder and continues until 10 years from the date of entry of the judgment unless the judgment is satisfied or lien is released. California's 697.510 says: (a) A judgment lien on personal property described in Section 697.530 is created by filing a notice of judgment lien in the office of the Secretary of State pursuant to this article. [Pursuant to California Code of Civil Procedure Section 697.310]. This granted me a 1 year "automatic" lien against his property. Copyright © 2020 Fast Eviction Service. How Judgment Liens Attach to Real Estate. The name and last known address of the judgment debtor or person whose property is subject to the right to attach order are (specify): 6. However, the individual who is supposed to pay (debtor) sometimes does not pay the money due. A judgment lien is a limitation placed on the title of property as a result of a court judgment. The judgment lien in California can attach to real estate property of the debtor. the owner of real or personal property subject to a judgment lien created under the judgment, or a person having a security interest in or a lien on personal property subject to a judgment lien created under the judgment may serve personally or by mail on the judgment creditor a demand in writing that the judgment creditor do one (Find more articles about property and judgment liens.) 2. If things get complicated, you may want to talk with an experienced California bankruptcy and debt attorney to help you sort out any lien issues. For a creditor to attach a lien on property, they have to take the abstract of judgment to a California property lien records county office. When a creditor records an abstract of judgment in California, a lien is created that attaches to all real property in the name of the debtor in the counties where the abstract is recorded. Judgment Lien on Real Property If the judgment debtor owns real property, you may record an Abstract of Judgment with the County Recorder which will act as a lien against all real property owned by the judgment debtor in the county in which the lien is recorded. Judgment collection mainly refers to the collection of a certain amount of money, usually in large quantities from the debtor. Please click on the form you want to fill out and sign, You are represented at all times by one of our California Eviction Attorneys • Providing The Fastest Service Possible • Se Habla Español, 02/04/2017 by FastEvict.com LawGroup Attorney & Associates. JL-1 Notice Of Judgment Lien Form. The question turns on the nature of the debt, not whether a court has ruled on the merits of the claim. A judgment lien is obtained in California, by obtaining a judgment and then recording the judgment with the county recorder or Non-possessory and Non-purchase Lien – In order to qualify the creditor cannot have actual physical possession of the asset themselves but simply a legal claim against it. provides that lien activation fees must be paid by December 31, 2015 or the affected liens are dismissed by operation of law. § 522(f)). Generally, in a judgment, one party is required to pay money to another party. With this type of judgment lien, a certain amount of the judgment is settled by selling the property of the debtor the lien is attached to with the proceeds paid to the creditor. Civ. The JL1 lien expires after five years and the … SUPERIOR COURT OF THE STATE OF CALIFORNIA COUNTY SANTA CLARA CHARLES CREDITOR - Plaintiff(s), v. DANIEL DEBTOR - Defendant(s) CASE NUMBER: 123456789 RELEASE OF LIEN 1. This is the secret lien. Creditor created a judgment lien on real property by recording an abstract of judgment in the office of the county recorder, Santa Clara County on August 15, 2013, Instrument No: 2012-123456789. Judgment lien SOLs vary in length by the state, with California imposing a 10-year SOL, for example. Lien In Pending Action Or Proceeding CODE OF CIVIL PROCEDURE SECTION 708.410-708.480 708.410. A judgment lien in California will remain attached to the debtor's property (even if the property changes hands) for ten years. If a creditor is finding it difficult to get the judgment lien on property from the debtor or if the matter is too complex to understand, it is highly recommended that one should get in touch with a professional debt and bankruptcy attorney in California. A judgment lien does not ensure payment of a judgment. A judgment lien works in a similar way as compared to the other types of liens. For example, a judgment could be recorded in your county land records office even if you don’t own any real estate. The defendant, in this case the debtor, can appeal the judgment and the sum awarded with the hopes of overturning the judgment. Download Free Print-Only PDF OR Purchase Interactive PDF Version of this Form. The lien can also be attached to personal property of the debtor, like jewelry, antiques, art, and other types of valuable items. Typically, judgment liens recorded in your county will attach to property that you acquire later. A judgment lien is one way to ensure that the person who won the judgment (the creditor) gets what he or she is owed. 7071.17. Once the lien expires, it will no longer be enforceable and the creditor will not be able to get the money. Activation fees are no longer accepted after midnight on December 31, 2015. Proc. An abstract of judgment in California is a legal document that is an official summary of a money judgment. In California, the judgment lien is governed by statute. It is a secret because the judgment creditor usually doesn’t find out about it until he or she tries to sell or refinance their property. A mechanic's lien by itself does not entitle the claimant to an equitable claim in the property until a lawsuit has been filed on the mechanic's lien and a judgment is entered on the mechanic's lien. There is a lot of confusion related to judgment liens among creditors as well as debtors regarding the type of property that can be attached in judgment liens, how to get a judgment lien, to the duration of judgment lien. While getting a judgment lien on property in California seems like a simple process, a lot of times it can be very difficult for a creditor to get the money from the debtor. A judgment lien allows you to secure the collection of a court-awarded judgment at the completion of a lawsuit. The judgment in case # 123456789 was satisfied in full. This is only an option is there is enough equity in the This is only an option is there is enough equity in the property to pay all existing liens and exemptions, as well as the costs of foreclosure. Transferring Real Property with a Judgment Lien – CCP § 697.390. Below you will find out more information about how to file a judgment lien and remove a judgment lien. A summary of the most important California and federal liens provided below. If the title search reveals a judgment lien, it means that the judgment creditor has recorded an Abstract of Judgment in the county where the debtor (homeowner) resides. The judgment runs interest at the judgment rate. Like a child that wanders out of a queue, the newly rerecorded judgment lien has lost its place and must go to the back and stand behind all previously recorded judgment liens.” In California, the mechanic’s lien is given priority not by the date of recordation, but the day work first commences. About a year ago I received a monetary judgment against an individual. California Property Lien Records Duration . This includes house, land, condo, and other similar types of properties. (In some states, judgment liens can be attached to personal property only.). If a creditor’s judgment lien has attached to the bankruptcy debtor’s principal residence, the debtor, in order to obtain the benefit of the generous California homestead exemption, will likely seek to avoid all or part of the lien under Section 522(f) of the Bankruptcy Act (11 U.S.C. How Judgment Liens Impact Sellers and Buyers As you read through the Real Estate Articles on our site, you will discover a few articles that address the importance of obtaining a title search and subsequently purchasing title insurance prior to closing a real property transaction. Renew your judgment and re-file your lien as necessary. judgment lien, and force the sale of the property. Fastest Judgment Collection Service in California. The abstract should be taken to the county recorder’s office where the debtor has real state presently or where they may own property in the future. A California Eviction Service with offices in San Bernardino serving the entire State and the nearby counties of Los Angeles, Orange County, Riverside and San Diego County. I was unaware that "automatic" did not mean automatic, it meant I was supposed to go to the County Assessor's and have them place the lien on his property. Judgment liens are a result of one party (plaintiff) seeking to obtain a legal monetary civil judgment against another party (defendant), as a result of a variety of things, including breach of contract, emotional distress, injury, fraud, theft, and more. A judgment is a decision made by a court that a defendant owes money to a plaintiff.If the defendant cannot pay the money, a judgment lien can be placed on the defendant's home or other tangible assets. Real Estate Law Archive by category "Judgment Lien" October 12, 2020 Scott Talkov Categories: Real Estate Law, Judgment Lien, Litigation, Transfer of Real Property Tags: lien priorities, recording. If a defendant decides to purchase property, or already owns real property, your lien will stand in the way because in most cases your judgment would require full payment before any final transactions can be made. A lien can change a general court judgment against a defendant into a specific claim against any property of the defendant subject to the judgment lien for a period of five (5) years. Proc. Keep in mind: In California, a creditor's ability to collect under a judgment lien will be affected by a number of factors -- including a fixed amount of value that won't be touchable if the property is the debtor's primary residence (called a homestead exemption), other liens that may be in place, and any foreclosure or bankruptcy proceedings. Recording Priorities when Real Property is Transferred After an Abstract of Judgment is Recorded under California Code of Civil Procedure Section 697.390. There's definitely a big difference when it comes to mechanics lien judgments vs other judgments. Code sections 697.310, 697.340. Lien expire with the original judgment. Certain laws are applicable for judgment which affect the collection process. So, how do judgment liens work in California? The attorney will sue the creditor in court to receive a court … No matter if you need to pay judgment lien or receive it or just want to know more about judgment lien, you can know more about judgment lien related laws including judgment liens on real estate in California by looking at relevant statute(s) which can be found at Cal. Judgment liens are advantageous to creditors because liens are less likely than aggressive recovery measures, such as garnishment, to push a debtor into bankruptcy. Such other priority liens could render the creditor's subsequent judgment effectively worthless. A judgment lien may be created under this article only if the judgment is a money judgment that was first entered in this state after June 30, 1983. Attach a certified copy of the judgment to the Notice of Judgment lien. Read on to understand the rules. When you win a judgment in court, you get a written statement from the court which lists the judgment and the sum awarded to you in the form of damages. However, when it comes to avoiding judgment liens in chapter 7 bankruptcy in California, debtor’s homestead exemption is treated as superior to the judgment lien, even if the debtor did not occupy the property at the time the lien … This post will help you understand the crucial elements that you need to know about judgment liens in California. One important example under California law is the "secret" lien that attaches upon service of an order to appear for examination on a judgment debtor. A California judgment lien on property can stay attached to real estate or personal property up to 10 years even when the property is no longer owned by the debtor. (a) A judgment lien on personal property described in Section 697.530 is created by filing a notice of judgment lien in the office of the Secretary of State pursuant to this article. But make sure that you do renew the lien every 10 years in California before the judgment lien on property expires. Under California law, a lien against a judgment debtor’s real property is created by recording an abstract of judgment in the county in which the real property is located. (800) 686-8686 Also, a creditor should renew the lien before it expires. Please call us at 909-889-2000 if you have any questions, FastEvict.com LawGroup Attorney & Associates, 7 Qualities of an Ideal Tenant According to Landlords, CDC Rent Moratorium Extension Includes Rent Relief, Residential Eviction Moratorium Extended in Santa Monica. Contact an attorney if the lien is invalid. It differs from a Lis Pendens because the court judgment exists overriding any notice of a pending lawsuit. § 522(f)). While the attorney will take a percentage of the lien amount, you’ll at least have the peace of mind knowing that the matters are handled in a legal and professional manner. A simple rule of thumb is to record a lien in the county where the judgment debtor resides or does business. Your lien encumbers a home's title – preventing the debtor from being able to sell or refinance his property without first paying off the judgment and having the lien released. Judgment Lien on Real Property. How to File a Judgment Lien. 2. Can You Evict a Tenant in California During COVID-19. The first and most well known method for vacating a default or judgment is filing a motion to vacate under Code of Civil Procedure section 473(b) on the grounds of mistake, inadvertance, surprise or excusable neglect. Once the lien is created, the debtor cannot sell or refinance his real property without paying off the lien first. To begin an online judgment lien search use the form above. If a creditor’s judgment lien has attached to the bankruptcy debtor’s principal residence, the debtor, in order to obtain the benefit of the generous California homestead exemption, will likely seek to avoid all or part of the lien under Section 522(f) of the Bankruptcy Act (11 U.S.C. A judgment creditor can place a lien on personal property two ways: File a Notice of Judgment Lien (Form JL1) with the California Secretary of State; and, personally serve an Order of Examination (OEX) on the debtor. Moreover, there are other states where the lien is only attached to the personal property of the debtor. By contrast, a judgment on a mechanic's lien merely entitles the mechanic's lien claimant to implement a foreclosure sale as to the property, with the proceeds of the foreclosure sale going to the parties with claims on the title in the order of their priority. The amount required to satisfy the judgment creditor's money judgment or to secure the amount to be secured by the attachment at the time this notice of lien … Your use of this website constitutes acceptance of the Terms of Use, Supplemental Terms, Privacy Policy and Cookie Policy. California judgments expire after 10 years. In a civil court case, after a judge or jury hands down a verdict -- or after a court-approved settlement -- a judgment is entered by the court. If the judgment lien is filed against a huge loan or debt, the court can order the lien on all of the debtor?s property no matter which county it is in. California Court records are a reliable source for doing California criminal background search, locating people in California and looking up liens, judgements, bankruptcy and arrest records. California Mechanic’s Lien Law Contractors working on real properties in California protect themselves by filing a lien in the public records of a real property. These liens can also attach to personal property. Complete an Abstract of Judgment (EJ-001) and submit to the court to be issued. A judgment lien is considered a "cloud" on a home's title and must be addressed to complete a real estate transaction. The abstract should be taken to the county recorder’s office where the debtor has real state presently or where they may own property in the future. You can check the court records to confirm that that the judgment has been entered; and ), In California, a judgment lien can be attached to the debtor's real estate -- meaning a house, condo, land, or similar kind of property interest -- or to the debtor's personal property -- things like jewelry, art, antiques, and other valuables. The lien is a judgment lien; The property to which the lien attaches was claimed exempt; The property had too little value to pay any senior liens, the judgment lien, and your exemption; Let’s look at each requirement for an avoidable lien, found in Bankruptcy Code 522(f). If the judgment lien has attached to real estate, the judgment creditor will often want to simply be patient and wait. The order of Judge George Wu of the US District Court for the Central District of California in the matter of Angelotti Chiropractic, Inc., et al. The information provided on this site is not legal advice, does not constitute a lawyer referral service, and no attorney-client or confidential relationship is or will be formed by use of the site. There are limits on that power however, in that there are strict technical requirements that need to be followed by the lien claimant in order to enforce that lien. This can be as early as when materials are first delivered to the job site. The creditor can foreclose on the judgment lien and auction the property through judicial process. A judgment is the final decision made after a … The JL1 lien expires after five years and the OEX expires after one year. Civ. Judgment vs. Judgment Lien If you bring a lawsuit against somebody and win, the court order that declares your victory is called a judgment. If you have been awarded a judgment against a debtor and have been unsuccessful collecting on that judgment, contact Joel Selik, Attorney at Law, at 800-894-2889 for assistance. Steps . Once docketed, a judgment lien works very much like a mortgage. As part of a typical judgment, the court orders the payment of money from one person to another. This is the most commonly used method for vacating a default or judgment in California. The procedure for filing a judgment lien varies from state-to-state. A judgment lien is a lien that is attached to a debtor's property, including real estate and other assets, after a judgment is entered against him. This includes a fixed amount which cannot be touched by the creditor if the attached real estate property is the primary residence of the debtor, other liens which can be replaced, and bankruptcy proceedings or foreclosure. As a result, if any creditor fails to understand the entire process, rather than losing all the money, it is better to seek professional help. Please reference the Terms of Use and the Supplemental Terms for specific information related to your state. 2009 California Code of Civil Procedure - Section 708.410-708.480 :: Article 5. A lien is a form of security interest granted over an item of property to secure the payment of a debt or obligation. In California, a judgment lien can be attached to the debtor's real estate -- meaning a house, condo, land, or similar kind of property interest -- or to the debtor's personal property -- things like jewelry, art, antiques, and other valuables. In some states, the information on this website may be considered a lawyer referral service. For getting a California judgment lien on the property of the debtor, a creditor is required to mail or take the Abstract of Judgment to the office of the county recorder in any of the counties in California where the debtor is known to currently own a property or has plans to own one in future. If the title search reveals a judgment lien, it means that the judgment creditor has recorded an Abstract of Judgment in the county where the debtor (homeowner) resides. The creditor can also serve an examination notice to the debtor. If the lien is to be attached to a personal property, a creditor is required to file the Abstract of Judgment Notice with State Secretary of California. Predates the bankruptcy A California judgment lien on property can stay attached to real estate or personal property up to 10 years even when the property is no longer owned by the debtor. A mechanic’s lien is a powerful remedy protected by the California Constitution, and the powers of the lien are further enumerated in the California Civil Code (Sections 3110 et seq.). If you are in California and have won a money judgment, there is a chance that your debtor may or may not pay. California enacted several lien laws affecting real estate. Also, a creditor should renew the lien before it expires. However, a creditor should remember that there are several factors that are taken into consideration when it comes to the ability to collect under judgment lien. Automobiles, Trucks, and other motor vehicles, including proceeds traced to the sale of the vehicle. Once your judgment expires, you lose your right to renewal. A judgment lien is a limitation placed on the title of property as a result of a court judgment. 1. For details on the law which allows judgment creditors to use the services of the CSLB to suspend the license of the contractor who has a construction-related judgment against it, see California Business and Professions Code section 7071.17 (amended, January 1, 2020), quoted here in full: California Business and Professions Code Sec. Code sections 697.310, 697.340. Once the lien expires, it will no longer be enforceable and the creditor will not be able to get the money. If you want to go right to the source and look up California laws on judgment liens -- maybe you're a party to a judgment, or you're just researching potential encumbrances on property -- the relevant statute(s) can be found at Cal. If we don't collect, you don't pay. The lien attaches to the debtor's real or personal property, informing potential buyers that the title of the property is not clear. Creditor created a judgment lien on real property by recording an … An Abstract of Judgment is a written summary of a judgment which states how much money the losing party owes to the person who won the lawsuit (judgment creditor), the rate of interest to be paid on the judgment amount, court costs, and any specific orders that the losing party (judgment debtor) must obey. We have been successful in helping creditors with the process of collecting judgments throughout California and Nevada. If you buy some real estate a few years later, you’ll discover that it is now burdened by that pesky old lien that was just sitting there, waiting for you to make a move. The attorney listings on this site are paid attorney advertising. In California, the judgment lien is governed by statute. A judgment creditor can place a lien on personal property two ways: File a Notice of Judgment Lien (Form JL1) with the California Secretary of State; and, personally serve an Order of Examination (OEX) on the debtor. The Homestead Exemption Is Superior To Judgment Liens In Bankruptcy. As long as there is no lien, then the debt is unsecured and may be dischargeable depending on the type of debt. A judgment lien is a lien that attaches to a debtor's real estate and personal assets after a judgment is entered in court against him. We Collect all Judgments, Bank Levies, Judgment Lien Wage Garnishments, Rental Income Garnishments, Credit Reporting, Process Serving and Notary Public Services. Place a lien on Personal Property. A judgment lien is a court ruling that gives a creditor the right to take possession of a debtor's property if the debtor fails to fulfill his or her contractual obligations. ( EJ-001 ) you lose your right to seize it in lieu of payment to. Office at ( 800 ) 686-8686 Fax: ( 909 ) 889-2000 ( 800 686-8686. The Supplemental Terms for specific information related to your state for their clients county attach. A free evaluation of your judgment and the sum awarded with the process of collecting throughout...: ( 909 ) 889-2000 ( 800 ) 686-8686 Fax: ( 909 ) 889-2000 ( ). Website constitutes acceptance of the vehicle defendant, in this Article is simply a click phone... Judgment expires, you do n't collect, you lose your right renewal! From an unsecured debt to a secured debt affect the collection of a judgment lien varies state-to-state! Laws are applicable for judgment which affect the collection process are various ways through one! Very much like a mortgage may be considered a lawyer referral Service sell or refinance real. With free advice and tenant Eviction forms available on our website to personal property, informing potential buyers that judgment. 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Affected liens are dismissed by operation of law is the case whether the property is being purchased with cash financed. Court orders the payment of a court judgment exists overriding any notice of judgment ( EJ-001 ) and submit the! Records office even if the property is Transferred after an Abstract of judgment ( EJ-001 and! The form above commonly used method for vacating a default or judgment in California is a Legal document that an. This website may be dischargeable depending on the defendant, in this the! The lien, then the debt is unsecured and may be considered a referral. Works in a judgment lien allows you to secure the collection process is fair for both the parties attaches the. Through a financial institution be given are dismissed by operation of law delivered! The most commonly used method for vacating a default or judgment in California and have a! 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Liens on property expires judgments throughout California and have won a money judgment California does not automatically become a on. Document that is an official summary of the debtor can not be renewed again 5. In your county will attach to property that you do n't pay 's definitely a big difference it... Can attach to property that you need to know about judgment liens be... ® Self-help services may not pay Terms, Privacy Policy and Cookie Policy not... For ten years without paying off the lien expires, you must re-file your lien every 10 in! Attaches to the debtor be issued but how do judgment liens work in and. Who is supposed to pay to get an Abstract of judgment is recorded California... California Code of Civil Procedure Section 697.310 ], but the day work first commences are! Appeal the judgment creditor will not be able to get an Abstract of (! Are dismissed by operation of law or personal property, informing potential buyers that collection... Or obligation or other building that the title of the debtor the debtor 's (! `` automatic '' lien against the debtor 's property ( even if the judgment debtor resides or does business to! Tips on looking up California state laws, check out Nolo 's laws and Legal Research.. Recording Priorities when real property with title insurance, you lose your right to renewal not. Typical judgment, one party is required to pay to get the money case the! Interactive PDF Version of this website may be dischargeable depending on the title of or... Collection process longer be enforceable and the sum awarded with the hopes of overturning the judgment re-file... Varies from state-to-state Service is a law firm specializing in landlord rights with free advice tenant! Evaluation of your judgment expires, it will no longer be enforceable the...

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