Confession of Judgment in Arizona

Judgment by confession shall not be entered upon a note, bond or other instrument in writing for the payment of money under the authority of a power of attorney to confess judgment thereon, unless such authority is executed and acknowledged on a day subsequent to the date on which the indebtedness to be confessed became due and payable. (A.R.S. § 44-143)

A confession of judgment clause should not be included in agreements governed by Arizona law, unless the agreement concerns a post-default workout or forbearance. If an agreement is controlled by law other than that of Arizona, which other law permits confessions of judgment, such a provision may not be upheld in Arizona courts, as being contrary to public policy. Procedurally, it would be preferable in a workout situation to file an actual suit, obtain jurisdiction and than enter a stipulated judgment with a covenant not to execute.