TITLE 34
Property
CHAPTER 34-27
Mortgage Foreclosure and Sale
SECTION 34-27-6
§ 34-27-6 Payment of outstanding taxes.
(a) In connection with any sale by public auction made under and according to
the provisions of any mortgage of real estate or any power of sale contained
therein or annexed thereto, if the mortgagee or an affiliate of the mortgagee
is the successful bidder for the real estate or property offered for sale, the
foreclosure deed shall be recorded in the records of land evidence for the
municipality where the real estate is located within forty-five (45) days after
the date of the sale. The deed shall be captioned "foreclosure deed" and the
date of the foreclosure shall be stated in the deed. This subsection (a) shall
not apply to any such sale if, prior to the recording of the foreclosure deed:
(1) the mortgagor files a voluntary proceeding, or an order for relief is
entered in any involuntary proceeding against the mortgagor, under any federal
or state bankruptcy or insolvency statute; or (2) the mortgagee abandons or
otherwise terminates such sale.
(b) Notwithstanding any other general law or local ordinance
to the contrary, the grantee of real estate named in the foreclosure deed shall
pay to the municipality, on or before the date the foreclosure deed is
recorded, all taxes and other assessments, including water charges, interest
and penalties, if any, which constitute liens on the real estate described in
the foreclosure deed and which are due and owing on the recording date
(collectively, "taxes due and owing"); provided, however, that a grantee shall
not be deemed in violation of this subsection (b) if the grantee shall apply
for a municipal lien certificate from the tax collector for the municipality
during the forty-five (45) day period ending on the day on which the
foreclosure deed is recorded and shall pay the taxes due and owing within
thirty (30) days after the date on which the municipal lien certificate is
mailed by the tax collector by the United States mail, postage prepaid,
certified, return receipt requested, and addressed to the grantee at the
address therefor set forth in the application for the municipal lien
certificate. Taxes due and owing for purposes of this section shall include
only installments thereof required by law to be paid as of the date the
foreclosure deed is recorded.
(c) Upon a violation of any one or more of the requirements
of this section, a penalty shall accrue at the rate of forty dollars ($40.00)
per month (in the aggregate) for each month or part thereof during which such
violation or violations continue. For purposes of determining the penalty due
hereunder, a month commences on the day on which the first such violation
occurs and a new month commences on the same day (or if there is no such day,
then on the last day) of each succeeding calendar month until all taxes due and
owing are paid. In the event of a violation of subsection (a), taxes due and
owing shall be determined as of the date required thereunder for the recording
of a foreclosure deed.
(d) As used in this section, the term "affiliate" shall mean,
with respect to any mortgagee, any individual or legal entity that controls, is
controlled by or is under common control with such mortgagee, and the term
"foreclosure deed" shall mean the mortgagee's deed or other conveyance of title
to the successful bidder at any sale by public auction made under and according
to the provisions of any mortgage of real estate or any power of sale contained
therein or annexed thereto.
History of Section.
(P.L. 2008, ch. 238, § 1; P.L. 2008, ch. 309, § 1.)