§34-27-6  Payment of outstanding taxes. –

Published: 2015

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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.)