Utah Code 11-42-502. Enforcement of an assessment lien — Pre-May 10, 2016, procedure

11-42-502. Enforcement of an assessment lien — Pre-May 10, 2016, procedure.

(1)

The provisions of this section apply to any property that is:

Terms Used In Utah Code 11-42-502

Assessment area: means an area, or, if more than one area is designated, the aggregate of all areas within a local entity's jurisdictional boundaries that is designated by a local entity under 2, for the purpose of financing the costs of improvements, operation and maintenance, or economic promotion activities that benefit property within the area. See Utah Code 11-42-102
Assessment lien: means a lien on property within an assessment area that arises from the levy of an assessment, as provided in Section 11-42-501. See Utah Code 11-42-102
Assessment resolution: means a resolution adopted by a local entity under Section 11-42-404 that levies an assessment on benefitted property within an assessment area. See Utah Code 11-42-102
Deed: The legal instrument used to transfer title in real property from one person to another.
Foreclosure: A legal process in which property that is collateral or security for a loan may be sold to help repay the loan when the loan is in default. ^{Source: OCC}
Governing body: means :

(a)	for a county, city, or town, the legislative body of the county, city, or town;

(b)	for a special district, the board of trustees of the special district;

(c)

for a special service district:

(i)	the legislative body of the county, city, or town that established the special service district, if no administrative control board has been appointed under Section 17D-1-301; or

(ii)	the administrative control board of the special service district, if an administrative control board has been appointed under Section 17D-1-301;

(d)	for the military installation development authority created in Section 63H-1-201, the board, as defined in Section 63H-1-102;

(e)	for the Utah Inland Port Authority, created in Section 11-58-201, the board, as defined in Section 11-58-102; and

(f)

for a public infrastructure district, the board of the public infrastructure district as defined in Section 17D-4-102. See Utah Code 11-42-102

Lien: A claim against real or personal property in satisfaction of a debt.

Local entity: means :

(a)	a county, city, town, special service district, or special district;

(b)	an interlocal entity as defined in Section 11-13-103;

(c)	the military installation development authority, created in Section 63H-1-201;

(d)	a public infrastructure district under Title 17D, Chapter 4, Public Infrastructure District Act, including a public infrastructure district created by a development authority;

(e)	the Utah Inland Port Authority, created in Section 11-58-201; or

(f)

any other political subdivision of the state. See Utah Code 11-42-102

Property: includes real property and any interest in real property, including water rights and leasehold rights. See Utah Code 11-42-102

Trustee: A person or institution holding and administering property in trust.

(a)

(i)	located within the boundaries of an assessment area; and

(ii)	the subject of a foreclosure procedure initiated before May 10, 2016, for an assessment or an installment of an assessment that is not paid when due; or

(b)

located within the boundaries of an assessment area for which the local entity issued an assessment bond or a refunding assessment bond:

(i)	before May 10, 2016;

(ii)	that has not reached final maturity; and

(iii)

that is not refinanced on or after May 10, 2016.

(2)

(a)

If an assessment or an installment of an assessment is not paid when due in a given year:

(i)

subject to Subsection (2)(b):

(A)	by September 15, the governing body of the local entity that levies the assessment shall certify any unpaid amount calculated as of the date of certification to the treasurer of the county in which the assessed property is located; and

(B)	the county treasurer shall include the certified amount on the property tax notice required by Section 59-2-1317 for that year; and

(ii)

the local entity may sell the property on which the assessment has been levied for the amount due plus interest, penalties, and costs, in the manner provided:

(A)	by resolution or ordinance of the local entity;

(B)	in 13, for the sale of property for delinquent general property taxes; or

(C)	in Title 57, Chapter 1, Conveyances, as though the property were the subject of a trust deed in favor of the local entity.

(b)

(i)

The certification of the unpaid amount described in Subsection (2)(a)(i):

(A)	has no effect on the amount due plus interest, penalties, and costs or other requirements of the assessment as described in the assessment resolution or ordinance; and

(B)	is required to provide for the ability of the local entity to collect the delinquent assessment by the sale of property in a sale for delinquent general property taxes and tax notice charges, as that term is defined in Section 59-2-1301.5, in accordance with 13.

(ii)

A local entity’s failure to certify an amount in accordance with Subsection (2)(a)(i) or a county treasurer’s failure to include the certified amount on the property tax notice is not a defense to and does not delay, prohibit, or diminish a local entity’s lien rights or authority to pursue any enforcement remedy, other than a delay in the local entity’s ability to collect the delinquent assessment as described in Subsection (2)(b)(i)(B).

(c)	Nothing in Subsection (2)(a)(i) or in Title 11, Chapter 60, Political Subdivision Lien Authority, prohibits or diminishes a local entity’s authority to pursue any remedy in Subsection (2)(a)(ii).

(3)	Except as otherwise provided in this chapter, each tax sale under Subsection (2)(a)(ii)(B) shall be governed by 13, to the same extent as if the sale were for the sale of property for delinquent general property taxes.

(4)

(a)

In a foreclosure under Subsection (2)(a)(ii)(C):

(i)	the local entity may bid at the sale;

(ii)	the local entity’s governing body shall designate a trustee satisfying the requirements of Section 57-1-21;

(iii)

each trustee designated under Subsection (4)(a)(ii) has a power of sale with respect to the property that is the subject of the delinquent assessment lien;

(iv)	the property that is the subject of the delinquent assessment lien is considered to have been conveyed to the trustee, in trust, for the sole purpose of permitting the trustee to exercise the trustee’s power of sale under Subsection (4)(a)(iii);

(v)	if no one bids at the sale and pays the local entity the amount due on the assessment, plus interest and costs, the property is considered sold to the local entity for those amounts; and

(vi)	the local entity’s chief financial officer may substitute and appoint one or more successor trustees, as provided in Section 57-1-22.

(b)	The designation of a trustee under Subsection (4)(a)(ii) shall be disclosed in the notice of default that the trustee gives to commence the foreclosure, and need not be stated in a separate instrument.

(5)

(a)	The redemption of property that is the subject of a tax sale under Subsection (2)(a)(ii)(B) is governed by 13.

(b)	The redemption of property that is the subject of a foreclosure proceeding under Subsection (2)(a)(ii)(C) is governed by Title 57, Chapter 1, Conveyances.

(6)

(a)	The remedies described in this part for the collection of an assessment and the enforcement of an assessment lien are cumulative.

(b)	The use of one or more of the remedies described in this part does not deprive the local entity of any other available remedy or means of collecting the assessment or enforcing the assessment lien.

Amended by Chapter 197, 2018 General Session

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