As Reported by House Ways and Means Committee            1            

123rd General Assembly                                             4            

   Regular Session                          Sub. H. B. No. 533     5            

      1999-2000                                                    6            


    REPRESENTATIVES D. MILLER-DePIERO-REDFERN-GRENDELL-ALLEN-      8            

      PATTON-FLANNERY-MOTTLEY-JERSE-PERRY-DISTEL-JOLIVETTE         9            


_________________________________________________________________   10           

                          A   B I L L                                           

             To amend sections 5721.37, 5721.38, and 5721.39 of    12           

                the Revised Code to extend the time limit within   13           

                which holders of tax certificates purchased                     

                through private sales may request foreclosure,     14           

                but retain the limit on the accrual of interest    15           

                on those certificates.                                          




BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:        17           

      Section 1.  That sections 5721.37, 5721.38, and 5721.39 of   19           

the Revised Code be amended to read as follows:                    20           

      Sec. 5721.37.  (A)(1)  With respect to a tax certificate     29           

purchased under section 5721.32 of the Revised Code, at any time   30           

after one year from the date shown on the tax certificate as the   31           

date the tax certificate was sold, and not later than three years  32           

after that date, the certificate holder may file with the county   34           

treasurer a request for foreclosure on a form prescribed by the    35           

tax commissioner and provided by the county treasurer, provided    36           

the parcel has not yet been redeemed under division (A) or (C) of  37           

section 5721.38 of the Revised Code.                               38           

      (2)  With respect to a tax certificate purchased under       40           

section 5721.33 of the Revised Code, at any time after one year    41           

from the date shown on the tax certificate as the date the tax     43           

certificate was sold, and not later than three SIX years after     44           

that date or any extension of that date pursuant to division       45           

(C)(2) of section 5721.38 of the Revised Code, a private attorney  46           

on behalf of the certificate holder may file with the county       48           

                                                          2      


                                                                 
treasurer a notice of intent to foreclose on a form prescribed by  49           

the tax commissioner and provided by the county treasurer,                      

provided the parcel has not yet been redeemed under division (A)   50           

or (C) of section 5721.38 of the Revised Code.                     51           

      (B)  Along with a request filed under division (A)(1) of     53           

this section, or a notice of intent to foreclose filed under       54           

division (A)(2) of this section and prior to the transfer of       55           

title in connection with foreclosure proceedings filed under       56           

division (F) of this section, the certificate holder shall submit  59           

a payment to the treasurer equal to the sum of the following:      60           

      (1)  The certificate redemption prices of any other prior    62           

tax certificates that have been sold on the parcel;                63           

      (2)  Any prior delinquent taxes, assessments, penalties,     65           

interest, and charges that are charged against the certificate     66           

parcel that is the subject of the foreclosure proceedings and      67           

that are not covered by a tax certificate;                         68           

      (3)  If the foreclosure proceedings are filed by the county  70           

prosecuting attorney pursuant to section 323.25, 5721.14, or       71           

5721.18 of the Revised Code, a fee in the amount prescribed by     72           

the county prosecuting attorney to cover the prosecuting           73           

attorney's legal costs incurred in the foreclosure proceeding;     74           

      (4)  If the foreclosure proceedings are filed by a private   76           

attorney on behalf of the certificate holder pursuant to division  77           

(F) of this section, any other prior liens.                        78           

      (C)(1)  With respect to a certificate purchased under        80           

section 5721.32 of the Revised Code, if the certificate parcel     81           

has not been redeemed, the county treasurer shall provide          84           

certification to the county prosecuting attorney that the parcel   85           

has not been redeemed and that the certificate holder has made a   86           

foreclosure request.  Within ninety days of receiving that         87           

certification, the prosecuting attorney shall commence a           88           

foreclosure proceeding in the name of the county treasurer in the  89           

manner provided under section 323.25, 5721.14, or 5721.18 of the   90           

Revised Code, to foreclose the lien vested in the certificate      91           

                                                          3      


                                                                 
holder by the certificate.  The prosecuting attorney shall attach  92           

to the complaint the county treasurer's certification that the     93           

parcel has not been redeemed.                                                   

      (2)  With respect to a certificate purchased under section   95           

5721.33 of the Revised Code, if the certificate parcel has not     97           

been redeemed, the county treasurer shall provide certification    98           

to the private attorney that the parcel has not been redeemed.     99           

After receipt of that certification, the private attorney may                   

commence a foreclosure proceeding in the name of the certificate   100          

holder in the manner provided under division (F) of this section,  101          

to foreclose the lien vested in the certificate holder by the      103          

certificate.  The private attorney shall attach to the complaint   104          

the county treasurer's certification that the parcel has not been  105          

redeemed.                                                                       

      (D)  The county treasurer shall credit the amount received   108          

under division (B)(1) of this section to the tax certificate       110          

redemption fund.  The tax certificates respecting the payment      111          

shall be redeemed as provided in division (E) of section 5721.38   112          

of the Revised Code.  The amount received under division (B)(2)    114          

of this section shall be distributed to the taxing districts to    115          

which the delinquencies are owed.  The treasurer shall deposit     116          

the fee received under division (B)(3) of this section in the      118          

county treasury to the credit of the delinquent tax and            119          

assessment collection fund.  The amount received under division    120          

(B)(4) of this section shall be distributed to the holder of the   121          

prior lien.                                                        122          

      (E)(1)  If, in the case of a certificate purchased under     124          

section 5721.32 of the Revised Code, the certificate holder does   125          

not file with the county treasurer a request for foreclosure       128          

along with the required payment within three years after the date  129          

shown on the tax certificate as the date the certificate was       130          

sold, and during that period the parcel is not redeemed or         131          

foreclosed upon, the certificate holder's lien against the parcel  132          

for the amount of delinquent taxes, assessments, penalties,        133          

                                                          4      


                                                                 
interest, and charges that make up the certificate purchase price  134          

is canceled.                                                                    

      (2)(a)  If, in the case of a certificate purchased under     136          

section 5721.33 of the Revised Code, the certificate holder does   139          

not file with the county treasurer a notice of intent to           140          

foreclose with respect to a certificate parcel within three SIX    141          

years after the date shown on the tax certificate as the date the  142          

certificate was sold or any extension of that date pursuant to     143          

division (C)(2) of section 5721.38 of the Revised Code, and        144          

during that period the parcel is not redeemed, the certificate     146          

holder's lien against the parcel for the amount of delinquent                   

taxes, assessments, penalties, interest, and charges that make up  147          

the certificate purchase price is canceled, SUBJECT TO DIVISION    149          

(E)(2)(b) OF THIS SECTION.                                                      

      (b)  IN THE CASE OF ANY TAX CERTIFICATE PURCHASED UNDER      151          

SECTION 5721.33 OF THE REVISED CODE PRIOR TO THE EFFECTIVE DATE    152          

OF THIS AMENDMENT, THE COUNTY TREASURER, UPON APPLICATION BY THE   153          

CERTIFICATE HOLDER, MAY SELL TO THE CERTIFICATE HOLDER A NEW       154          

CERTIFICATE EXTENDING THE THREE-YEAR PERIOD PRESCRIBED BY          157          

DIVISION (E)(2) OF THIS SECTION, AS THAT DIVISION EXISTED PRIOR    158          

TO THAT EFFECTIVE DATE, TO SIX YEARS AFTER THE DATE SHOWN ON THE                

ORIGINAL CERTIFICATE AS THE DATE IT WAS SOLD OR ANY EXTENSION OF   160          

THAT DATE.  THE COUNTY TREASURER AND THE CERTIFICATE HOLDER SHALL  161          

NEGOTIATE THE PREMIUM, IN CASH, TO BE PAID FOR THE NEW             162          

CERTIFICATE SOLD UNDER THIS SECTION.  IF THE COUNTY TREASURER AND  163          

CERTIFICATE HOLDER DO NOT NEGOTIATE A MUTUALLY ACCEPTABLE          164          

PREMIUM, THE COUNTY TREASURER AND CERTIFICATE HOLDER MAY AGREE TO  165          

ENGAGE A PERSON EXPERIENCED IN THE VALUATION OF FINANCIAL ASSETS   166          

TO APPRAISE A FAIR PREMIUM FOR THE NEW CERTIFICATE.  THE           167          

CERTIFICATE HOLDER HAS THE OPTION TO PURCHASE THE NEW CERTIFICATE  168          

FOR THE FAIR PREMIUM SO APPRAISED.  NOT LESS THAN ONE-HALF OF THE  169          

FEE OF THE PERSON SO ENGAGED SHALL BE PAID BY THE CERTIFICATE      170          

HOLDER REQUESTING THE NEW CERTIFICATE; THE REMAINDER OF THE FEE    171          

SHALL BE PAID FROM THE PROCEEDS OF THE SALE OF THE NEW             172          

                                                          5      


                                                                 
CERTIFICATE.  IF THE CERTIFICATE HOLDER DOES NOT PURCHASE THE NEW  173          

CERTIFICATE FOR THE PREMIUM SO APPRAISED, THE CERTIFICATE HOLDER   174          

SHALL PAY THE ENTIRE FEE.  THE COUNTY TREASURER SHALL CREDIT THE   175          

REMAINING PROCEEDS FROM THE SALE TO THE ITEMS OF TAXES,            176          

ASSESSMENTS, PENALTIES, INTEREST, AND CHARGES IN THE ORDER IN      177          

WHICH THEY BECAME DUE.                                                          

       A CERTIFICATE ISSUED UNDER THIS DIVISION VESTS IN THE       180          

CERTIFICATE HOLDER AND ITS SECURED PARTY, IF ANY, THE SAME         181          

RIGHTS, INTERESTS, PRIVILEGES, AND IMMUNITIES AS ARE VESTED BY     182          

THE ORIGINAL CERTIFICATE UNDER SECTIONS 5721.30 TO 5721.41 OF THE  183          

REVISED CODE, EXCEPT THAT INTEREST PAYABLE UNDER DIVISION (B) OF   184          

SECTION 5721.38 OR DIVISION (B) OF SECTION 5721.39 OF THE REVISED  185          

CODE SHALL BE SUBJECT TO THE AMENDMENTS TO THOSE DIVISIONS BY      186          

SUB. H.B. 533 OF THE 123rd  GENERAL ASSEMBLY.  THE CERTIFICATE     189          

SHALL BE ISSUED IN THE SAME FORM AS THE FORM PRESCRIBED FOR THE                 

ORIGINAL CERTIFICATE ISSUED EXCEPT FOR ANY MODIFICATIONS           190          

NECESSARY, IN THE COUNTY TREASURER'S DISCRETION, TO REFLECT THE    192          

EXTENSION UNDER THIS DIVISION OF THE CERTIFICATE HOLDER'S LIEN TO  193          

SIX YEARS AFTER THE DATE SHOWN ON THE ORIGINAL CERTIFICATE AS THE  194          

DATE IT WAS SOLD OR ANY EXTENSION OF THAT DATE.  THE CERTIFICATE   195          

HOLDER MAY RECORD A CERTIFICATE ISSUED UNDER DIVISION (E)(2)(b)    197          

OF THIS SECTION OR MEMORANDUM THEREOF AS PROVIDED IN DIVISION (B)  198          

OF SECTION 5721.35 OF THE REVISED CODE, AND THE COUNTY RECORDER    199          

SHALL INDEX THE CERTIFICATE AND RECORD ANY SUBSEQUENT              200          

CANCELLATION OF THE LIEN AS PROVIDED IN THAT SECTION.  THE SALE    201          

OF A CERTIFICATE EXTENDING THE LIEN UNDER DIVISION (E)(2)(b) OF    202          

THIS SECTION DOES NOT IMPAIR THE RIGHT OF REDEMPTION OF THE OWNER  204          

OF RECORD OF THE CERTIFICATE PARCEL OR OF ANY OTHER PERSON         205          

ENTITLED TO REDEEM THE PROPERTY.                                   206          

      (F)  With respect to tax certificates purchased under        208          

section 5721.33 of the Revised Code, upon the delivery to the      209          

certificate holder by the county treasurer of the certification    211          

provided for under division (C)(2) of this section, a private      212          

attorney may institute a foreclosure proceeding under this         213          

                                                          6      


                                                                 
division in the name of the certificate holder to foreclose such                

holder's lien, in any court with jurisdiction, unless the          214          

certificate redemption price is paid prior to the time a           215          

complaint is filed.  The attorney shall prosecute the proceeding   216          

to final judgment and satisfaction, whether through sale of the                 

property or the vesting of title and possession in the             217          

certificate holder.  If there is a copy of a written undertaking   218          

under section 323.31 of the Revised Code attached to the tax       220          

certificate or if a copy of such an undertaking is received from                

the county treasurer prior to the commencement of the proceeding   221          

under this division, the attorney shall not institute the          222          

proceeding under this division, unless the attorney receives a     223          

certification of the treasurer that such undertaking has become    224          

void in accordance with section 323.31 of the Revised Code.                     

      The foreclosure proceedings under this division, except as   226          

otherwise provided in this division, shall be instituted and       227          

prosecuted in the same manner as is provided by law for the        228          

foreclosure of mortgages on land, except that, if service by       229          

publication is necessary, such publication shall be made once a    230          

week for three consecutive weeks and the service shall be                       

complete at the expiration of three weeks after the date of the    231          

first publication.                                                              

      Any notice given under this division shall include the name  233          

of the owner of the parcel as last set forth in the records of     234          

the county recorder, the owner's last known mailing address, the   235          

address of the subject parcel if different from that of the        236          

owner, and a complete legal description of the subject parcel.     237          

In any county that has adopted a permanent parcel number system,   238          

such notice may include the permanent parcel number in addition                 

to a complete legal description.                                   239          

      It is sufficient, having been made a proper party to the     241          

foreclosure proceeding, for the certificate holder to allege in    242          

such holder's complaint that the tax certificate has been duly     243          

purchased by the certificate holder, that the certificate          244          

                                                          7      


                                                                 
redemption price appearing to be due and unpaid is due and         245          

unpaid, and that there is a lien against the property described                 

in the tax certificate, without setting forth in such holder's     246          

complaint any other special matter relating to the foreclosure     248          

proceeding.  The prayer of the complaint shall be that the court   249          

issue an order that the property be sold by the sheriff or, if     250          

the action is in the municipal court, by the bailiff, in the                    

manner provided in section 5721.19 of the Revised Code, unless     251          

the complaint includes an appraisal by an independent appraiser    252          

acceptable to the court that the value of the certificate parcel   253          

is less than the certificate purchase price.  In that case, the    254          

prayer of the complaint shall be that fee simple title to the                   

property be transferred to and vested in the certificate holder    255          

free and clear of all subordinate liens.                           256          

      In the foreclosure proceeding, the certificate holder may    258          

join in one action any number of tax certificates relating to the  259          

same owner, provided that all parties on each of the tax           260          

certificates are identical as to name and priority of interest.    261          

However, the decree for each tax certificate shall be rendered     262          

separately and any proceeding may be severed, in the discretion                 

of the court, for the purpose of trial or appeal.  The court       263          

shall make such order for the payment of all costs related         264          

directly or indirectly to the redemption of the tax certificate,   265          

including, without limitation, attorney's fees of the holder's     266          

attorney, as is considered proper.  The tax certificate purchased  267          

by the certificate holder is presumptive evidence in all courts                 

and in all proceedings, including, without limitation, at the      268          

trial of the foreclosure action, of the amount and validity of     269          

the taxes, assessments, charges, penalties by the court and added  270          

to such principal amount, and interest appearing due and unpaid    271          

and of their nonpayment.                                                        

      (G)  For THE purposes of this section:                       273          

      (1)  "Prior tax certificates" and "prior delinquent taxes,   275          

assessments, penalties, interest, and charges" mean tax            276          

                                                          8      


                                                                 
certificates and delinquent taxes, assessments, penalties,         277          

interest, and charges, the liens with respect to which attached    278          

to the certificate parcel prior to the attachment of the lien                   

with respect to the tax certificate that is the subject of the     279          

foreclosure proceedings.                                           280          

      (2)  "Prior liens" means liens that are prior in right to    282          

the lien with respect to the tax certificate that is the subject   283          

of the foreclosure proceedings.                                    284          

      Sec. 5721.38.  (A)  At any time prior to the commencement    294          

of foreclosure proceedings under section 5721.37 of the Revised    295          

Code by the submitting of the payment to the county treasurer by   296          

the certificate holder under division (B) of that section, the     297          

owner of record of the certificate parcel, or any other person     298          

entitled to redeem that parcel, may redeem the parcel by paying    299          

to the county treasurer an amount equal to the total of the        300          

certificate redemption prices of all tax certificates respecting   301          

that parcel plus the sum of taxes, assessments, penalties,         302          

charges, and interest charged against the parcel that have become  303          

due and payable since the date the last certificate was sold.      304          

      (B)  At any time after the commencement of foreclosure       306          

proceedings under section 5721.37 of the Revised Code by the       308          

submitting of the payment to the county treasurer by the                        

certificate holder under division (B) of that section and prior    310          

to the filing of the entry of confirmation of sale of a            311          

certificate parcel under foreclosure proceedings filed by the                   

county prosecuting attorney or prior to the decree conveying       313          

title to the certificate holder as provided for in division (F)    314          

of section 5721.37 of the Revised Code, the owner of record of     315          

the certificate parcel or any other person entitled to redeem      316          

that parcel may redeem the parcel by paying to the county          317          

treasurer the SUM OF THE FOLLOWING AMOUNTS:                        318          

      (1)  THE amount described in division (A) of this section    320          

plus interest;                                                     321          

      (2)  INTEREST on the certificate purchase price for each     323          

                                                          9      


                                                                 
tax certificate sold respecting the parcel at the rate of          325          

eighteen per cent per year for the period beginning on the day on  326          

which the payment was submitted by the certificate holder,                      

together with an AND ENDING ON THE DAY THE PARCEL IS REDEEMED      328          

UNDER THIS DIVISION, EXCEPT THAT SUCH INTEREST SHALL NOT ACCRUE    329          

FOR MORE THAN THREE YEARS AFTER THE DAY THE CERTIFICATE WAS        330          

PURCHASED IF THE CERTIFICATE HOLDER DID NOT SUBMIT PAYMENT UNDER   331          

DIVISION (B) OF SECTION 5721.37 OF THE REVISED CODE BEFORE THE     332          

END OF THAT THREE-YEAR PERIOD;                                                  

      (3)  AN amount equal to the sum of the prosecuting           335          

attorney's fee under division (C)(1) of section 5721.37 of the     336          

Revised Code if the tax certificate was purchased under section    337          

5721.32 of the Revised Code, and any;                                           

      (4)  ANY other costs and fees of the proceeding allocable    339          

to the certificate parcel as determined by the court.              340          

      (C)(1)  During the period beginning on the date a tax        342          

certificate is sold under section 5721.32 of the Revised Code and  343          

ending one year from that date, the owner of record of the         346          

certificate parcel, or any other person entitled to redeem that    347          

parcel, may enter into a redemption payment plan with the county   348          

treasurer.  The plan shall require the owner or other person to    349          

pay the certificate redemption price for the tax certificate in    350          

installments, with the final installment due no later than one     351          

year after the date the tax certificate is sold.                   352          

      (2)  During the period beginning on the date a tax           354          

certificate is sold under section 5721.33 of the Revised Code and  355          

ending on the date the decree is rendered on the foreclosure       357          

proceeding under division (F) of section 5721.37 of the Revised    358          

Code, the owner of record of the certificate parcel, or any other  359          

person entitled to redeem that parcel, may enter into a            360          

redemption payment plan with the certificate holder and all        361          

secured parties of the certificate holder.  The plan shall         362          

require the owner or other person to pay the certificate           363          

redemption price for the tax certificate, an administrative fee    364          

                                                          10     


                                                                 
not to exceed one hundred dollars per year, and the actual fees    365          

and costs incurred, in installments, with the final installment                 

due no later than three years after the date the tax certificate   366          

is sold.  The certificate holder shall give written notice of the  367          

plan to the applicable county treasurer within sixty days after    368          

entering into the plan and written notice of default under the     369          

plan within ninety days after the default.  If such a plan is      370          

entered into, the time period for filing a notice of intent to                  

foreclose under section 5721.37 of the Revised Code is extended    371          

by the length of time the plan is in effect and not in default.    372          

      (D)(1)  Immediately upon receipt of full payment under       375          

division (A) or (B) of this section, the county treasurer shall    376          

make an entry to that effect in the tax certificate register and   377          

notify each certificate holder by certified mail, return receipt   378          

requested, that the parcel has been redeemed and the lien          379          

canceled and that the tax certificates may be redeemed.  The       380          

county treasurer shall deposit into the tax certificate            381          

redemption fund created in the county treasury an amount equal to  382          

the total of the certificate redemption prices, together with      383          

interest on the certificate purchase price for each tax            384          

certificate sold respecting the parcel at the rate of eighteen     385          

per cent per year paid under division (B) of this section for the  386          

period beginning when the payment was submitted by the                          

certificate holder under division (B) of section 5721.37 of the    387          

Revised Code and ending when the parcel was redeemed.  The county  388          

treasurer shall administer the fund for the purpose of redeeming   389          

tax certificates.  Interest earned on the fund shall be credited   390          

to the county general fund.                                                     

      (2)  If a redemption payment plan is entered into pursuant   392          

to division (C)(1) of this section, the county treasurer           393          

immediately shall notify each certificate holder by certified      394          

mail, return receipt requested, of the terms of the plan.          395          

Installment payments made pursuant to the plan shall be deposited  396          

in the tax certificate redemption fund.  Any overpayment of the    398          

                                                          11     


                                                                 
installments shall be refunded to the person responsible for                    

causing the overpayment if the person applies for a refund under   399          

this section. If the person responsible for causing the            400          

overpayment fails to apply for a refund under this section within  401          

five years from the date the plan is satisfied, an amount equal    402          

to the overpayment shall be deposited into the general fund of     403          

the county.                                                                     

      Upon satisfaction of the plan, the county treasurer shall    406          

indicate in the tax certificate register that the plan has been    407          

satisfied, and shall notify each certificate holder by certified   408          

mail, return receipt requested, that the plan has been satisfied   409          

and that tax certificates may be redeemed.                         410          

      If a plan becomes void, the county treasurer immediately     413          

shall notify each certificate holder by certified mail, return     414          

receipt requested.  If a certificate holder files a request for                 

foreclosure under section 5721.37 of the Revised Code, upon the    415          

confirmation of sale resulting from the foreclosure, any money     416          

paid under the plan prior to its becoming void shall be applied    417          

to payment as prescribed under divisions (A), (B), and (C) of      419          

section 5721.39 of the Revised Code.  Any residue remaining after  420          

such payment shall be disposed of under section 5721.20 of the     421          

Revised Code.                                                      422          

      (E)  To redeem a tax certificate with respect to which       424          

payment has been made in full under division (A), (B), or (C)(1)   426          

of this section, the certificate holder shall present the tax      428          

certificate to the county treasurer, who shall prepare the         429          

redemption information.  Upon presentation, the county auditor     430          

shall draw a warrant on the tax certificate redemption fund in     431          

the amount of the certificate redemption price.  For a parcel      432          

that was redeemed under division (B) of this section, the          433          

certificate holder who paid the amounts under division (B) of      435          

section 5721.37 of the Revised Code shall be reimbursed for those  437          

amounts, together with interest at the rate of eighteen per cent   438          

per year on the amount paid under division (B)(1) of that section  439          

                                                          12     


                                                                 
for the period beginning when the payment was submitted by the     440          

certificate holder under division (B) of that section and ending   442          

when the parcel was redeemed.  The treasurer shall mark all        443          

copies of the tax certificate "redeemed" and return the            444          

certificate to the certificate holder.  The canceled certificate   445          

shall serve as a receipt evidencing redemption of the tax          446          

certificate.  If a certificate holder fails to redeem a tax        447          

certificate within five years after notice is served under         448          

division (D) of this section that tax certificates may be                       

redeemed, an amount equal to the certificate redemption price      450          

shall be deposited into the general fund of the county.            451          

      Sec. 5721.39.  In its judgment of foreclosure rendered with  461          

respect to actions filed pursuant to section 5721.37 of the                     

Revised Code, the court shall enter a finding with respect to the  463          

certificate parcel of the amount of the sum of the certificate     464          

redemption prices respecting all the tax certificates sold                      

against the parcel; interest on the certificate purchase prices    466          

of those certificates at the rate of eighteen per cent per year                 

for the period beginning on the day on which the payment was       467          

submitted by the certificate holder under division (B) of section  468          

5721.37 of the Revised Code; any delinquent taxes, assessments,    471          

penalties, interest, and charges on the parcel that are not        472          

covered by a tax certificate; and fees and costs incurred in the                

foreclosure proceeding instituted against the parcel, including,   473          

without limitation, the fees and costs of the prosecuting          475          

attorney represented by the fee paid under division (B)(3) of      476          

section 5721.37 of the Revised Code or the fees and costs of the   478          

private attorney representing the certificate holder, and charges  479          

paid or incurred in procuring title searches and abstracting       480          

services relative to the subject premises.  The court may order                 

the certificate parcel to be sold, without appraisal, in the       482          

manner provided for in division (F) of section 5721.37 of the      483          

Revised Code and as set forth in the prayer of the complaint, for  484          

not less than the amount of its finding, or, in the event that     485          

                                                          13     


                                                                 
the court finds that the value of the certificate parcel is less   487          

than the certificate purchase price, the court may, as prayed for  488          

in the complaint, issue a decree transferring fee simple title                  

free and clear of all subordinate liens to the certificate         489          

holder.  A decree of the court transferring such fee simple title  490          

to the certificate holder is forever a bar to all rights of        491          

redemption with respect to the certificate parcel.                              

      Each certificate parcel shall be advertised and sold by the  494          

officer to whom the order of sale is directed in the manner                     

provided by law for the sale of real property on execution.  The   495          

advertisement for sale of certificate parcels shall be published   496          

once a week for three consecutive weeks and shall include the      497          

date on which a second sale will be conducted if no bid is         498          

accepted at the first sale.  Any number of parcels may be          499          

included in one advertisement.                                     500          

      Whenever the officer charged to conduct the sale offers a    503          

certificate parcel for sale and no bids are made equal to at       504          

least the amount of the court's finding, the officer shall         505          

adjourn the sale of the parcel to the second date that was                      

specified in the advertisement of sale.  The second sale shall be  507          

held at the same place and commence at the same time as set forth  508          

in the advertisement of sale.  The officer shall offer any parcel  509          

not sold at the first sale.  Upon the conclusion of any sale, or   510          

if any parcel remains unsold after being offered at two sales,     511          

the officer conducting the sale shall report the results to the    512          

court.                                                                          

      Upon the confirmation of a sale, the proceeds of the sale    515          

shall be applied as follows:                                                    

      (A)  The fees and costs incurred in the proceeding filed     517          

against the parcel pursuant to section 5721.37 of the Revised      519          

Code, not including the county prosecutor's costs covered by the   520          

fee paid by the certificate holder under division (B)(3) of that   521          

section, shall be paid first.                                                   

      (B)  Following the payment required by division (A) of this  524          

                                                          14     


                                                                 
section, the certificate holder that requested the foreclosure     525          

shall be paid the sum of the FOLLOWING AMOUNTS:                                 

      (1)  THE SUM OF THE amount found due for the certificate     528          

redemption prices of all the tax certificates sold against the                  

parcel; any                                                        529          

      (2)  ANY premium paid by the certificate holder at the time  531          

of purchase; interest                                              533          

      (3)  INTEREST on the certificate purchase prices of those    536          

certificates at the rate of eighteen per cent per year beginning                

on the day on which the payment was submitted by the certificate   537          

holder under division (B) of section 5721.37 of the Revised Code   538          

and ending on the day of the sale, EXCEPT THAT SUCH INTEREST       539          

SHALL NOT ACCRUE FOR MORE THAN THREE YEARS AFTER THE DAY THE       540          

CERTIFICATE WAS PURCHASED IF THE CERTIFICATE HOLDER DID NOT        541          

SUBMIT THAT PAYMENT BEFORE THE END OF THAT THREE-YEAR PERIOD; and  542          

the                                                                             

      (4)  THE amounts paid by the certificate holder under        544          

divisions (B)(2) and (3) of section 5721.37 of the Revised Code.   545          

      (C)  Following the payment required by division (B) of this  548          

section, any amount due for taxes, assessments, charges,           549          

penalties, and interest not covered by the tax certificate         550          

holder's payment under division (B)(2) of section 5721.37 of the   551          

Revised Code shall be paid, including all taxes, assessments,                   

charges, penalties, and interest payable subsequent to the entry   552          

of the finding and prior to the transfer of the deed of the        553          

parcel to the purchaser following confirmation of sale.  If the    554          

proceeds available for distribution pursuant to this division are  555          

insufficient to pay the entire amount of those taxes,              556          

assessments, charges, penalties, and interest, the proceeds shall  557          

be paid to each claimant in proportion to the amount of those      558          

taxes, assessments, charges, penalties, and interest that each is  559          

due, and those taxes, assessments, charges, penalties, and         560          

interest are deemed satisfied.                                     561          

      Any residue of money from proceeds of the sale shall be      563          

                                                          15     


                                                                 
disposed of as prescribed by section 5721.20 of the Revised Code.  565          

      Unless the parcel previously was redeemed pursuant to        567          

section 5721.25 or 5721.38 of the Revised Code, upon the filing    569          

of the entry of confirmation of sale, the title to the parcel is   570          

incontestable in the purchaser and is free and clear of all liens  571          

and encumbrances, except a federal tax lien notice of which is     572          

properly filed in accordance with section 317.09 of the Revised    573          

Code prior to the date that a foreclosure proceeding is            574          

instituted pursuant to section 5721.37 of the Revised Code, which  575          

lien was foreclosed in accordance with 28 U.S.C.A. 2410(c), and    576          

the easements and covenants of record running with the land or     577          

lots that were created prior to the time the taxes or              578          

assessments, for the nonpayment of which a tax certificate was     579          

issued and the parcel sold at foreclosure, became due and          580          

payable.                                                                        

      The title shall not be invalid because of any irregularity,  583          

informality, or omission of any proceedings under this chapter,    584          

or in any processes of taxation, if such irregularity,             585          

informality, or omission does not abrogate the provision for       586          

notice to holders of title, lien, or mortgage to, or other         587          

interests in, such foreclosed parcels, as prescribed in this       588          

chapter.                                                                        

      Section 2.  That existing sections 5721.37, 5721.38, and     590          

5721.39 of the Revised Code are hereby repealed.                   591