As Reported by the Senate 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-SULLIVAN-    9            

  VERICH-HARTNETT-WILLIAMS-KILBANE-GERBERRY-KRUPINSKI-BRITTON-     10           

      BARNES-HEALY-SENATORS BLESSING-DRAKE-MUMPER-HERINGTON        11           


_________________________________________________________________   12           

                          A   B I L L                                           

             To amend sections 5721.37, 5721.38, and 5721.39 of    14           

                the Revised Code to extend the time limit within   15           

                which holders of tax certificates purchased                     

                through private sales may request foreclosure,     16           

                but retain the limit on the accrual of interest    17           

                on those certificates.                                          




BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:        19           

      Section 1.  That sections 5721.37, 5721.38, and 5721.39 of   21           

the Revised Code be amended to read as follows:                    22           

      Sec. 5721.37.  (A)(1)  With respect to a tax certificate     31           

purchased under section 5721.32 of the Revised Code, at any time   32           

after one year from the date shown on the tax certificate as the   33           

date the tax certificate was sold, and not later than three years  34           

after that date, the certificate holder may file with the county   36           

treasurer a request for foreclosure on a form prescribed by the    37           

tax commissioner and provided by the county treasurer, provided    38           

the parcel has not yet been redeemed under division (A) or (C) of  39           

section 5721.38 of the Revised Code.                               40           

      (2)  With respect to a tax certificate purchased under       42           

section 5721.33 of the Revised Code, at any time after one year    43           

from the date shown on the tax certificate as the date the tax     45           

certificate was sold, and not later than three SIX years after     46           

that date or any extension of that date pursuant to division       47           

                                                          2      


                                                                 
(C)(2) of section 5721.38 of the Revised Code, a private attorney  48           

on behalf of the certificate holder may file with the county       50           

treasurer a notice of intent to foreclose on a form prescribed by  51           

the tax commissioner and provided by the county treasurer,                      

provided the parcel has not yet been redeemed under division (A)   52           

or (C) of section 5721.38 of the Revised Code.                     53           

      (B)  Along with a request filed under division (A)(1) of     55           

this section, or a notice of intent to foreclose filed under       56           

division (A)(2) of this section and prior to the transfer of       57           

title in connection with foreclosure proceedings filed under       58           

division (F) of this section, the certificate holder shall submit  61           

a payment to the treasurer equal to the sum of the following:      62           

      (1)  The certificate redemption prices of any other prior    64           

tax certificates that have been sold on the parcel;                65           

      (2)  Any prior delinquent taxes, assessments, penalties,     67           

interest, and charges that are charged against the certificate     68           

parcel that is the subject of the foreclosure proceedings and      69           

that are not covered by a tax certificate;                         70           

      (3)  If the foreclosure proceedings are filed by the county  72           

prosecuting attorney pursuant to section 323.25, 5721.14, or       73           

5721.18 of the Revised Code, a fee in the amount prescribed by     74           

the county prosecuting attorney to cover the prosecuting           75           

attorney's legal costs incurred in the foreclosure proceeding;     76           

      (4)  If the foreclosure proceedings are filed by a private   78           

attorney on behalf of the certificate holder pursuant to division  79           

(F) of this section, any other prior liens.                        80           

      (C)(1)  With respect to a certificate purchased under        82           

section 5721.32 of the Revised Code, if the certificate parcel     83           

has not been redeemed, the county treasurer shall provide          86           

certification to the county prosecuting attorney that the parcel   87           

has not been redeemed and that the certificate holder has made a   88           

foreclosure request.  Within ninety days of receiving that         89           

certification, the prosecuting attorney shall commence a           90           

foreclosure proceeding in the name of the county treasurer in the  91           

                                                          3      


                                                                 
manner provided under section 323.25, 5721.14, or 5721.18 of the   92           

Revised Code, to foreclose the lien vested in the certificate      93           

holder by the certificate.  The prosecuting attorney shall attach  94           

to the complaint the county treasurer's certification that the     95           

parcel has not been redeemed.                                                   

      (2)  With respect to a certificate purchased under section   97           

5721.33 of the Revised Code, if the certificate parcel has not     99           

been redeemed, the county treasurer shall provide certification    100          

to the private attorney that the parcel has not been redeemed.     101          

After receipt of that certification, the private attorney may                   

commence a foreclosure proceeding in the name of the certificate   102          

holder in the manner provided under division (F) of this section,  103          

to foreclose the lien vested in the certificate holder by the      105          

certificate.  The private attorney shall attach to the complaint   106          

the county treasurer's certification that the parcel has not been  107          

redeemed.                                                                       

      (D)  The county treasurer shall credit the amount received   110          

under division (B)(1) of this section to the tax certificate       112          

redemption fund.  The tax certificates respecting the payment      113          

shall be redeemed as provided in division (E) of section 5721.38   114          

of the Revised Code.  The amount received under division (B)(2)    116          

of this section shall be distributed to the taxing districts to    117          

which the delinquencies are owed.  The treasurer shall deposit     118          

the fee received under division (B)(3) of this section in the      120          

county treasury to the credit of the delinquent tax and            121          

assessment collection fund.  The amount received under division    122          

(B)(4) of this section shall be distributed to the holder of the   123          

prior lien.                                                        124          

      (E)(1)  If, in the case of a certificate purchased under     126          

section 5721.32 of the Revised Code, the certificate holder does   127          

not file with the county treasurer a request for foreclosure       130          

along with the required payment within three years after the date  131          

shown on the tax certificate as the date the certificate was       132          

sold, and during that period the parcel is not redeemed or         133          

                                                          4      


                                                                 
foreclosed upon, the certificate holder's lien against the parcel  134          

for the amount of delinquent taxes, assessments, penalties,        135          

interest, and charges that make up the certificate purchase price  136          

is canceled.                                                                    

      (2)(a)  If, in the case of a certificate purchased under     138          

section 5721.33 of the Revised Code, the certificate holder does   141          

not file with the county treasurer a notice of intent to           142          

foreclose with respect to a certificate parcel within three SIX    143          

years after the date shown on the tax certificate as the date the  144          

certificate was sold or any extension of that date pursuant to     145          

division (C)(2) of section 5721.38 of the Revised Code, and        146          

during that period the parcel is not redeemed, the certificate     148          

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

taxes, assessments, penalties, interest, and charges that make up  149          

the certificate purchase price is canceled, SUBJECT TO DIVISION    151          

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

      (b)  IN THE CASE OF ANY TAX CERTIFICATE PURCHASED UNDER      153          

SECTION 5721.33 OF THE REVISED CODE PRIOR TO THE EFFECTIVE DATE    154          

OF THIS AMENDMENT, THE COUNTY TREASURER, UPON APPLICATION BY THE   155          

CERTIFICATE HOLDER, MAY SELL TO THE CERTIFICATE HOLDER A NEW       156          

CERTIFICATE EXTENDING THE THREE-YEAR PERIOD PRESCRIBED BY          159          

DIVISION (E)(2) OF THIS SECTION, AS THAT DIVISION EXISTED PRIOR    160          

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   162          

THAT DATE.  THE COUNTY TREASURER AND THE CERTIFICATE HOLDER SHALL  163          

NEGOTIATE THE PREMIUM, IN CASH, TO BE PAID FOR THE NEW             164          

CERTIFICATE SOLD UNDER THIS SECTION.  IF THE COUNTY TREASURER AND  165          

CERTIFICATE HOLDER DO NOT NEGOTIATE A MUTUALLY ACCEPTABLE          166          

PREMIUM, THE COUNTY TREASURER AND CERTIFICATE HOLDER MAY AGREE TO  167          

ENGAGE A PERSON EXPERIENCED IN THE VALUATION OF FINANCIAL ASSETS   168          

TO APPRAISE A FAIR PREMIUM FOR THE NEW CERTIFICATE.  THE           169          

CERTIFICATE HOLDER HAS THE OPTION TO PURCHASE THE NEW CERTIFICATE  170          

FOR THE FAIR PREMIUM SO APPRAISED.  NOT LESS THAN ONE-HALF OF THE  171          

FEE OF THE PERSON SO ENGAGED SHALL BE PAID BY THE CERTIFICATE      172          

                                                          5      


                                                                 
HOLDER REQUESTING THE NEW CERTIFICATE; THE REMAINDER OF THE FEE    173          

SHALL BE PAID FROM THE PROCEEDS OF THE SALE OF THE NEW             174          

CERTIFICATE.  IF THE CERTIFICATE HOLDER DOES NOT PURCHASE THE NEW  175          

CERTIFICATE FOR THE PREMIUM SO APPRAISED, THE CERTIFICATE HOLDER   176          

SHALL PAY THE ENTIRE FEE.  THE COUNTY TREASURER SHALL CREDIT THE   177          

REMAINING PROCEEDS FROM THE SALE TO THE ITEMS OF TAXES,            178          

ASSESSMENTS, PENALTIES, INTEREST, AND CHARGES IN THE ORDER IN      179          

WHICH THEY BECAME DUE.                                                          

       A CERTIFICATE ISSUED UNDER THIS DIVISION VESTS IN THE       182          

CERTIFICATE HOLDER AND ITS SECURED PARTY, IF ANY, THE SAME         183          

RIGHTS, INTERESTS, PRIVILEGES, AND IMMUNITIES AS ARE VESTED BY     184          

THE ORIGINAL CERTIFICATE UNDER SECTIONS 5721.30 TO 5721.41 OF THE  185          

REVISED CODE, EXCEPT THAT INTEREST PAYABLE UNDER DIVISION (B) OF   186          

SECTION 5721.38 OR DIVISION (B) OF SECTION 5721.39 OF THE REVISED  187          

CODE SHALL BE SUBJECT TO THE AMENDMENTS TO THOSE DIVISIONS BY      188          

SUB. H.B. 533 OF THE 123rd  GENERAL ASSEMBLY.  THE CERTIFICATE     191          

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

ORIGINAL CERTIFICATE ISSUED EXCEPT FOR ANY MODIFICATIONS           192          

NECESSARY, IN THE COUNTY TREASURER'S DISCRETION, TO REFLECT THE    194          

EXTENSION UNDER THIS DIVISION OF THE CERTIFICATE HOLDER'S LIEN TO  195          

SIX YEARS AFTER THE DATE SHOWN ON THE ORIGINAL CERTIFICATE AS THE  196          

DATE IT WAS SOLD OR ANY EXTENSION OF THAT DATE.  THE CERTIFICATE   197          

HOLDER MAY RECORD A CERTIFICATE ISSUED UNDER DIVISION (E)(2)(b)    199          

OF THIS SECTION OR MEMORANDUM THEREOF AS PROVIDED IN DIVISION (B)  200          

OF SECTION 5721.35 OF THE REVISED CODE, AND THE COUNTY RECORDER    201          

SHALL INDEX THE CERTIFICATE AND RECORD ANY SUBSEQUENT              202          

CANCELLATION OF THE LIEN AS PROVIDED IN THAT SECTION.  THE SALE    203          

OF A CERTIFICATE EXTENDING THE LIEN UNDER DIVISION (E)(2)(b) OF    204          

THIS SECTION DOES NOT IMPAIR THE RIGHT OF REDEMPTION OF THE OWNER  206          

OF RECORD OF THE CERTIFICATE PARCEL OR OF ANY OTHER PERSON         207          

ENTITLED TO REDEEM THE PROPERTY.                                   208          

      (F)  With respect to tax certificates purchased under        210          

section 5721.33 of the Revised Code, upon the delivery to the      211          

certificate holder by the county treasurer of the certification    213          

                                                          6      


                                                                 
provided for under division (C)(2) of this section, a private      214          

attorney may institute a foreclosure proceeding under this         215          

division in the name of the certificate holder to foreclose such                

holder's lien, in any court with jurisdiction, unless the          216          

certificate redemption price is paid prior to the time a           217          

complaint is filed.  The attorney shall prosecute the proceeding   218          

to final judgment and satisfaction, whether through sale of the                 

property or the vesting of title and possession in the             219          

certificate holder.  If there is a copy of a written undertaking   220          

under section 323.31 of the Revised Code attached to the tax       222          

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

the county treasurer prior to the commencement of the proceeding   223          

under this division, the attorney shall not institute the          224          

proceeding under this division, unless the attorney receives a     225          

certification of the treasurer that such undertaking has become    226          

void in accordance with section 323.31 of the Revised Code.                     

      The foreclosure proceedings under this division, except as   228          

otherwise provided in this division, shall be instituted and       229          

prosecuted in the same manner as is provided by law for the        230          

foreclosure of mortgages on land, except that, if service by       231          

publication is necessary, such publication shall be made once a    232          

week for three consecutive weeks and the service shall be                       

complete at the expiration of three weeks after the date of the    233          

first publication.                                                              

      Any notice given under this division shall include the name  235          

of the owner of the parcel as last set forth in the records of     236          

the county recorder, the owner's last known mailing address, the   237          

address of the subject parcel if different from that of the        238          

owner, and a complete legal description of the subject parcel.     239          

In any county that has adopted a permanent parcel number system,   240          

such notice may include the permanent parcel number in addition                 

to a complete legal description.                                   241          

      It is sufficient, having been made a proper party to the     243          

foreclosure proceeding, for the certificate holder to allege in    244          

                                                          7      


                                                                 
such holder's complaint that the tax certificate has been duly     245          

purchased by the certificate holder, that the certificate          246          

redemption price appearing to be due and unpaid is due and         247          

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

in the tax certificate, without setting forth in such holder's     248          

complaint any other special matter relating to the foreclosure     250          

proceeding.  The prayer of the complaint shall be that the court   251          

issue an order that the property be sold by the sheriff or, if     252          

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

manner provided in section 5721.19 of the Revised Code, unless     253          

the complaint includes an appraisal by an independent appraiser    254          

acceptable to the court that the value of the certificate parcel   255          

is less than the certificate purchase price.  In that case, the    256          

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

property be transferred to and vested in the certificate holder    257          

free and clear of all subordinate liens.                           258          

      In the foreclosure proceeding, the certificate holder may    260          

join in one action any number of tax certificates relating to the  261          

same owner, provided that all parties on each of the tax           262          

certificates are identical as to name and priority of interest.    263          

However, the decree for each tax certificate shall be rendered     264          

separately and any proceeding may be severed, in the discretion                 

of the court, for the purpose of trial or appeal.  The court       265          

shall make such order for the payment of all costs related         266          

directly or indirectly to the redemption of the tax certificate,   267          

including, without limitation, attorney's fees of the holder's     268          

attorney, as is considered proper.  The tax certificate purchased  269          

by the certificate holder is presumptive evidence in all courts                 

and in all proceedings, including, without limitation, at the      270          

trial of the foreclosure action, of the amount and validity of     271          

the taxes, assessments, charges, penalties by the court and added  272          

to such principal amount, and interest appearing due and unpaid    273          

and of their nonpayment.                                                        

      (G)  For THE purposes of this section:                       275          

                                                          8      


                                                                 
      (1)  "Prior tax certificates" and "prior delinquent taxes,   277          

assessments, penalties, interest, and charges" mean tax            278          

certificates and delinquent taxes, assessments, penalties,         279          

interest, and charges, the liens with respect to which attached    280          

to the certificate parcel prior to the attachment of the lien                   

with respect to the tax certificate that is the subject of the     281          

foreclosure proceedings.                                           282          

      (2)  "Prior liens" means liens that are prior in right to    284          

the lien with respect to the tax certificate that is the subject   285          

of the foreclosure proceedings.                                    286          

      Sec. 5721.38.  (A)  At any time prior to the commencement    296          

of foreclosure proceedings under section 5721.37 of the Revised    297          

Code by the submitting of the payment to the county treasurer by   298          

the certificate holder under division (B) of that section, the     299          

owner of record of the certificate parcel, or any other person     300          

entitled to redeem that parcel, may redeem the parcel by paying    301          

to the county treasurer an amount equal to the total of the        302          

certificate redemption prices of all tax certificates respecting   303          

that parcel plus the sum of taxes, assessments, penalties,         304          

charges, and interest charged against the parcel that have become  305          

due and payable since the date the last certificate was sold.      306          

      (B)  At any time after the commencement of foreclosure       308          

proceedings under section 5721.37 of the Revised Code by the       310          

submitting of the payment to the county treasurer by the                        

certificate holder under division (B) of that section and prior    312          

to the filing of the entry of confirmation of sale of a            313          

certificate parcel under foreclosure proceedings filed by the                   

county prosecuting attorney or prior to the decree conveying       315          

title to the certificate holder as provided for in division (F)    316          

of section 5721.37 of the Revised Code, the owner of record of     317          

the certificate parcel or any other person entitled to redeem      318          

that parcel may redeem the parcel by paying to the county          319          

treasurer the SUM OF THE FOLLOWING AMOUNTS:                        320          

      (1)  THE amount described in division (A) of this section    322          

                                                          9      


                                                                 
plus interest;                                                     323          

      (2)  INTEREST on the certificate purchase price for each     325          

tax certificate sold respecting the parcel at the rate of          327          

eighteen per cent per year for the period beginning on the day on  328          

which the payment was submitted by the certificate holder,                      

together with an AND ENDING ON THE DAY THE PARCEL IS REDEEMED      330          

UNDER THIS DIVISION, EXCEPT THAT SUCH INTEREST SHALL NOT ACCRUE    331          

FOR MORE THAN THREE YEARS AFTER THE DAY THE CERTIFICATE WAS        332          

PURCHASED IF THE CERTIFICATE HOLDER DID NOT SUBMIT PAYMENT UNDER   333          

DIVISION (B) OF SECTION 5721.37 OF THE REVISED CODE BEFORE THE     334          

END OF THAT THREE-YEAR PERIOD;                                                  

      (3)  AN amount equal to the sum of the prosecuting           337          

attorney's fee under division (C)(1) of section 5721.37 of the     338          

Revised Code if the tax certificate was purchased under section    339          

5721.32 of the Revised Code, and any;                                           

      (4)  ANY other costs and fees of the proceeding allocable    341          

to the certificate parcel as determined by the court.              342          

      (C)(1)  During the period beginning on the date a tax        344          

certificate is sold under section 5721.32 of the Revised Code and  345          

ending one year from that date, the owner of record of the         348          

certificate parcel, or any other person entitled to redeem that    349          

parcel, may enter into a redemption payment plan with the county   350          

treasurer.  The plan shall require the owner or other person to    351          

pay the certificate redemption price for the tax certificate in    352          

installments, with the final installment due no later than one     353          

year after the date the tax certificate is sold.                   354          

      (2)  During the period beginning on the date a tax           356          

certificate is sold under section 5721.33 of the Revised Code and  357          

ending on the date the decree is rendered on the foreclosure       359          

proceeding under division (F) of section 5721.37 of the Revised    360          

Code, the owner of record of the certificate parcel, or any other  361          

person entitled to redeem that parcel, may enter into a            362          

redemption payment plan with the certificate holder and all        363          

secured parties of the certificate holder.  The plan shall         364          

                                                          10     


                                                                 
require the owner or other person to pay the certificate           365          

redemption price for the tax certificate, an administrative fee    366          

not to exceed one hundred dollars per year, and the actual fees    367          

and costs incurred, in installments, with the final installment                 

due no later than three years after the date the tax certificate   368          

is sold.  The certificate holder shall give written notice of the  369          

plan to the applicable county treasurer within sixty days after    370          

entering into the plan and written notice of default under the     371          

plan within ninety days after the default.  If such a plan is      372          

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

foreclose under section 5721.37 of the Revised Code is extended    373          

by the length of time the plan is in effect and not in default.    374          

      (D)(1)  Immediately upon receipt of full payment under       377          

division (A) or (B) of this section, the county treasurer shall    378          

make an entry to that effect in the tax certificate register and   379          

notify each certificate holder by certified mail, return receipt   380          

requested, that the parcel has been redeemed and the lien          381          

canceled and that the tax certificates may be redeemed.  The       382          

county treasurer shall deposit into the tax certificate            383          

redemption fund created in the county treasury an amount equal to  384          

the total of the certificate redemption prices, together with      385          

interest on the certificate purchase price for each tax            386          

certificate sold respecting the parcel at the rate of eighteen     387          

per cent per year paid under division (B) of this section for the  388          

period beginning when the payment was submitted by the                          

certificate holder under division (B) of section 5721.37 of the    389          

Revised Code and ending when the parcel was redeemed.  The county  390          

treasurer shall administer the fund for the purpose of redeeming   391          

tax certificates.  Interest earned on the fund shall be credited   392          

to the county general fund.                                                     

      (2)  If a redemption payment plan is entered into pursuant   394          

to division (C)(1) of this section, the county treasurer           395          

immediately shall notify each certificate holder by certified      396          

mail, return receipt requested, of the terms of the plan.          397          

                                                          11     


                                                                 
Installment payments made pursuant to the plan shall be deposited  398          

in the tax certificate redemption fund.  Any overpayment of the    400          

installments shall be refunded to the person responsible for                    

causing the overpayment if the person applies for a refund under   401          

this section. If the person responsible for causing the            402          

overpayment fails to apply for a refund under this section within  403          

five years from the date the plan is satisfied, an amount equal    404          

to the overpayment shall be deposited into the general fund of     405          

the county.                                                                     

      Upon satisfaction of the plan, the county treasurer shall    408          

indicate in the tax certificate register that the plan has been    409          

satisfied, and shall notify each certificate holder by certified   410          

mail, return receipt requested, that the plan has been satisfied   411          

and that tax certificates may be redeemed.                         412          

      If a plan becomes void, the county treasurer immediately     415          

shall notify each certificate holder by certified mail, return     416          

receipt requested.  If a certificate holder files a request for                 

foreclosure under section 5721.37 of the Revised Code, upon the    417          

confirmation of sale resulting from the foreclosure, any money     418          

paid under the plan prior to its becoming void shall be applied    419          

to payment as prescribed under divisions (A), (B), and (C) of      421          

section 5721.39 of the Revised Code.  Any residue remaining after  422          

such payment shall be disposed of under section 5721.20 of the     423          

Revised Code.                                                      424          

      (E)  To redeem a tax certificate with respect to which       426          

payment has been made in full under division (A), (B), or (C)(1)   428          

of this section, the certificate holder shall present the tax      430          

certificate to the county treasurer, who shall prepare the         431          

redemption information.  Upon presentation, the county auditor     432          

shall draw a warrant on the tax certificate redemption fund in     433          

the amount of the certificate redemption price.  For a parcel      434          

that was redeemed under division (B) of this section, the          435          

certificate holder who paid the amounts under division (B) of      437          

section 5721.37 of the Revised Code shall be reimbursed for those  439          

                                                          12     


                                                                 
amounts, together with interest at the rate of eighteen per cent   440          

per year on the amount paid under division (B)(1) of that section  441          

for the period beginning when the payment was submitted by the     442          

certificate holder under division (B) of that section and ending   444          

when the parcel was redeemed.  The treasurer shall mark all        445          

copies of the tax certificate "redeemed" and return the            446          

certificate to the certificate holder.  The canceled certificate   447          

shall serve as a receipt evidencing redemption of the tax          448          

certificate.  If a certificate holder fails to redeem a tax        449          

certificate within five years after notice is served under         450          

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

redeemed, an amount equal to the certificate redemption price      452          

shall be deposited into the general fund of the county.            453          

      Sec. 5721.39.  In its judgment of foreclosure rendered with  463          

respect to actions filed pursuant to section 5721.37 of the                     

Revised Code, the court shall enter a finding with respect to the  465          

certificate parcel of the amount of the sum of the certificate     466          

redemption prices respecting all the tax certificates sold                      

against the parcel; interest on the certificate purchase prices    468          

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

for the period beginning on the day on which the payment was       469          

submitted by the certificate holder under division (B) of section  470          

5721.37 of the Revised Code; any delinquent taxes, assessments,    473          

penalties, interest, and charges on the parcel that are not        474          

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

foreclosure proceeding instituted against the parcel, including,   475          

without limitation, the fees and costs of the prosecuting          477          

attorney represented by the fee paid under division (B)(3) of      478          

section 5721.37 of the Revised Code or the fees and costs of the   480          

private attorney representing the certificate holder, and charges  481          

paid or incurred in procuring title searches and abstracting       482          

services relative to the subject premises.  The court may order                 

the certificate parcel to be sold, without appraisal, in the       484          

manner provided for in division (F) of section 5721.37 of the      485          

                                                          13     


                                                                 
Revised Code and as set forth in the prayer of the complaint, for  486          

not less than the amount of its finding, or, in the event that     487          

the court finds that the value of the certificate parcel is less   489          

than the certificate purchase price, the court may, as prayed for  490          

in the complaint, issue a decree transferring fee simple title                  

free and clear of all subordinate liens to the certificate         491          

holder.  A decree of the court transferring such fee simple title  492          

to the certificate holder is forever a bar to all rights of        493          

redemption with respect to the certificate parcel.                              

      Each certificate parcel shall be advertised and sold by the  496          

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

provided by law for the sale of real property on execution.  The   497          

advertisement for sale of certificate parcels shall be published   498          

once a week for three consecutive weeks and shall include the      499          

date on which a second sale will be conducted if no bid is         500          

accepted at the first sale.  Any number of parcels may be          501          

included in one advertisement.                                     502          

      Whenever the officer charged to conduct the sale offers a    505          

certificate parcel for sale and no bids are made equal to at       506          

least the amount of the court's finding, the officer shall         507          

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

specified in the advertisement of sale.  The second sale shall be  509          

held at the same place and commence at the same time as set forth  510          

in the advertisement of sale.  The officer shall offer any parcel  511          

not sold at the first sale.  Upon the conclusion of any sale, or   512          

if any parcel remains unsold after being offered at two sales,     513          

the officer conducting the sale shall report the results to the    514          

court.                                                                          

      Upon the confirmation of a sale, the proceeds of the sale    517          

shall be applied as follows:                                                    

      (A)  The fees and costs incurred in the proceeding filed     519          

against the parcel pursuant to section 5721.37 of the Revised      521          

Code, not including the county prosecutor's costs covered by the   522          

fee paid by the certificate holder under division (B)(3) of that   523          

                                                          14     


                                                                 
section, shall be paid first.                                                   

      (B)  Following the payment required by division (A) of this  526          

section, the certificate holder that requested the foreclosure     527          

shall be paid the sum of the FOLLOWING AMOUNTS:                                 

      (1)  THE SUM OF THE amount found due for the certificate     530          

redemption prices of all the tax certificates sold against the                  

parcel; any                                                        531          

      (2)  ANY premium paid by the certificate holder at the time  533          

of purchase; interest                                              535          

      (3)  INTEREST on the certificate purchase prices of those    538          

certificates at the rate of eighteen per cent per year beginning                

on the day on which the payment was submitted by the certificate   539          

holder under division (B) of section 5721.37 of the Revised Code   540          

and ending on the day of the sale, EXCEPT THAT SUCH INTEREST       541          

SHALL NOT ACCRUE FOR MORE THAN THREE YEARS AFTER THE DAY THE       542          

CERTIFICATE WAS PURCHASED IF THE CERTIFICATE HOLDER DID NOT        543          

SUBMIT THAT PAYMENT BEFORE THE END OF THAT THREE-YEAR PERIOD; and  544          

the                                                                             

      (4)  THE amounts paid by the certificate holder under        546          

divisions (B)(2) and (3) of section 5721.37 of the Revised Code.   547          

      (C)  Following the payment required by division (B) of this  550          

section, any amount due for taxes, assessments, charges,           551          

penalties, and interest not covered by the tax certificate         552          

holder's payment under division (B)(2) of section 5721.37 of the   553          

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

charges, penalties, and interest payable subsequent to the entry   554          

of the finding and prior to the transfer of the deed of the        555          

parcel to the purchaser following confirmation of sale.  If the    556          

proceeds available for distribution pursuant to this division are  557          

insufficient to pay the entire amount of those taxes,              558          

assessments, charges, penalties, and interest, the proceeds shall  559          

be paid to each claimant in proportion to the amount of those      560          

taxes, assessments, charges, penalties, and interest that each is  561          

due, and those taxes, assessments, charges, penalties, and         562          

                                                          15     


                                                                 
interest are deemed satisfied.                                     563          

      Any residue of money from proceeds of the sale shall be      565          

disposed of as prescribed by section 5721.20 of the Revised Code.  567          

      Unless the parcel previously was redeemed pursuant to        569          

section 5721.25 or 5721.38 of the Revised Code, upon the filing    571          

of the entry of confirmation of sale, the title to the parcel is   572          

incontestable in the purchaser and is free and clear of all liens  573          

and encumbrances, except a federal tax lien notice of which is     574          

properly filed in accordance with section 317.09 of the Revised    575          

Code prior to the date that a foreclosure proceeding is            576          

instituted pursuant to section 5721.37 of the Revised Code, which  577          

lien was foreclosed in accordance with 28 U.S.C.A. 2410(c), and    578          

the easements and covenants of record running with the land or     579          

lots that were created prior to the time the taxes or              580          

assessments, for the nonpayment of which a tax certificate was     581          

issued and the parcel sold at foreclosure, became due and          582          

payable.                                                                        

      The title shall not be invalid because of any irregularity,  585          

informality, or omission of any proceedings under this chapter,    586          

or in any processes of taxation, if such irregularity,             587          

informality, or omission does not abrogate the provision for       588          

notice to holders of title, lien, or mortgage to, or other         589          

interests in, such foreclosed parcels, as prescribed in this       590          

chapter.                                                                        

      Section 2.  That existing sections 5721.37, 5721.38, and     592          

5721.39 of the Revised Code are hereby repealed.                   593