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
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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
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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
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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
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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
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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
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(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
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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
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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
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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