This section sets out how the superintendent must conduct a property sale for delinquent assessments, including how lots are offered, when the municipality may buy or resell property, and how partial payments are handled.
48-603 - Sale procedure; municipality as purchaser; disposition of property by municipality 48-603 . Sale procedure; municipality as purchaser; disposition of property by municipality A. On the day fixed for the sale, the superintendent shall, at 10:00 a.m., or at any time thereafter to which the sale may be adjourned, begin the sale of the property advertised, commencing at the head of the list and continuing in the numerical order of lots, until all are sold. The superintendent may postpone or continue the sale from day to day until all the property is sold. Each lot separately assessed shall be offered for sale separately. The sale shall be for the entire assessment including the delinquent installments, and the person who will take the least quantity of land and then and there pay the amount of the assessment, penalty and costs due, including fifty cents to the superintendent for a certificate of sale, shall become the purchaser. B. The municipality may provide by ordinance that if there is no purchaser other than the municipality who will pay the entire amount of the assessment, penalty and costs, including fifty cents to the superintendent for a certificate of sale, the superintendent shall sell the lot or portion of the lot to the person who will take the least quantity of land and then and there pay the amount of the assessment then delinquent, including interest, penalty and costs due, and fifty cents to the superintendent for a certificate of sale, and deed shall issue to the purchaser, subject to redemption, as provided by this article. The municipality may also provide by ordinance that the lien on the entire lot, piece or parcel of land assessed shall continue to be in effect for the amount of the assessment or portion thereof, including interest, penalties and costs, thereafter to become due, and the land may again be sold should the assessment again become delinquent. When so provided by ordinance such fact shall be stated in the notice of sale and the superintendent shall comply with the provisions. C. If there is no purchaser for any lot offered for sale, it shall be struck off to the municipality as the purchaser, and the governing body shall appropriate first from any reserve and any additional, similar fund and then from the general fund of the treasury the amount bid for such purpose, and shall order the treasurer to place the amount in a special fund for such improvement. The governing body, however, may direct the treasurer to pay into the special fund only the sum required to pay the installment then due or to become due upon the bonds issued for the assessment, and thereupon the municipality shall become obligated to pay first from any reserve and any additional, similar fund and then from the general fund the succeeding installments and interest on the bonds, as are payable by the assessments on the lot. Thereafter the lien of the assessment shall not be extinguished for nonpayment of general taxes or prior special assessments, and the annual installments of principal and interest of the assessment shall constitute a first lien on the respective lot, piece or parcel of land, coequal with the lien for general taxes. If the lien has not been extinguished prior to the property being stricken off to the state, such lien shall extinguish upon sale of the property pursuant to title 42, chapter 18, article 7 and the municipality shall share pro rata in the proceeds of such sale to the extent of the delinquent assessments. D. The municipality may sell any lot so purchased after the expiration of the time for redemption at public or private sale. All sums received by the municipality from redemption of property purchased by it and from sale by it of property so purchased, less the amount paid into the special fund first from any reserve and any additional, similar fund and then from the general fund, shall be paid into the special fund for the payment of the bonds until the special fund is sufficient to pay all outstanding bonds. If the municipality has provided that the installment of principal and interest may be paid in partial payments prior to the time each of the installments becomes due, and the owner of the property against which the installment of principal and interest has become delinquent has paid in to the superintendent partial payments on the installments, the owner of the property advertised for sale shall have the right to pay the balance due on the annual installments of principal and interest plus penalties and costs, and no sale shall be held on the parcel of land. E. The superintendent shall record the date of the payment and mark the installment of principal or interest paid. In the event the owner does not pay the balance due on the installment of principal or interest, and the property is sold for the full amount of the assessment, the superintendent shall refund to the owner all money received from the owner by way of partial payments.