39 | 42 | | |
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40 | 43 | | An Act relating to cities and towns; enacting the |
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41 | 44 | | Municipal Code Lien Enforcement Act of 202 3; defining |
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42 | 45 | | terms; providing applicability to all municipalities; |
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43 | 46 | | providing that the provisions do not apply to owner - |
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44 | 47 | | occupied property; providing that any fees, |
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45 | 48 | | penalties, and abatement costs imposed against |
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46 | 49 | | property for violations of a municipality 's housing |
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47 | 50 | | and building codes may be enforced in rem as a lien; |
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48 | 51 | | providing that municipalities may proceed with |
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49 | 52 | | judicial in rem foreclosures of municipal code liens |
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50 | 53 | | by an enactment of an ordinance or resolution of the |
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51 | 54 | | governing authority of the municipality in whic h the |
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52 | 55 | | real property is located; providing requirements for |
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53 | 56 | | a municipal ordinance or resolution authorizing liens |
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54 | 57 | | and foreclosures pursuant to this act; providing this |
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55 | 58 | | act does not constitute an action for personal |
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56 | 59 | | liability for the municipal code liens aga inst the |
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57 | 60 | | owner or owners of the real prop erty; providing that |
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58 | 61 | | the rights and remedies set forth in this act are |
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59 | 62 | | available solely to the governmental entities |
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60 | 63 | | authorized by law to enforce municipal ordinances; |
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61 | 64 | | providing that a municipality that seeks to enf orce a |
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62 | 65 | | municipal code lien through the sa le of real property |
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63 | 66 | | shall utilize the judicial in rem proceedings of this |
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64 | 67 | | act as the sole remedy; providing that enforcement |
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65 | 68 | | proceedings may be initiated only by the |
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66 | 69 | | municipality; providing timeframe for filing a |
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67 | 70 | | petition for judicial in rem foreclosure fo r a |
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68 | 71 | | municipal code lien; providing requirements for |
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69 | 72 | | filing a petition for judicial in rem foreclosure |
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70 | 73 | | when the property is subject to unpaid taxes; |
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71 | 74 | | providing notice requirements needed prior to a |
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101 | 106 | | |
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102 | 107 | | |
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103 | 108 | | BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA: |
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104 | 109 | | SECTION 1. NEW LAW A new section of law to be codified |
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105 | 110 | | in the Oklahoma Statutes as Section 22-140 of Title 11, unless there |
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106 | 111 | | is created a duplication in numbering, reads as follows: |
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107 | 112 | | This act shall be known and may be cited as the "Municipal Code |
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108 | 113 | | Lien Enforcement Act of 202 3". |
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109 | 114 | | SECTION 2. NEW LAW A new section of law to be codifi ed |
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110 | 115 | | in the Oklahoma Statutes as Section 22 -141 of Title 11, unless there |
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111 | 116 | | is created a duplication in numbering, reads as follows: |
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112 | 117 | | As used in this act: |
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113 | 118 | | 1. "Code enforcement director" means an employee of a |
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114 | 119 | | municipality who is tasked by the municipal governi ng body with the |
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115 | 120 | | enforcement of state law or local ordinances related to the |
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116 | 121 | | condition of real property within the jurisdiction of the |
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117 | 122 | | municipality; |
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118 | 123 | | 2. "Interested party" means: |
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119 | 124 | | a. the person who last appe ars as owner of the real |
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120 | 125 | | property in the county re cords, |
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121 | 126 | | b. the current mortgagee of record of the property or |
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122 | 127 | | assignee of record of the mortgagee, |
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152 | 158 | | e. any party having an i nterest in the real property, or |
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153 | 159 | | in any part thereof, legal or equitable, in severalty |
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154 | 160 | | or as tenant in common, whose identity and address are |
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155 | 161 | | reasonably ascertainable from the records of the |
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156 | 162 | | municipality or records maintained in the county |
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157 | 163 | | records or as revealed by a full title search, |
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158 | 164 | | consisting of fifty (50) years or more. |
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159 | 165 | | An interested party shall not include the holder of the benefit |
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160 | 166 | | of an easement which burdens the real property, the holder of the |
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161 | 167 | | benefit or burden of a real covenant which burdens the real |
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162 | 168 | | property, or the holder of the benef it of a utility easement which |
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163 | 169 | | burdens the real property; |
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164 | 170 | | 3. "Minimum bid price" means the price that equals the |
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165 | 171 | | redemption amount; |
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166 | 172 | | 4. "Municipal code lien" means any lien that has been levied |
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167 | 173 | | against real propert y by a municipality that is the result of the |
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168 | 174 | | nonpayment of any fine, penalty, abatement cost , or enforcement cost |
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169 | 175 | | incurred by a municipality related to the enforcement of state or |
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170 | 176 | | local housing and build ing codes. Such lien shall include only |
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171 | 177 | | those liens which arise out of a failure to comply w ith any law of |
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202 | 209 | | inclusion on the property tax bill associated with the real |
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203 | 210 | | property; |
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204 | 211 | | 5. "Municipal code lien payoff " means the principal amou nt of a |
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205 | 212 | | municipal code lien, interest accrued at the rate of seven and one- |
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206 | 213 | | half percent (7.5%) per annum from the date the municipal code lien |
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207 | 214 | | was filed in the office of the county clerk, any fees or costs |
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208 | 215 | | incurred in the collection of such a lien under th is act including, |
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209 | 216 | | without limitations, the cost of t itle examinations and publication |
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210 | 217 | | of notices, and any other penalties allowable under either the laws |
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211 | 218 | | of the State of Oklahoma or under an ordinance or resolution enacted |
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212 | 219 | | by the municipality; |
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213 | 220 | | 6. "Owner-occupied" means real property that is lawfully |
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214 | 221 | | occupied as a principal residence that is any of the follo wing: |
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215 | 222 | | a. a homestead as described in Sect ion 2888 of Title 68 |
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216 | 223 | | of the Oklahoma Statutes, |
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217 | 224 | | b. exempt from ad valorem taxation under Sections 2904 |
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218 | 225 | | through 2911 of Title 68 of the Oklahoma Statutes, and |
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219 | 226 | | c. eligible for the designations listed in subparagraph a |
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220 | 227 | | or b or this paragraph, but which has not yet been |
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250 | 258 | | a. the full amount of the municipal code lien payoff for |
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251 | 259 | | each municipal code lien on which the municipality is |
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252 | 260 | | seeking to foreclose under this act, and |
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253 | 261 | | b. any tax payoff that may be applicable to the property |
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254 | 262 | | on which the municipality is seeking to foreclose |
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255 | 263 | | under this act; |
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256 | 264 | | 8. "Taxes" means those taxes assessed aga inst real property by |
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257 | 265 | | either the State of Oklahoma, the county in which the real property |
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258 | 266 | | is situated, or the municipality that are delinquent as of the date |
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259 | 267 | | a proceeding under this act is commenced or at any time before final |
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260 | 268 | | resolution of the same, and shall a lso include any taxes assessed |
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261 | 269 | | against real property that are unpaid from any previous year and any |
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262 | 270 | | amounts required for redemption. As provided in Se ction 3103 of |
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263 | 271 | | Title 68 of the Oklahoma Statutes, a lien for taxes shall be |
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264 | 272 | | superior to all other liens, i ncluding municipal code liens; |
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265 | 273 | | 9. "Tax certificate holder" means any of the following: |
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266 | 274 | | a. a tax sale purchaser who holds a certificate of |
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267 | 275 | | purchase, |
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268 | 276 | | b. the state, where it has accepted and recorded a |
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269 | 277 | | certificate of purchase obtained at a tax sale, |
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300 | 309 | | 10. "Tax payoff" means all amounts necessary to satisfy any |
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301 | 310 | | claims for delinquent taxes assessed against the real property on |
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302 | 311 | | which the municipality i s seeking foreclosure under this act. Those |
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303 | 312 | | amounts shall include: |
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304 | 313 | | a. if the taxes associated with the prope rty are |
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305 | 314 | | delinquent, but the property has not yet bee n sold for |
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306 | 315 | | taxes, the full amount of delinquent taxes, costs, |
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307 | 316 | | fees, and charges due to the coun ty tax collector, |
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308 | 317 | | b. if the property has been sold for taxes to either the |
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309 | 318 | | state or to a party other than the state, those |
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310 | 319 | | amounts required for redemption, excep t for when a |
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311 | 320 | | municipality is the prevailing bidder, th e tax payoff |
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312 | 321 | | amount shall be the lesser o f these amounts, and |
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313 | 322 | | c. if a tax lien has been sold by a county, the amount |
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314 | 323 | | required for redemption. |
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315 | 324 | | SECTION 3. NEW LAW A new section of law to be codified |
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316 | 325 | | in the Oklahoma Statutes as Section 22-142 of Title 11, unless there |
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317 | 326 | | is created a duplication in numbering, reads as follows: |
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318 | 327 | | A. The provisions of this act shall apply to any municipal |
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319 | 328 | | governing body that adopts the provisions of this a ct, and are |
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350 | 360 | | SECTION 4. NEW LAW A new section of law to be codified |
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351 | 361 | | in the Oklahoma Statutes as Section 22-143 of Title 11, unless there |
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352 | 362 | | is created a duplication in numbering, reads as follows: |
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353 | 363 | | Notwithstanding any law to the contrary, any fees, penalties, |
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354 | 364 | | and abatement costs imposed ag ainst property other than owner - |
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355 | 365 | | occupied real property for violations of a municipality 's housing |
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356 | 366 | | and building codes adopted pursuant to the statutes of the State of |
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357 | 367 | | Oklahoma may be enforced in rem as a lie n in accordance with this |
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358 | 368 | | act. |
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359 | 369 | | Every municipal code lien, as defined in this act, shall be |
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360 | 370 | | superior to all other liens, except those liens for taxes described |
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361 | 371 | | or referenced in Section 3103 of Title 68 of the Oklahoma Statutes. |
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362 | 372 | | SECTION 5. NEW LAW A new section of law to be codified |
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363 | 373 | | in the Oklahoma Statutes as Section 22 -144 of Title 11, unless there |
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364 | 374 | | is created a duplicatio n in numbering, reads as follows: |
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365 | 375 | | A. Any municipality to which this act applies may proceed with |
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366 | 376 | | judicial in rem foreclosures of municipal code liens in accordance |
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367 | 377 | | with the provisions of this act by enactment of an ordinance or |
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368 | 378 | | resolution of the governing authority of the municipality in which |
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369 | 379 | | the real property is located , which ordinance or resolution shall be |
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398 | 409 | | B. The ordinance or resolution of a municipality authorizing |
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399 | 410 | | and approving the use of this act shall include all of the |
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400 | 411 | | following: |
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401 | 412 | | 1. The initial effective date for app lication of these |
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402 | 413 | | procedures; |
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403 | 414 | | 2. The explicit exclusion of owner-occupied properties from the |
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404 | 415 | | application of the judicial in rem forec losure procedures authorized |
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405 | 416 | | in this act; |
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406 | 417 | | 3. The nature and extent of notices, support services, and |
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407 | 418 | | referrals to be provided to the owners and occupants of owner - |
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408 | 419 | | occupied properties; and |
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409 | 420 | | 4. Any other matters the municipality specifies to be addressed |
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410 | 421 | | through administrative regulations and policies. |
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411 | 422 | | C. Proceedings in accordance with this act are to solely |
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412 | 423 | | enforce the municipal code lien for real property subj ect to the |
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413 | 424 | | municipal code lien and shall not constitute an action for personal |
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414 | 425 | | liability for the municipal code liens against the owner or owners |
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415 | 426 | | of the real property. |
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416 | 427 | | D. The rights and remedies set forth in this act are available |
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417 | 428 | | solely to the government al entities authorized by law to enforce |
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418 | 429 | | municipal ordinances and shall not extend to any nongove rnmental |
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419 | 430 | | transferee of municipal code liens. |
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448 | 460 | | real property shall utilize the judicia l in rem proceedings of this |
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449 | 461 | | act as the sole remedy for the enforcement through the sale of real |
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450 | 462 | | property. |
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451 | 463 | | F. The enforcement proceedings authorized by this act may be |
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452 | 464 | | initiated only by the municipal ity. |
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453 | 465 | | SECTION 6. NEW LAW A new se ction of law to be codified |
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454 | 466 | | in the Oklahoma Statutes as Section 22-145 of Title 11, unless there |
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455 | 467 | | is created a duplication in numbering, reads as follo ws: |
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456 | 468 | | A. After a municipal code lien has been recor ded with the |
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457 | 469 | | office of the county clerk of the county in which the real property |
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458 | 470 | | is located, the code enforcement director may identify those |
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459 | 471 | | properties on which to commence a judicial in rem foreclosure in |
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460 | 472 | | accordance with this act, except that those properties the code |
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461 | 473 | | enforcement director identifies as owner -occupied shall not be |
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462 | 474 | | subject to judicial in rem foreclosure under this act. The code |
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463 | 475 | | enforcement director shall not file a petition for judicial in rem |
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464 | 476 | | foreclosure in accordance with this act for a period of six (6) |
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465 | 477 | | months following the date upon which t he municipal code lien is |
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466 | 478 | | recorded in the office of the county clerk. A petition for judicial |
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467 | 479 | | in rem foreclosure may include any other municipal code lien that |
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468 | 480 | | has been filed prior to the date the petition is filed. After |
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469 | 481 | | enforcement proceedings have com menced in accordance with this act, |
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497 | 510 | | subsequently arising municipal code liens and, if applicable, any |
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498 | 511 | | and all taxes as defined in this act. |
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499 | 512 | | B. If the property on which the municipality is seeking t o |
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500 | 513 | | foreclose under this act is subject to taxes as defined in this act, |
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501 | 514 | | then, at least sixty (60) days prior to the filing of the petition, |
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502 | 515 | | the code enforcement director shall notify all other taxing agencies |
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503 | 516 | | within the jurisdiction of the municipality and the State of |
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504 | 517 | | Oklahoma of the code enforce ment director's intention to file a |
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505 | 518 | | petition for judicial in rem foreclosure of the real property on |
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506 | 519 | | which a municipal code lien exists. |
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507 | 520 | | C. In the name of the municipalit y, the code enforcement |
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508 | 521 | | director shall, in the appropriate lis pendens record in the office |
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509 | 522 | | of the county clerk of the county in which the real property is |
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510 | 523 | | located, file a notice of his or her intent t o file a judicial in |
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511 | 524 | | rem foreclosure action. The notice shall include a legal |
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512 | 525 | | description of the p roperty, street address of the property i f |
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513 | 526 | | available, a statement that the property is subject to judicial in |
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514 | 527 | | rem foreclosure proceedings under this act, and a statement that |
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515 | 528 | | those proceedings may extinguish any le gal interests in the |
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516 | 529 | | property. |
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517 | 530 | | D. Simultaneous with the filing of his or her notic e of intent |
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518 | 531 | | to file a judicial in rem foreclosure action, the code enforcement |
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519 | 532 | | director, in the name of the municipa lity, shall file a petition |
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545 | 559 | | |
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546 | 560 | | with the clerk of the district court for the district in which the |
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547 | 561 | | real property is located. |
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548 | 562 | | E. The petition shall be filed against the real property |
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549 | 563 | | against which the municipal code lien has been recorded and shall |
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550 | 564 | | provide all of the following: |
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551 | 565 | | 1. The identity of the municipality and the name and address of |
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552 | 566 | | the code enforcement director; |
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553 | 567 | | 2. The real property add ress; |
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554 | 568 | | 3. A description of the real property; |
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555 | 569 | | 4. The tax identification number of the real property; |
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556 | 570 | | 5. The municipal code lien which is being foreclosed; |
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557 | 571 | | 6. The principal amount of the municipal code lien togeth er |
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558 | 572 | | with applicable interest and penalties ; |
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559 | 573 | | 7. The principal amount of any additional municipal code liens |
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560 | 574 | | together with applicable interest and penalties in accordance with |
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561 | 575 | | this section, if any; |
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562 | 576 | | 8. The year or years for which the taxes are delinquent, if |
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563 | 577 | | any; |
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564 | 578 | | 9. The principal amount of the tax es together with interest and |
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565 | 579 | | penalties, if any; |
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566 | 580 | | 10. A statement that upon final sale in accordance with this |
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567 | 581 | | act and payment of the amount due for taxes, if applicable, an |
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568 | 582 | | interested party's rights of redemption s hall be extinguished; and |
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594 | 609 | | |
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595 | 610 | | 11. The names and addresses of all interested parties to whom |
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596 | 611 | | copies of the petition are to be sent in accordance with subs ection |
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597 | 612 | | F of this section. |
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598 | 613 | | F. The municipality shall mail copies of the petition by both |
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599 | 614 | | certified mail, return receipt requested, and by regular m ail to all |
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600 | 615 | | interested parties whose identities and addresses are reasonably |
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601 | 616 | | ascertainable. Copies of the pet ition shall also be mailed by |
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602 | 617 | | first-class mail to the real property address to the attention of |
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603 | 618 | | the occupants of the property, if any. In addition , notice shall be |
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604 | 619 | | physically posted on the real property and shall include the |
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605 | 620 | | following statement: "THIS PROPERTY IS SUBJECT TO A JUDICIAL IN REM |
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606 | 621 | | FORECLOSURE ACTION AND MAY BE TRANSFERRED TO [NAME OF MUNICIPALITY] |
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607 | 622 | | OR ANOTHER PARTY. PERSONS WITH INFORMAT ION REGARDING THE CURRENT |
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608 | 623 | | OWNER OF THE PROPERTY ARE REQUESTED TO CONTACT [NAME OF |
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609 | 624 | | MUNICIPALITY]." |
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610 | 625 | | G. Within thirty (30) days of the filing of the petition, the |
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611 | 626 | | municipality shall cause a notice of the filing of the petition to |
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612 | 627 | | be published once each week for three (3) consecutive weeks in a |
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613 | 628 | | newspaper of general circulation in the county in which the property |
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614 | 629 | | is located. Such notice shall specify: |
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615 | 630 | | 1. The name and address of the code enforcement director; |
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616 | 631 | | 2. The real property address; |
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617 | 632 | | 3. A description of the real property; |
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618 | 633 | | 4. The tax identification number of the real property; |
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644 | 660 | | |
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645 | 661 | | 5. Any applicable municipal code lien which is being foreclosed |
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646 | 662 | | upon; |
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647 | 663 | | 6. The principal amount of any municipal code lien together |
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648 | 664 | | with interest and penalties; |
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649 | 665 | | 7. The applicable period of tax delinquency, if any; |
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650 | 666 | | 8. The principal amount of taxes, if any; |
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651 | 667 | | 9. That upon deposit with the appro priate parties by the court |
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652 | 668 | | of the tax payoff amo unt, if any, any and all rights of redemption |
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653 | 669 | | accorded to interested parties are extinguished ; and |
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654 | 670 | | 10. The date and place of the filing of the petition . |
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655 | 671 | | SECTION 7. This act shall become eff ective November 1, 2023. |
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