Bill Text: CT HB05456 | 2012 | General Assembly | Introduced
Bill Title: An Act Concerning Deficiency Judgments In Tax Lien Foreclosures.
Spectrum: Bipartisan Bill
Status: (Introduced - Dead) 2012-04-11 - File Number 354 [HB05456 Detail]
Download: Connecticut-2012-HB05456-Introduced.html
General Assembly |
Raised Bill No. 5456 | ||
February Session, 2012 |
LCO No. 2032 | ||
*02032_______PD_* | |||
Referred to Committee on Planning and Development |
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Introduced by: |
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(PD) |
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AN ACT CONCERNING DEFICIENCY JUDGEMENTS IN TAX LEIN FORECLOSURES.
Be it enacted by the Senate and House of Representatives in General Assembly convened:
Section 1. Section 12-181 of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2012):
(a) Whenever used in this section, unless the context otherwise requires, "municipality" has the meaning given thereto in section 12-141. The tax collector of any municipality may bring suit for the foreclosure of tax liens in the name of the municipality by which the tax was laid, and all municipalities having tax liens upon the same piece of real estate may join in one complaint for the foreclosure of the same, in which case the amount of the largest unpaid tax shall determine the jurisdiction of the court. If all municipalities having tax liens upon the same piece of real estate do not join in a foreclosure action, any party to such action may petition the court to cite in any or all of such municipalities as may be omitted, and the court shall order such municipality or municipalities to appear in such action and be joined in one complaint. The court in which action is commenced shall continue to have jurisdiction thereof and may dispose of such action in the same manner as if all the municipalities had commenced action by joining in one complaint. If one or more municipalities having one or more tax liens upon the same piece of property are not joined in one action, each of such municipalities shall have the right to petition the court to be made a party plaintiff to such action and have its claims determined in the same action, in which case the same court shall continue to have jurisdiction of the action and shall have the same rights to dispose of such action as if all municipalities had originally joined in the complaint. The court having jurisdiction under the provisions of this section may limit the time for redemption, order the sale of the real estate, determine the relative amount of the undivided interest of each municipality in real estate obtained by absolute foreclosure if two or more municipalities are parties to one foreclosure action or pass such other decree as it judges to be equitable. If one or more municipalities foreclose one or more tax liens on real estate and acquire absolute title thereto and if any other municipality having one or more tax liens upon such real estate at the time such foreclosure title becomes absolute has not, either as plaintiff or defendant, been made a party thereto, the tax liens of each of such other municipalities shall not be thereby invalidated or jeopardized.
(b) If the proceeds of the sale of real estate are not sufficient to pay in full the amount secured by any tax lien thereby foreclosed, the court having jurisdiction shall determine the deficiency and thereupon may render judgment for the deficiency against any party liable to pay the same who is a party to the action and has been served with process or has appeared therein. All persons liable to pay the debt secured by the lien may be made parties.
This act shall take effect as follows and shall amend the following sections: | ||
Section 1 |
October 1, 2012 |
12-181 |
Statement of Purpose:
To allow municipalities to seek deficiency judgments in a tax lien foreclosure.
[Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline, except that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not underlined.]