48-1003

48-1003. Court proceedings and sale of delinquent property

A. The board of directors of any improvement district may, as a cumulative remedy, order that an action in a court of competent jurisdiction be brought pursuant to this article for judicial sale of delinquent property.

B. Any number of properties subject to the same assessment for improvements may be included in one action and the equity of redemption under any lien except general property tax liens may be determined in the action.

C. The action shall be brought in the name of the district as plaintiff. The complaint shall allege the passage of the resolution of intention, confirmation and levy of assessment, that bonds were issued upon the security of such assessment, giving the date of the last maturity, the amounts delinquent against the properties proceeded against and that the board of directors has ordered the action. The names of the defendants shall be considered as parties defendant only as to the property so designated.

D. The court may enter separate judgments as to any property and the action shall continue as to the remaining properties. Each judgment shall separately state as to each property:

1. A description of the property.

2. The names of the defendants designated as having ownership or other interests whose rights have been determined by the judgment.

3. The amounts of the delinquent installments and interest and penalties, a proportionate part of the costs of the proceeding, including a reasonable attorney's fee to be fixed by the court and the amount for which the property is to be sold. Actions filed pursuant to this article shall be set for trial at the earliest possible date and shall take precedence over all other civil actions except older matters of the same character and matters entitled to special precedence. An appeal may be taken as to any separate property included in a judgment, but such appeal shall not delay execution upon or further proceedings concerning other properties not involved in the appeal.

E. Upon execution on a judgment each property shall be offered for sale separately and shall be sold to the bidder who offers to pay the whole amount of the judgment against the property. If two or more bidders offer to purchase the same property it shall be sold to the bidder who offers to accept the lowest rate of penalty in event the property is redeemed from the sale. The purchaser shall take the property subject to all unpaid general property taxes and all unpaid installments of principal, interest and penalties to all public improvement assessments.

F. If there is no offer to purchase the property for an amount not less than the judgment against it, the property shall be sold to the district for the amount of the judgment at the maximum rate of penalty. The district may sell property purchased pursuant to this subsection at public or private sale and upon such terms as the board of directors deems appropriate but in no event shall annual installments be less than the obligations of such property in regard to bond principal and interest payments nor shall payments be deferred for a term longer than the final maturity of the bonds issued against the assessment.

G. From the amounts received from the redemption of property purchased by the district, or from the proceeds of sales of property by the district, there shall be returned to the general fund any amounts that were advanced in connection with such property pursuant to section 48-1001. The balance shall be paid into the special fund for payment of bond principal and interest of the bonds issued in the proceedings of the district, thereafter to be disposed of pursuant to section 48-958. The purchaser of property from the district shall take the property subject to all unpaid general property taxes and all unpaid installments of principal, interest and penalties to all public improvement assessments.

H. Except as otherwise provided in this section, all actions shall be conducted pursuant to title 33, chapter 6, article 2 and all proceedings supplemental to judgment, including appeal, execution and sale, redemption and the issuance of a deed shall be conducted pursuant to such article, except that redemption may be had at any time within one year after the date of judicial sale, and the judgment lien shall not extend to, nor may the judgment be satisfied out of, any other property, nor may general execution be issued.