6500-6518
STREETS AND HIGHWAYS CODE
SECTION 6500-6518
6500. (a) Whenever payment upon either the principal or the
interest of any bond is not made to the bondholder when the coupon
therefor is due, the holder of the bond, after sending the notice
required by subdivision (b), may demand, in writing, that the
treasurer proceed to advertise and sell the lot or parcel of land
described in the bond as being that upon which the assessment
represented by the bond was levied. If the holder of the bond has
complied with subdivision (b) and deposits the required amounts, the
treasurer shall proceed to advertise and sell the lot or parcel of
land as provided in this chapter.
The treasurer may require the holder of the bond to deposit with
him an amount of money estimated by the treasurer to be sufficient to
reimburse the city for costs incurred in obtaining an abstract of
title or title search of the real property to be sold, if the
treasurer deems it necessary to determine ownership of the property.
Amounts deposited which remain after these expenses have been paid
shall be returned to the depositor or his representative.
(b) At least 30 days prior to demanding a sale by the treasurer
for nonpayment of either principal or interest upon any delinquent
bond on owner-occupied residential property, a bondholder shall send
a notice by first-class mail, postage prepaid, of the delinquent
amount along with the following notice to the owner of the property.
The notice shall be substantially in the following form and be
printed in red ink in at least 14-point boldface type:
IMPORTANT NOTICE
Dear Property Owner:
Your property located at_________________________
(address)
may be sold by the city (or county) because you
have not paid what you owe for ________
improvements made in your area.
To be sure to save your property, pay to the
city (or county) treasurer the delinquent
amount which is overdue or call
____________________ by ________________________.
(telephone number of (date)
city or county
treasurer's
improvement bond
unit)
6501. The treasurer shall mail a notice of sale to the owner of any
property to be sold for nonpayment of either principal or interest
upon any delinquent bond. The notice shall be sent by certified mail
to the owner of the property as shown on the last equalized
assessment roll and to any person whose name appears as an owner on
the records of the county assessor's office which the county assessor
will use to prepare the next assessor's roll. The notice shall be
substantially in the following form and the first paragraph shall be
printed in at least 14-point boldface type:
IMPORTANT NOTICE
Your property located at ________________________
(address)
will soon be sold by the city (or county) unless
you pay what you
owe for ____ improvement made in your area. To
obtain
information on how to prevent the sale of your
property,
immediately call the foreclosure clerk at
the city (or county)
treasurer's office. The telephone number is ____
to arrange for
payment. For more detailed information regarding
this matter,
read the
following:
"Notice of Sale of Property Delinquent for
Nonpayment of ____ Improvement Bond
"You are hereby notified that Bond ____,
Series ____,
representing a lien against Parcel Number
____ (or the legal
description of the property in said bond)
located at ____, for
an improvement in the City (or County)
of____, is
delinquent. Unless the amount of the
unpaid principal on the
bond, together with interest, penalties, and
recordation fee for
filing notice of pendancy, is paid to the
city (or county) treasurer
on or before six months after the mailing of
this notice, the date
of which being this ____ day of____, 19__, or
unless
the bond is reinstated as provided by Section
6631, the
undersigned will proceed to advertise and
sell the lot or parcel
of land in the manner prescribed by law to
satisfy the amount of
the bond, interest, penalties, and costs."
6501.1. (a) If there is surplus money remaining from the sale after
payment of the amount due on the bond, plus interest, penalties, and
costs of sale, the treasurer shall hold the surplus money in trust
during the period of redemption or until the amount due is paid by a
redemptioner. In the event of redemption, the treasurer shall pay to
the holder of the certificate of sale the amount of principal,
interest, and penalties due on the bond, costs paid by the holder,
and any surplus money held in trust. In the event that there is no
redemption of the bond during the redemption period, the treasurer
shall pay the surplus money in the following order:
(1) To the lienholders of record prior to the issuance of the
treasurer's deed, in the order of their priority;
(2) To the person who was the owner of record prior to the
issuance of the treasurer's deed, if he can be found within a
three-year period following such sale, or, if such person cannot be
found in such period, to each taxing agency in the same proportion
that each agency's taxes bear to the total taxes.
(b)(1) Written notice of the right to claim surplus money shall be
sent to the last known address of any person who had a recorded
interest in the property at the time of sale. Such notice shall be
sent no later than 90 days after the sale of the property.
(2) If the last known address of a person with a recorded interest
in the property is not known, notice shall be published once a week
for three successive weeks in a newspaper of general circulation in
the county. Such notice shall commence no later than 60 days after
the sale of such property.
6502. No sale of property shall be made pursuant to this chapter
unless the notices are sent pursuant to Sections 6500, 6501, 6505,
and 6505.2. The failure of the property owner to receive or accept
the notices does not affect the validity of the sale or invalidate
any subsequent act or proceeding.
6503. After the expiration of six months from the time of mailing
the notice and upon payment by the holder of the bond to the
treasurer of the amounts specified in Section 6505.1, the treasurer
shall publish a notice of sale in a newspaper of general circulation,
published in the city in which the bond was issued, or if no
newspaper is published in the city, then in some newspaper having
general circulation therein.
6504. The notice of sale shall be in substantially (filling in all
blanks) the following form:
"Notice of Sale of Property Delinquent for Nonpayment of Bond No.
__, Series No. __, Issued for the Improvement of
____
"Default having been made in the payment of the following named
coupons (here fill in date and amounts of the coupon or coupons which
have not been paid) and the holder of said bond having demanded in
writing that the Treasurer of the City (or County) of ____ proceed to
advertise and sell the lot or parcel of land mentioned in said bond.
Now, therefore, I give notice that I will on the ____ day of ____,
19__, at the hour of ____ o'clock _m., of said day, sell at public
auction the lot or parcel of land mentioned in said bond, to wit:
Parcel Number ____ (or the legal description of the property in said
bond) located at ____, at (here state the place of sale, which shall
be at the office of said treasurer or at some public place in said
city (or county)) unless the amount due on said bond and the accrued
interest thereon together with the costs set forth in the third
paragraph of this notice are paid; and that I will so sell the same
to the person who will pay the highest price for the entire lot or
parcel of land hereinafter described, but not less than the full
amount of unpaid principal, interest, and penalties on said bond,
together with all costs. In the event there is no bidder for the
total amount due on said bond, together with the accrued interest,
penalties, and costs of sale, I shall deem said lot or parcel of land
sold to the holder of said bond, as provided in Section 6509 of the
Streets and Highways Code. The lot or parcel of land mentioned in
said bond and to be sold, is more particularly described, to wit:
(here set forth the description of the lot or parcel of land as
contained in the bond). The amount due on said bond up to the date of
this notice is as follows: Due on the principal thereof, ____
dollars ($____); due on account of interest ____ dollars ($____)
(here set forth the interest calculated and compounded semiannually
up to the date on which the notice is dated at the interest rate
named in said bond upon the unpaid principal for the full period for
which no interest has been paid) due on account of penalties ____
dollars ($____). Total amount due on said bond (here set forth the
total of the foregoing items).
"In order to avoid this sale, payment of the total amount above
named will be required together with the additional interest accruing
up to the date of payment and the following costs: (a) the cost of
recording pendency of foreclosure as provided in Section 3121 of the
Streets and Highways Code; (b) if incurred, costs of obtaining an
abstract of title or title search; (c) the cost of publication of the
notice of sale incurred before such payment; and (d) the sum of
three dollars ($3) for ascertainment by the treasurer of the name and
address of the property owner, as shown on the last equalized roll
for taxes, and any person whose name appears as owner on the records
of the county assessor's office which the county will use to prepare
the next assessor's roll. The bond may be reinstatted and the sale
avoided upon payment of the amounts due, interest, penalties, and
costs in the manner provided in Sections 3121 and 6631 of the Streets
and Highways Code.
"In the event of sale, such sale will include interest in addition
to the above total amount due accruing up to the date of sale, the
costs provided in Section 6505.1 of the Streets and Highways Code,
and the fee for recording the certificate of sale. The ____ (here
name newspaper) is designated as the newspaper in which this notice
shall be published.
Dated _______
_________________________
Treasurer of the City (or
____________
County)
of ____________"
6505. (a) The day specified in the notice of sale shall not be less
than 45 days from the date of the first publication of the notice.
(b) At least 30 days prior to the sale, a copy of the notice of
sale shall be transmitted by the treasurer by certified mail to the
bondholder at his last known address.
(c) At least 30 days prior to the sale, the treasurer shall mail,
by first-class mail, a copy of the notice of sale and the following
notice which shall be printed in at least 14-point boldface type to
the property owner as shown on the last equalized roll for taxes and
to any other person whose name appears as owner on the records of the
county assessor's office which the county will use to prepare the
next assessor's roll.
IMPORTANT NOTICE
Because you have not paid the money you owe to the city (or
county) treasurer for ____ improvements made in your area, the
treasurer has arranged to sell your property. You must pay off this
debt by (day before sale) or your property will be sold.
If you wish to stop this sale and save your property, call the
foreclosure clerk at the treasurer's office, telephone number ____,
to arrange for payment of this debt. See the attached notice for
further details regarding this sale.
6505.1. The treasurer shall be under no obligation to publish or
mail notice of sale as provided in Sections 6503, 6504, 6505, and
6505.2 unless the bondholder deposits with the treasurer, prior to
the issuance of the notice, the following sums and documents:
(a) A receipt from the county recorder for the cost of recording
notice of pendency of foreclosure as provided by Section 3121.
(b) A fee to reimburse the city or county for its estimated
reasonable cost of obtaining the name and last known mailing address
of, and for mailing notices required by Section 6505.2 to, parties of
interest as defined by Section 6505.4.
(c) The sum of three dollars ($3) for ascertainment by the
treasurer of the name and address of the property owner, as shown on
the last equalized assessment roll for taxes, and any person whose
name appears as owner on the records of the county assessor's office
which will be used by the county to prepare the next assessor's roll.
(d) Cost of publication of the notice of sale.
(e) Treasurer's fee for issuance of certificate of sale which is
hereby fixed at seven dollars ($7).
(f) Sheriff's travel fees, as provided in Section 26746 of the
Government Code.
6505.2. (a) Not less than 45 days nor more than 60 days prior to
the date of sale, the treasurer shall send notice by registered mail
to the last known mailing address, if available, of parties of
interest, as defined in Section 6505.4. The content of the notice
shall include the date, time, and place of the proposed sale, the
amount required to redeem prior to the time of sale, and information
regarding the rights of persons to claim surplus money, as defined in
Section 6501.1, if the property is sold and surplus money results
from the sale.
(b) The treasurer shall make a reasonable effort to obtain the
name and last known mailing address of parties of interest.
(c) The validity of any sale under this chapter is not affected if
the treasurer's reasonable effort fails to disclose the name and
last known mailing address of parties of interest or if a party of
interest does not receive the mailed notice.
6505.4. For the purpose of giving notice, as required by Section
6505.2, parties of interest are all of the following:
(a) Lienholders of record prior to the issuance of the treasurer's
deed.
(b) Any other person who would be vested with title to all, or any
portion, of the property to be sold by redemption of the property.
6506. Any affidavit of publication setting forth a copy of the
publication and stating that the publication was made in the
newspaper named on specified dates shall be filed with the treasurer
and shall be prima facie evidence of the publication of the notice.
6507. The treasurer shall collect the sum of seven dollars ($7) for
the issuance of the certificate of sale, which sum shall belong to
and be subject to the disposition of the city or county.
6508. If at any time prior to the sale any person interested in the
lot or parcel of land described in the notice of sale pays the whole
amount of the unpaid principal of the bond, the interest thereon
compounded semiannually up to the date of such payment, at the rate
named in the bond upon the amount of the principal remaining unpaid
for the whole period for which interest has not been paid, and all
penalties which have accrued, together with the sums specified in
Section 6505.1, except for the fee for the issuance of the
certificate of sale, the bond shall be canceled. If redemption of the
bond is made by the property owner prior to publication of notice of
sale, but after the treasurer has incurred any expense for such
publication, the property owner shall pay to the treasurer such
expense incurred by the treasurer.
6508.2. Prior to the sale of any owner-occupied residential
property, the treasurer or his or her designee shall, in person, make
every reasonable effort to meet with the owner-occupant in the
office of the treasurer or his or her designee or otherwise speak
with the owner-occupant. During this contact, the treasurer or his or
her designee shall, in language understandable to the
owner-occupant, explain that the property will be sold unless the
delinquency is paid. The explanation shall also include a full
explanation of the right of redemption.
Failure to comply with this section shall not invalidate any sale
pursuant to this act.
6509. (a) If such payment is not made, the sale shall be made as
advertised, and the lot or parcel described in the bond shall be sold
to the purchaser who will pay the highest price for the entire lot
or parcel of land to be sold, but not less than the higher of (1) the
amount due on the bond, together with accrued interest, penalties,
and all of the sums specified in the notice of sale that are due in
the event of sale, or (2) an amount equal to not less than 50 percent
of the fair market value of the property.
(b) In the event there are no bidders, the bondholder shall be
liable for the minimum sales price. Payment to the treasurer at the
time of sale need not exceed the amount specified in paragraph (1) of
subdivision (a), and the balance, if any, shall be payable at the
time the deed is issued.
(c) In the event there are no bidders, a certificate of sale for
the entire lot or parcel of land described in the bond shall be
issued to the bondholder after surrender of the bond, including all
unpaid principal and interest coupons, to the treasurer and after
payment to the treasurer of the fee of the recorder for recording
such certificate, and, if incurred, and if no deposit was made
pursuant to Section 6500, the cost of an abstract of title or title
search of the real property sold under foreclosure; and also at that
time the costs of the sale and other fees previously paid to the
treasurer pursuant to Section 6505.1.
(d) For the purpose of this section, "fair market value" means the
amount, as defined in Section 110 of the Revenue and Taxation Code,
as determined pursuant to an appraisal of such property by the county
assessor within one year immediately preceding the date of the sale,
inclusive of the cost of appraisal, notice, recording, and the cost
of an abstract of title or title search of such real property, if
any. The fair market value as determined by the assessor pursuant to
appraisal shall be conclusively presumed in favor of any purchaser or
encumbrancer for value of such property.
6510. If through error or otherwise the total amount for which the
sale is made is less than that required by the provisions of this
chapter, and the holder of the bond either is the purchaser at the
sale and elects to accept the certificate of sale hereinafter
mentioned, or accepts from the treasurer the sum derived from the
sale made to some other purchaser, the fact that the sale was made
for less than the amounts specified in this chapter shall not affect
or invalidate the sale, and the acceptance of the certificate or of
the sum derived from the sale shall be a waiver on the part of the
holder of the bond, and in such case the amount received on the sale
shall be the amount upon which redemption from the sale shall be
calculated the same as if the sale had been made for the full amount
authorized by this chapter.
6511. The treasurer, before delivering any certificate of sale,
shall enter the following data in a book kept in his office for that
purpose:
(a) The date, number, and series of the bond.
(b) A description of the land sold corresponding with the
description of the certificate of sale.
(c) The date of sale, the purchaser's name, and the amount paid.
He shall regularly number the descriptions on the margin of the
book, and put a corresponding number on each certificate. He shall
enter on the record of the bond the words: "Canceled by sale of the
property," giving the date of such sale.
6512. Such book shall be open to public inspection during office
hours when not in actual use.
6513. The treasurer shall issue for each sale an original and a
duplicate certificate of sale containing:
(a) The date, number and series of the bond under which the sale
was made,
(b) A description of the land sold, and
(c) The date of the sale, the purchaser's name, a statement that
the property was sold in accordance with the provisions of Section
6509, and the number of the certificate.
6514. The treasurer shall deliver the original certificate of sale
to the purchaser and shall record the duplicate in the office of the
recorder of the county in which the land sold is situated.
6515. At any time after its delivery to him the legal holder of the
certificate of sale may pay any general taxes, street improvement
assessments, or any other tax or statutory lien upon the property
described in the certificate of sale which may be prior to his lien
or he may redeem the property from any sale made in the collection or
enforcement of such general taxes, or foreclosing street improvement
assessments or other tax or statutory liens.
6516. Upon production by the holder of the certificate of sale of
the official receipt for the amounts so paid by him, the treasurer
shall make an indorsement upon the certificate of sale showing that
receipts have been so produced and stating the nature of the tax or
lien paid, and the amount thereof. He shall also make a like entry in
the book containing the bond record and shall collect the amount so
entered as a part of the amount represented by the certificate of
sale together with interest thereon at the same rate as provided on
the purchase money for redemption.
6517. Immediately on the sale, the purchaser shall become vested
with a lien on the property sold to him, to the extent of his bid. He
may only be divested of that lien by redemption.
6518. The holder of a certificate of sale, upon assignment of such
certificate shall immediately notify the treasurer thereof, giving
the name and address of the assignee and shall endorse such
assignment on the certificate of sale.