§ 34-44-12 - Sale of building and property by receiver.
SECTION 34-44-12
§ 34-44-12 Sale of building and propertyby receiver. – (a) If a receiver appointed pursuant to § 34-44-4 files with the judge inthe civil action described in § 34-44-4 a report indicating that thepublic nuisance has been abated, and if the judge confirms that the receiverhas abated the public nuisance, and if the receiver or any interested partyrequests the judge to enter an order directing the receiver to sell thebuilding and the property on which it is located, then the judge may enter thatorder after holding a hearing as described in subsection (b).
(b) The receiver or interested party requesting an order asdescribed in subsection (a) shall cause a notice of the date and time of ahearing on the request to be served on the owner of the building involved andall other interested parties in accordance with § 34-44-3. The judge inthe civil action described in § 34-44-3 shall conduct the scheduledhearing. At the hearing, if the owner or any interested party objects to thesale of the building and the property, the burden of proof shall be upon theobjecting person to establish, by a preponderance of the evidence, that thebenefits of not selling the building and the property outweigh the benefits ofselling them. If the judge determines that there is no objecting person, or ifhe or she determines that there is one or more objecting persons but noobjecting person has sustained the burden of proof specified herein, the judgemay enter an order directing the receiver to offer the building and theproperty for sale upon terms and conditions that the judge shall specify, andmay further order the removal of any clouds on the title to the building andproperty by reason of any liens or encumbrances that are inferior to any claimsof the receiver, as provided by § 34-44-6(9), or if the receivershipaction is pending in a court other than the superior court, the judge may orderthe receiver to petition the superior court to order the removal of any cloudson the title to the building or property. An order by the superior court toremove any cloud on the title to the building and property shall be bindingupon all those claiming by, through, under, or by virtue of, any inferior liensor encumbrances.
(c) If a sale of a building and the property on which it islocated is ordered pursuant to subsections (a) and (b) and if the sale occursin accordance with the terms and conditions specified by the judge in his orher order of sale, then the receiver shall distribute the proceeds of the saleand the balance of any funds that the receiver may possess, after the paymentof the costs of the sale, in the following order of priority and in thedescribed manner:
(1) First, the amount due for delinquent taxes andassessments owed to this state or a political subdivision of this state;
(2) Second, in satisfaction of any mortgage liabilityincurred by the receiver pursuant to § 34-44-6 of this chapter, in theirorder of priority;
(3) Third, any unreimbursed expenses and other amounts paidin accordance with § 34-44-6 of this chapter by the receiver, and the feesof the receiver assessed pursuant to § 34-44-8 of this chapter; and
(4) Fourth, the amount of any pre-receivership mortgages,liens, or other encumbrances, in their order of priority.
(d) Following a distribution in accordance with subsection(c), the receiver shall request the judge in the civil action described in§ 34-44-3 to enter an order terminating the receivership. If the judgedetermines that the sale of the building and the property on which it islocated occurred in accordance with the terms and conditions specified by thejudge in his or her order of sale under subsection (b) and that the receiverdistributed the proceeds of the sale and the balance of any funds that thereceiver possessed, after the payment of the costs of the sale, in accordancewith subsection (c), and if the judge approves any final accounting required ofthe receiver, the judge may terminate the receivership.
(e) If a judge in a civil action described in § 34-44-3enters a declaration that a public nuisance has been abated by a receiver, andif, within three (3) days after the entry of the declaration, all costs,expenses, and approved fees of the receivership have not been paid in full, thejudge may enter an order directing the receiver to sell the building involvedand the property on which it is located. The order shall be entered, and thesale shall occur, only in compliance with subsections (b) – (d).