Bill Text: OH SB298 | 2013-2014 | 130th General Assembly | Introduced

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Bill Title: To permit delinquent property tax certificates for residential and agricultural property to be sold only to county land reutilization corporations, to prohibit such a certificate from being transferred to any person other than a county land reutilization corporation, and to authorize a county land reutilization corporation to accept from the owner of residential or agricultural property a redemption payment of one hundred five per cent of the cost of a certificate at any time before instituting foreclosure proceedings.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2014-03-17 - To State Government Oversight & Reform [SB298 Detail]

Download: Ohio-2013-SB298-Introduced.html

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As Introduced

130th General Assembly Regular Session 2013-2014

S. B. No. 298

Senator Smith 

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A BILL

To amend sections 5721.30, 5721.32, 5721.33, 5721.36,

1

and 5721.38 of the Revised Code to permit

2

delinquent property tax certificates for

3

residential and agricultural property to be sold

4

only to county land reutilization corporations, to

5

prohibit such a certificate from being transferred

6

to any person other than a county land

7

reutilization corporation, and to authorize a

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county land reutilization corporation to accept

9

from the owner of residential or agricultural

10

property a redemption payment of one hundred five

11

per cent of the cost of a certificate at any time

12

before instituting foreclosure proceedings.

13

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:

Section 1. That sections 5721.30, 5721.32, 5721.33, 5721.36,	14
and 5721.38 of the Revised Code be amended to read as follows:	15

Sec. 5721.30.  As used in sections 5721.30 to 5721.43 of the	16
Revised Code:	17

(A) "Tax certificate," "certificate," or "duplicate	18
certificate" means a document that may be issued as a physical	19
certificate, in book-entry form, or through an electronic medium,	20
at the discretion of the county treasurer. Such document shall	21
contain the information required by section 5721.31 of the Revised	22
Code and shall be prepared, transferred, or redeemed in the manner	23
prescribed by sections 5721.30 to 5721.43 of the Revised Code. As	24
used in those sections, "tax certificate," "certificate," and	25
"duplicate certificate" do not refer to the delinquent land tax	26
certificate or the delinquent vacant land tax certificate issued	27
under section 5721.13 of the Revised Code.	28

(B) "Certificate parcel" means the parcel of delinquent land	29
that is the subject of and is described in a tax certificate.	30

(C) "Certificate holder" means a person, including a county	31
land reutilization corporation, that purchases or otherwise	32
acquires a tax certificate under section 5721.32, 5721.33, or	33
5721.42 of the Revised Code, or a person to whom a tax certificate	34
has been transferred pursuant to section 5721.36 of the Revised	35
Code.	36

(D) "Certificate purchase price" means, with respect to the	37
sale of tax certificates under sections 5721.32, 5721.33, and	38
5721.42 of the Revised Code, the amount equal to delinquent taxes	39
charged against a certificate parcel at the time the tax	40
certificate respecting that parcel is sold or transferred, not	41
including any delinquent taxes the lien for which has been	42
conveyed to a certificate holder through a prior sale of a tax	43
certificate respecting that parcel. Payment of the certificate	44
purchase price in a sale under section 5721.33 of the Revised Code	45
may be made wholly in cash or partially in cash and partially by	46
noncash consideration acceptable to the county treasurer from the	47
purchaser, and, in the case of a county land reutilization	48
corporation, with notes. In the event that any such noncash	49
consideration is delivered to pay a portion of the certificate	50
purchase price, such noncash consideration may be subordinate to	51
the rights of the holders of other obligations whose proceeds paid	52
the cash portion of the certificate purchase price.	53

"Certificate purchase price" also includes the amount of the	54
fee charged by the county treasurer to the purchaser of the	55
certificate under division (H) of section 5721.32 of the Revised	56
Code.	57

(E)(1) With respect to a sale of tax certificates under	58
section 5721.32 of the Revised Code, and except as provided in	59
division (E)(2) of this section, "certificate redemption price"	60
means the certificate purchase price plus the greater of the	61
following:	62

(a) Simple interest, at the certificate rate of interest,	63
accruing during the certificate interest period on the certificate	64
purchase price, calculated in accordance with section 5721.41 of	65
the Revised Code;	66

(b) Six per cent of the certificate purchase price.

67

(2) If the certificate rate of interest equals zero, the	68
certificate redemption price equals the certificate purchase price	69
plus the fee charged by the county treasurer to the purchaser of	70
the certificate under division (H) of section 5721.32 of the	71
Revised Code.	72

(F) With respect to a sale or transfer of tax certificates	73
under section 5721.33 of the Revised Code, "certificate redemption	74
price" means the amount equal to the sum of the following:	75

(1) The certificate purchase price;

76

(2) Interest accrued on the certificate purchase price at the	77
certificate rate of interest from the date on which a tax	78
certificate is delivered through and including the day immediately	79
preceding the day on which the certificate redemption price is	80
paid;	81

(3) The fee, if any, charged by the county treasurer to the	82
purchaser of the certificate under division (J) of section 5721.33	83
of the Revised Code;	84

(4) Any other fees charged by any county office in connection	85
with the recording of tax certificates.	86

(G) "Certificate rate of interest" means the rate of simple	87
interest per year bid by the winning bidder in an auction of a tax	88
certificate held under section 5721.32 of the Revised Code, or the	89
rate of simple interest per year not to exceed eighteen per cent	90
per year fixed pursuant to section 5721.42 of the Revised Code or	91
by the county treasurer with respect to any tax certificate sold	92
or transferred pursuant to a negotiated sale under section 5721.33	93
of the Revised Code. The certificate rate of interest shall not be	94
less than zero per cent per year.	95

(H) "Cash" means United States currency, certified checks,	96
money orders, bank drafts, electronic transfer of funds, or other	97
forms of payment authorized by the county treasurer, and excludes	98
any other form of payment not so authorized.	99

(I) "The date on which a tax certificate is sold or	100
transferred," "the date the certificate was sold or transferred,"	101
"the date the certificate is purchased," and any other phrase of	102
similar content mean, with respect to a sale pursuant to an	103
auction under section 5721.32 of the Revised Code, the date	104
designated by the county treasurer for the submission of bids and,	105
with respect to a negotiated sale or transfer under section	106
5721.33 of the Revised Code, the date of delivery of the tax	107
certificates to the purchasers thereof pursuant to a tax	108
certificate sale/purchase agreement.	109

(J) "Certificate interest period" means, with respect to a	110
tax certificate sold under section 5721.32 or 5721.42 of the	111
Revised Code and for the purpose of accruing interest under	112
section 5721.41 of the Revised Code, the period beginning on the	113
date on which the certificate is purchased and, with respect to a	114
tax certificate sold or transferred under section 5721.33 of the	115
Revised Code, the period beginning on the date of delivery of the	116
tax certificate, and in either case ending on one of the following	117
dates:	118

(1) The date the certificate holder files a request for	119
foreclosure or notice of intent to foreclose under division (A) of	120
section 5721.37 of the Revised Code and submits the payment	121
required under division (B) of that section;	122

(2) The date the owner of record of the certificate parcel,	123
or any other person entitled to redeem that parcel, redeems the	124
certificate parcel under division (A) or (C) of section 5721.38 of	125
the Revised Code or redeems the certificate under section 5721.381	126
of the Revised Code.	127

(K) "Qualified trustee" means a trust company within the	128
state or a bank having the power of a trust company within the	129
state with a combined capital stock, surplus, and undivided	130
profits of at least one hundred million dollars.	131

(L) "Tax certificate sale/purchase agreement" means the	132
purchase and sale agreement described in division (C) of section	133
5721.33 of the Revised Code setting forth the certificate purchase	134
price, plus any applicable premium or less any applicable	135
discount, including, without limitation, the amount to be paid in	136
cash and the amount and nature of any noncash consideration, the	137
date of delivery of the tax certificates, and the other terms and	138
conditions of the sale, including, without limitation, the rate of	139
interest that the tax certificates shall bear.	140

(M) "Noncash consideration" means any form of consideration	141
other than cash, including, but not limited to, promissory notes	142
whether subordinate or otherwise.	143

(N) "Private attorney" means any attorney licensed to	144
practice law in this state whose license has not been revoked and	145
is not currently suspended, and who is retained to bring	146
foreclosure proceedings pursuant to section 5721.37 of the Revised	147
Code on behalf of a certificate holder.	148

(O) "Related certificate parcel" means, with respect to a	149
certificate holder, the certificate parcel with respect to which	150
the certificate holder has purchased and holds a tax certificate	151
pursuant to sections 5721.30 to 5721.43 of the Revised Code and,	152
with respect to a tax certificate, the certificate parcel against	153
which the tax certificate has been sold pursuant to those	154
sections.	155

(P) "Delinquent taxes" means delinquent taxes as defined in	156
section 323.01 of the Revised Code and includes assessments and	157
charges, and penalties and interest computed under section 323.121	158
of the Revised Code.	159

(Q) "Certificate period" means the period of time after the	160
sale or delivery of a tax certificate within which a certificate	161
holder must initiate an action to foreclose the tax lien	162
represented by the certificate as specified under division (A) of	163
section 5721.32 of the Revised Code or as negotiated under section	164
5721.33 of the Revised Code.	165

(R) "Residential or agricultural property" means a parcel	166
classified as to use as residential or agricultural property by	167
the county auditor.	168

Sec. 5721.32.  (A) The sale of tax certificates by public	169
auction may be conducted at any time after completion of the	170
advertising of the sale under section 5721.31 of the Revised Code,	171
on the date and at the time and place designated in the	172
advertisements, and may be continued from time to time as the	173
county treasurer directs. The county treasurer may offer the tax	174
certificates for sale in blocks of tax certificates, consisting of	175
any number of tax certificates as determined by the county	176
treasurer, and may specify a certificate period of not less than	177
three years and not more than six years. On or after the effective	178
date of ...B... of the 130th general assembly, a county treasurer	179
shall not sell a tax certificate under this section to any person	180
if the certificate parcel is residential or agricultural property.	181

(B)(1) The sale of tax certificates under this section shall	182
be conducted at a public auction by the county treasurer or a	183
designee of the county treasurer.	184

(2) No person shall be permitted to bid without completing a	185
bidder registration form, in the form prescribed by the tax	186
commissioner, and without filing the form with the county	187
treasurer prior to the start of the auction, together with	188
remittance of a registration fee, in cash, of five hundred	189
dollars. The bidder registration form shall include a tax	190
identification number of the registrant. The registration fee is	191
refundable at the end of bidding on the day of the auction, unless	192
the registrant is the winning bidder for one or more tax	193
certificates or one or more blocks of tax certificates, in which	194
case the fee may be applied toward the deposit required by this	195
section.	196

(3) The county treasurer may require a person who wishes to	197
bid on one or more parcels to submit a letter from a financial	198
institution stating that the bidder has sufficient funds available	199
to pay the purchase price of the parcels and a written	200
authorization for the treasurer to verify such information with	201
the financial institution. The county treasurer may require	202
submission of the letter and authorization sufficiently in advance	203
of the auction to allow for verification. No person who fails to	204
submit the required letter and authorization, or whose financial	205
institution fails to provide the requested verification, shall be	206
permitted to bid.	207

(C) At the public auction, the county treasurer or the	208
treasurer's designee or agent shall begin the bidding at eighteen	209
per cent per year simple interest, and accept lower bids in even	210
increments of one-fourth of one per cent to the rate of zero per	211
cent. The county treasurer, designee, or agent shall award the tax	212
certificate to the person bidding the lowest certificate rate of	213
interest. The county treasurer shall decide which person is the	214
winning bidder in the event of a tie for the lowest bid offered,	215
or if a person contests the lowest bid offered. The county	216
treasurer's decision is not appealable.	217

(D)(1) The winning bidder shall pay the county treasurer a	218
cash deposit of at least ten per cent of the certificate purchase	219
price not later than the close of business on the day of the sale.	220
The winning bidder shall pay the balance and the fee required	221
under division (H) of this section not later than five business	222
days after the day on which the certificate is sold. Except as	223
provided under division (D)(2) of this section, if the winning	224
bidder fails to pay the balance and fee within the prescribed	225
time, the bidder forfeits the deposit, and the county treasurer	226
shall retain the tax certificate and may attempt to sell it at any	227
auction conducted at a later date.	228

(2) At the request of a winning bidder, the county treasurer	229
may release the bidder from the bidder's tax certificate purchase	230
obligation. The county treasurer may retain all or any portion of	231
the deposit of a bidder granted a release. After granting a	232
release under this division, the county treasurer may award the	233
tax certificate to the person that submitted the second lowest bid	234
at the auction.	235

(3) The county treasurer shall deposit the deposit forfeited	236
or retained under divisions (D)(1) or (2) of this section in the	237
county treasury to the credit of the tax certificate	238
administration fund.	239

(E) Upon receipt of the full payment of the certificate	240
purchase price from the purchaser, the county treasurer shall	241
issue the tax certificate and record the tax certificate sale by	242
entering into a tax certificate register the certificate purchase	243
price, the certificate rate of interest, the date the certificate	244
was sold, the certificate period, the name and address of the	245
certificate holder, and any other information the county treasurer	246
considers necessary. The county treasurer may keep the tax	247
certificate register in a hard-copy format or in an electronic	248
format. The name and address of the certificate holder may be,	249
upon receipt of instructions from the purchaser, that of the	250
secured party of the actual purchaser, or an agent or custodian	251
for the purchaser or secured party. The county treasurer also	252
shall transfer the tax certificate to the certificate holder. The	253
county treasurer shall apportion the part of the proceeds from the	254
sale representing taxes, penalties, and interest among the several	255
taxing districts in the same proportion that the amount of taxes	256
levied by each district against the certificate parcel in the	257
preceding tax year bears to the taxes levied by all such districts	258
against the certificate parcel in the preceding tax year, and	259
credit the part of the proceeds representing assessments and other	260
charges to the items of assessments and charges in the order in	261
which those items became due. Upon issuing a tax certificate, the	262
delinquent taxes that make up the certificate purchase price are	263
transferred, and the superior lien of the state and its taxing	264
districts for those delinquent taxes is conveyed intact to the	265
certificate holder.	266

(F) If a tax certificate is offered for sale under this	267
section but is not sold, the county treasurer may sell the	268
certificate in a negotiated sale authorized under section 5721.33	269
of the Revised Code, or may strike the corresponding certificate	270
parcel from the list of parcels selected for tax certificate	271
sales. The lien for taxes, assessments, charges, penalties, and	272
interest against a parcel stricken from the list thereafter may be	273
foreclosed in the manner prescribed by section 323.25, sections	274
323.65 to 323.79, or section 5721.14 or 5721.18 of the Revised	275
Code unless, prior to the institution of such proceedings against	276
the parcel, the county treasurer restores the parcel to the list	277
of parcels selected for tax certificate sales.	278

(G) A certificate holder shall not be liable for damages	279
arising from a violation of sections 3737.87 to 3737.891 or	280
Chapter 3704., 3734., 3745., 3746., 3750., 3751., 3752., 6109., or	281
6111. of the Revised Code, or a rule adopted or order, permit,	282
license, variance, or plan approval issued under any of those	283
chapters, that is or was committed by another person in connection	284
with the parcel for which the tax certificate is held.	285

(H) When selling a tax certificate under this section, the	286
county treasurer shall charge a fee to the purchaser of the	287
certificate. The county treasurer shall set the fee at a	288
reasonable amount that covers the treasurer's costs of	289
administering the sale of the tax certificate. The county	290
treasurer shall deposit the fee in the county treasury to the	291
credit of the tax certificate administration fund.	292

(I) After selling a tax certificate under this section, the	293
county treasurer shall send written notice by certified mail to	294
the owner of the certificate parcel at the owner's last known	295
tax-mailing address. The notice shall inform the owner that the	296
tax certificate was sold, shall describe the owner's options to	297
redeem the parcel, including entering into a redemption payment	298
plan under division (C)(1) of section 5721.38 of the Revised Code,	299
and shall name the certificate holder and its secured party, if	300
any. However, the county treasurer is not required to send a	301
notice under this division if the treasurer previously has	302
attempted to send a notice to the owner of the parcel at the	303
owner's last known tax-mailing address, and the postal service has	304
returned the notice as undeliverable.	305

(J) A tax certificate shall not be sold to the owner of the	306
certificate parcel.	307

Sec. 5721.33.  (A) A county treasurer may, in the treasurer's	308
discretion, negotiate the sale or transfer of any number of tax	309
certificates with one or more persons, including a county land	310
reutilization corporation. On or after the effective date of ...	311
B... of the 130th general assembly, a county treasurer shall not	312
negotiate the sale or transfer of a tax certificate under this	313
section with any person except a county land reutilization	314
corporation if the certificate parcel is residential or	315
agricultural property. Terms that may be negotiated include,	316
without limitation, any of the following:	317

(1) A premium to be added to or discount to be subtracted	318
from the certificate purchase price for the tax certificates;	319

(2) Different time frames under which the certificate holder	320
may initiate a foreclosure action than are otherwise allowed under	321
sections 5721.30 to 5721.43 of the Revised Code, not to exceed six	322
years after the date the tax certificate was sold or transferred;	323

(3) The amount to be paid in private attorney's fees related	324
to tax certificate foreclosures, subject to section 5721.371 of	325
the Revised Code;	326

(4) Any other terms of the sale or transfer that the county	327
treasurer, in the treasurer's discretion, determines appropriate	328
or necessary for the sale or transfer.	329

(B) The sale or transfer of tax certificates under this	330
section shall be governed by the criteria established by the	331
county treasurer pursuant to division (E) of this section.	332

(C) The county treasurer may execute a tax certificate	333
sale/purchase agreement and other necessary agreements with a	334
designated purchaser or purchasers to complete a negotiated sale	335
or transfer of tax certificates.	336

(D) The tax certificate may be sold at a premium to or	337
discount from the certificate purchase price. The county treasurer	338
may establish as one of the terms of the negotiated sale the	339
portion of the certificate purchase price, plus any applicable	340
premium or less any applicable discount, that the purchaser or	341
purchasers shall pay in cash on the date the tax certificates are	342
sold and the portion, if any, of the certificate purchase price,	343
plus any applicable premium or less any applicable discount, that	344
the purchaser or purchasers shall pay in noncash consideration and	345
the nature of that consideration.	346

The county treasurer shall sell such tax certificates at a	347
certificate purchase price, plus any applicable premium and less	348
any applicable discount, and at a certificate rate of interest	349
that, in the treasurer's determination, are in the best interests	350
of the county.	351

(E)(1) The county treasurer shall adopt rules governing the	352
eligibility of persons to purchase tax certificates or to	353
otherwise participate in a negotiated sale under this section. The	354
rules may provide for precertification of such persons, including	355
a requirement for disclosure of income, assets, and any other	356
financial information the county treasurer determines appropriate.	357
The rules also may prohibit any person that is delinquent in the	358
payment of any tax to the county or to the state, or that is in	359
default in or on any other obligation to the county or to the	360
state, from purchasing a tax certificate or otherwise	361
participating in a negotiated sale of tax certificates under this	362
section. The rules may also authorize the purchase of certificates	363
by a county land reutilization corporation, and authorize the	364
county treasurer to receive notes in lieu of cash, with such notes	365
being payable to the treasurer upon the receipt or enforcement of	366
such taxes, assessments, charges, costs, penalties, and interest,	367
and as otherwise further agreed between the corporation and the	368
treasurer. The eligibility information required shall include the	369
tax identification number of the purchaser and may include the tax	370
identification number of the participant. The county treasurer,	371
upon request, shall provide a copy of the rules adopted under this	372
section.	373

(2) Any person that intends to purchase a tax certificate in	374
a negotiated sale shall submit an affidavit to the county	375
treasurer that establishes compliance with the applicable	376
eligibility criteria and includes any other information required	377
by the treasurer. Any person that fails to submit such an	378
affidavit is ineligible to purchase a tax certificate. Any person	379
that knowingly submits a false or misleading affidavit shall	380
forfeit any tax certificate or certificates purchased by the	381
person at a sale for which the affidavit was submitted, shall be	382
liable for payment of the full certificate purchase price, plus	383
any applicable premium and less any applicable discount, of the	384
tax certificate or certificates, and shall be disqualified from	385
participating in any tax certificate sale conducted in the county	386
during the next five years.	387

(3) A tax certificate shall not be sold to the owner of the	388
certificate parcel or to any corporation, partnership, or	389
association in which such owner has an interest. No person that	390
purchases a tax certificate in a negotiated sale shall assign or	391
transfer the tax certificate to the owner of the certificate	392
parcel or to any corporation, partnership, or association in which	393
the owner has an interest. Any person that knowingly or	394
negligently transfers or assigns a tax certificate to the owner of	395
the certificate parcel or to any corporation, partnership, or	396
association in which such owner has an interest shall be liable	397
for payment of the full certificate purchase price, plus any	398
applicable premium and less any applicable discount, and shall not	399
be entitled to a refund of any amount paid. Such tax certificate	400
shall be deemed void and the tax lien sold under the tax	401
certificate shall revert to the county as if no sale of the tax	402
certificate had occurred.	403

(F) The purchaser in a negotiated sale under this section	404
shall deliver the certificate purchase price or other	405
consideration, plus any applicable premium and less any applicable	406
discount and including any noncash consideration, to the county	407
treasurer not later than the close of business on the date the tax	408
certificates are delivered to the purchaser. The certificate	409
purchase price, less any applicable discount, or portion of the	410
price, that is paid in cash shall be deposited in the county's	411
general fund to the credit of the account to which ad valorem real	412
property taxes are credited and further credited as provided in	413
division (G) of this section. Any applicable premium that is paid	414
shall be, at the discretion of the county treasurer, apportioned	415
to and deposited in any authorized county fund. The purchaser also	416
shall pay on the date the tax certificates are delivered to the	417
purchaser the fee, if any, negotiated under division (J) of this	418
section. If the purchaser fails to pay the certificate purchase	419
price, plus any applicable premium and less any applicable	420
discount, and any such fee, within the time periods required by	421
this section, the county treasurer shall retain the tax	422
certificate and may attempt to sell it at any auction or	423
negotiated sale conducted at a later date.	424

(G) Upon receipt of the full payment from the purchaser of	425
the certificate purchase price or other agreed-upon consideration,	426
plus any applicable premium and less any applicable discount, and	427
the negotiated fee, if any, the county treasurer, or a qualified	428
trustee whom the treasurer has engaged for such purpose, shall	429
issue the tax certificate and record the tax certificate sale by	430
entering into a tax certificate register the certificate purchase	431
price, any premium paid or discount taken, the certificate rate of	432
interest, the date the certificates were sold, the name and	433
address of the certificate holder or, in the case of issuance of	434
the tax certificates in a book-entry system, the name and address	435
of the nominee, and any other information the county treasurer	436
considers necessary. The county treasurer may keep the tax	437
certificate register in a hard-copy format or an electronic	438
format. The name and address of the certificate holder or nominee	439
may be, upon receipt of instructions from the purchaser, that of	440
the secured party of the actual purchaser, or an agent or	441
custodian for the purchaser or secured party. The county treasurer	442
also shall transfer the tax certificates to the certificate	443
holder. The county treasurer shall apportion the part of the cash	444
proceeds from the sale representing taxes, penalties, and interest	445
among the several taxing districts in the same proportion that the	446
amount of taxes levied by each district against the certificate	447
parcels in the preceding tax year bears to the taxes levied by all	448
such districts against the certificate parcels in the preceding	449
tax year, and credit the part of the proceeds representing	450
assessments and other charges to the items of assessments and	451
charges in the order in which those items became due. If the cash	452
proceeds from the sale are not sufficient to fully satisfy the	453
items of taxes, assessments, penalties, interest, and charges on	454
the certificate parcels against which tax certificates were sold,	455
the county treasurer shall credit the cash proceeds to such items	456
pro rata based upon the proportion that each item of taxes,	457
assessments, penalties, interest, and charges bears to the	458
aggregate of all such items, or by any other method that the	459
county treasurer, in the treasurer's sole discretion, determines	460
is equitable. Upon issuing the tax certificates, the delinquent	461
taxes that make up the certificate purchase price are transferred,	462
and the superior lien of the state and its taxing districts for	463
those delinquent taxes is conveyed intact to the certificate	464
holder or holders.	465

(H) If a tax certificate is offered for sale under this	466
section but is not sold, the county treasurer may strike the	467
corresponding certificate parcel from the list of parcels selected	468
for tax certificate sales. The lien for taxes, assessments,	469
charges, penalties, and interest against a parcel stricken from	470
the list thereafter may be foreclosed in the manner prescribed by	471
section 323.25, 5721.14, or 5721.18 of the Revised Code unless,	472
prior to the institution of such proceedings against the parcel,	473
the county treasurer restores the parcel to the list of parcels	474
selected for tax certificate sales.	475

(I) Neither a certificate holder nor its secured party, if	476
any, shall be liable for damages arising from a violation of	477
sections 3737.87 to 3737.891 or Chapter 3704., 3734., 3745.,	478
3746., 3750., 3751., 3752., 6109., or 6111. of the Revised Code,	479
or a rule adopted or order, permit, license, variance, or plan	480
approval issued under any of those chapters, that is or was	481
committed by another person in connection with the parcel for	482
which the tax certificate is held.	483

(J) When selling or transferring a tax certificate under this	484
section, the county treasurer may negotiate with the purchaser of	485
the certificate for fees paid by the purchaser to the county	486
treasurer to reimburse the treasurer for any part or all of the	487
treasurer's costs of preparing for and administering the sale of	488
the tax certificate and any fees set forth by the county treasurer	489
in the tax certificate sale/purchase agreement. Such fees, if any,	490
shall be added to the certificate purchase price and shall be paid	491
by the purchaser on the date of delivery of the tax certificate.	492
The county treasurer shall deposit the fees in the county treasury	493
to the credit of the tax certificate administration fund.	494

(K) After selling tax certificates under this section, the	495
county treasurer shall send written notice by certified mail to	496
the last known tax-mailing address of the owner of the certificate	497
parcel. The notice shall inform the owner that a tax certificate	498
with respect to such owner's parcel was sold or transferred and	499
shall describe the owner's options to redeem the parcel, including	500
entering into a redemption payment plan under division (C)(2) of	501
section 5721.38 of the Revised Code. However, the county treasurer	502
is not required to send a notice under this division if the	503
treasurer previously has attempted to send a notice to the owner	504
of the parcel at the owner's last known tax-mailing address and	505
the postal service has returned the notice as undeliverable.	506

Sec. 5721.36.  (A)(1) Except as otherwise provided in	507
division (A)(2) of this section, the purchaser of a tax	508
certificate sold as part of a block sale pursuant to section	509
5721.32 of the Revised Code may transfer the certificate to any	510
person, and any other purchaser of a tax certificate pursuant to	511
section 5721.32 or 5721.33 of the Revised Code may transfer the	512
certificate to any person, except the owner of the certificate	513
parcel or any corporation, partnership, or association in which	514
such owner has an interest. The transferee of a tax certificate	515
subsequently may transfer the certificate to any other person to	516
whom the purchaser could have transferred the certificate. The	517
transferor of a tax certificate shall endorse the certificate and	518
shall swear to the endorsement before a notary public or other	519
officer empowered to administer oaths. The transferee shall	520
present the endorsed certificate and a notarized copy of a valid	521
form of identification showing the transferee's taxpayer	522
identification number to the county treasurer of the county where	523
the certificate is registered, who shall, upon payment of a fee of	524
twenty dollars to cover the costs associated with the transfer of	525
a tax certificate, enter upon the register of certificate holders	526
opposite the certificate entry the name and address of the	527
transferee, the date of entry, and, upon presentation to the	528
treasurer of instructions signed by the transferee, the name and	529
address of any secured party of the transferee having an interest	530
in the tax certificate. The treasurer shall deposit the fee in the	531
county treasury to the credit of the tax certificate	532
administration fund.	533

Except as otherwise provided in division (A)(2) of this	534
section, no request for foreclosure or notice of intent to	535
foreclose, as the case may be, shall be filed by any person other	536
than the person shown on the tax certificate register to be the	537
certificate holder or a private attorney for that person properly	538
authorized to act in that person's behalf.	539

A county land reutilization corporation may not transfer or	540
assign a tax certificate under this section if the corporation	541
purchased the certificate on or after the effective date of	542
...B... of the 130th general assembly if the certificate parcel is	543
residential or agricultural property.	544

(2) Upon registration of a security interest with the county	545
treasurer, both of the following apply:	546

(a) No purchaser or transferee of a tax certificate, other	547
than a county land reutilization corporation, may transfer that	548
tax certificate except upon presentation to the treasurer of	549
instructions signed by the secured party authorizing such action.	550
A county land reutilization corporation may transfer or assign tax	551
certificates consistent with its public purposes and plan adopted	552
pursuant to Chapter 1724. of the Revised Code.	553

(b) Only the secured party may issue a request for	554
foreclosure or notice of intent to foreclose concerning that tax	555
certificate.	556

(B)(1) Application may be made to the county treasurer for a	557
duplicate certificate if a certificate is alleged by affidavit to	558
have been lost or destroyed. The treasurer shall issue a duplicate	559
certificate, upon payment of a fee of twenty dollars to cover the	560
costs of issuing the duplicate certificate. The treasurer shall	561
deposit the fee in the county treasury to the credit of the tax	562
certificate administration fund.	563

(2) The duplicate certificate shall be plainly marked or	564
stamped "duplicate."	565

(3) The treasurer shall enter the fact of the duplicate in	566
the tax certificate register.	567

Sec. 5721.38.  (A) At any time prior to payment to the county	568
treasurer by the certificate holder to initiate foreclosure	569
proceedings under division (B) of section 5721.37 of the Revised	570
Code, the owner of record of the certificate parcel, or any other	571
person entitled to redeem that parcel, may redeem the parcel by	572
paying to the county treasurer an amount equal to the total of the	573
certificate redemption prices of all tax certificates respecting	574
that parcel.	575

(B) At any time after payment to the county treasurer by the	576
certificate holder to initiate foreclosure proceedings under	577
section 5721.37 of the Revised Code, and before the filing of the	578
entry of confirmation of sale of a certificate parcel, or the	579
expiration of the alternative redemption period defined in section	580
323.65 of the Revised Code under foreclosure proceedings filed by	581
the county prosecuting attorney, and before the decree conveying	582
title to the certificate holder is rendered as provided for in	583
division (F) of section 5721.37 of the Revised Code, the owner of	584
record of the certificate parcel or any other person entitled to	585
redeem that parcel may redeem the parcel by paying to the county	586
treasurer the sum of the following amounts:	587

(1) The amount described in division (A) of this section;

588

(2) Interest on the certificate purchase price for each tax	589
certificate sold respecting the parcel at the rate of eighteen per	590
cent per year for the period beginning on the day on which the	591
payment was submitted by the certificate holder and ending on the	592
day the parcel is redeemed under this division;	593

(3) An amount equal to the sum of the county prosecuting	594
attorney's fee under division (B)(3) of section 5721.37 of the	595
Revised Code plus interest on that amount at the rate of eighteen	596
per cent per year beginning on the day on which the payment was	597
submitted by the certificate holder and ending on the day the	598
parcel is redeemed under this division. If the parcel is redeemed	599
before the complaint has been filed, the prosecuting attorney	600
shall adjust the fee to reflect services performed to the date of	601
redemption, and the county treasurer shall calculate the interest	602
based on the adjusted fee and refund any excess fee to the	603
certificate holder.	604

(4) Reasonable attorney's fees in accordance with section	605
5721.371 of the Revised Code if the certificate holder retained a	606
private attorney to foreclose the lien;	607

(5) Any other costs and fees of the proceeding allocable to	608
the certificate parcel as determined by the court or board of	609
revision.	610

The county treasurer may collect the total amount due under	611
divisions (B)(1) to (5) of this section in the form of guaranteed	612
funds acceptable to the treasurer. Immediately upon receipt of	613
such payments, the county treasurer shall reimburse the	614
certificate holder who initiated foreclosure proceedings as	615
provided in division (D) of this section. The county treasurer	616
shall pay the certificate holder interest at the rate of eighteen	617
per cent per year on amounts paid under divisions (B)(2) and (3)	618
of section 5721.37 of the Revised Code, beginning on the day the	619
certificate holder paid the amounts under those divisions and	620
ending on the day the parcel is redeemed under this section.	621

(C)(1) During the period beginning on the date a tax	622
certificate is sold under section 5721.32 of the Revised Code and	623
ending one year from that date, the county treasurer may enter	624
into a redemption payment plan with the owner of record of the	625
certificate parcel or any other person entitled to redeem that	626
parcel. The plan shall require the owner or other person to pay	627
the certificate redemption price for the tax certificate in	628
installments, with the final installment due no later than one	629
year after the date the tax certificate is sold. The certificate	630
holder may at any time, by written notice to the county treasurer,	631
agree to accept installments collected to the date of notice as	632
payment in full. Receipt of such notice by the treasurer shall	633
constitute satisfaction of the payment plan and redemption of the	634
tax certificate.	635

(2) During the period beginning on the date a tax certificate	636
is sold under section 5721.33 of the Revised Code and ending on	637
the date the decree is rendered on the foreclosure proceeding	638
under division (F) of section 5721.37 of the Revised Code, the	639
owner of record of the certificate parcel, or any other person	640
entitled to redeem that parcel, may enter into a redemption	641
payment plan with the certificate holder and all secured parties	642
of the certificate holder. The plan shall require the owner or	643
other person to pay the certificate redemption price for the tax	644
certificate, an administrative fee not to exceed one hundred	645
dollars per year, and the actual fees and costs incurred, in	646
installments, with the final installment due no later than the	647
expiration of the certificate period. The certificate holder shall	648
give written notice of the plan to the applicable county treasurer	649
within sixty days after entering into the plan and written notice	650
of default under the plan within ninety days after the default. If	651
such a plan is entered into, the time period for filing a request	652
for foreclosure or a notice of intent to foreclose under section	653
5721.37 of the Revised Code is extended by the length of time the	654
plan is in effect and not in default.	655

(D)(1) Immediately upon receipt of full payment under	656
division (A) or (B) of this section, the county treasurer shall	657
make an entry to that effect in the tax certificate register,	658
credit the payment to the tax certificate redemption fund created	659
in the county treasury, and shall notify the certificate holder or	660
holders by ordinary first class or certified mail or by binary	661
means that the parcel has been redeemed and the lien or liens	662
canceled, and that payment on the certificate or certificates is	663
forthcoming. The treasurer shall pay the tax certificate holder or	664
holders promptly.	665

The county treasurer shall administer the tax certificate	666
redemption fund for the purpose of redeeming tax certificates.	667
Interest earned on the fund shall be credited to the county	668
general fund. If the county has established a county land	669
reutilization corporation, the county treasurer may apply interest	670
earned on the fund to the payment of the expenses of such	671
corporation.	672

(2) If a redemption payment plan is entered into pursuant to	673
division (C)(1) of this section, the county treasurer immediately	674
shall notify each certificate holder by ordinary first class or	675
certified mail or by binary means of the terms of the plan.	676
Installment payments made pursuant to the plan shall be deposited	677
in the tax certificate redemption fund. Any overpayment of the	678
installments shall be refunded to the person responsible for	679
causing the overpayment if the person applies for a refund under	680
this section. If the person responsible for causing the	681
overpayment fails to apply for a refund under this section within	682
five years from the date the plan is satisfied, an amount equal to	683
the overpayment shall be deposited into the general fund of the	684
county. If the county has established a county land reutilization	685
corporation, the county treasurer may apply such overpayment to	686
the payment of the expenses of the corporation.	687

Upon satisfaction of the plan, the county treasurer shall	688
indicate in the tax certificate register that the plan has been	689
satisfied, and shall notify each certificate holder by ordinary	690
first class or certified mail or by binary means that the plan has	691
been satisfied and that payment on the certificate or certificates	692
is forthcoming. The treasurer shall pay each certificate holder	693
promptly.	694

If a redemption payment plan becomes void, the county	695
treasurer shall notify each certificate holder by ordinary first	696
class or certified mail or by binary means. If a certificate	697
holder files a request for foreclosure under section 5721.37 of	698
the Revised Code, upon the filing of the request for foreclosure,	699
any money paid under the plan shall be refunded to the person that	700
paid the money under the plan.	701

(3) Upon receipt of the payment required under division	702
(B)(1) of section 5721.37 of the Revised Code, the treasurer shall	703
pay all other certificate holders and indicate in the tax	704
certificate register that such certificates have been satisfied.	705
If a county has organized a county land reutilization corporation,	706
the county treasurer may apply the redemption price and any	707
applicable interest payable under division (B) of this section to	708
the payment of the expenses of the corporation.	709

(E) At any time before a certificate holder that is a county	710
land reutilization corporation institutes a foreclosure action as	711
authorized under section 5721.37 of the Revised Code, the owner of	712
record of a certificate parcel that is residential or agricultural	713
property may offer to pay the county land reutilization	714
corporation an amount equal to one hundred five per cent of the	715
total of the certificate purchase prices, net of any premium or	716
discount, of all tax certificates held by the county land	717
reutilization corporation respecting that parcel.	718

If the certificate holder accepts the offer, the certificate	719
holder shall notify the county treasurer immediately upon the	720
certificate holder's receipt of the full payment from the parcel	721
owner of record and pay to the county treasurer any amount due to	722
the treasurer for the sale or transfer of those tax certificates,	723
including amounts due on any notes described in division (E)(1) of	724
section 5721.33 of the Revised Code. Immediately upon the county	725
treasurer's receipt of the notification and payment, if any, from	726
a certificate holder, the county treasurer shall do all of the	727
following:	728

(1) Make an entry of the amount paid to the certificate	729
holder in the tax certificate register;	730

(2) Credit any portion of the payment received by the county	731
treasurer that is required to be credited to the county's tax	732
certificate administration fund under division (J) of section	733
5721.33 of the Revised Code to that fund, and credit any portion	734
that is required to be credited to the tax certificate redemption	735
fund to pay certificate holders;	736

(3) Credit any remaining portion of the payment received by	737
the treasurer to the county treasury for distribution among the	738
several taxing districts in proportion to each district's claim on	739
the taxes or assessments levied against the related certificate	740
parcel for the preceding tax year;	741

(4) Notify the certificate holder that the parcel has been	742
redeemed and the lien or liens canceled.	743

Section 2. That existing sections 5721.30, 5721.32, 5721.33,	744
5721.36, and 5721.38 of the Revised Code are hereby repealed.	745