(1) Whenever any of the circumstances listed in section 39-3.5-110 occurs:
No further tax deferrals may be claimed on the property until all loans for unpaidtaxes, including previously deferred taxes and interest, have been paid.
All loans for deferred taxes and accrued interest shall be due and payable ninety daysafter the circumstance occurs, except as provided in subsection (2) of this section and in section 39-3.5-112.
Any provision of this section to the contrary notwithstanding, when the taxpayer diesa loan for deferred taxes and accrued interest shall be due and payable one year after the taxpayer's death.
If a loan for deferred taxes and accrued interest is not paid on the due date, suchamounts are delinquent as of that date, and the state treasurer shall foreclose the deferred tax lien.
Foreclosure by the state treasurer of deferred tax liens shall be in the same manner asprovided by law for the foreclosure of judgment liens. At the foreclosure sale, the state treasurer or his representative shall bid on behalf of the state of Colorado the amount of the deferred tax lien.
If the owner of the tax-deferred property elects to do so, he or she may convey theproperty to the state of Colorado in lieu of paying a loan for deferred taxes and accrued interest. Upon completion of such conveyance, all deferred tax liens upon the property shall be extinguished, and all liability for payment of a loan for deferred taxes and accrued interest shall be released.
The lien for deferred taxes shall be subject to and may be extinguished in a properforeclosure of a mortgage or deed of trust recorded prior to the date of recording of the certificate of tax deferral. In any such foreclosure, any notice that is required to be sent to the state by reason of the state's holding of a lien for deferred taxes shall be sent to the state treasurer. All other procedural matters for such foreclosure, including notice and time limits, shall be as provided in the law pursuant to which the foreclosure is brought.
Whenever the state forecloses a lien for deferred taxes, the interest in the propertyobtained thereby shall be subject to foreclosure proceedings by the holder of a mortgage or deed of trust recorded prior to the date of recording of the certificate of tax deferral.
Source: L. 78: Entire article added, p. 475, § 1, effective February 28, 1979. L. 79: (4) amended and (6) and (7) added, p 1666, § 139, effective July 19; (1)(b) amended and (5) added, p. 1413, § 7, effective January 1, 1980. L. 2002: (1), (2), (3), and (5) amended, p. 638, § 5, effective July 1.