§ 34-44-12. Sale of building and property by receiver. (a) If a receiver appointed pursuant to § 34-44-4 files with the judge in the civil action described in § 34-44-4 a report indicating that the public nuisance has been abated, and if the judge confirms that the receiver has abated the public nuisance, and if the receiver or any interested party requests the judge to enter an order directing the receiver to sell the building and the property on which it is located, then the judge may enter that order after holding a hearing as described in subsection (b).

(b) The receiver or interested party requesting an order as described in subsection (a) shall cause a notice of the date and time of a hearing on the request to be served on the owner of the building involved and all other interested parties in accordance with § 34-44-3. The judge in the civil action described in § 34-44-3 shall conduct the scheduled hearing. At the hearing, if the owner or any interested party objects to the sale of the building and the property, the burden of proof shall be upon the objecting person to establish, by a preponderance of the evidence, that the benefits of not selling the building and the property outweigh the benefits of selling them. If the judge determines that there is no objecting person, or if he or she determines that there is one or more objecting persons but no objecting person has sustained the burden of proof specified herein, the judge may enter an order directing the receiver to offer the building and the property for sale upon terms and conditions that the judge shall specify, and may further order the removal of any clouds on the title to the building and property by reason of any liens or encumbrances that are inferior to any claims of the receiver, as provided by § 34-44-6(9), or if the receivership action is pending in a court other than the superior court, the judge may order the receiver to petition the superior court to order the removal of any clouds on the title to the building or property. An order by the superior court to remove any cloud on the title to the building and property shall be binding upon all those claiming by, through, under, or by virtue of, any inferior liens or encumbrances.

(c) If a sale of a building and the property on which it is located is ordered pursuant to subsections (a) and (b) and if the sale occurs in accordance with the terms and conditions specified by the judge in his or her order of sale, then the receiver shall distribute the proceeds of the sale and the balance of any funds that the receiver may possess, after the payment of the costs of the sale, in the following order of priority and in the described manner:

(1) First, the amount due for delinquent taxes and assessments owed to this state or a political subdivision of this state;

(2) Second, in satisfaction of any mortgage liability incurred by the receiver pursuant to § 34-44-6 of this chapter, in their order of priority;

(3) Third, any unreimbursed expenses and other amounts paid in accordance with § 34-44-6 of this chapter by the receiver, and the fees of 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 judge determines that the sale of the building and the property on which it is located occurred in accordance with the terms and conditions specified by the judge in his or her order of sale under subsection (b) and that the receiver distributed the proceeds of the sale and the balance of any funds that the receiver possessed, after the payment of the costs of the sale, in accordance with subsection (c), and if the judge approves any final accounting required of the receiver, the judge may terminate the receivership.

(e) If a judge in a civil action described in § 34-44-3 enters a declaration that a public nuisance has been abated by a receiver, and if, 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, the judge may enter an order directing the receiver to sell the building involved and the property on which it is located. The order shall be entered, and the sale shall occur, only in compliance with subsections (b) - (d).

History of Section. (P.L. 1992, ch. 254, § 2.)