Section 39-11.5-113 - Payment of overbid amount by a lienor - procedure(1)Requirements for payment of overbid amount. A lienor is entitled to receive payment of a portion of the overbid amount, if the following requirements are met to the satisfaction of the treasurer: (a) The lienor's lien is a lien that is created or recognized by state or federal statute or by judgment of a court of competent jurisdiction;(b) The lien is a junior lien;(c) The lienor's lien appears by instruments that were duly recorded in the office of the clerk and recorder of the county prior to the treasurer recording the application for public auction pursuant to section 39-11.5-103. If, prior to the date and time of the treasurer's recording of the application for public auction pursuant to section 39-11.5-103 (2), a lien was recorded in an incorrect county, the lienor's rights under this section are valid only if the lien is rerecorded in the correct county at least fifteen calendar days prior to the public auction.(d) The lienor has, within eight business days after the public auction, filed a notice with the treasurer of the lienor's intent to receive payment of a portion of the overbid amount;(e) The lienor has attached to the notice of intent to redeem the original instrument and any assignment of the lien to the person attempting to receive payment of a portion of the overbid amount, or certified copies thereof, or in the case of a qualified holder as defined in section 38-38-100.3 (20), a copy of the instrument evidencing the lien and any assignment of the lien to the person attempting to receive payment of a portion of the overbid amount. If the original instrument is delivered to the treasurer, the treasurer shall return the original instrument to the lienor and retain a copy.(f) The lienor has attached to the notice of intent to receive payment of a portion of the overbid amount a signed and properly acknowledged statement of the lienor setting forth the amount required to redeem the lienor's lien, including per diem interest, through the end of the nineteenth business day after the public auction with the same specificity and itemization as required in section 38-38-106.(2)Overbid payment proceeds. Upon the expiration of the overbid amount payment period under this section, the treasurer shall disburse all overbid amount payment proceeds to the persons entitled to receive them.(3)Misstatement of redemption amount. If an aggrieved person contests the amount set forth in the statement filed by a lienor pursuant to subsection (1)(f) of this section and a court determines that the lienor has made a material misstatement on the statement with respect to the amount due and owing to the lienor, the court shall, in addition to other relief, award to the aggrieved person the aggrieved person's court costs and reasonable attorney fees and costs.Added by 2024 Ch. 165,§ 5, eff. 7/1/2024.