SECTIONS 16180-16187 - California Statutes

GOVERNMENT CODE

SECTION 16180-16187

16180. Out of the amount appropriated to the Controller by Section
16100, the sum of twelve million seven hundred thousand dollars
($12,700,000) for the 1977-78 fiscal year and each fiscal year
thereafter is hereby made available to the Controller to pay the face
amount of all certificates of eligibility for the postponement of
property taxes submitted to the Controller which are signed and
countersigned in the manner specified in Sections 20602, 20603,
20639.6, 20640.6, and 20640.7 of the Revenue and Taxation Code.

16181. (a) The Controller shall maintain a record of all properties
against which a notice of lien for postponed property taxes has been
recorded. The record shall include, but not be limited to, the names
of each claimant, a description of the real property against which
the lien is recorded, the identification number of the notice of lien
assigned by the Controller, and the amount of the lien.
(b) The Controller shall maintain a record of all properties
against which the Department of Housing and Community Development has
been notified to withhold the transfer of title. The record shall
include, but not be limited to, the names of each claimant, a
description of the mobilehome against which a lien is charged, and
the amount of the lien.
(c) Upon written request of any person or entity, or the agent of
either, having a legal or equitable interest in real property or a
mobilehome which is subject to a lien for postponed taxes, the
Controller shall within 10 working days following receipt of the
request issue a written statement showing the amount of the
obligation secured by the lien as of the date of such statement and
such other information as will reasonably enable the person or
entity, or the agent of either, to determine the amount to be paid
the Controller in order to obtain a certificate of release or
discharge of the lien for postponed taxes.
(d) The Controller shall adopt regulations necessary to implement
the provisions of this chapter and may establish a reasonable fee,
not to exceed ten dollars ($10), for the provision of the statement
of lien status provided for herein.

16181.5. For purposes of this chapter, "real property" shall
include possessory interests in real property for which property
taxes have been postponed pursuant to the provisions of Chapter 3.5
(commencing with Section 20640) of Part 10.5 of Division 2 of the
Revenue and Taxation Code.

16182. (a) All sums paid by the Controller under the provisions of
this chapter, together with interest thereon, shall be secured by a
lien in favor of the State of California upon the real property or a
mobilehome for which property taxes have been postponed, or both. In
the case of a residential dwelling which is part of a larger parcel
taxed as a unit, such as a duplex, farm, or multipurpose or
multidwelling building, the lien shall be against the entire tax
parcel.
(b) In the case of real property:
(1) The lien shall be evidenced by a notice of lien for postponed
property taxes executed by the Controller, or the authorized delegate
of the Controller, and shall secure all sums paid or owing pursuant
to this chapter, including amounts paid subsequent to the initial
payment of postponed taxes on the real property described in the
notice of lien.
(2) The notice of lien may bear the facsimile signature of the
Controller. Each signature shall be that of the person who shall be
in the office at the time of execution of the notice of lien;
provided, however, that such notice of lien shall be valid and
binding notwithstanding any such person having ceased to hold the
office of Controller before the date of recordation.
(3) The form and contents of the notice of lien for postponed
property taxes shall be prescribed by the Controller and shall
include, but not be limited to, the following:
(A) The names of all record owners of the real property for which
the Controller has advanced funds for the payment of real property
taxes.
(B) A description of the real property for which real property
taxes have been paid.
(C) The identification number of the notice of lien which has been
assigned the lien by the Controller.
(4) The notice of lien shall be recorded in the office of the
county recorder for the county in which the real property subject to
the lien is located.
(5) The recorded notice of lien shall be indexed in the Grantor
Index to the names of all record owners of the real property and in
the Grantee Index to the Controller of the State of California.
(6) After the notice of lien has been duly recorded and indexed,
it shall be returned by the county recorder to the office of the
Controller. The recorder shall provide the county tax collector with
a copy of the notice of lien which has been recorded by the
Controller.
(7) From the time of recordation of a notice of lien for postponed
property taxes, a lien shall attach to the real property described
therein and shall have the priority of a judgment lien for all
amounts secured thereby, except that the lien shall remain in effect
until either of the following occurs:
(A) It is released by the Controller in the manner prescribed by
Section 16186.
(B) The foreclosure or sale of an obligation secured by a lien
which is senior in priority to the lien of the State of California.
(c) In the case of mobilehomes:
(1) The lien shall be evidenced by a notice of lien for postponed
property taxes executed by the Controller, or the authorized delegate
of the Controller, and shall secure all sums paid or owing pursuant
to this chapter.
(2) The notice of lien may bear the facsimile signature of the
Controller. The signature shall be that of the person who is in the
office at the time of execution of the notice of lien. However, the
notice of lien is valid and binding notwithstanding the person having
ceased to hold the office of Controller before the date of filing.
(3) The form and contents of the notice of lien for postponed
property taxes shall be prescribed by the Controller and shall
include, but not be limited to, all of the following:
(A) The name or names of the registered owner or owners, legal
owner or owners, if different than the registered owner or owners and
the names, if any, of all junior lienholders.
(B) The identification number of the notice of lien which has been
assigned the lien by the Controller.
(4) The notice of lien shall be transmitted to the Department of
Housing and Community Development at its office in Sacramento,
California.
(5) Upon receipt of the notice of lien for postponed property
taxes from the Controller, the Department of Housing and Community
Development shall amend the permanent title record of the mobilehome
to reflect that the property taxes on the mobilehome are subject to
postponement.
(6) The Department of Housing and Community Development shall
provide the Controller with an acknowledgement of receipt and
amendment of the permanent title record.
(7) From the time the Department of Housing and Community
Development receives the notice of lien from the Controller, the
department shall impose a moratorium on any other amendments to the
permanent title record of the mobilehome for purposes of transferring
any ownership interest or transferring or creating any security
interest in the mobilehome, until released by the Controller in the
manner prescribed by Section 16186 or an authorization for the
amendments is given by the Controller in writing.
(d) From the time of filing a notice of lien, a lien shall attach
to the mobilehome for which eligibility for the postponement of
property taxes has been granted.
(e) Notwithstanding any other provision in this section, any
action required of a local agency by this section in order to give
effect to the Senior Citizens Mobilehome Property Tax Postponement
Law (Chapter 3.3 (commencing with Section 20639) of Part 10.5 of
Division 2 of the Revenue and Taxation Code, and that has been
determined by the Commission on State Mandates to be a reimbursable
mandate, shall be optional.

16183. (a) (1) From the time a payment is made pursuant to Section
16180, the amount of that payment shall bear interest at a rate (not
compounded), determined as follows:
(1) For the period ending June 30, 1984, the rate of interest
shall be 7 percent per annum.
(2) The Controller shall establish an adjusted rate of interest
for the purpose of this subdivision not later than July 15th of any
year if the effective annual yield of the Pooled Money Investment
Account for the prior fiscal year is at least a full percentage point
more or less than the interest rate which is then in effect. The
adjusted rate of interest shall be equal per annum to the effective
annual yield earned in the prior fiscal year by the Pooled Money
Investment Account rounded to the nearest full percent, and shall
become effective for new deferrals, beginning on July 1, 1984, and on
July 1 of each immediately succeeding year.
(3) The rate of interest provided pursuant to this subdivision for
the first fiscal year commencing after payment is made pursuant to
Section 16180 shall apply for that fiscal year and each fiscal year
thereafter until these postponed property taxes are repaid.
(b) The interest provided for in subdivision (a) shall be applied
beginning the first day of the month following the month in which
that payment is made and continuing on the first day of each month
thereafter until that amount is paid. In the event that any payments
are applied, in any month, to reduce the amount paid pursuant to
Section 16180, the interest provided for herein shall be applied to
the balance of that amount beginning on the first day of the
following month.
(c) In computing interest in accordance with this section,
fractions of a cent shall be disregarded.
(d) For the purpose of this section, the time a payment is made
shall be deemed to be the time a certificate of eligibility is
countersigned by the tax collector or the delinquency date of the
respective tax installment, whichever is later.
(e) The Controller shall include on forms supplied to claimants
pursuant to Sections 20621, 20630.5, 20639.9, 20640.9, and 20641 of
the Revenue and Taxation Code, a statement of the interest rate which
shall apply to amounts postponed for the fiscal year to which the
form applies.

16184. The Controller shall reduce the amount of the obligation
secured by the lien against the real property or mobilehome by the
amount of any payments received for that purpose and by notification
of any amounts paid by the Franchise Tax Board pursuant to Section
20564 or by any amounts authorized pursuant to subdivision (f) of
Section 20621 of the Revenue and Taxation Code. The Controller shall
also increase the amount of the obligation secured by such lien by
the amount of any subsequent payments made pursuant to Section 16180
with respect to the real property and to reflect the accumulation of
interest. All such increases and decreases shall be entered in the
record described in Section 16181.

16185. Notwithstanding the provisions of Section 16182, provided
the interests of the state are adequately protected, the Controller
may subordinate the lien for postponed real property taxes where the
Controller determines subordination is appropriate.
A recital in a certificate of subordination, executed by the
Controller, recorded in the county wherein the notice of lien for
postponed property taxes has been recorded, subordinating such lien
to specifically identified liens or encumbrances shall be conclusive
in favor of all persons or entities thereafter dealing with the real
property.

16186. If at any time the amount of the obligation secured by the
lien for postponed property taxes is paid in full or otherwise
discharged, the Controller, or the authorized delegate of the
Controller, shall:
(a) In the case of real property:
(1) Execute and cause to be recorded in the office of the county
recorder of the county wherein the real property described in the
lien is located, a release of the lien conclusively evidencing the
satisfaction of all amounts secured by the lien. The cost of
recording the release of the lien shall be added to and become part
of the obligation secured by the lien being released.
(2) Direct the tax collector to remove from the secured roll, the
information required to be entered thereon by paragraph (1) of
subdivision (a) of Section 2514 of the Revenue and Taxation Code with
respect to the property described in the lien.
(3) Direct the assessor to remove from the assessment records
applicable to the property described in the lien, the information
required to be entered on such records by Section 2515 of the Revenue
and Taxation Code.
(b) In the case of a mobilehome:
(1) Direct the tax collector to remove from the secured roll the
information required to be entered thereon by paragraph (1) of
subdivision (a) of Section 2514 of the Revenue and Taxation Code.
(2) Transmit a Release of Lien to the owner of the mobilehome or
the owner's heirs or assigns. The owner, or the owner's heirs or
assigns, shall transmit the Release of Lien, and a fee of six dollars
($6), to the Department of Housing and Community Development. Upon
receipt of the Release of Lien and the fee, the department shall
terminate the restriction on the permanent title record as provided
by Section 16182.

16186.5. In the event that a payment which is made to satisfy an
obligation secured by a lien for postponed property taxes exceeds the
amount owing to the state, the Controller may refund the overpayment
to the party entitled thereto. The Controller shall pay those
refunds out of the amount appropriated by Section 16100, or any
appropriation in lieu thereof.

16187. (a) In the event of a judicial foreclosure of any lien
senior in priority to the lien provided by Section 16182, notice
shall be given the Controller, in such manner as the Controller may
prescribe, not less than 60 days prior to the sale upon judicial
foreclosure of any lien senior in priority to the lien provided by
Section 16182, unless the Controller is named and served as a
defendant in a judicial proceeding for foreclosure.
(b) In the event of a nonjudicial foreclosure of any lien senior
in priority to the lien provided by Section 16182, notice shall be
given to the Controller, pursuant to Section 2924b of the Civil Code.
However, when the notice of lien for postponed property taxes is
recorded subsequent to the recordation of a notice of default, the
Controller shall be given notice of sale not less than 25 days prior
to such sale provided that the lien for postponed property taxes is
recorded more than 30 days before such sale.
In the event of a failure to give the notice required by this
section, the lien established by Section 16182 shall not be affected
by the foreclosure or sale of any such senior lien.