C.R.S. § 39-11.5-111: Continuance of public auction - effect of bankruptcy - withdrawal of application.

(1) (a) For any reason deemed by a treasurer to be good cause or upon written request by a lawful holder, at any time before commencement of a public auction, a treasurer may continue a public auction to a later date by making, at the time and place designated for the public auction, an oral announcement of the time and place of such continuance, or by posting or providing a notice of the continuance at the time and place designated for the public auction, which notice must include the time and place to which the public auction is continued. Except as provided in subsection (2)(b)(I) of this section, a public auction that is not held on the then-scheduled public auction date and is not continued from the then-scheduled public auction date pursuant to this subsection (1)(a) is deemed to have been continued for a period of one week, and from week to week thereafter in like manner, until the public auction is held or otherwise continued pursuant to this subsection (1)(a). A treasurer must not continue a public auction to a date later than twelve months from the originally designated date in the notice of public auction, except as provided in subsection (2) of this section.

(b) At the request of a lawful holder or upon a treasurer's own initiative, a treasurer shall correct any errors in a published notice of public auction and shall continue the then-scheduled public auction to a future date within the period of continuance allowed by this subsection (1) to permit a corrected notice of public auction to be published or the original notice of public auction to be republished pursuant to section 39-11.5-105 (4). If a treasurer failed to publish the notice of public auction as required by section 39-11.5-105 (4), the treasurer shall continue the then-scheduled public auction to a future date within the period of continuance allowed by subsection (1)(a) of this section. A future public auction date to which a treasurer continues a public auction pursuant to this subsection (1)(b) must be no later than thirty calendar days after the third publication of a corrected notice of public auction or republication of the notice of public auction. The treasurer shall mail by first class mail a copy of the notice of public auction, or corrected notice of public auction if the original notice of public auction was erroneous, to the persons and addresses on the mailing list no more than ten calendar days after the first corrected publication or republication and no less than forty-five calendar days prior to the newly scheduled public auction in the same manner as set forth in section 39-11.5-105.

(2) (a) If all publications of a notice of public auction prescribed by section 39-11.5-105 (4) or 13-56-201 (1) have been completed before any injunction or bankruptcy petition is filed which automatically stays the treasurer from conducting the public auction, the treasurer shall announce, post, or provide notice of that fact on the then-scheduled public auction date, take no action at the then-scheduled public auction, and allow the public auction to be automatically continued from week to week in accordance with subsection (1)(a) of this section, unless otherwise requested in writing prior to any such public auction by the lawful holder.

(b) (I) If the publications of a notice of public auction prescribed by section 39-11.5-105 (4) or 13-56-201 (1) have not commenced, or if all the publications have not been completed, before the date that an injunction or a bankruptcy petition is filed which automatically stays the treasurer from conducting the public auction, the treasurer shall immediately cancel any remaining publications of the notice of public auction and, on the date set for the public auction, announce, post, or provide a notice that the public auction has been enjoined or has been stayed by the automatic stay provisions of the federal bankruptcy code of 1978, title 11 of the United States Code, as amended. The public auction may not be continued under subsection (1)(a) of this section.

(II) (A) Upon the termination of any injunction or upon the entry of a bankruptcy court order dismissing the bankruptcy case, abandoning the property being sold, closing the bankruptcy case, or granting relief from the automatic stay provisions of the federal bankruptcy code of 1978, title 11 of the United States Code, as amended, and upon receipt of a request of a lawful holder to restart the treasurer's deed process, the treasurer shall rerecord the application for treasurer's deed and proceed with all additional treasurer's deed procedures provided by this article 11.5 as though the treasurer's deed process had just commenced.

(B) If a request to restart the public auction is not received by a treasurer within one year from the date of the termination of any injunction or the entry of a bankruptcy court order dismissing the bankruptcy case, abandoning the property being sold, closing the bankruptcy case, or granting relief from the automatic stay, the public auction is deemed withdrawn according to subsection (3)(b) of this section.

(III) If a public auction is held in violation of the automatic stay provisions of the federal bankruptcy code of 1978, title 11 of the United States Code, as amended, and an order is subsequently entered by a bankruptcy court of competent jurisdiction dismissing the bankruptcy, abandoning the property being sold, or closing the bankruptcy case, or an order is subsequently entered granting relief from the automatic stay provided by the federal bankruptcy code, then the certificate of purchase must immediately be deemed reinstated, and the certificate of purchase must have the same priority as if the public auction had not occurred. Immediately upon reinstatement, the application for treasurer's deed shall be deemed revived.

(IV) If a lawful holder notifies a treasurer in writing of the entry of an order dismissing the bankruptcy case, abandoning the property being sold, closing the bankruptcy case, or granting relief from the automatic stay provided by the federal bankruptcy code of 1978, title 11 of the United States Code, as amended, no later than fifty calendar days prior to the last possible public auction date pursuant to subsections (1)(a) and (2)(e) of this section, the treasurer shall set a new public auction date at least twenty-four calendar days but not more than forty-nine calendar days after the date on which the treasurer receives this notice. No later than ten business days after receiving the notice, the treasurer shall mail by first class mail an amended notice of public auction containing the date of the rescheduled public auction to each person appearing on the mailing list. No later than twenty calendar days after receiving the notice, but no less than ten calendar days prior to the new public auction, the treasurer shall publish the amended notice of public auction, omitting the copies of the statutes one time only in a newspaper of general circulation in the county where the property is located, subject to the following limitations:

(A) If the assessed value of a property at the time of the rerecording of an application for treasurer's deed is less than five hundred dollars, no publication is required; or

(B) If there is no newspaper of general circulation in a county where a property is located, a treasurer shall post a notice conspicuously in the offices of the county clerk and recorder, the treasurer, and the assessor, and in at least two other public places in the county seat.

(V) If a lawful holder does not notify a treasurer in writing of the entry of an order dismissing the bankruptcy case, abandoning the property being sold, closing the bankruptcy case, or granting relief from the automatic stay provided by the federal bankruptcy code of 1978, title 11 of the United States Code, as amended, within the time allowed under subsection (2)(b)(IV) of this section, the treasurer shall administratively withdraw the application for treasurer's deed pursuant to subsection (3)(b) of this section upon receipt of the order dismissing the bankruptcy case, abandoning the property being sold, closing the bankruptcy case, or granting relief from the automatic stay provided by the federal bankruptcy code of 1978, title 11 of the United States Code, as amended.

(VI) All fees and costs of providing and publishing the amended notice of public auction and publication are part of the treasurer's deed costs.

(c) If a public auction is set aside by court order, unless the court order specifies otherwise, the following procedures apply:

(I) Upon receipt of the court order, the treasurer's fee specified in section 30-1-102 (1.7)(a)(XII), and the costs of recording the court order as specified in this subsection (2)(c), the treasurer shall attach to the order a copy of the certificate of option for a treasurer's deed, any assignments thereof, and, if applicable, the treasurer's deed, each marked "null and void", and record the order together with these documents.

(II) Upon recording of the court order, the certificate of option for a treasurer's deed is deemed canceled as if the public auction had not occurred, and the certificate of purchase is deemed fully reinstated with the same lien priority as if the public auction had not occurred.

(III) Within ten calendar days after receiving all documents, fees, and costs specified in this subsection (2)(c), the treasurer shall mail by first class mail a copy of the court order to each person entitled to receive the notice of public auction pursuant to section 39-11.5-104.

(IV) (A) After the recording of a court order, the lawful holder or the assignee may notify the treasurer in writing to reschedule the public auction within one year of the issuance of the order. The treasurer shall set a new public auction date at least thirty calendar days but not more than forty-five calendar days after the date on which the treasurer receives notice to schedule a new public auction subject to the requirements of subsections (1)(a) and (2)(e) of this section, but not earlier than the scheduled auction date as of the date of the court order.

(B) No more than ten calendar days after receiving notice to schedule a new public auction, the treasurer shall mail by first class mail a notice of public auction setting forth the rescheduled public auction date to each person entitled to receive the notice of public auction pursuant to section 39-11.5-104.

(C) No more than twenty calendar days after receiving notice to schedule a new public auction, but no less than ten calendar days prior to the new public auction date, the treasurer shall publish the notice of public auction one time only. The publication must be in the format specified for publication by section 39-11.5-105 (4) and is subject to the same limitations set forth in subsections (2)(b)(IV)(A) and (2)(b)(IV)(B) of this section.

(D) All fees and costs of a treasurer for actions performed under this section and the cost of recording the court order and documents incorporated into the court order by attachment are part of the treasurer's deed costs.

(E) After a public auction has been set aside and subsequently rescheduled pursuant to this subsection (2)(c)(IV), the public auction may be continued in accordance with subsections (1)(a) and (2)(e) of this section.

(F) If a written request to reschedule a public auction in accordance with this subsection (2) is not received by the treasurer within one year of the issuance of an order, an application for treasurer's deed must be withdrawn according to subsection (3)(b) of this section.

(V) Nothing in this section prevents a lawful holder from seeking a rescission of sale pursuant to section 39-11.5-114 if the requirements in that section are met.

(d) The period for which a public auction may be continued under this subsection (2) must be in addition to the twelve-month period of continuance provided by subsection (1) of this section.

(3) (a) If a lawful holder files with a treasurer, prior to a public auction, a written withdrawal of an application for treasurer's deed, the treasurer's deed proceedings terminate. The treasurer shall record the withdrawal and collect all fees and costs owed and incurred, including a withdrawal fee in the amount authorized by section 30-1-102 (1.7)(a)(VIII).

(b) If there is no public auction and if a withdrawal is not filed within forty-five calendar days after the last possible public auction date permitted by law, a treasurer may transmit by mail or electronic transmission to a lawful holder a notice that a withdrawal of their application for treasurer's deed may be recorded by the treasurer unless a response is received by the treasurer within thirty calendar days after the date the treasurer's notice is transmitted. If a response is received by the treasurer and no withdrawal is filed within forty-five days after the notice is transmitted, the treasurer may record a withdrawal of the application for treasurer's deed. If no response is received by the treasurer within thirty calendar days after the notice is transmitted, the treasurer may record a withdrawal of the application for treasurer's deed at any time after the expiration of the thirty-day notice period. If a withdrawal is recorded during the pendency of an automatic stay imposed on a public auction based on any proceeding filed under the federal bankruptcy code of 1978, title 11 of the United States Code, as amended, the withdrawal is void and of no force and effect, and the treasurer shall mail by first class mail to all persons on the mailing list a notice that the withdrawal of application for treasurer's deed occurred during the pendency of an injunction or bankruptcy stay and is void and of no force and effect. The treasurer shall cause the notice to be recorded in the office of the county clerk and recorder of the county where the property described in the notice is located. The lawful holder shall pay all unpaid fees and costs owed and incurred by the treasurer, as well as a withdrawal fee in the amount authorized by section 30-1-102 (1.7)(a)(VIII). The amount due must accrue interest at the rate provided by law. Until all amounts due and owing are paid, a treasurer is entitled to hold all documentation in the treasurer's possession and to withhold all other services requested by a lawful holder with respect to a certificate of option for a treasurer's deed.