KRS 134.490: Actions by owner of certificate of delinquency to collect or foreclose

certificate -- Notice by third -party purchaser to taxpayer -- Installment

payment plans.

(1) (a) Within fifty (50) days after the delivery of a certificate of delinque ncy by the

clerk to a third-party purchaser, the third-party purchaser shall send a notice to

the delinquent taxpayer informing the delinquent taxpayer that the certificate

of delinquency has been purchased by the third-party purchaser.

(b) The third -party purchaser shall send this notice once every six (6) months

until the notice required by subsection (2) of this section is sent.

(c) The notices included in this subsection shall be sent by certified mail with

proof of mailing and include the information r equired by subsection (3)(d) of

this section. A copy of each notice shall be sent to each mortgagee who holds

a mortgage on the property that is the subject of the certificate of delinquency.

(2) Anytime after the expiration of the one (1) year tolling per iod established by KRS

134.546, the third-party purchaser may institute an action to collect the amount due

on a certificate of delinquency. At least forty -five (45) days before instituting a

legal action, the third-party purchaser shall send a notice to t he taxpayer and a copy

of the notice to each mortgagee who holds a mortgage on the property by certified

mail with proof of mailing. The notice shall:

(a) Inform the taxpayer that enforcement action will be taken;

(b) Include a statement advising the taxpa yer that substantial additional

administrative costs and fees associated with collection in addition to the

amount due on the certificate of delinquency may be imposed and that

collection actions may include foreclosure; and

(c) Include the information required by subsection (3) of this section.

The notice shall be in addition to any notice sent under subsection (1) of this

section.

(3) (a) 1. For certificates of delinquency for all property except property described

in paragraph (b) of this subsection, third -party purchasers or their

designees shall obtain from the office of the property valuation

administrator of the county in which the real p roperty is located the

most recent address for the property owner.

2. To obtain information from the office of the property valuation

administrator, the third -party purchaser shall, at the option of the

property valuation administrator, either:

a. Obtain information from an up-to-date public access list or website

offered by the property valuation administrator; or

b. Submit a list of addresses, map identification numbers, or parcel

numbers for which updated information is requested to the

property valuatio n administrator, who shall update his or her

records with regard to the properties for which information is

requested and provide the updated information to the third -party

purchaser within ten (10) days.

3. For this service, the property valuation adminis trator may charge a fee

not to exceed two dollars ($2) for each address provided or obtained.

4. Except as provided in paragraph (b) of this subsection, the third -party

purchaser shall send the notices required by subsections (1) and (2) of

this section to the address provided by the property valuation

administrator. Unless the provisions of subparagraph 7. of this

paragraph apply, the third-party purchaser shall not be required to send a

notice to any party other than the owner of record as provided by the

property valuation administrator at the time the notice is sent and the

mortgagee as required by subsections (1) and (2) of this section.

5. If, due to insufficient staffing, the property valuation administrator is

unable to provide the requested informat ion to the third -party purchaser

within ten (10) days of submission, the property valuation administrator

shall immediately notify the third -party purchaser, and the third -party

purchaser may send the notices required by subsections (1) and (2) of

this section to the address reflected in the public records of the property

valuation administrator.

6. Any notices sent pursuant to information obtained under this paragraph

that are returned as undeliverable shall be re -sent by certified mail with

proof of maili ng addressed to the "Occupant" at the address of the

property that is the subject of the certificate of delinquency. These

notices shall be sent within twenty (20) days of receipt of the returned

notice.

7. If a third -party purchaser becomes aware of a mor e recent or more

accurate address for a delinquent taxpayer that is different from the

address reflected in the records of the property valuation administrator,

the third-party purchaser shall send notices to the updated address in the

manner required by t his subsection, and shall notify the property

valuation administrator of the updated address.

8. If a third -party purchaser receives an address from the property

valuation administrator during an address check after a first notice is

sent and returned as u ndeliverable, and the address is the same as was

originally provided, the third -party purchaser shall send the notice

addressed to "Occupant" at the address of the property that is the subject

of the certificate of delinquency in the manner required by thi s

subsection.

(b) 1. For certificates of delinquency relating to unmined coal, oil or gas

reserves, or any other mineral or energy resources assessed separately

from the surface real property pursuant to KRS 132.820, third -party

purchasers or their designe es shall obtain from the department the most

recent address for the property owner.

2. To obtain information about a particular property, the third -party

purchaser shall submit to the department a list of addresses, map

identification numbers, parcel numbe rs, and any other information the

department may require. The department shall:

a. Update its records with regard to the properties for which

information is requested; and

b. Provide the updated information to the third -party purchaser

within ten (10) business days.

3. For this service, the department may charge a fee not to exceed two

dollars ($2) for each address provided.

4. The third-party purchaser shall send the notices required by subsections

(1) and (2) of this section relating to unmined coal, oil or gas reserves,

or any other mineral or energy resources assessed separately from the

surface real property pursuant to KRS 132.820 to the address provided

by the department. Unless the provisions of subparagraph 5.f. of this

paragraph apply, the third-party purchaser shall not be required to send a

notice to any party other than the owner of record as provided by the

department at the time the notice is sent and the mortgagee as required

by subsections (1) and (2) of this section.

5. a. Any notice sent pu rsuant to subsections (1) and (2) of this section

based on information obtained pursuant to this paragraph and

returned as undeliverable shall be submitted to the department

within ten (10) days of receipt of the returned notice.

b. The department shall at tempt to obtain an updated address for the

owner of the property subject to the certificate of delinquency

from the individual or entity filing the property tax return for the

property.

c. The individual or entity filing the property tax return shall provi de

an address of the property owner upon request of the department.

d. The department shall provide any updated address information to

the third-party purchaser.

e. If updated information is provided, the notices shall be re -sent by

certified mail with pro of of mailing to the updated address of the

owner within ten (10) days of the receipt of the updated

information from the department.

f. If a third-party purchaser becomes aware of a more recent or more

accurate address for a delinquent taxpayer that is different from the

address reflected in the records of the department, the third -party

purchaser shall send notices to the updated address in the manner

required by this subsection, and shall notify the department of the

updated address.

(c) The third-party purchaser shall maintain complete and accurate records of all

notices sent pursuant to this section.

(d) The notices required by this section shall include the following information:

1. A statement that the certificate of delinquency is a lien of record against

the property for which delinquent taxes are owed;

2. A statement that the certificate bears interest at the rate provided in KRS

134.125;

3. A statement that if the certificate is not paid, it will be subject to

collection as provided by law, and that collection actions may include

foreclosure. The notice required by subsection (2) of this section shall

also include a statement of the intent to institute legal action to collect

the amount due;

4. A complete listing of the amount due, as of the date of the notice,

broken down as follows:

a. The purchase price of the certificate of delinquency;

b. Interest accrued subsequent to the purchase of the certificate of

delinquency; and

c. Fees imposed by the third-party purchaser;

5. If the third-party purchaser is required to register with the department as

provided in KRS 134.128(3), for certificates of delinque ncy purchased

after June 1, 2012, a statement informing the taxpayer that upon written

request and the payment of a processing fee, the third -party purchaser

will offer a payment plan; and

6. Information, in a format and with content as determined by the

department, detailing the provisions of the law relating to third -party

purchaser fees and charges.

(e) In addition, the notice shall provide the following information to the taxpayer:

1. The legal name of the third-party purchaser;

2. The third-party purchaser's physical address;

3. The third -party purchaser's mailing address for payments, if different

from the physical address; and

4. The third-party purchaser's telephone number.

If the information required by this paragraph changes, the third -party

purchaser shall, within thirty (30) days of the change becoming effective, send

a notice to each taxpayer by certified mail with proof of mailing with the

corrected information. The third -party purchaser shall also update contact

information included in the records of the county clerk within ten (10) days of

the change becoming effective. Failure to send the original notice or any

correction notices shall result in the suspension of the accrual of all interest

and any fees incurred by the third -party purchaser a fter that date until proper

notice is given as required by this subsection.

(4) If a person entitled to pay a certificate of delinquency to a third -party purchaser

makes payment on the certificate of delinquency to the county clerk under the

conditions described in KRS 134.127(3)(d), the payment shall constitute payment in

full, and no other amounts may be collected by the third -party purchaser from the

person.

(5) (a) For certificates of delinquency purchased after June 1, 2012, at the written

request of a delinquent taxpayer, a third -party purchaser required to register

with the department as provided in KRS 134.128(3) shall provide a monthly

installment payment plan to a taxpayer.

(b) The taxpayer and third -party purchaser shall sign an agreement detailin g the

terms of the installment payment plan.

(c) The third-party purchaser may impose a processing fee, not to exceed eight

dollars ($8) per month to offset the administrative cost of providing the

payment plan. No other fees, charges, interest, or other a mounts not expressly

authorized by this chapter shall be charged, assessed, or collected by the third-

party purchaser.

(d) The existence of an agreement to provide a payment plan shall not impact the

right of the third -party purchaser to pursue legal actio n if the delinquent

taxpayer fails to follow the terms of the installment payment agreement.

(e) Upon default of a delinquent taxpayer:

1. The third-party purchaser shall retain all amounts paid, which shall be

applied to the outstanding balance due; and

2. The third -party purchaser shall not be required to offer the delinquent

taxpayer another opportunity for an installment payment plan.

(f) If a third-party purchaser who was required to offer payment plans pursuant to

paragraph (a) of this subsection, sub sequently does not purchase a sufficient

number of certificates of delinquency to require registration with the

department, the third -party purchaser shall continue to offer payment plans

under the conditions established by this subsection for all delinque nt

taxpayers whose certificates of delinquency were purchased during a period in

which the third-party purchaser was required to register with the department.

(g) A third-party purchaser who is not required to register with the department as

provided in KRS 134.128(3), or who holds certificates of delinquency

purchased prior to June 1, 2012, may voluntarily offer installment payment

plans to delinquent taxpayers in accordance with the provisions of this

subsection.

(h) The department may establish additional terms and conditions for installment

payment plans in an administrative regulation.

(6) Any person to whom a third -party purchaser transfers or assigns a certifi cate of

delinquency shall be considered a third-party purchaser under this chapter.