C.R.S. § 39-11.5-111 — Redemption of the certificate of purchase by a lawful holder - procedure

(1) Requirements for redemption. A lawful holder is entitled to redeem the certificate of purchase if the following requirements are met to the satisfaction of the treasurer: (a) The lawful holder has, within eight business days after the public auction, filed a notice with the treasurer of the lawful holder's intent to redeem; (b) The lawful holder has attached to the notice of intent to redeem the original certificate of purchase and any assignment of the certificate of purchase to the lawful holder, or certified copies thereof. If the original certificate of purchase is delivered to the treasurer, the treasurer shall return the certificate of purchase to the lawful holder and retain a copy. (c) The lawful holder has attached to the notice of intent to redeem a signed and properly acknowledged statement of the lawful holder setting forth the amount required to redeem the certificate of purchase, 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) Request for redemption amount. At the end of the period in which a lawful holder may file an intent to redeem pursuant to this article 11.5, if a notice of intent to redeem is filed by a lawful holder entitled to redeem under this section, the treasurer shall transmit by mail, facsimile, or other electronic means to the purchaser a written request for a written or electronic statement of all sums necessary to redeem. (3) Statement of redemption. (a) Upon receipt of the request transmitted by the treasurer pursuant to subsection (2) of this section, the purchaser shall submit a signed and acknowledged statement to the treasurer, no later than thirteen business days following the public auction, specifying all sums necessary to redeem as of the date of the statement along with the per diem amounts that accrue after the date of sale. The purchaser may amend the statement as necessary to reflect additional sums advanced as allowed by law, but the purchaser shall not amend the statement later than two business days prior to the commencement of the redemption period pursuant to subsection (4)(a) of this section. (b) If the purchaser fails to submit the statement described in subsection (3)(a) of this section to the treasurer within thirteen business days after the sale, the treasurer may calculate the amount necessary to redeem by adding to the successful bid the accrued interest from the sale through the redemption date. The accrued interest is calculated by multiplying the amount of the bid by the regular rate of annual interest specified in the underling tax lien, divided by three hundred sixty-five and then multiplied by the number of days from the date of sale through the redemption date. (c) The treasurer shall transmit by mail, facsimile, or other electronic means to the lawful holder filing the notice of intent to redeem, promptly upon receipt, the statement filed by the purchaser, or if no such statement is filed, the treasurer's estimate of the redemption figure, which the treasurer shall transmit no later than the commencement of the redemption period pursuant to subsection (4)(a) of this section. (4) Redemption period. (a) No more than nineteen business days nor less than fifteen business days after a public auction is conducted pursuant to this article 11.5, the redeeming lawful holder may redeem the certificate of purchase by paying to the treasurer, no later than 12 noon on the last day of the lawful holder's redemption period, in a form specified by the treasurer, the amount for which the certificate of purchase was sold at public auction with interest from the date of sale, together with any applicable fees or costs. Interest on the amount for which the certificate of purchase was sold is charged at the default rate specified in the underlying tax lien. (b) If the statement described in subsection (1)(c) of this section so states, or upon other written authorization from the purchaser or the then-current lawful holder of the certificate of redemption, the treasurer may accept as a full redemption an amount less than the amount specified in subsection (3)(a) of this section. Any redemption under this section constitutes a full redemption and is deemed to be payment of all sums to which the lawful holder is entitled. (5) Certificate of redemption. Upon receipt of the redemption payment pursuant to subsection (4) of this section, the treasurer shall execute and record a certificate of redemption pursuant to section 39-11.5-112. (6) Redemption proceeds. Upon the expiration of the redemption period under this section, the treasurer shall disburse all redemption proceeds to the persons entitled to receive them. (7) Certificate of lawful holder. A redeeming lawful holder shall pay to the treasurer the amount required to redeem and shall deliver to the treasurer a signed and properly acknowledged statement by the lawful holder showing the amount owing on such lien, including per diem interest and fees and costs actually incurred that are permitted by subsection (6) of this section and for which the lawful holder has submitted to the treasurer receipts, invoices, evidence of electronic account-to-account transfers, or copies of loan servicing computer screens evidencing the fees and costs and verifying that the fees and costs were actually incurred as of the date of the statement of redemption with the per diem amounts that accrue thereafter. At any time before the expiration of a lawful holder redemption period, the redeeming lawful holder may submit a revised or corrected certificate. (8) Payment of fees and costs. A lawful holder may, during the lawful holder redemption period described in subsection (4) of this section, pay the fees and costs that the purchaser may pay. (9) Misstatement of redemption amount. If an aggrieved person contests the amount set forth in the statement filed by a lawful holder pursuant to subsection (1)(c) of this section or by a purchaser pursuant to subsection (3)(a) of this section and a court determines that the lawful holder or purchaser has made a material misstatement on the statement with respect to the amount due and owing to the lawful holder or the purchaser, 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. (10) No partial redemption. A lawful holder holding a lien on less than all of, or a partial interest in, the property shall redeem the entire property. No partial redemption is permitted under this article 11.5. The priority of liens for purposes of this section is to be determined without consideration of the fact that the lien relates to only a portion of the property or to a partial interest therein. Source: L. 2024: Entire article added, (HB 24-1056), ch. 165, p. 795, § 5, effective July 1.