La. R.S. 47:2266.1 — Procedure to recognize amounts due under tax lien certificate

A.(1) Upon the expiration of the later of three years from recordation of the tax lien
certificate, or the tax sale certificate if R.S. 47:2201(B) is applicable, or six months after
providing the notices required by R.S. 47:2156, a certificate holder may, by verified petition,
institute in a court of competent jurisdiction, as determined by the value of the immovable
property described and not by the value of the delinquent obligation, an ordinary proceeding
seeking recognition of the delinquent obligation and the lien and privilege evidenced by the
tax lien certificate. The petition shall name as a defendant each owner of the property shown
in the conveyance records.
(2) Upon request of the certificate holder, the tax collector shall provide the
certificate holder with a statement certifying the amount of the termination price as of the
date in the statement. A copy of this certification shall be attached to the petition.
(3) At the time of filing, the petitioner shall send a copy of the petition to the tax
collector and file a notice of pendency of action with the recorder of mortgages of the parish
in which the property is located. The notice of pendency of action shall preserve the effect
of the certificate as a tax lien on the property described therein during the pendency of the
action.
(4) Citation and service shall be made on each defendant in accordance with the Code
of Civil Procedure unless a written waiver has been filed.
(5) The petition shall include each of the following allegations:
(a) Petitioner is a certificate holder of a tax lien recorded in the mortgage records of
this parish.
(b) At least three years have passed since the recordation of the tax lien certificate.
(c) At least six months have passed since the transmission of notices as required by
R.S. 47:2156.
(d) The attached tax lien certificate was issued for the collection of the delinquent
obligation for payment of statutory obligations on the property described.
(e) The complete legal description of the immovable property subject to the tax lien
certificate.
(f) The amount of the delinquent obligation secured by the lien as evidenced by the
tax lien certificate, the statement of tax collector, and the affidavit of costs incurred executed
by the certificate holder.
(g) The amount secured by any privilege held by the petitioner pursuant to R.S.
47:2158.
(h) The petitioner is entitled to recover court costs and reasonable attorney fees
incurred in prosecution of the action.
(6) Except for good cause shown, the recoverable amount of attorney fees shall not
exceed the greater of twenty-five percent of the total amount sought to be collected as
specified in Subparagraph (5)(f) of this Subsection or two thousand five hundred dollars.
B. This action shall be brought in the parish in which the property is located unless
it lies in two or more parishes, in which case the action may be brought in any such parish.
C.(1) The court may appoint an attorney at law to represent a defendant pursuant to
Code of Civil Procedure Article 5091. The attorney shall receive a reasonable fee for his
services, to be fixed by the court and be taxed as costs. The costs for filing, service of
process, and fees and costs of the court-appointed attorney shall be added to the termination
price.
(2) The petition shall be served upon the tax collector.
(3) When all parties have been served, the plaintiff shall notify the clerk of court of
that fact, and the clerk of court shall serve notice upon the tax collector stating the date upon
which the last party was served.
D.(1) Until close of business on the thirtieth day following the date on which the last
party was served, or the next day that is not a legal holiday if the thirtieth day is a legal
holiday, any person may cause the tax lien to be extinguished by delivering the termination
price to the tax collector. For purposes of determining costs incurred by the tax lien
certificate holder to be included in the termination price, the affidavit of costs shall be
determinative unless an order or judgment of the court states otherwise. The tax collector
shall not be liable to any person for any error in calculation of the termination price.
(2) After the period described in Paragraph (1) of this Subsection has expired, the
following rules shall apply:
(a) The tax lien certificate holder may file a motion for judgment recognizing the tax
lien and any privilege arising under R.S. 47:2158.
(b) The tax collector shall no longer accept any attempted termination payments, and
the tax lien shall be extinguished only pursuant to Paragraph (3) of this Subsection. Nothing
in this provision shall prohibit the tax collector from cancelling any tax lien certificate in
accordance with other applicable provisions of law.
(3) At any time prior to a judicial sale pursuant to R.S. 47:2267, any person holding
an interest in the property that may be terminated by the enforcement of the tax lien may
file a contradictory motion for the court to set the termination price. No later than thirty days
after the motion is filed, the court shall enter an order fixing the termination price in
accordance with R.S. 47:2243 ordering the mover to remit the full termination price no more
than thirty days following the signing of the order by either depositing the full termination
price into the registry of the court or delivering the full termination price to the certificate
holder and directing the clerk of court to terminate the tax lien certificate upon deposit of
the termination price in the registry of the court or delivery of the termination price to the
certificate holder. For purposes of this Paragraph, the termination price shall include the
amount secured by any privilege held by the petitioner pursuant to R.S. 47:2158.
(4) Any penalty that has become final pursuant to R.S. 47:2158.1 or 2231.1 that
remains unpaid at the time that an action pursuant to this Section is filed may be enforced
by subtracting the amount of the penalty from the termination price due.
E. A judgment rendered in favor of the plaintiff shall be in rem only. The judicial
mortgage created by the recordation of the judgment shall affect only the property described
in the petition and shall be preferred to all other liens, privileges, mortgages, and other
encumbrances of any nature, regardless of when recorded, except those listed in R.S.
47:2268(B).