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GS 105 -376
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<br />§ 105 -376. Taxing unit as purchaser at foreclosure sale; payment of purchase price; resale of property
<br />acquired by taxing unit.
<br />(a) Taxing Unit as Purchaser. — Any taxing unit (or two or more taxing units jointly) may bid at a
<br />foreclosure sale conducted under G.S. 105 -374 or G.S. 105 -375, and any taxing unit that becomes the successful
<br />bidder may assign its bid at any time by private sale for not less than the amount of the bid.
<br />(b) Payment of Purchase Price by Taxing Units; Status of Property Purchased by Taxing Units. — Any
<br />taxing unit that becomes the purchaser at a tax foreclosure sale may, in the discretion of its governing body, pay
<br />only that part of the purchase price that would not be distributed to it and other taxing units on account of taxes,
<br />penalties, interest, and such costs as accrued prior to the initiation of the foreclosure action under G.S. 105 -374 or
<br />docketing of a judgment under G.S. 105 -375. Thereafter, in such a case, the purchasing taxing unit shall hold the
<br />property for the benefit of all taxing units that have an interest in the property as defined in this subsection (b). All
<br />net income from real property so acquired and the proceeds thereof, when resold, shall be first used to reimburse
<br />the purchasing unit for disbursements actually made by it in connection with the foreclosure action and the
<br />purchase of the property, and any balance remaining shall be distributed to the taxing units having an interest
<br />therein in proportion to their interests. The total interest of each taxing unit, including the purchasing unit, shall be
<br />determined by adding:
<br />(1) The taxes of the unit, with penalties, interest, and costs (other than costs already reimbursed to
<br />the purchasing unit) to satisfy which the property was ordered sold;
<br />(2) Other taxes of the unit, with penalties, interest, and costs which would have been paid in fill
<br />from the purchase price had the purchase price been paid in full;
<br />(3) Taxes of the unit, with penalties, interest, and costs to which the foreclosure sale was made
<br />subject; and
<br />e principal amount of all taxes which ecame liens on the property after purchase at ie
<br />foreclosure sale or which would have become liens thereon but for the purchase, but no amount
<br />shall be included for taxes for years in which (on the day as of which property was to be listed
<br />for taxation) the property was being used by the purchasing unit for a public purpose.
<br />If the amount of net income and proceeds of resale distributable exceeds the total interests of all taxing units
<br />defined in this subsection (b), the remainder shall be applied to any special benefit assessments to satisfy which
<br />the sale was ordered or to which the sale was made subject, and any balance remaining shall accrue to the
<br />purchasing unit.
<br />When any real property that has been purchased as provided in this section is permanently dedicated to use for
<br />a public purpose, the purchasing unit shall make settlement with other taxing units having an interest in the
<br />property (as defined in this subsection) in such manner and in such amount as may be agreed upon by the
<br />governing bodies; and if no agreement can be reached, the amount to be paid shall be determined by a resident
<br />judge of the superior court in the district in which the properly is situated.
<br />Nothing in this section shall be construed as requiring the purchasing unit to secure the approval of other
<br />interested taxing units before reselling the property or as requiring the purchasing unit to pay other interested
<br />taxing units in full if the net income and resale price are insufficient to make such payments.
<br />Any taxing unit purchasing property at a foreclosure sale may, in the discretion of its governing body, instead
<br />of following the foregoing provisions of this section, make fall payment of the purchase price, and thereafter it
<br />shall hold the property as sole owner in the same manner as it holds other real property, subject only to taxes and
<br />special assessments, with penalties, interest, and costs, to which the sale was made subject.
<br />(c) Resale of Real Property Purchased by Taxing Units. — Real property purchased at a tax foreclosure sale
<br />by a taxing unit may be resold at any time (for such price as the governing body of the taxing unit may approve) at
<br />a sale conducted in the manner provided by law for sales of other real property of the taxing unit. However, a
<br />purchasing taxing unit, in the discretion of its governing body, may resell such property to the former owner or to
<br />any other person formerly having an interest in the property at private sale for an amount not less than the taxing
<br />unit's interest therein if it holds the property as sole owner or for an amount not less than the total interests of all
<br />taxing units (other than special assessments due the taxing unit holding title) if it holds the property for the benefit
<br />of all such units. (1939, c. 310, s. 1719; 1945, c. 635; 1947, c. 484, ss. 3, 4; 1951, c. 300, s. 1; c. 1036, s. 1; 1953,
<br />c. 176, s. 2; 1955, c. 908; 1967, c. 705, s. 1; 1971, c. 806, s. 1.)
<br />Attachment number 1
<br />http: / /www.nega.state.nc.us /gascripts/ statutes /statuke400kup.pl ?statute= 105 -376 PW9_ 6/12012
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