2023 Colorado Revised Statutes › Title 39 - TAXATION (§§ 39-1-101 — 39-37-301) › PROPERTY TAX (§§ 39-1-101 — 39-14-103) › COLLECTION AND REDEMPTION (§§ 39-10-101 — 39-12-113) › Article 11.5 - Issuance of Treasurer's Deeds (§§ 39-11.5-101 — 39-11.5-119) › Section 39-11.5-106 - Continuance of public auction - effect of bankruptcy - withdrawal of notice of public auction - redemption of tax lien prior to public auction

(1)
Continuance.
Notwithstanding section 39-11.5-105, for any reason deemed by the treasurer to be good cause or upon written request by the lawful holder, at any time before commencement of the public auction, the treasurer may continue the 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 date of public auction and is not continued from the then-scheduled date of public auction pursuant to this subsection (1) is deemed continued for a period of one week, and from week to week thereafter, until the public auction is held or otherwise continued pursuant to this subsection (1). A public auction shall not be continued 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.
(2)
Effect of bankruptcy proceedings.
(a)
If all publications of the known interested party notice prescribed by section 39-11.5-104 have been completed before a bankruptcy petition has been filed that automatically stays the treasurer from conducting the public auction, the treasurer shall announce, post, or provide notice of that fact on the then-scheduled date of public auction, 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) of this section unless otherwise requested in writing prior to any such date of public auction by the lawful holder.
(b)
(I)
If the publications of the known interested party notice prescribed by section 39-11.5-104 have not been started or if all the publications have not been completed before the day a bankruptcy petition has been filed that automatically stays the treasurer from conducting the public auction, the treasurer shall immediately cancel any remaining publications of the known interested party notice 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, 11 U.S.C. sec. 101 et seq., as amended. The public auction shall not be continued under subsection (1) 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 auctioned, closing the bankruptcy case, or granting relief from the automatic stay provisions of the federal bankruptcy code of 1978, 11 U.S.C. sec. 101 et seq., as amended, and upon receipt of a request from the lawful holder to restart the auction, the treasurer shall rerecord the application for public auction and proceed with all additional public auction procedures provided by this article 11.5 as though the public auction had just been commenced.
(B)
If the request is not received by the 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 auctioned, closing the bankruptcy case, or granting relief from the automatic stay, the public auction shall be withdrawn according to subsection (3)(b) of this section.
(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 in an amount equal to the amount established in section 38-37-104 (1)(b)(XI), and the costs of recording the court order, the treasurer shall attach to the order a copy of the certificate of option for 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 recordation of the court order, the certificate of option for Treasurer's deed is deemed canceled as if the public auction had not occurred, and the tax lien is deemed fully reinstated with the same lien priority as if the public auction had not occurred.
(III)
Within ten calendar days after receipt of all documents, fees, and costs specified in this subsection (2)(c), the treasurer shall mail a copy of the court order to each person entitled to receive the known interest party notice pursuant to section 39-11.5-104.
(IV)
(A)
After the recordation of the court order, the lawful holder or the holder's 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 date of public auction 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 date of public auction subject to the requirements of subsections (1) and (2)(d) of this section, but not earlier than the scheduled public auction date as of the date of the court order.
(B)
No later than ten calendar days after receiving written notice pursuant to subsection (2)(c)(IV)(A) of this section to schedule a new date of public auction, the treasurer shall mail a known interested party notice setting forth the rescheduled date of public auction to each person entitled to receive the known interested party notice pursuant to section 39-11.5-104.
(C)
No later than twenty calendar days after receiving written notice pursuant to subsection (2)(c)(IV)(A) of this section to schedule a new date of public auction, but no less than ten calendar days prior to the new date of public auction, the treasurer shall publish the known interested party notice one time only. The publication must be in the format specified for publication by section 39-11.5-104 (4).
(D)
All fees and costs of the treasurer for actions performed pursuant to this section and the cost of recording the court order and documents incorporated into the court order by attachment are part of the public auction 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) and (2)(d) of this section.
(F)
If a written request to reschedule the public auction is not received by the treasurer within one year of the issuance of the order, the public auction must be withdrawn in accordance with subsection (3)(b) of this section.
(d)
The periods for which a public auction may be continued under this subsection (2) are in addition to the twelve-month period of continuance provided by subsection (1) of this section.
(3)
Withdrawal.
(a)
If the lawful holder files with the treasurer, prior to public auction, a written withdrawal of the application for public auction, the public auction is terminated. The treasurer shall record the withdrawal with the office of the clerk and recorder and collect all fees and costs owed and incurred, including a withdrawal fee in an amount equal to the amount established in section 38-37-104 (1)(b)(V). The amount due accrues interest at the rate provided by law. Until all amounts due and owing are paid, the treasurer is entitled to hold all documentation in the treasurer's possession and to withhold all other services requested by the lawful holder with respect to the tax lien.
(b)
If there is no public auction and if a withdrawal is not filed within forty-five calendar days after the last date of public auction permitted by law, the treasurer may transmit, by mail or electronic transmission to the lawful holder, a notice that a withdrawal of the application for public auction may be recorded by the treasurer unless a response requesting that such withdrawal be delayed for ninety calendar days is received by the treasurer within thirty calendar days after the date that the treasurer's notice is transmitted. If such a response is received by the treasurer and there is no public auction nor is a withdrawal filed within the ninety-day delay period, the treasurer may record a withdrawal of the application for public auction. If no such 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 public auction at any time after the expiration of the thirty-day notice period. The treasurer shall cause the application for public auction to be recorded in the office of the county clerk and recorder. All unpaid fees and costs owed and incurred by the treasurer, as well as a withdrawal fee in an amount equal to the amount established in section 38-37-104 (1)(b)(VI), shall be paid by the lawful holder. The amount due accrues interest at the rate provided by law. Until all amounts due and owing are paid, the treasurer is entitled to hold all documentation in the treasurer's possession and to withhold all other services requested by the lawful holder with respect to the tax lien.
(4)
Redemption of tax lien prior to public auction.
If the tax lien is redeemed prior to the public auction, the treasurer shall:
(a)
Cancel the public auction;
(b)
Record a certificate of redemption;
(c)
Provide notice of the cancellation and redemption; and
(d)
Collect any fees or costs at the time of the redemption in accordance with this article 11.5.
Added by 2024 Ch. 165,§ 5, eff. 7/1/2024.