Representative Burt Solomons recently submitted a request for an Attorney General’s Opinion seeking clarification on two issues related to the expanding tax lien lender presence in our state.
The first question deals with the authority of the tax assessor-collector to effect a valid transfer of lien. The request also covers the question of whether fees and interest, post-transfer, should be treated as a “priority lien.” You may recall that IBAT pushed for clarifying legislation on this issue at the last legislative session.
We continue to receive calls from banks that are dealing with customers – both commercial and residential – who have entered into third party contracts to pay ad valorem taxes, thus negatively impacting the bank’s collateral position. IBAT created a “best practices one pager” that has been distributed numerous times over the past several years to assist you in avoiding this unpleasant experience.
We appreciate the efforts of Representative Solomons to bring some clarity to a growing source of frustration for our member banks.