Resolution No. 91-53 MEN
CITY OF TIGARD, OREGON
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RESOLUTION NO.91-55
A RESOLUTION AUTHORIZING ISSUANCE OF SPECIAL ASSESSMENT BONDS
WHEREAS,the City will be receiving applications to pay local improvement district
assessments in installments for the Lincoln and Locust Street Local Improvement
District; and,
WHEREAS,the City Council has determined that special assessment bonds should be
issued for those applications;
NOW, THEREFORE, BE IT RESOLVED by the Tigard City Council that:
1. Definitions. The following capitalized terms shall have the following meanings,
unless the context clearly requires otherwise:
"Bonds"means the City's Special Assessment Bonds, 1991 Series A (Lincoln and
Locust Street Local Improvement District), which are authorized by Section 2 of
this resolution.
"City" means the City of Tigard, Oregon.
"City Officer"means the City Administrator or Finance Director.
"Code" means the United States Internal Revenue Code of 1986, as amended.
"Lincoln and Locust Street LID"means the Lincoln and Locust Street LID, for
which assessments are levied pursuant to City Ordinance No. 91.16.
"Sinking Fund" means the Lincoln and Locust Street LID Sinking Fund,which is
described in Section 3 of this resolution.
"Revenues" means all of the revenue received by the City from the special
assessments levied as part of the Lincoln and Locust Street LID.
2. Issue. The City shall issue its Special Assessment Bonds, 1991 Series A(Lincoln
and Locust Street Local Improvement District)pursuant to ORS 223.785. The
Bonds shall be in an aggregate principal amount of not more than Four Hundred
Fifteen Thousand Dollars ($415,000), and shall be dated, shall be in
denominations, shall bear interest at a rate of not more than 9.00 percent per
annum, shall be subject to redemption,and shall mature not later than ten years
after their date of issue, as provided by the City Officer pursuant to Section 10 of
this resolution:
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3. Security. The Bonds shall not be general obligations of the City,but shall be
special obligations, payable solely from the Revenue deposited in the Sinking
Fund as provided below and in ORS 223.785.
a. The Lincoln and Locust Street LID Sinking Fund is hereby created,
which shall be held by the City in trust for the benefit of the owners of the
Bonds.
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b. In City Ordinance No.9/
t e City has assessed benefited properties
in the Lincoln and Locust Street LID for the costs of local improvements,
and will receive,prior to issuance of the Bonds, applications to pay
assessments in installments in an amount at least equal to the principal
amount of the Bonds.
C. All Revenues are hereby pledged to pay the Bonds, and shall be
placed in the Sinking Fund and applied solely to the payment of principal
and interest on the Bonds.
4. Special Representations and Covenants. The City covenants as follows for the
benefit of the owners of the Bonds:
a. The City has calculated, and reasonably expects, that the Revenues
will be sufficient to pay all principal and interest on the Bonds when due.
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b. If there is a default in payment of any Revenues, the City shall
pursue remedies as provided in the attached Exhibit B. The City shall not
be liable to the owner of any Bond if remedies are pursued as provided in
Exhibit B and the City fails to collect sufficient Revenues to pay the
Bonds, notwithstanding that remedies could have been pursued more
vigorously.
C. All Revenues,including all amounts received from pursuit of
remedies pursuant to subsection b. of this section, shall be placed in the
Sinking Fund promptly on receipt, until the Bonds are paid or the Sinking
Fund contains an amount sufficient to pay the Bonds.
d. Until the Bonds are paid, the City shall not use any portion of the
Revenues for any purpose except payment of the Bonds.
5. Covenants Reg_ardina Tax-Exempt Status. The City covenants for the benefit of
the owners of the Bonds to comply with all provisions of the Code which are
required for bond interest to be excluded from gross income for federal income
tae purposes. The City makes the following specific covenants with respect to the
Code:
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a. The City shall not take any action or omit any action, if it would cause the
Bonds to become "arbitrage bonds"under Section 148 of the Code, and
shall pay any rebates or penalties in connection with the Bonds which are
due under that section of the Code.
b. The City shall operate the facilities financed with the Bonds so that the
Bonds are not"private activity bonds"within the meaning of Section 141 of
the Code.
The covenants contained in this section and any covenants in the closing
documents for the Bonds shall constitute contracts with the owners of the Bonds,
and shall be enforceable by them.
6. Designation of Bonds as Qualified Tax-Exempt Obligations. The City designates
the Bonds as "qualified tax-exempt obligations"pursuant to Section 265(b)(3) of
the Code. The City covenants not to so designate tax-exempt obligations in the
current calendar year in an aggregate amount of more than$10,000,000. The
City (including any subordinate entities) does not reasonably expect to issue more
than $10,000,000 of tax-exempt obligations during the current calendar year.
7. Notice of Redemption. Unless waived by the registered owner of the Bond or
Bonds to be redeemed,official notice of any such redemption shall be given by
the City's paying agent and registrar (the "Registrar") on behalf of the City by
mailing a copy of an official redemption notice by registered or certified mail at
least 30 days and not more than 60 days prior to the date fixed for redemption to
the registered owner of the Bond or Bonds to be redeemed at the address shown
on the Bond Register or at such other address as is furnished in writing by such
registered owner to the Registrar, or as otherwise required by law.
a. All official notices of redemption shall be dated and shall state:
i. the redemption date,
ii. the redemption price,
iii. if less than all outstanding Bonds are to be redeemed, the
identification(and, in the case of partial redemption, the respective
principal amounts) of the Bonds to be redeemed,
iv. that on the redemption date the redemption price will become due
and payable upon each such Bond or portion thereof called for
redemption,and that interest thereon shall cease to accrue from
and after said date, and
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V. the place where such Bonds are to be surrendered for payment of
the redemption price, which place of payment shall be the principal
corporate trust office of the Registrar.
b. Prior to any redemption date,the City shall deposit with the Registrar an
amount of money sufficient to pay the redemption price of all the Bonds
or portions of Bonds which are to be redeemed on that date.
C. Official notice of redemption having been given as aforesaid, the Bonds or
portions of Bonds so to be redeemed shall, on the redemption date,
become due and payable at the redemption price therein specified, and
from and after such date(unless the City shall default in the payment of
the redemption price) such Bonds or portions of Bonds shall cease to bear
interest. Upon surrender of such Bonds for redemption in accordance with
said notice, such Bonds shall be paid by the Registrar at the redemption
price. Installments of interest due on or prior to the redemption date shall
be payable as herein provided for payment of interest. Upon surrender for
any partial redemption of any Bond, there shall be prepared for the
registered owner a new Bond or Bonds of the same maturity in the
amount of the unpaid principal. All Bonds which have been redeemed
shall be cancelled and destroyed by the Registrar and shall not be
reissued.
8. Form of Registered Bonds. ...The City may issue the Bonds as one or more
typewritten, temporary Bonds which shall be exchangeable for definitive Bonds
when definitive Bonds are available. The Bonds shall be in substantially the form
attached hereto as Exhibit A.
9. Authentication Registration and Transfer.
a. No Bond shall be entitled to any right or benefit under this resolution (the
"Resolution") unless it shall have been authenticated by an authorized
officer of the City's paying agent and registrar (the 'Registrar"). The
Registrar shall authenticate all Bonds to be delivered at closing of this
bond issue,and shall additionally authenticate all Bonds properly
surrendered for exchange or transfer pursuant to this Resolution.
b. All Bonds shall be in registered form. The City hereby appoints United
States National Bank of Oregon as Registrar for the Bonds. A successor
Registrar may be appointed for the Bonds by ordinance or resolution of
the City. The Registrar shall provide notice to Bondowners of any change
in the Registrar not later than the bond payment date following the change
in Registrar.
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C. The ownership of all Bonds shall be entered in the bond register
maintained by the Registrar,and the City and the Registrar may treat the
person listed as owner in the bond register as the owner of the Bond for
all purposes.
d. The Registrar shall mail each interest payment on the interest payment
date(or the next business day if the interest payment date is not a
business day) to the registered owner at the address appearing on the bond
register as of the fifteenth day of the month preceding an interest payment
date(the 'Record Date'). If payment is so mailed, neither the City nor
the Registrar shall have any further liability to any party for such payment.
e. Bonds may be exchanged for an equal principal amount of Bonds of the
same maturity which are in different denominations, and Bonds may be
transferred to other owners if the Bondowner submits the following to the
Registrar:
i. written instructions for exchange or transfer satisfactory to the
Registrar, signed by the Bondowner or his attorney in fact and
guaranteed or witnessed in a manner satisfactory to the Registrar;
and
ii. the Fronds to be exchanged or transferred.
f. The Registrar shall not be required to exchange or transfer any Bonds
submitted to it during any period beginning with a Record Date and
ending on the next following payment date; however, such Bonds shall be
exchanged or transferred promptly following that payment date.
g. The Registrar shall note the date of authentication on each Bond. The
date of authentication shall be the date on which the Bondowner's name is
listed on the bond register.
h. For purposes of this section,Bonds shall be considered submitted to the
Registrar on the date the Registrar actually receives the materials
described in subsection E.of this section.
L The City may alter these provisions regarding registration and transfer by
mailing notification of the altered provisions to all Bondowners. The
altered provisions shall take effect on the date stated in the notice,which
shall not be earlier than 45 days after notice is mailed.
10. Sale of Bonds. Within the limits established by Section 2 of this Resolution, the
City Officer may, on behalf of the City:
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a. circulate a request for proposals for underwriters for the Bonds;
b. establish the sale date, payment dates, maturity schedule, interest
payment dates, redemption provisions (including any requirements for
mandatory redemption), and other terms on which the Bonds shall be sold;
C. execute a bond purchase agreement for the Bonds, and fix the price
and terms on which the Bonds shall be sold to their underwriter, and sell
the Bonds; and,
d. take any other action desirable to issue, sell and deliver the Bonds
in accordance with this resolution.
The Director of Finance shall report the results of the sale to the City
Council promptly.
PASSED: This o(£ J 1991.
✓ yor, City of Tigard
AT-'EST:
City Recorder, City of Tigard
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Exhibit A
No. R- $
UNITED STATES OF AMERICA
STATE OF OREG—ON
COUNTY OF WASHINGTON
CITY OF TIGARD
SPECIAL ASSESSMENT BOND
1991 SERIES A
(LINCOLN AND LOCUST STREET LOCAL IMPROVEMENT DISTRICT)
DATED INTEREST RATE PER ANNUM MATURITY DATE CUSIP
, 1991
REGISTERED OWNER:
PRINCIPAL AMOUNT: DOLLARS
&. THE CITY OF TIGARD, in the County of Washington,State of Oregon
(the "City"),for value received, acknowledges itself indebted and hereby promises to pay
to the registered owner hereof,or registered assigns,but solely from the Revenues as
provided in the Bond Resolution, the principal amount indicated above on the above
maturity date together with interest thereon from the date hereof at the rate per annum
indicated above, computed on the basis of a 360-day year of twelve 30-day months.
Interest is payable semiannually on the first day of_and the first day of in
each year until maturity or prior redemption, commencing_ . Interest upon this
Bond is payable by check or draft through the principal corporate trust office of the
City's paying agent and registrar,which is currently United States National Bank of
Oregon,in Portland, Oregon (the "Registrar"). A check or draft will be mailed on the
interest payment date (or the next business day if the interest payment date is not a
business day) to the registered owner at the address appearing on the Bond Register as
of the fifteenth day of the month preceding the interest payment date. Bond principal is
payable at maturity or prior redemption upon presentation and surrender of this Bond
to the Registrar.
Capitalized terms used in this Bond and not defined herein have the
meanings defined for such terms in the City Resolution No. **, which was adopted on-
1991,
n1991, and authorized issuance of the Bonds (the "Bond Resolution").
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THIS BOND IS NOT A GENERAL OBLIGATION OF THE CITY OF I
TIGARD. THIS BOND IS A SPECIAL OBLIGATION OF THE CITY, PAYABLE I
SOLELY FROM THE REVENUES RECEIVED BY THE CITY FROM THE
LINCOLN AND LOCUST STREET LOCAL IMPROVEMENT DISTRICT, AS
PROVIDED IN THE BOND RESOLUTION.
ADDITIONAL PROVISIONS OF THIS BOND APPEAR ON THE
REVERSE SIDE; THESE PROVISIONS HAVE THE SAME EFFECT AS IF THEY
WERE PRINTED HEREIN.
IT IS HEREBY CERTIFIED, RECITED, AND DECLARED that all
conditions, acts, and things required to exist, to happen, and to be performed precedent
to and in the issuance of this Bond have existed, have happe-red, and have been
performed in due time,form, and manner as required by the Constitution and Statutes
of the State of Oregon and the Charter of the City;that the issue of which this Bond is
a part, and all other obligations of such City, are within every debt limitation and other
limit prescribed by such Constitution, Statutes and Charter.
IN WITNESS WHEREOF, the City Council of the City of Tigard, in
Washington County, Oregon,has caused this Bond to be signed by facsimile signature of
its Mayor and attested by facsimile signature of its finance Director, and has caused its
seal to be printed hereon as of the date indicated above.
Mayor
ATTEST:
(SEAL) Director of Finance
THIS BOND SHALL NOT BE VALID UNLESS
PROPERLY AUTHENTICATED BY THE REGISTRAR
INTHE SPACE INDICATED BELOW.
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DATED:
CERTIFICATE OF AUTHENTICATION
This is one of the City's Special Assessment Bonds, 1991 Series B, (Lincoln and
Locust Street Local Improvement District) issued pursuant to the Bond Resolution
described herein.
UNITED STATES NATIONAL BANK OF OREGON, as Registrar
By
Authorized Officer
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Note to Printer: The following language should be printed on the reverse of the
Bond:
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This Bond is one of an authorized series of Special Assessment Bonds,
1991 Series A (Lincoln and Locust Street Local Improvement District) in the aggregate
principal amount of$415,000 (the "Bonds"), issued by the City to finance Iocal
improvements pursuant to the Bond Resolution and Oregon Revised Statutes, Section
223.785, in full and strict accordance and compliance with all of the provisions of the
Constitution and Statutes of the State of Oregon and the Charter of the City.
[Insert applicable redemption provisions]
Notice of any call for redemption, unless waived by the registered owners
of the Bond or Bonds to be redeemed,shall be mailed not less than thirty days and not
more than sixty days prior to such call to the registered owners of the Bonds, and
otherwise given as required by the Bond Resolution and by law;however, any failure to
give notice shall not invalidate the redemption of the Bonds. All Bonds called for
redemption shall cease to bear interest from the date designated in the notice.
The Bonds are issuable in the form of registered Bonds without coupons in
the denominations of$5,000 or any integral multiple thereof. Bonds may be exchanged
for i3onds of the same aggregate principal amount,but different authorized
denominations, pursuant to the Bond Resolution.
Any transfer of this Bond must be registered, as provided in the Bond
Resolution cf the City authorizing the issuance of the Bonds, upon the Bond Register
kept for that purpose at the principal corporate trust office of the Registrar. The City
and the Registrar may treat the person in whose name this Bond is registered as its
absolute owner for all purposes, as provided in the Bond Resolution.
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The Bondowner may exchange or transfer any Bond only by surrendering
it, together with a written instrument of exchange or transfer which is satisfactory to the
Registrar and duly executed by the registered owner or his duly authorized attorney,at
the principal corporate trust office of the Registrar in the manner and subject to the
conditions set forth in the Bond Resolution.
ASSIGNMENT
FOR VALUE RECEIVED, the undersigned sells, assigns and transfers
unto
Please insert social security or other
identifying number of assignee
this Bond and does hereby irrevocably constitute and appoint
as attornev to transfer this Bond on the books kept for registration thereof
with the full power of substitution in the premises.
Dated:
NOTICE: The signature to this assignment must correspond with the name of the
registered owner as it appears upon the face of this Bond in every particular, without
alteration or enlargement or any change whatever.
Signature Guaranteed
(Bank, Trust Company or
Brokerage Firm)
Authorized Officer
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The following abbreviations, when used in the inscription on the face of
this Bond, shall be construed as though they were written out in full according to
applicable laws or regulations.
TEN COM-- tenants in common
TEN ENT-- as tenants by the entireties
JT TEN -- as joint tenants with right of survivorship
and not as tenants in common
OREGON CUSTODIANS use the following
CUST UL OREG MIN as custodian for
(name of minor)
OR UNIF TRANS MIN ACT
under the Oregon Uniform Transfer to Minors Act
Additional abbreviations may also be used though not in the list above.
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EXHIBIT B
PROCEDURES FOR FORECLOSING LIENS
UNDER THE BANCROFT BOND ACT
The Tigard City Attorney's office recommends that the City Finance
Director use this procedural timeline when the City erects to
foreclose on delinquent assessments made pursuant to the Bancroft
Bonding Act. Each step, including the order and timing in which it
is taken, is made to conform with Oregon statutory requirements.
The City Finance Director should ensure that all notices are made
at the time and in the manner prescribed below. The City
Attorney's Off ice also recommends that the Finance Director use a
separate master daily calendar for recorc:ing the dates and action
steps necessary with each Bancroft assessment foreclosure.
A hypothetical foreclosure is attached to this timeline to help
illustrate what action should be taken.
STEP 1: 1 year after last installment made --
Action: Finance Director sands "Notice of Delinquency" letter to
the person to whom assessed, the property owner,
occupant, mortgagees, contract sellers, ,judgment
creditors, lien holders, holders of recorded interests in
the property, and any other person requesting notice
under ORS 86.785, notifying them of delinquency and
impending foreclosure action. (Sample letter 1)
Comment: Chapter 223.505 through 650 does not require the City
Finance Director to send a delinquency letter to the
property owner prior to the City's decision to commence
foreclosure action. However, letter 1 is intended to
provide the property owner, the occupant of the property,
and the other persons listed above w: th adequate notice
that payment on an assessment is one year past due. In
this manner, all interested parties c•:i11 have an
cpportunity to bring installment payments up to date on
the property without facing additional collection costs.
The City Attorney recommends that letter 1 be me:iled
mast 14 days before further action is contemplated by
the City or the City Council.
STEP 2: 14-_de-vs after step_!
F_ction: Finance Director forv:ards a tabular list of property i:ith
delinquent Bancroft assessments to the Tigard City
Council for action. The tabular list should include the
following infor:rat-ion:
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1. The name of the person to whom assessed and the
name of the current property owner (if different) ;
2. A description of the property upon which the
sums are owing;
3. The amount of the assessment then in arrears,
and the total amount of the assessment due;
4. The date on which the "Notice of Delinquency"
letter was sent.
Comment: Oregon revised statutes 223.515 states that the Finance
Director should prepare a list in tabular form to be sent
to the City Council for incorporation into a resolution
authorizing collection of delinquent accounts. ORS
223.230 lists the information necessary in the City
Council resolution. This list would be transmitted to
the City Council so that the Council can incorporate 'the
necessary information into its resolution.
STEP 3: At least 14 days after step 1
Action: City Council passes resolution authorizing collection of
delinquent accounts. (Sample resolution)
Comment: Oregon revised statute 223.270 states that when an owner
neglects or refuses to pay installments under this Act as
they become due and payable for a period of one year, the
City Council may pass a resolution declaring the whole
sum, both principal and interest, due and payable at
once. The sample resolution is drafted to satisfy ORS
223.270.
1--!s stated at step 1, the City Council should not enact
the resolution ur_til 14 daysGer the "notice of
delinauency" has been sent to the person owing the
assessment.
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STEP 4: Followinc, pass`ae of City_Council Re_olution --
Action: Finance Director sends I%otice of Foreclosure" letter by
certified mail, return receipt requested, to the person
to c:hom assessed, the oi•:ner, occupant, mortgagees,
contract sellers, Judgment creditors, lien holders,
holders of recorded intcre_ts in the property, and any
other person requesting notice under ORS 56.765. Copies
of the letterG re also sent to the listed persons by
s-urface mail. (Sample letter 2)
{
Costaent: l,Giter 2 is lntc-rnded to give the persons listed above
first .. mice o the imp=n-inc foreclosure sale. 'At
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the time this letter is sent, the Finance Director would
have a time table scheduling the following activities:
1. The scheduled foreclosure sale date, which is i
at least 60 days after the date of letter, 2; and 1!
2. The date of the first published notice of the
foreclosure sale, which is 5 weeks prior, to the date
of the actual sale.
Oregon revised statute Section 223.523 requires that the
notice contained in letter 2 be sent by certified mail at
least 60 days prior to the sale to any person requesting
notice under ORS 86.785 and any other person with a
recorded lien or interest. However, the City Attorney's
Office recommends that letter, 2 also be sent to the
person to whom assessed, the owner, occupant, and other
persons listed above to assure the most adequate notice
possible to interested parties of the impending
foreclosure sale. The Finance Director should retain the
mailing receipts in a permanent record.
STEP 5: 5 weeks prior to foreclosure sale --
Action: Finance Director has notice of sale published once a week
for four successive weeks in a general circulation daily
or weekly newspaper. The first notice should be
published five weeks prior to the scheduled foreclosure
sale. Each notice should contain the following
information:
1. The name of the owner of the real property;
2. A specific description of the property to be
sold, including the street address, if any;
3. The amount unpaid on the assessment;
4. The time, date, and place of the sale;
5. The name and address of the Treasurer
conducting the sale.
Comment: ORS 223.523(l ) requires published notice of the impending
foreclosure saie in a daily or 1aee:2y nevapaper c:hich is
generally circulated in the county in which the sale is
to be held. The publication requirement is met by
following the steps described above.
STLTI 6: 5_weeks_prior tv__oreclosurc, Ez1e --
Actior_: Finance Director mails a cop:r of the, first of the four.
published notices by certified mail, return receipt
requested, to both the m-nier at his last 1:noc:n post
office address or place of residence, and to the occupant
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of the property. The Finance Director retains in his
files the return receipt from this mailing. (Sample
letter 3) . Copies of the letter and notice are also
sent to the owner and occupant by surface mail.
At least 60 days prior to the sale, the Finance
Director shall send a notice containing the same
information under Step 5 to any person requesting
notice under ORS 86.785 and to any person having a lien
or other interest in the property to be sold if the
lien or interest appears of record.
Comment: Pursuant to ORS 223.523(2), on the same day that the
first notice of the foreclosure sale is published,
copies of this notice should be sent to both the owner
of the real property and to any occupant of the real
property. These notices must each be sent by certified
mail, return receipt requested. The receipts should be
kept on file by the Finance Director as evidence that
this requirement has been met. In addition to sending
certified letters, the City Attorney's office
recommends that a copy of each letter also be sent by
surface mail to the same addressees.
STEP 7: 5 weeks Drior to foreclosure sale --
Action: Finance Director has a written notice of foreclosure
and the impending foreclosure sale posted on the
property. This notice should be affixed either to the
front door of the building, or in the case of vacant
land, placed on a stake, plainly visible from the
street.
Comment: ORS 223.523 requires that notice be posted upon the
property for four consecutive weeks before the sale.
By placing this notice on the property five weeks prior
to the scheduled foreclosure sale, this requirement is
met. Additionally, by posting the notice at the same
time that notice of the sale is published in the
newspaper, the Finance Director is able to implement 2
notice steps at the same time.
STEP 8: Date of Foreclosure --
Action: Property foreclosure proceedings occur.
Comment: ORS 86.745(7) provides that the sale shall be held at a
designated time after 9 A.M. and before 4 P.M. ORS
223.523 sets out the conduct of the foreclosure sale.
This sections states that each piece or tract of land
shall be sold separately, and for a sum equal to but
not exceeding the unpaid lien or assessment thereon and
the interest, penalty and cost of advertising the sale.
The section further provides that if there is more than
one bid, the land shall be sold to the bidder first
offering to take it for the amount accrued thereon.
Fage 4
(rev. 6/26/91)
STEP 9: Immediately following foreclosure --
Action: Finance Director sends letter confirming the property
foreclosure sale and informing the following persons of
the redemption procedures: the person to whom assessed,
the owner, occupant, mortgages, contract sellers,
judgment creditors, lien holders, holders of recorded
interests in the property, and any person requesting
notice under ORS 86.785. (Sample letter 4)
Comment: Sample letter 4 ("Redemption of Foreclosed Property" ) is
intended to notify interested parties that they have a
right to redeem foreclosed property within one year of
the foreclosure. The letter gives only basic information
on redemption. As the letter states, the Finance Direc-
tor should be contacted for further information on re-
demption procedures.
ORS 223.565 contains complete redemption procedures and
conditions. The important information under this section
is as follows:
1. Property sold at foreclosure may be redeemed by
the owner, his legal representatives, his successors
in interest, or any person having a lien by judg-
ment, decree or mortgage, or any owner of a tax
lien;
2. Redemption of any propertie=s sold at foreclo-
sure may be made by paying to the treasurer, at any
time within one year from the date of the certifi-
cate of sale, the purchase price and ten percent
(10%) thereof as penalty, and interest on the pur-
chase price at a rate of ten percent (10%) per
annum from the date of the certificate;
3. Where redemption is by the holder of a tax-
lien,
axlien, he may have such redemption noted upon the
record of his lien.
4. Such redemption shall discharge the property so
sold from the effect of the sale and, if made by a
lien creditor, the amount paid for the redemption
shall thereafter be deemed a part of his judgment,
decree, mortgage or tax lien, as the case may be,
and shall bear like interest, and may be enforced
and collected as a part thereof;
5. Anyone applying or seeming to redeem property
must pay or offer to pay the sum necessary in Sarzful
nonev of the United States;
6. ['Tien sn individual purchases real property at
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foreclosure sale, and when, with the approval of the
City, that purchaser incurs costs for maintaining or
improving property
during
eriod allowed r
, thee; uponredemptionthe treasurer may
redemptionoby the person
return all r part of the penalty Paid
redeeming the property to the purchaser as provided
by City Charter or Ordinance.
STEP SO: Immediately following foreclosure --
Action: City Finance Director enters the date of sale, tro name
of the purchaser, and the amount paid for each p p y
sold onto the tabular list of assessments that was
transmitted to the City Council for action at least five
weeks prior to the foreclosure sale. The Finance Direc-
tor also gives a receipt to each person paying a lien or
assessment which separately states the amount of the
assessment, the interest and costs collected. A dupli-
cate of this receipt is maintained on file with the
treasurer.
Comment: quirements5upontsaleese above actions as of foreclosed property. is re-
STEP 11:
Immediatelyfollowing foreclosure --
Action: Finance Director makes and delivers to the purchaser of
the real property, a certificate of sale of the property
containing the following:
1. A description of the object ^^ or which the sale
was made;
2. A description of the property sold;
3. A statement of the amount the property sold
for;
4. The amount of the assessment for which the
property was sold;
5. The name of the pu--chaser;
6. A statement that the saie is made subject to
redemption within one year from the date of the
certificate.
Comment: ORS 223.550 requires that the City Finance Director make
and deliver a cert ficate of sale o:hich conforms to this
provision.
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STEP 12: Within three days following foreclosure sale --
Action: The Finance Director returns to the City Recorder the
list of delinquencies, with all collections and sales
noted thereon. City Recorder then makes proper entries
of all collections and sales in the appropriate lien
dockets. Thereafter, no transfer or assignment of any
certificate of purchase of real property is valid unless
an entry of such transfer or assignment has been noted by
the recorder on said docket.
Comment: ORS 223.555 makes this entry of information mandatcy.
Z
STEP 13: 1 year following foreclosure sale --
Action: If no redemption of the sold property has been made, the
Finance Director executes to the purchaser, his heirs or
assigns, a deed of conveyance containing the following:
1. A description of the property sold;
2. The date of the sale;
3. A statement of the amount bid;
4. A statement of the amount of the assessment for
which the property was sold;
5. A statement that the assessment was unpaid at
the time of the sale and that no redemption has been
made.
Comment: ORS 223.570 states that the City Finance Director shall
execute this deed of conveyance to the purchaser after
one year from the date of the certificate of sale. The
purpose of the deed is to protect the purchaser from any
claims against the property.
STEP 14: IF THE CITY ELECTS TO PURCHASE PROPERTY SUBJECT TO
FORECLOSURE SALE, THE FOLLOT•:ING SNPORMATION APPLIES:
The City of Tigard may purchase property pursuant to a Bancroft
Bond Foreclosure sale if no other bid is received for the sale of
the property. Pursuant to ORS 223.545, the City may t)-:en purchase
the property by bidding therefor the amount of ;he lien or liens
and the cost of advertising the sale. The property nay be strL�cl;
off and sold to the City without actual payment of money.
If the City elects to purchase the property, and at the time of
sale there is an occupant living on the property, then sample
Page 7
letter 5 should be sent. The City Attorney's office recommends
that this letter be sent immediately following the foreclosure
sale.
Pave 8
r
ATTACHMENT "A"
ILLUSTRATION OF FORECLOSURE
The following illustration is intended to help describe the sequence
and timing of foreclosure proceedings under the Bancroft Bond Act.
For this illustration, assume the following:
-"Owner" owns residential property ira the City of Tigard; owner
is obligated to pay $500 per year in assessments under the
Bancroft Act.
-"Renter" occupies the residential property and pays rent to
owner.
-"Bank" holds a lien on the property pursuant to a mortgage.
JANUARY 1, 1985 -
Owner fails to make payment under Bancroft Assessment.
JANUARY 1, 1986 (Step 1) -
Owner again fails to make payment. Finance Director sends
delinquency letter (sample letter 1) to the owner, renter, and
bank.
JANUARY 14, 1986 (Step 2) -
Finance Director forwards list including the name of the person
to whom assessed and owner (if different) to tine City Council
for foreclosure resolution.
JANUARY 20, 1986 (Step 3) -
Tigard City Council passes resolution authorizing collection of
delinquent account (sample resolution)
.
JANUARY 21, 1986 (Step 4) -
Finance Director sends notice of foreclosure letter by certified
mail, return receipt requested and surface mail (sample letter
2) to owner, renter, and bank. Finance Director has scheduled
foreclosure sale to be March 24, 1986 at 12:00 noon.
Accordingly, Finance Director arranges for publication of the
notice of sale to be placed in the Tigard Times on the following
dates: Monday, February 24, 1986; I.oriday, b:-rch. 3, 1986;
Monday, March 10, 1986; and Monday, March 17, 1986. Finance
Director also arranges to have a foreclosure sale notice posted
on the property by February 24, 1986.
1 - ATTACHMENT "A"
FEBRUARY 24, 1986 (Steps 5, 6, 7) -
The first notice of the foreclosure sale appears in the Tigard
Times. Finance Director makes a photocopy of the first
published foreclosure sale notice and sends it by certified
mail, return receipt requested (with sample letter 3) to owner
and renter. Copies of the letter and notice are also sent to
the owner and renter by surface mail. Finance Director assures
that a notice of the sale has been posted on the property.
MARCH 24, 1986 (Steps 8, 10, 11) -
Property is sold at foreclosure sale to buyer. Buyer pays
$1,200 for the property ($1,000 in back assessments plus $200 in
interest and costs). Finance Director issues a certificate of
sale containing all necessary information to the buyer. Finance
Director enters onto the columns of the ledger provided by the
City Recorder all relevant information pertaining to the sale.
MARCH 26, 1986 (Steps 9, 10, 12) -
Finance Director returns to the City Recorder the delinquency
list, with all collections and sales noted thereon. These
collections and sales are entered by the Recorder on the .lien
docket. Finance Director mails by surface mail sample letter 4
to the owner, renter, and bank notifying them of the sale and of
the possibility of redemption.
MARCH 25, 1987 (Step 13) -
If no rederaption has been made, Finance Director executes to the
buyer a deed of conveyance containing all required information
on the property sold.
f
2 ATTACHFSENT "A"
s�
MINIM 1 1MMM
CITY OF TIGARD, OREGON
RESOLUTION NO. 86-
RESOLUTION OF THE TIGARD CITY COUNCIL DECLARING THE ENTIRE BALANCE
OF DELINQUENT ACCOUNTS IMMEDIATELY DUE AND PAYABLE PURSUANT TO THE
BANCROFT BOND ACT
WHEREAS, the City of Tigard is authorized under Section 39 of the
Tigard Charter to establish procedures for levying, collecting, and
enforcing the payment of special assessments for public improvements or
Other services to be charged against real property; and
WHEREAS, the City of Tigard has adopted Tigard Municipal Ordinance
13.04.080, authorizing collection and enforcement of assessments pur-
suant to Oregon Revised Statutes 223.505 through 223.650; and
WHEREAS, the above stated provisions authorize the City Council to
pass a resolution declaring the entire balance of delinquent accounts
immediately due and payable where said accounts are one year
delinquent; and
WHEREAS, the below listed individuals are
Payments of one year delinquer.,t in
services, special assessments for public improvements or other
NOW, THEREFORE, BE IT RESOLVED by the Tigard City Council of the City
of Tigard, Oregon, that the following assessments, being one year in
arrears, are hereby immediately due and payable in full, and further
that the City of Tigard is authorized to commence collection proceed-
Ings forthwith:
1. [Name of person to whom assessed and name of current
ropert
owner (if different) with information from Finance Director's
list]
2• [Name of person to whom assessed and name of current
owner (if different) with information from Finance Director's
list]
3. [etc.]
PASSED: This day of_
Council of the City of Tigard. ---- 19 by the
ATTEST: Mayor - City of Tigard
City Recorder - City of Tigard
RESOLUTION I:O.
[Szmp' _eeolution]
t
[date]
[name and address of addressee]
Re: NOTICE OF DELINQUENCY:
[Identification of property assessed
Identification of improved project
Type of improvement]
Our records indicate you have an interest in the above-described
Property. This letter is to notify you that assessment payments on
the property are now one year delinquent.
The City of Tigard is authorized to demand immediate payment of the
f all assessment due and to commence foreclosure proceedings on this
Property. Foreclosure may be avoided re paying the
on this property in the amount of [amount due aggregate due
24 days from date of this letter] . Once foreclosure before [date
commence, additional collection costs may have to be Proceedings
the property from foreclosure. Paid to remove
Protect your interests. Please arrange for timely payment of the
delinquent assessment. If you have any questions, please contact
my office immediately.
Sincerely yours,
CITY OF TIGFRD
Jerri L. S-:idner, Finance Director
[Sample letter 1)
"'ailed to person to %,hom assessed, Owner, occupant, mortgagees,
contract sc-llers, judgment creditors. lien holders, holders of
recorded interests in the property, and any other person requesting
notice under O S 86.755)
o a��--
IMM
[date] CERTIFIED MAIL - RETLRN
RECEIPT REQUESTED
[name and address of addressee]
Re: NOTICE OF FORECLOSURE:
[Identification of property assessed
Identification, of improvement project
Tyne of improvement]
You are hereby notified that the City of Tigard has commenced lien
foreclosure proceedings for delinquent assessments on the above-
described property. Enclosed is a notice of lien foreclosure.
The following important information relates to this property:
f 1. The name of the real property owner is [insert name] ;
2. The property is specifically described as follows:
[insert description, including street address, if any] ;
3. The amount unpaid on the assessment is $[insert amount] ;
4. The name and address of the person conducting the sale is
[insert name and address] ;
5. The foreclosure sale is scheduled for [time of day] on
[date] at the Tigard City Hall, 12755 S.W. Ash, Tigard,
Oregon.
Notice will be published weekly in the Tigard Times for four
consecutive weeks, beginning (date].
The property can be removed from the foreclosure list by paying the
aggregate amount due on the assessment, plus collection costs of
[dollar amount] by 5:00 p.m. , [3ate] . Any payment made will be
applied first to collection costs, then to accrued interest an the
assessment, and finally to the outstanding principal balance of the
assessment.
Jim MIR
ti 1
If you have any questions regarding this foreclosure, please
contact my office immediately.
sincerely yours,
CITY OF TIGARD
Jerri L. Widner, Finance Director
Enclosure
cc: To Addressee by surface Mail
[Sample letter 21
[By certified mail, return receipt requested and surface mail to:
person to whom assessed, owner, occupant, mortgagees, contract
sellers, judgment creditors, lien holders, holders of recorded
interests in the property, and any other person requesting notice
under ORS 86.785]
V .
4
MAIN
l
[date] CERTIFIED MAIL — RETURN
RECEIPT REQUESTED
[name and address of addressee]
Re: NOTICE OF FORECLOSURE SALE
Attached is a copy of the first published foreclosure sale notice
for the property at [property address] . This notice was published
on [date] in the Tigard Times. Publisheca notice will be repeated
weekly for the next three weeks.
As described in my letter dated [date of letter 21, this property
can be removed from the foreclosure list by paying the aggregate
amount due on the assessment plus collections costs of [dollar
amount] by 5:00 p.m. , [date] - Any payment will be applied first
to collection costs, then to accrued interest on the assessment,
{ ; and finally to the outstanding principal of the assessment-
To avoid losing this property to foreclosure, you must act before
[date of foreclosure sale] - If you rave any questions whatsoever,
please contact my office immediately.
Sincerely yours,
CITY OF TIGARD
Jerri L. Widner, Finance Director
Attachment
cc: To addressee by Surface Mail
I
[sample letter 31
[By certified mail, return receipt requested and surface mail to:
owner, property occupant. ]
b
r
-- my- 21
[date]
[name and address of addressee]
Re: REDEMPTION OF FORECLOSED PROPERTY
[Identification of property assessed
Identification of improvement project
Type of improvement]
This letter is to notify you that the above referenced real
property was sold at an authorized foreclosure sale on [date
entered on certificate of sale] . -Within one year :Evom this date,
the property may be redeemed by the following persons: the owner;
the owner's legal representatives; the owner's successor in
interest; any person holding a lien by judgment, decree, or
mortgage; or the owner of any tax lien.
To redeem this property, the purchase price plus ten percent (10%)
penalty and interest at ten percent (10%) per annum must be paid to
the City Finance Director in lawful money of the United States on
or before [1 year from date of sale on certificate]. For further
information on redemption procedures, please contact my office.
Sincerely yours,
CITY OF TIGARD
Jerri L. Widner, Finance Director
[Sample letter 41
[Mailed to: the person to whom assessed, owner, occupant,
mortgagees, contract sellers, judgment creditors, lien holders,
holders of recorded interests in the property, and any other person
requesting notice under ORS 86.785]
WWI
[date]
[name and address of addressee]
Re: NOTICE OF SALE AND EVICTION
[Identification Of property assessed
Identification of improvement project
Type of improvement]
On [date of sale] this property was purchased by the
Pursuant to forfeiture proceedings. City of Tigard
This letter is to notify you
that your tenancy will be terminated 30 days from today, you must
vacate the premises before
midnight, [date, 30 days from today] _
If you have any questions regarding the termination of
' tenancy,
Please contact my office immediately. Your
Sincerely yours,
CITY OF TIGARD
Jerri L. Widner., Finance Director
[Sample letter 5]
[Mailed to: occupant]
}