(a) An assessment under this article and any interest or penalties on the assessment:

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Terms Used In Alabama Code 11-81-246

  • Contract: A legal written agreement that becomes binding when signed.
  • Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
  • Foreclosure: A legal process in which property that is collateral or security for a loan may be sold to help repay the loan when the loan is in default. Source: OCC
  • Lien: A claim against real or personal property in satisfaction of a debt.
  • person: includes a corporation as well as a natural person. See Alabama Code 1-1-1
  • Probate: Proving a will
  • property: includes both real and personal property. See Alabama Code 1-1-1
  • Real property: Land, and all immovable fixtures erected on, growing on, or affixed to the land.
  • real property: includes lands, tenements and hereditaments. See Alabama Code 1-1-1
(1) Is a lien against the real property on which the assessment is imposed from the date on which the notice of contractual assessment is recorded.
(2) Subject to the requirement in Section 11-81-245(a)(1) to obtain and record in the proper recording office an executed consent and subordination agreement from existing mortgagees and other lienholders, has the same priority status as a lien for any other ad valorem or non-ad valorem tax.
(3) Is a lien that runs with the real property, and the portion of the assessment under the assessment contract that has not yet become due is not eliminated by foreclosure of a property tax lien.
(b) The assessment lien may be enforced by the local government in the same manner that an ad valorem or non-ad valorem tax lien against real property may be enforced by the local government with all redemption rights provided by Section probate court may order sale” class=”unlinked-ref” datatype=”S” sessionyear=”2020″ statecd=”AL” title=”40″>40-10-1 et seq. or other applicable law to remain in effect.
(c) Delinquent installments of the assessments incur interest and penalties in the same manner as delinquent ad valorem taxes.
(d) A local government may recover costs and expenses, including attorney’s fees, in a suit to collect a delinquent installment of an assessment.
(e) Provided, however, that in any action to enforce an assessment lien, the person or entity enforcing the assessment lien must serve the holders of all mortgages and other liens with notice about the enforcement action at least 60 days before any hearing or other action is taken with respect to the enforcement action. Service upon a domestic or foreign corporation or other entity shall be by serving the registered agent of the entity if a registered agent has been appointed; otherwise service shall be in accordance with Rule 4 of the Alabama Rules of Civil Procedure.
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