HomeMy WebLinkAboutORDINANCE 1411-1991,~ ~
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Suggested by:
Administration
City of Kenai
N0. 14I.1-91
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AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA AMENDING KMC
22.05.045(a)(2).
WHEREAS, KMC 22.05.045(a)(2) provides that the City is to secure a
grantee index from a title company prior to acceptance of a note and
deed of trust in a sale of City land, and
WHEREAS, the language of this code section is flawed in that a grantee
index is not a product that can be purchased, and
WHE~tEAB, the City administration is scheduling a sale of foreclosed
property and believes that it is unnecessary to obtain title reports
and reviews of the grantee index on most sales of foreclosed
properties.
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI,
ALASKA that KMC 22.05.045(x)(2) is hereby amended as follows:
22.05.045 Terms for Financing Sale of City Lands: (a) In order
to expedite and facilitate the sale of City lands., the City Manager is
hereby authorized to accept terms for said sales and may accept a note
secured by a deed of trust for a portion of the purchase price
thereof, subject to the following restrictions:
(1) If the sale is to a lessee who has placed a lien for
financing upon the land or improvements, then the City Manager is
not authorized to sell the land except for total cash payment,
provided, however, that the City Manager may accept a note
secured by a deed of trust subordinate to the existing security
interest if the amount of the note thereby secured is within the
difference between the fair market value of the land with
improvements, and the sum of all prior security interests. The
sale documents shall be subject to the same restrictions
contained in the lease as the lease provides at the time of sale.
(2) Excep_ t fox property sold by the City subsequent to
foreclosure for aelincsuent taxes or assessments, {P]prior to
making a determination to accept a note and deed of trust from a
prospective purchaser, the City Manager shall secure a
grantee index covering the party desiring to purchase the land
from the title company {IN THE RECORDING DISTRICT IN WHICH SAID
PARTY RESIDES AND ALSO] in the local recording district, and no
credit will be advanced on such sale if there are any delinquent
liens or unpaid judgments found in the title company report until
any such judgments or liens are paid and releases therefor have
been filed.
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Ordinance No. 1411-91
PASSED BY THE COUNCIL OF THE CxTY OF KENAI, A'[~ASRA, this 16th day of
January, 1991.
• RA MEASLES, V MAYOR
ATTEST:
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Carol L. Frees, City Clerk
Introduced:
Adopted:
Effective
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Approved by Finance:,_
(12/27/90)
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January 2, 1991
January 16, 1991
February 16, 1991
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1791-1891
CITY OF KENAt
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_ X10 FIDAL~iO KENAI~ ALA8KA wit
M TELEPHONE 283.7iS6
FAX 907.283.3014
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T0: Kenai City Council
FROM: Charles A. Brown, Finance Directo ~~
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DATE: December 27, 1990
SUBJECT: KMC 22.05.045 (Grantee Index)
The City administration has been reviewing the Kenai Code and Alaska
Statutes in preparation for a sale of foreclosed property. We will be
bringing an ordinance and other information to Council soon for a sale
that should take place in late spring or early summer.
One provision of the City Code that must be dealt with is KMC
22.05.045(a)(2), which says the City must "secure e. grantee index
covering the party desiring to purchase the land" when a note is taken
on the sale. The attached ordinance does three things:
(1) It says that the City will secure a preliminary commitment for
title insurance and a review of the grantee index. The old
language makes no sense; one cannot secure or purchase a
grantee index, which is a reference book not a product.
(2) It eliminates the requirement of this review in the recording
district in which the proposed buyer resides, while retaining
the requirement in the local recording district. The review
in the buyer's recording district would probably not be very
effective and, in fact, is not being done now.
(3) It makes an exception for sales of foreclosed property. The
administration feels that this is an unnecessary cost and
burden when selling most foreclosed property. In many cases,
such as for inexpensive parcels, we should ask for cash sales.
Thus, there would be no note and no need to investigate the
buyer. In other cases, such as for expensive parcels, we
should set the down payment high enough to help ensure that as
much of the back taxes and assessments will be paid as
reasonably possible.
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