Section 27-2137. Recovery of expenses of receivership; lien of receiver  


Latest version.
  • a.
      The expenditures made by the receiver pursuant  to  section  27-2135  of
      this  article  shall, to the extent that they are not recovered from the
      rents and income of the property collected by the receiver, constitute a
      debt of the owner and a lien upon the building and  lot,  and  upon  the
      rents  and income thereof. Except as otherwise provided in this section,
      the provisions of article eight of  this  subchapter  shall  govern  the
      effect  and enforcement of such debt and lien; references therein to the
      department shall, for purposes of this article be deemed to refer to the
      receiver and, after such receiver's discharge, the department of housing
      preservation and development.
        b. Failure to serve a copy of the order and  notice  required  in  the
      manner specified by section 27-2131 of this article, or failure to serve
      any  mortgagee  or  lienor  with  a  copy  of the order to show cause as
      required by subdivision c of section 27-2132 of this article, shall  not
      affect  the validity of the proceeding or the appointment of a receiver,
      but the rights of the department of housing preservation and development
      or of the receiver shall not in such event be superior to the rights  of
      any mortgagee or lienor who has not been served as provided therein.
        c.  Any  mortgagee  or  lienor  who  at his or her expense remedies or
      removes the conditions to the satisfaction of the court pursuant to  the
      provisions  of  subdivision  c  of section 27-2134 of this article shall
      have and be entitled to enforce a lien equivalent to the lien granted to
      the receiver in favor of the  department  of  housing  preservation  and
      development  hereunder.  Any  mortgagee  or  lienor  who,  following the
      appointment of a receiver by the court, shall reimburse the receiver and
      the department of housing preservation and development for all costs and
      charges as hereinabove provided shall be entitled to  an  assignment  of
      the  lien  granted to the receiver in favor of the department of housing
      preservation and development.