43 U.S.C. § 542 — Reservation of lien for charges; enforcement of lien; redemption
submitted 114 years ago by ch. 278 to r/title-43-PUBLIC-LANDS · 259 words · no verdicts yet
Every covered patent and water-right certificate must reserve a first-priority lien for the United States. After default, the land passes to the United States, but specified people may redeem it within one year; afterward the United States may sell it and apply the proceeds as the section directs.
Every patent and water-right certificate issued under this subchapter must expressly reserve to the United States a prior lien on the patented land or the land for which the water right is certified. The lien also covers all water rights attached to or belonging to that land. It is superior to every other lien, claim, or demand, and secures all amounts owed or later to be owed to the United States or its successors controlling the irrigation project in connection with the land and water rights.
If an amount is not paid when due, title to the land passes to the United States free of encumbrances. However, the defaulting debtor, a mortgagee, lienholder, judgment debtor, or later purchaser may redeem the land within one year after notice of the default by paying all money due, 8 percent interest, and costs.
After the failure to redeem, the United States may choose, through the Secretary of the Interior, to have the land sold at any time. The sale proceeds must pay into the reclamation fund all money due, the interest described above, and costs. Any remaining balance belongs to the defaulting debtor or the debtor's assignee. If the land is sold after failure to redeem, the United States may bid for it, but not more than the default amount including interest and costs.
Every patent and water-right certificate issued under this subchapter shall expressly reserve to the United States a prior lien on the land patented or for which water right is certified, together with all water rights appurtenant or belonging thereto, superior to all other liens, claims, or demands whatsoever for the payment of all sums due or to become due to the United States or its successors in control of the irrigation project in connection with such lands and water rights.
Upon default of payment of any amount so due title to the land shall pass to the United States free of all encumbrance, subject to the right of the defaulting debtor or any mortgagee, lien holder, judgment debtor, or subsequent purchaser to redeem the land within one year after the notice of such default shall have been given by payment of all moneys due, with 8 per centum interest and cost. And the United States, at its option, acting through the Secretary of the Interior, may cause land to be sold at any time after such failure to redeem, and from the proceeds of the sale there shall be paid into the reclamation fund all moneys due, with interest as herein provided, and costs. The balance of the proceeds, if any, shall be the property of the defaulting debtor or his assignee: Provided, That in case of sale after failure to redeem under this section the United States shall be authorized to bid in such land at not more than the amount in default, including interest and costs.
Source credit: (Aug. 9, 1912, ch. 278, § 2, 37 Stat. 266.)
- 1912Enacted · Act of Aug. 9, 1912, ch. 278 · 37 Stat. 266
A history note hasn’t been published yet. The record shows enactment by ch. 278 on 1912-08-09.
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