Senate Bill No. 538
               Senate Bill No. 538

               PUBLIC ACT NO. 98-35


    Be  it  enacted  by  the  Senate  and House of
Representatives in General Assembly convened:
    Section  1.  Section  12-195  of  the  general
statutes  is  repealed  and   the   following   is
substituted in lieu thereof:
    When  any municipality acquires real estate by
AUCTION,  or  by deed in lieu of foreclosure, of a
tax or an assessment lien or  liens  thereon,  the
right  to  accept  which deed is hereby granted to
municipalities, the  tax  collector,  upon  proper
notice  of  the  recording  of  the certificate of
foreclosure of the real estate so acquired or  the
recording  of  such  deed  in lieu of foreclosure,
shall enter or cause to be entered  in  his  books
against  the  unpaid  tax or assessment account of
such  real  estate,  the  one  of  the   following
notations which the case may require: "Acquired by
Foreclosure",  "Acquired  by  deed  in   lieu   of
Foreclosure", which notation shall be completed by
a statement of the day,  month  and  year  of  the
acquisition of such real estate. Immediately after
such  entry  in  his  books  against  such  unpaid
account,  the tax collector shall file for record,
in the town clerk's office in the  town  in  which
such  property  is located, a release of such lien
or liens on such real estate  then  on  record  in
such  office.  The acquisition of such real estate
by the municipality shall be deemed a cancellation
by  such municipality of all of its claims against
the   tax   collector   for   unpaid   taxes   and
assessments,   interest   or  lien  fees  assessed
against such  real  estate.  The  real  estate  so
acquired  shall  be  held  free  of  any  taxes or
assessments levied by the municipality  which  has
acquired  it  until such real estate is sold. Upon
the sale of  such  acquired  real  estate  by  the
municipality, the proceeds thereof remaining after
payment of the expenses  of  such  sale  shall  be
deposited   in   the   general   treasury  of  the
    Sec.  2.  This  act  shall take effect July 1,

Approved May 19, 1998