In accordance with Section 6-98, a receiver may be appointed by a Court of competent jurisdiction relative to unsafe premises subject to the following provisions:
a. The purpose of the receivership shall be to take possession of the unsafe premises for a period of time sufficient to accomplish and pay for repairs and improvements.
b. The receiver may not be a not-for-profit corporation whose primary purpose is the improvement of housing conditions in Lake County, or may be any other capable person residing in Lake County.
c. The receiver shall collect and use the rents and other income of the unsafe premises despite any prior assignments thereof, to repair or remove the defects as required by the order, and may, upon approval by the Court, make repairs and improvements in addition to those specified in the order or required by the applicable statutes, ordinances, codes or regulations.
d. The receiver shall have the power to make any contracts and do all things necessary to accomplish the repair and improvement of the unsafe premises.
e. The Court may, after hearing, authorize the receiver to obtain moneys needed to accomplish the repairs and improvements by the issuance and sale of notes or receiver's certificates bearing such interest as the Court may fix. The notes or certificates shall be a first lien upon the unsafe premises and the rents and income thereof, and shall be superior to all existing assignments of rents, liens, mortgages or other encumbrances on the property, except taxes, provided that within sixty (60) days following the sale or transfer for value of the notes by the receiver, the holder thereof shall file notice in the County Recorder's Office which shall contain the following information:
1. The legal description of the tract of real estate on which the unsafe building is located;
2. The face amount and interest rate of the note or certificate.
3. The date when the note or certificate was sold or transferred by the receiver; 4. The date of maturity.
Upon payment to the holder of the receiver's note or certificate of the face amount and interest, and upon filing in the County Recorder's Office of a sworn statement of payment, the lien of such note or certificate shall be released. Upon failure of payment, the lien may be enforced by proceedings to foreclose as in the case of mechanic's liens or mortgages; however, such suit must be commenced within two (2) years after the date of default.
The receiver shall be entitled to the same fees, commissions, and necessary expenses as are receivers in actions to foreclose mortgages and said fees, commissions and expenses shall be paid out of the rents and incomes of the property in receivership.
The issuance of an order concerning unsafe premises is not a prerequisite to the appointment of a receiver nor does such an order prevent the appointment of a receiver. In the event the Unsafe Building Department requests the appointment of a receiver, all persons having a substantial pro interest in the unsafe premises shall be made party defendants.
(Ord. No. 1001, § 16, 2-12-86)