Alabama § 11-81-246 - Assessment Lien; Enforcement.

§ 11-81-246. Assessment Lien; Enforcement.

(a) An assessment under this article, including any interest or penalties on the assessment, shall constitute a lien on the qualifying property for the principal amount of the financing, subject to the requirement in Section 11-81-245 to obtain a signed consent agreement from all lienholders. This lien shall:

(1) Be a lien against the qualifying property on which the assessment is imposed effective from the earliest of: (i) the date of the assessment agreement; (ii) the summary memorandum date; or (iii) the date on which the notice of contractual assessment is recorded;

(2) Have the same priority status as a lien for any other ad valorem tax, non-ad valorem tax, or a special assessment imposed by a local government;

(3) Run with the qualifying property. The portion of the assessment under the assessment contract which has not yet become due shall not be included in any enforcement action and is not accelerated or eliminated by foreclosure of a property tax lien or any other foreclosure, public or private; and

(4) Not be enforced or collected through the process used to collect and enforce ad valorem taxes under Alabama law.

(b) The billing, collection, and enforcement of the assessment lien shall be the sole responsibility of the capital provider or its assigns. The capital provider’s rights and remedies related to any contractual default by the qualifying property owner shall be governed by the terms of the financing agreement and state law. Assessments under this article shall be considered a statutory assessment and shall be superior to all other liens except tax liens and any lien for a special assessment imposed by a local government.

(c) Delinquent installments of the assessments incur interest and penalties as specified in the financing agreement.

(d) Delinquent interest and penalties incurred as specified in the financing agreement shall be included in any enforcement action.

(e) In any action to enforce an assessment lien, the person enforcing the assessment lien must serve the holders of all mortgages and other liens with notice of the enforcement action at least 60 days before any hearing or other action is taken with respect to the enforcement action. Service upon a domestic or foreign corporation or other entity shall be made by serving the registered agent of the entity if a registered agent has been appointed. If no registered agent has been appointed, service shall be in accordance with Rule 4 of the Alabama Rules of Civil Procedure.