37-289. Procedure on cancellation of lease;
notice, default, hearing and appeal
A. Before any lease is canceled, the commissioner shall take the following steps:
1. Immediate notice of default shall be sent by certified mail to the lessee and to
any parties who have registered with the department as mortgagees or other lienholders of
the lessee's interest. The notice shall inform the lessee and his registered mortgagees
and lienholders of the specific nature of any default and their right to cure any curable
default.
2. The lessee and his registered mortgagees and lienholders have thirty days from
receipt of notice of default in which to cure any default involving failure to pay rent,
taxes or other assessments, and forty-five days from the receipt of notice to cure any
other curable default.
3. As a condition of curing a default, the commissioner may require the lessee and
his registered mortgagees and lienholders to waive any right to cure future defaults of
the same type. A waiver of the right to cure is valid only until the expiration of the
current lease.
B. If the default is not cured within the applicable time period, the commissioner
may make an order canceling the lease, and if it appears that the lease was procured
through fraud, deceit or wilful misrepresentation, the improvements on the land shall be
forfeited to the state. If the lease is canceled for any other reason, the lessee shall
be permitted to remove his improvements at any time within sixty days after the date of
cancellation.
C. In the event of cancellation the commissioner shall make a formal order
canceling the lease, and a copy of the order shall be mailed to the last known post
office address of the lessee and his registered mortgagees and lienholders.
D. The lessee and his registered mortgagees or other lienholders may appeal a
cancellation order pursuant to title 41, chapter 6, article 10. If no appeal is made
within the prescribed time or if no notice is filed with the department pursuant to
section 37-255, subsection C, the order shall become final and the lease shall be
canceled on the records of the department.
|