Maine Code § 38-1050

Qualified sewer districts; collection of unpaid rates
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The provisions of this section apply only to a qualified sewer district. [PL 2013, c. 555, §6
(NEW).]
1. Definitions. As used in this section, unless the context otherwise indicates, the following terms
have the following meanings.
A. "Eligible sewer district" means a sewer district whose charter does not establish, or authorize
the district to establish, a lien on real estate served by the district. [PL 2013, c. 555, §6 (NEW).]
B. "Qualified sewer district" means an eligible sewer district that has satisfied the requirements of
subsection 4; or a standard district unless this section is expressly excluded from the standard
district's charter. [PL 2013, c. 555, §6 (NEW).]
C. "Real estate" means an identified parcel of land and its improvements, if any, including, but not
limited to, a mobile home. [PL 2013, c. 555, §6 (NEW).]
[PL 2013, c. 555, §6 (NEW).]
2. Lien. There is a lien on real estate served or benefited by the sewers of the qualified sewer
district to secure the payment of the qualified sewer district's rates. The lien established under this
section arises and is perfected as services are provided and takes precedence over all other claims on
such real estate, except claims for taxes.
[PL 2015, c. 174, §3 (AMD).]
3. Collection. The treasurer of the qualified sewer district has full and complete authority and
power to collect rates and fees established under section 1048 or otherwise authorized by law. The
treasurer may, after demand for payment, sue in the name of the qualified sewer district in a civil action

in any court of competent jurisdiction for any rates remaining unpaid. In addition to other methods
established by law for the collection of rates and without waiver of the right to sue for the collection of
rates, the lien created under subsection 2 may be enforced in the following manner.
A. The treasurer may, after the expiration of 3 months and within one year after the date when the
rates became due and payable, give to the owner of the real estate served, leave at the owner's last
and usual place of abode or send by certified mail, return receipt requested, to the owner's last
known address a notice in writing signed by the treasurer or bearing the treasurer's facsimile
signature, stating the amount of the rates due, describing the real estate upon which the lien is
claimed and stating that a lien is claimed on the real estate to secure the payment of the rates and
demanding the payment of the rates within 30 days after service or mailing, with $1 added to the
demanded rate for the treasurer and an additional fee to cover mailing the notice by certified mail,
return receipt requested. The notice must contain a statement that the qualified sewer district is
willing to arrange installment payments of the outstanding debt. [PL 2017, c. 151, §4 (AMD).]
B. After the expiration of 30 days and within one year after giving notice pursuant to paragraph A,
the treasurer of the qualified sewer district shall record in the registry of deeds of the county in
which the property of the person is located a certificate signed by the treasurer setting forth the
amount of the rates due, describing the real estate on which the lien is claimed and stating that a
lien is claimed on the real estate to secure payment of the rates and that a notice and demand for
payment has been given or made in accordance with this section and stating further that the rates
remain unpaid. At the time of the recording of the certificate in the registry of deeds, the treasurer
shall file in the office of the qualified sewer district a true copy of the certificate and shall mail a
true copy of the certificate by certified mail, return receipt requested, to each record holder of any
mortgage on the real estate, addressed to the record holder at the record holder's last and usual place
of abode. [PL 2013, c. 555, §6 (NEW).]
C. The filing of the certificate in the registry of deeds creates a mortgage held by the qualified
sewer district on the real estate described in the certificate that has priority over all other mortgages,
liens, attachments and encumbrances of any nature, except liens, attachments and claims for taxes,
and gives to the qualified sewer district all the rights usually possessed by mortgagees, except that
the qualified sewer district as mortgagee does not have any right to possession of that real estate
until the right of redemption has expired. [PL 2013, c. 555, §6 (NEW).]
D. If the mortgage created under paragraph C, together with interest and costs, has not been paid
within 18 months after the date of filing the certificate in the registry of deeds in accordance with
paragraph B, the mortgage is foreclosed and the right of redemption expires. The filing of the
certificate in the registry of deeds is sufficient notice of the existence of the mortgage. In the event
that the rate, with interest and costs, is paid within the period of redemption, the treasurer of the
qualified sewer district shall discharge the mortgage in the same manner as provided for discharge
of real estate mortgages. [PL 2013, c. 555, §6 (NEW).]
E. The owner of the real estate shall pay the sum of the fees for receiving, recording and indexing
the lien, or its discharge, as established by Title 33, section 751, plus $13, plus all certified mail,
return receipt requested, fees. [PL 2013, c. 555, §6 (NEW).]
F. Not more than 45 days or less than 30 days before the foreclosing date of the mortgage created
under paragraph C, the treasurer of the qualified sewer district shall notify the party named on the
mortgage and each record holder of a mortgage on the real estate in a writing signed by the treasurer
or bearing the treasurer's facsimile signature and left at the holder's last and usual place of abode
or sent by certified mail, return receipt requested, to the holder's last known address of the
impending automatic foreclosure and indicating the exact date of foreclosure. For sending this
notice, the qualified sewer district is entitled to receive $3 plus all certified mail, return receipt
requested, fees, which must be added to and become a part of the amount due under paragraph E.

If notice is not given in the time period specified in this paragraph, the person not receiving timely
notice has up to 30 days after the treasurer provides notice as specified in this paragraph in which
to redeem the mortgage. The notice of impending automatic foreclosure must be substantially in
the following form:
STATE OF MAINE
.................. SEWER DISTRICT
NOTICE OF IMPENDING AUTOMATIC FORECLOSURE
SEWER LIEN
M.R.S.A., Title 38, section 1050
IMPORTANT: DO NOT DISREGARD THIS NOTICE
YOU WILL LOSE YOUR PROPERTY UNLESS
YOU PAY THE CHARGES, COSTS AND INTEREST FOR WHICH
A LIEN ON YOUR PROPERTY HAS BEEN CREATED BY THE
................... SEWER DISTRICT.
TO: .................
IF THE LIEN FORECLOSES,
THE ..................... SEWER DISTRICT WILL OWN
YOUR PROPERTY, SUBJECT ONLY TO
MUNICIPAL TAX LIENS.
....................................
District Treasurer [PL 2013, c. 555, §6 (NEW).]
G. The qualified sewer district shall pay the treasurer $1 for the notice, $1 for filing the lien
certificate and the amount paid for certified mail, return receipt requested, fees. The fees for
recording the lien certificate must be paid by the qualified sewer district to the register of deeds.
[PL 2013, c. 555, §6 (NEW).]
H. A discharge of the certificate given after the right of redemption has expired, which discharge
has been recorded in the registry of deeds for more than one year, terminates all title of the qualified
sewer district derived from that certificate or any other recorded certificate for which the right of
redemption expired 10 years or more prior to the foreclosure date of this discharge lien, unless the
qualified sewer district has conveyed any interest based upon the title acquired from any of the
affected liens. [PL 2013, c. 555, §6 (NEW).]
[PL 2017, c. 151, §4 (AMD).]
4. Adoption; referendum. An eligible sewer district may become a qualified sewer district in
accordance with this subsection. The trustees of the eligible sewer district shall submit a proposal to
become a qualified sewer district for approval in a districtwide referendum. The referendum must be
called, advertised and conducted according to the law relating to municipal elections in Title 30-A,
chapter 121, except the registrar of voters is not required to prepare or the clerk to post a new list of
voters. The referendum may be held outside the territory of the eligible sewer district if the usual voting
place for persons located within the district is located outside the territory of the district. For the
purpose of registering voters, the registrar of voters must be in session on the regular work day
preceding the election. The question presented must conform to the following form:

"Do you favor authorizing the (insert name of eligible sewer district) to become a qualified sewer
district, allowing the district to exercise the lien authority established in the Maine Revised Statutes,
Title 38, section 1050 with respect to unpaid rates?"
The voters shall indicate by a cross or check mark placed against the word "Yes" or "No" their opinion
on the question.
The results must be declared by the trustees and entered upon the eligible sewer district's records. Due
certificate of the results must be filed by the clerk with the Secretary of State.
The eligible sewer district becomes a qualified sewer district under this section only upon acceptance
of the question by a majority of the legal voters within the eligible sewer district voting at the
referendum. Failure of approval by the majority of voters voting at the referendum does not prevent
subsequent referenda from being held for the same purpose. The costs of referenda are borne by the
eligible sewer district.
[PL 2013, c. 555, §6 (NEW).]

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