(a)
Any installment of an owner’s development lien created pursuant to this article shall become delinquent 30 days following billing thereof if unpaid, or if the installment is being collected by the county tax collector, at the time general taxes become delinquent. An installment shall be in default 30 days after written notice of the delinquency has been given by certified or registered mail to the record owner of the property subject to the lien and all lenders of record.
(b)
The governing board, not later than four years after the date of default of any payment, may order that the amount be collected by an action brought in superior court to
foreclose against the real property subject to the owner’s development lien for the then delinquent installment of the owner’s development lien. The action shall affect only the delinquent amounts and shall not accelerate or require payment of any remaining amount of the owner’s development lien.
(c)
The lease agreement between the governing board and the nonprofit corporation may contain covenants for the benefit of bondholders providing that the governing board shall commence and diligently prosecute to completion any foreclosure action regarding delinquent installments of an owner’s development lien. The lease agreement may specify a deadline for commencement of the foreclosure action and any other terms and conditions that the governing board may determine to be reasonable.
(d)
The
governing board may assign its rights under this section to the nonprofit corporation or to any trustee under the resolution adopted pursuant to Section 17437.
(e)
Costs in the action shall be fixed and allowed by the court and shall include, but are not limited to, reasonable attorneys’ fees, interest, penalties and other charges or advances authorized by this article, and when so fixed and allowed by the court, the costs shall be included in the judgment. The amount of penalties, costs, and interest due shall be calculated up to the date of judgment.
(f)
All matters pertaining to foreclosure, execution and sale shall be governed by the then existing law of California. However, notwithstanding any other law, the owner’s right of redemption shall be limited to 60 days following
the date of sale of the owner’s interest. The owner’s development lien shall continue as security for all future required installment payments. Any remaining funds after foreclosure and payment of all obligations and costs of foreclosure of the delinquent installment of the owner’s development lien shall be paid pursuant to the priority of encumbrances of record and to the owner or owner’s successor as of the date of initiation of the foreclosure proceeding.
(g)
Foreclosures of installments of the owner’s development lien pursuant to this article shall not affect the priority of any scheme of community development approved by the Bureau of Real Estate, including, but not limited to, subdivision maps, condominium plans, covenants, conditions, restrictions, and easements whether recorded prior to or subsequent to the owner’s development
lien.