Sec. 1. 36 MRSA §949 is enacted to read:

§949.__Disbursement of excess funds

A municipality that obtains title to residential real estate under the operation of this article shall disburse to the former owner the excess of any funds as provided in this section.

1.__Definitions.__As used in this section, unless the context otherwise indicates, the following terms have the following meanings.

A.__"Excess of any funds" means the amount obtained for the disposition of the real estate less:

(1)__All tax liens imposed on the real estate by the municipality, including interest;

(2)__Fees for recordation and discharge of the lien as established by Title 33, section 751, plus $13;

(3) The fee established in section 943 for sending a notice if the notice is actually sent, including certified mail, return receipt requested fees;

(4)__Any court costs; and

(5)__All expenses incurred in disposing of the real estate.

B.__"Former owner" means the party named on the tax lien mortgage at the time of the levy of the tax lien or that party's successors, heirs or assigns.

2.__Time and form of return; notice.__Within 30 days of the disposition of the real estate or 180 days of foreclosure, whichever is earlier, the municipality shall mail by certified mail, return receipt requested, to the former owner's last known address, notice of the excess of any funds.__The notice must include an itemized statement showing the amount for which the real estate was sold and all deductions made from that amount.__The notice also must include directions for the redemption of the excess of any funds, including the hours of the operation of the clerk of the municipality.

3.__Escrow; failure to redeem.__The municipality shall hold the excess of any funds in escrow for 36 months for the benefit of the former owner.__The municipality shall pay immediately the