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PUBLIC LAWS
First Regular Session of the 122nd

CHAPTER 7
H.P. 183 - L.D. 244

An Act To Standardize Water
Lien Provisions

Be it enacted by the People of the State of Maine as follows:

     Sec. 1. 35-A MRSA §6111, as corrected by RR 1991, c. 1, §49, is repealed.

     Sec. 2. 35-A MRSA §6111-A is enacted to read:

     1. Liens for unpaid rates; consumer-owned water utilities. A consumer-owned water utility has a lien on real estate served by that consumer-owned water utility to secure the payment of unpaid rates.

     2. Rental property; water utilities. Notwithstanding section 706, when a landlord has applied for and is granted water utility service to a multiunit residential rental property, the water utility has a lien on the property and on any interest the landlord has in the multiunit residential rental property to secure payment for the water utility's service to that property with costs and with interest at a rate not to exceed the highest lawful rate set by the Treasurer of State for municipal taxes.

     3. Method and procedure. The method for obtaining, enforcing and receiving payment on a lien created under this section must be performed in the same manner and has the same effect and creates the same rights as provided in Title 38, section 1208 pertaining to the collection of unpaid rates by a sanitary district, except that a sanitary district lien created under Title 38, section 1208 continues with priority over a lien created under this section. The notice of impending automatic foreclosure must be substantially in the following form:

STATE OF MAINE
(insert name of water utility)
NOTICE OF IMPENDING AUTOMATIC FORECLOSURE WATER LIEN
Title 35-A M.R.S.A., section 6111-A
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
(insert name of water utility)

TO: ............

     You are the party named on the Water Lien Certificate filed on ............, 20.. and recorded in Book ....., Page .... in the ....... County Registry of Deeds. This (insert name of water utility) filing created a lien mortgage on the real estate described in the Water Lien Certificate.

     On ........., 20.., the water lien mortgage will be foreclosed and your right to redeem the mortgage and recover your property by paying the charges and interest of the (insert name of water utility) that are owed will expire.

IF THE LIEN FORECLOSES,
THE (insert name of water utility) WILL OWN
YOUR PROPERTY, SUBJECT ONLY TO
SANITARY DISTRICT AND MUNICIPAL TAX LIENS.

     If you cannot pay the outstanding charges, costs and interest that are the subject of this notice or the subject of installment payment arrangements that you have made with the (insert name of water utility), please contact me immediately to discuss this notice.

..................................

(insert name of water utility) Treasurer

     Sec. 3. 35-A MRSA §6414-A, as enacted by PL 2003, c. 147, §4, is amended to read:

§6414-A. Water utilities; rate collection and liens

     All persons, firms and corporations, whether public, private or municipal, shall pay to the treasurer of any water district the rates established pursuant to chapter 61 for the water service used with respect to their real estate.

     There is a lien on real estate served by a water district to secure the payment of unpaid rates. The method for obtaining, enforcing and receiving payment on the lien must be in the same manner and has the same effect and creates the same rights as provided in Title 38, section 1208, pertaining to the collection of unpaid rates by a sanitary district, except that the sanitary district lien created under Title 38, section 1208 continues with priority over the district's water utility lien created under this section and the notice of impending automatic foreclosure must be substantially in the following form:

STATE OF MAINE
......... WATER DISTRICT
NOTICE OF IMPENDING AUTOMATIC
FORECLOSURE WATER LIEN

Title 35-A M.R.S.A., section 6414-A
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

............ WATER DISTRICT.

TO: ............

     You are the party named on the Water Lien Certificate filed on ............, 20.. and recorded in Book ....., Page .... in the ....... County Registry of Deeds. This ......... Water District filing created a lien mortgage on the real estate described in the Water Lien Certificate.

     On ........., 20.., the water lien mortgage will be foreclosed and your right to redeem the mortgage and recover your property by paying the district's charges and interest that are owed will expire.

IF THE LIEN FORECLOSES,
THE ......... WATER DISTRICT WILL OWN
YOUR PROPERTY, SUBJECT ONLY TO
SANITARY DISTRICT AND MUNICIPAL TAX LIENS.

     If you can not pay the outstanding charges, costs and interest that are the subject of this notice or the subject of installment payment arrangements that you have made with the district, please contact me immediately to discuss this notice.

.................................
District Treasurer

Effective June 29, 2005.

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