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CHAPTER 7-19

PROSECUTION OF CLAIMS BY COUNTY

7-19-1      Circuit court authorization for commencement and prosecution of action.
7-19-2      County purchase of real estate sold on execution.
7-19-3      Compromise of mortgage indebtedness authorized on refinancing.
7-19-4      Resolution for compromise of mortgage indebtedness.
7-19-5      Circuit court hearing and confirmation of mortgage indebtedness compromise.
7-19-6      Validation of prior mortgage compromises by county commissioners.
7-19-7      School mortgage obligation to state unimpaired.
7-19-8      Action to set aside mortgage compromise prohibited.
7-19-9      Action to set aside county conveyance after mortgage compromise prohibited.


     7-19-1.   Circuit court authorization for commencement and prosecution of action. The state's attorney may commence and prosecute actions in the name of and on behalf of the county as provided in this chapter.
     If in the opinion of the state's attorney the commencement and prosecution of any action is necessary to protect the interests of the county in any matter or to recover any money due the county from any person, the state's attorney may present to the judge of the circuit court of the circuit in which the county is situated a summons and complaint in such matter and ask leave of the judge to commence such action. If it appears to the judge that the interests of the county presumably require the prosecution of the action, the judge shall endorse the summons. Then the state's attorney may commence and prosecute the action.

Source: SL 1897, ch 115, §§ 1 to 3; RPolC 1903, §§ 941 to 943; RC 1919, §§ 6011 to 6013; SDC 1939, § 12.1303; SL 2016, ch 44, § 52.


     7-19-2.   County purchase of real estate sold on execution. If any real estate is advertised to be sold at execution sale, held pursuant to any judgment in an action to which any county shall be a party, the board of county commissioners of the county may instruct the county auditor to bid on the real estate in the name of the county. The commissioners shall fix the maximum price for the auditor to bid for the real estate. The county auditor upon the receipt of the instructions shall attend the sale. The county auditor shall bid on the real estate, but may not exceed the maximum amount fixed by the board. The county auditor shall purchase the real estate at the lowest price at which the real estate can be procured. Any county may hold in its own name and for its own benefit all real estate acquired under the provisions of this section.

Source: SL 1891, ch 43, §§ 1 to 3; RPolC 1903, §§ 797 to 799; RC 1919, §§ 5793 to 5795; SDC 1939, § 12.1915; SL 2016, ch 44, § 53.


     7-19-3.   Compromise of mortgage indebtedness authorized on refinancing. Whenever any school fund mortgage or courthouse or jail building fund loan mortgage held by any county is in default and is being refinanced through any other loaning agency, and the total amount due thereon for principal, interest, and taxes is greater than the value of the real estate securing such mortgage, and it is impossible to collect the full amount of said mortgage indebtedness by foreclosure of said mortgage or otherwise, the board of county commissioners may in its discretion compromise the amount due on such mortgage for cash or federal farm mortgage corporation bonds which said compromise shall be in full satisfaction of any such loan if in the opinion of said board such compromise would be to the advantage and best interest of said county.

Source: SL 1935, ch 81, § 1; SDC 1939, § 12.1916.


     7-19-4.   Resolution for compromise of mortgage indebtedness. The compromise authorized by § 7-19-3 shall be by resolution duly made and entered of record, setting forth the description of the land secured by said mortgage, the amount due thereon for principal, interest, and taxes, and the sum for which said mortgaged indebtedness is being compromised, which said resolution shall be passed by a unanimous affirmative vote of said board of county commissioners.

Source: SL 1935, ch 81, § 2; SDC 1939, § 12.1916.


     7-19-5.   Circuit court hearing and confirmation of mortgage indebtedness compromise. After the passage of the resolution required by § 7-19-4, it shall be the duty of the county auditor within three days to notify the state's attorney in writing of the adoption of the same. The state's attorney shall thereupon petition the circuit court for an order approving and confirming said compromise. Such petition shall be brought on for hearing upon notice setting forth the contents of said resolution and the time and place of hearing said petition which said notice shall be published once in an official newspaper of the county at least six days prior to said hearing.

Source: SL 1935, ch 81, § 2; SDC 1939, § 12.1916.


     7-19-6.   Validation of prior mortgage compromises by county commissioners. Any school fund loan mortgage or courthouse or jail building fund mortgage compromised by any board of county commissioners before February 16, 1935, is hereby legalized and declared to be valid, if such compromise was made in good faith and in the interest and to the advantage of the county.

Source: SL 1935, ch 81, § 3; SDC 1939, § 12.1916.


     7-19-7.   School mortgage obligation to state unimpaired. Nothing contained in §§ 7-19-3 to 7-19-6, inclusive, shall in any way relieve any county from paying the full amount of principal and interest due to the State of South Dakota on any school fund loan mortgage compromised.

Source: SL 1935, ch 81, § 4; SDC 1939, § 12.1916.


     7-19-8.   Action to set aside mortgage compromise prohibited. In all cases where a board of county commissioners of any county has, prior to July 1, 1935, effected a compromise settlement of any indebtedness secured by a state permanent school fund mortgage, no action or proceeding shall be maintained to invalidate or set aside such compromise settlement or the satisfaction of such mortgage on the ground of lack of authority of such board to effect such compromise settlement, any existing statute to the contrary notwithstanding.

Source: SL 1935, ch 145, § 1; SDC 1939, § 12.1917.


     7-19-9.   Action to set aside county conveyance after mortgage compromise prohibited. In all cases where real property has, prior to July 1, 1935, been conveyed by deed to any county in satisfaction of a mortgage on said land securing the payment of a state permanent school fund loan and such real property has been thereafter conveyed by such county, no action or proceeding to invalidate, set aside, or annul such conveyance by the county on the ground of any alleged defect in the proceeding for the acquisition of such real property by such county or in the proceedings for the subsequent conveyance of such property by the county shall be maintained, any existing statute to the contrary notwithstanding.

Source: SL 1935, ch 145, § 2; SDC 1939, § 12.1917.


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