sec.138Selling land that is subject to a State encumbrance

### sec.138 Selling land that is subject to a State encumbrance This section applies if— a local government intends to sell land under this subdivision; and the land is subject to a State encumbrance. A State encumbrance is an encumbrance on land that gives the State or a government entity an interest in the land, including, for example— a mortgage; or an interest that arises under a Housing Act contract. The local government must give the State or government entity that has the interest in the land under the State encumbrance a notice of the local government’s intention to sell the land, before the local government sells the land. The local government may sell the land only— subject to the State encumbrance; or free of the State encumbrance to the extent, and on any conditions (the sale conditions ), to which the State or government entity agrees. If the land is subject to an interest arising under a Housing Act contract, the local government may sell the land free of the interest only if the sale conditions include a condition that the local government pays the State an amount for— the State’s interest in the land; and any amount that is owing to the State under the contract. (sec.138-ssec.1) This section applies if— a local government intends to sell land under this subdivision; and the land is subject to a State encumbrance. (sec.138-ssec.2) A State encumbrance is an encumbrance on land that gives the State or a government entity an interest in the land, including, for example— a mortgage; or an interest that arises under a Housing Act contract. (sec.138-ssec.3) The local government must give the State or government entity that has the interest in the land under the State encumbrance a notice of the local government’s intention to sell the land, before the local government sells the land. (sec.138-ssec.4) The local government may sell the land only— subject to the State encumbrance; or free of the State encumbrance to the extent, and on any conditions (the sale conditions ), to which the State or government entity agrees. (sec.138-ssec.5) If the land is subject to an interest arising under a Housing Act contract, the local government may sell the land free of the interest only if the sale conditions include a condition that the local government pays the State an amount for— the State’s interest in the land; and any amount that is owing to the State under the contract. - (a) a local government intends to sell land under this subdivision; and - (b) the land is subject to a State encumbrance. - (a) a mortgage; or - (b) an interest that arises under a Housing Act contract. - (a) subject to the State encumbrance; or - (b) free of the State encumbrance to the extent, and on any conditions (the sale conditions ), to which the State or government entity agrees. - (a) the State’s interest in the land; and - (b) any amount that is owing to the State under the contract.