John ThurstonCommissioner

Bill HuffmanChief Deputy

Carol LincolnGeneral Counsel

Divisions

Executive501-683-3031

Records501-683-3053

Sales501-683-3055

Mineral Leasing501-683-3087

Legal501-683-3183

Public Relations501-683-3314

Commissioner of State Lands

109 State CapitolLittle Rock, AR 72201

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Welcome to the Commissioner of State Lands office and the Spring 2012 edition of News from the 4th Section. We are gearing up for an exciting summer in the land office with a rehabilitation of our Capitol suite beginning in July. The rehabilitation should be wrapped up in time for the Christmas crowds and we look forward to having the public join us for our grand opening later this year. In this issue you will read about a recent property donation, our travels around the state this year, our office receiving an ANCRC grant and mortgage liens on auctioned properties. We have also provided the remaining public auction dates and times for 2012 and invite you to join us at one of our auctions in the future. As always, my door is open to you and I invite you to come by anytime.

Sincerely,

John Thurston Commissioner

COSL Receives ANCRC Grant

The Commissioner of State Lands office was recently awarded a $250,000 dollar grant by the Arkansas Natural and Cultural Resources Council (ANCRC) for preservation efforts in the State Capitol office suite. The Commissioner’s office will begin a rehabilitation of the vault located in the Capitol suite mid-July and construction should be complete by the first of December.

The plans include the addition of a humidity control system that will regulate the air in the vault making it safe for the permanent storage of the office’s historic documents. Custom cabinets will be built to hold a variety of books, documents and maps. There will also be the addition of a public research area with a computer terminal in the suite Above: Architects rendering of COSL Capitol Vault

News from the

Spring 2012Volume 2, Issue 2

John ThurstonArkansas Commissioner of State Lands

4th Section

Page 2

...Continued from page 1

Turnback Tour

Commissioner Thurston has been traveling the state this year, following along with the COSL auction schedule, to bring awareness to the importance of property taxes. One year after a delinquent parcel has been redeemed, or is sold at public auction, our office forwards those tax dollars back to the county where the property is located. These funds, called turnback, accounted for over $20 million dollars in revenue to the counties in the state in 2011. Property taxes are a vital source of revenue in each county. Public schools, libraries and county services all depend on these tax dollars to assist in funding their programs.

The county officials work diligently to collect these funds and we are proud to work with them in collecting delinquencies.

Front row from left: County Clerk Sherry L. Bell, Commissioner Thurston and Treasurer Marion Barnard, back row from left: Circuit Clerk Janice Linkous and Collector Cindy Walker

where the public can come and research our online resources. The main public area of the suite will have additional storage cabinets matching the vault and there will be areas for rotating displays of historic documents.

The Commissioner’s office has worked with the ANCRC in the past on preservation of its documents. In 2007 and 2012 our office received grants to digitize and preserve the original Louisiana Purchase Survey field notes and the corresponding plat books and typed notes respectively.

The ANCRC was established in 1987 to manage and supervise a grant funding program to support projects that are aimed at protecting the state’s natural areas or historic sites and artifacts. More information about the ANCRC can be found on their website at www.ancrc.org.

You can keep up with the progress throughout the rehabilitation on our website, www.cosl.org. Commissioner Thurston will be providing updates along the way with photos of the before, during and after.

COSL Donates Property to the City of Fayetteville

On April 26, Commissioner Thurston presented a deed for 5.8 acres to Fayetteville Mayor Lioneld Jordan. The parcel of land was the former R & P Electroplating Company which was in operation from 1974-1997. The site was then abandoned, leaving behind hazardous substances, until the Environmental Protection Agency began the clean up process. The Arkansas Department of Environmental Quality declared this remedial work complete in 2010.

The City of Fayetteville submitted a proposal for donation of the property to the COSL office in late 2010 and worked with ADEQ in 2011 on an implementing agreement. At the time of the donation the taxes were delinquent from 1997-2010.

The property links the White River Baseball Complex to Combs Park giving the city a total of 135 acres of continuous park land along the White River corridor.

Commissioner Thurston said he was “pleased to be able to help the City of Fayetteville acquire this parcel of land that will benefit its parks program and its citizens.” Above: Commissioner Thurston presenting the Donation Deed to Mayor Jordan.

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Speakers AvailableIf you are interested in having the Commissioner or one of his staff members speak at your event or meeting, please contact Sandra Blount at 501-683-3031 to schedule a time or fill out the “Event Request” form on our website.

2012 COSL Auction Times & Locations

Credit Cards Now Accepted at Land Auctions

After introducing credit cards as a form of payment last fall, Commissioner Thurston has announced that credit and debit cards may now be used as a form of payment at the Commissioner of State Land delinquent land auctions. The service will only be available if there is a reliable internet connection however. Purchasers must still pay the first $100 dollars in cash, the rest may be paid by credit/debit card, personal check or cashiers check.

For additional questions regarding public land auctions, please call our office at 501-324-9422, or visit our website at www.cosl.org.

Below is a listing of July-September auctions by date, time and location. The parcel information for these counties can be found online.

Date ...........................County ..............Time ..........................Location........................................................CityJuly 10, 2012 ...............9:00 a.m. .............Pulaski .......................Verizon Arena ................................................ N. Little RockJuly 12, 2012 ...............10:00 a.m. ...........Clark ...........................County District Court Bldg ....................... ArkadelphiaJuly 12, 2012 ...............2:00 p.m. ............Hot Spring ................Malvern Chamber of Commerce .............. MalvernJuly 17, 2012 ...............10:00 a.m. ...........White .........................Searcy Chamber of Commerce .................. SearcyJuly 18, 2012 ...............9:00 a.m. .............Independence ...........Courthouse ..................................................... BatesvilleJuly 18, 2012 ...............1:00 p.m. .............Jackson ......................Courthouse ..................................................... NewportJuly 19, 2012 ...............11:00 a.m. ............Woodruff ..................Courthouse ..................................................... AugustaJuly 24, 2012 ..............1:00 p.m. .............Ashley .........................Courthouse ..................................................... HamburgJuly 25, 2012 ..............10:00 a.m. ...........Bradley .......................Courthouse ..................................................... WarrenJuly 25, 2012 ..............2:00 p.m. ............Cleveland ..................Courthouse .................................................... RisonJuly 26, 2012 ..............10:00 a.m. ...........Grant ..........................Courthouse ..................................................... SheridanJuly 31, 2012 ...............11:00 a.m. ............Greene ........................Courthouse ..................................................... ParagouldJuly 31, 2012 ...............2:00 p.m. ............Clay .............................Courthouse ..................................................... PiggottAugust 1, 2012 ...........10:00 a.m. ...........Lawrence………………… Lawrence Co. Comm. Rm........................... Walnut Ridge August 1, 2012 ...........1:00 p.m. .............Randolph ...................Courthouse ..................................................... PocahontasAugust 2, 2012 ...........10:00 a.m. ...........Sharp ..........................Courthouse ..................................................... Ash FlatAugust 7, 2012 ...........10:00 a.m. ...........Cleburne ....................Heber Springs Comm. Center ................... Heber SpringsAugust 7, 2012 ...........2:00 p.m. ............Stone ...........................Courthouse ..................................................... Mountain ViewAugust 8, 2012 ...........10:00 a.m. ...........Van Buren .................Courthouse Annex ....................................... ClintonAugust 14, 2012 .........1:00 p.m. .............Yell ..............................Courthouse ..................................................... DanvilleAugust 15, 2012 .........11:00 a.m. ............Scott ...........................Waldron City Hall ....................................... WaldronAugust 15, 2012 .........2:00 p.m. ............Polk .............................Rich Mt. Comm. College Lecture Hall .... MenaAugust 16, 2012 .........11:00 a.m. ............Montgomery .............Courthouse ..................................................... Mt. IdaAugust 21, 2012 .........2:00 p.m. ............Baxter .........................Donald W. Reynolds Library ..................... Mt. HomeAugust 22, 2012 ........10:00 a.m. ...........Fulton .........................Fulton Co. Fairgrounds ............................... SalemAugust 23, 2012 ........10:00 a.m. ...........Izard ...........................Courthouse ..................................................... MelbourneAugust 28, 2012 ........1:00 p.m. .............Pike .............................Courthouse ..................................................... MurfreesboroAugust 29, 2012 ........9:00 a.m. .............Howard ......................Nashville City Hall ....................................... NashvilleAugust 29, 2012 ........1:00 p.m. .............Sevier ..........................Courthouse ..................................................... DeQueenSeptember 5, 2012 ....11:00 a.m. ............Johnson ......................Courthouse ..................................................... ClarksvilleSeptember 6, 2012 ....9:00 a.m. .............Carroll ........................Best Western Inn of the Ozarks ............... Eureka SpringsSeptember 6, 2012 ....1:00 p.m. .............Madison .....................Courthouse ..................................................... HuntsvilleSeptember 11, 2012 ...10:00 a.m. ...........Conway .....................Courthouse ..................................................... MorriltonSeptember 11, 2012 ...2:00 p.m. ............Faulkner ....................District Court Building ............................... ConwaySeptember 13, 2012...10:00 a.m. ...........Saline ..........................Benton Municipal Complex....................... Benton

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for news updates, current events & photos!

John ThurstonCommissioner of State Lands109 State Capitol BuildingLittle Rock, AR 72201-1003501-324-9422; fax 501-682-1996email: land@cosl.orgwww.cosl.org

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Little RockArkansas

72201-1003Permit #944

The Counselors CornerThis is a new feature in our newsletter, each quarter we will focus on a commonly asked question and our General Counsel, Carol Lincoln, will give a concise answer along with what statutes and laws apply to it as applicable.

“Is a mortgage lien dismissed if the property sells at a COSL auction?”

I recently received the following inquiry from an attorney: If someone purchases a tax delinquent property from the land commissioner and the property has a mortgage against it, is the mortgage lien wiped out if the property is sold at a tax sale? The attorney went on to add that he had researched Arkansas statutes and could not find an answer. Here’s my reply which I hope our readers will find helpful.

No definitive answer can be found to this question in Arkansas statutes or case law for that matter. However, the statute governing notice requirements for tax sales sheds some light on the question in my opinion. A.C.A. §26-37-301 requires the Commissioner of State Lands to provide notice of tax sales to “interested parties” and defines the term as someone holding title to or interested in delinquent real property by virtue of a recorded interest at the time of certification to the state. Practically speaking, this definition includes mortgage holders and as such, the statute requires the Commissioner of State Lands to provide notice to mortgage holders in the same manner as notice provided to record owners. Thus, the statute makes no distinction between the priority of the interest held by both the owner and the mortgage holder.

We know that Arkansas statutes and case law confirm that an owner’s interest in delinquent real property can be extinguished by a tax sale if the sale is conducted in strict compliance with the law. Likewise, I believe a tax sale can wipe out a mortgage holder’s interest if the sale is conducted in strict compliance with the law. If this were not the case, then why elevate a mortgage holder to the status of a record owner and require notice in the same manner? For an opinion that expands on this position, I recommend reading Mennonite Board of Missions vs. Adams, 462 U.S. 791 (1983).

News from the 4th Section Now Available Via EmailThe Commissioner of State Lands office is pleased to now be able to offer our quarterly newsletter, “News from the 4th Section” electronically. As a subscriber, you may opt out of the print version and receive it via email, or by simply viewing it on our website. If you wish to discontinue the print version and add your email address, please send an email to land@cosl.org with “newsletter” in the subject line. For new subscribers you may email or visit our website at www.cosl.org and click on “Publications” then “Subscribe.”

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