Section 987.78 Of Article 3.1. Veterans’ Farm And Home Purchase Act Of 1974 From California Military And Veterans Code >> Division 4. >> Chapter 6. >> Article 3.1.
987.78
. (a) In the event of a forfeiture of a contract of purchase
under this article, the department may sell or otherwise dispose of
the property covered by the forfeited contract to any person and upon
any terms and conditions as it determines to be proper, under the
conditions set forth in this section.
(b) The department shall give first preference to a veteran who
qualifies under this article and who served during a time of war,
second preference to any other person serving in or honorably
discharged from the armed forces of the United States, third
preference to any person who is a first-time home buyer, and fourth
preference to any other person.
(c) Where the department elects in the event of a forfeiture to
sell or otherwise dispose of an assignment of an Indian veteran's
beneficial interest or of a leasehold interest in allotment trust
land, the department shall first offer it for sale to the person or
persons for whom the land is held in trust, including an Indian
veteran having a beneficial interest in the trust land on which the
forfeiture occurred, at a price equal to the unpaid balance of the
contract price. If none of the persons for whom the land is held in
trust accepts the offer, the department shall next offer it to the
United States Secretary of the Interior at the same price.
(d) Where the department elects in the event of forfeiture to sell
or otherwise dispose of a leasehold interest in tribal trust land,
the department shall first offer it for sale to the tribe for whom
the land is held in trust at a price equal to the unpaid balance of
the contract price. If the tribe fails to accept the offer, the
department shall next offer it to the United States Secretary of the
Interior at the same price.
(e) Where all the parties to whom the department is required to
offer the property under subdivision (c) or (d) fail to accept the
offer, the department may sell or otherwise dispose of the property
covered by the forfeited contract as provided by subdivision (a) and,
in so doing, the department shall give first preference to any good
faith offer by a person approved by the tribal council of the
reservation, rancheria, or land held under the jurisdiction of that
particular tribal governing body on which the allotment land is
sited.
(f) If the property is subject to a participation contract, the
department may, at its option, pay the balance due upon the
participation contract, including accrued interest, without penalty.
(g) Nothing in this section invalidates a transfer to, or affects
the interest of, a good faith purchaser for value without notice of
any failure of the department to comply with any requirement of this
section in the disposition of any property subject to a forfeited
contract.