§ 283.561. Reimbursement for defective tax liens or transfers of tax liens.

If a transfer of tax lien be vacated or be set aside or cancelled, or if it be adjudged in any action that a transfer of tax lien is invalid or defective, or not sufficient to transfer a tax lien to the purchaser thereof, or if in any action to foreclose a tax lien it be adjudged that the entire tax lien is void and not a valid lien on the premises which it purports to affect, and that the complaint be dismissed, the purchaser may surrender such transfer of tax lien, together with a certified copy of such judgment or decree, to the supervisor and thereupon shall be repaid by the town the amount paid for such transfer of tax lien, with interest from the time of such payment at the rate set forth in the transfer of tax lien, but at not more than three percentum per annum, and the town shall pay the taxed costs and disbursements of any action or proceeding in which such adjudication is made. But no such payment shall be made unless the application therefor is made within five years from the date of such tax lien.

(§ 575 of the Laws of 1948, Ch. 852; amended by the Laws of 1962, Ch. 386)