No claim shall be made against the town under sections 283.561 and 283.571 by the holder of any tax lien, or transfer of tax lien, unless action to foreclose
the tax lien or transfer of tax lien upon which such claim is founded be commenced
within five years from the time of the sale resulting in such transfer of tax lien;
nor shall any claim be made against the town under said sections unless, within ten
days after the commencement of any action or proceeding to vacate, set aside or cancel
a tax lien or transfer of tax lien, or an item mentioned in a tax lien or transfer
of tax lien, or within ten days after the service of any pleadings or other paper
in an action or proceeding in which any tax lien or transfer of tax lien, or item
mentioned in a tax lien or transfer of tax lien, is brought into question, sought
to be set aside, vacated or cancelled or which sets forth or pleads any defense to
an action to foreclose a tax lien or transfer of tax lien, a notice in writing is
served upon the supervisor of the town setting forth the question or objection raised
to the best knowledge of the holder of the tax lien or transfer of tax lien, or his
attorney-at-law, and demanding that the town take up the prosecution or defense of
the action or proceeding. All proceedings in such action or proceeding shall be stayed
for 30 days or such shorter time as the supervisor, or the attorney, representing
him, shall stipulate in writing. It shall be the duty of the supervisor to examine,
or cause to be examined the questions raised, and, in order to protect the interests
of the town, the attorney for the town shall have the right to be substituted for
the attorney of record of the holder of the tax lien or transfer of tax lien, or to
appear as attorney of record for the holder of any such tax lien or transfer of tax
lien, to conduct or defend any such action or proceeding in the name of the holder
of the tax lien or transfer of tax lien, and to bring any other action or proceeding
for, on behalf of and in the name of the holder of such tax lien or transfer of tax
lien as he may deem advisable, to take appeals and to argue appeals taken by the adverse
party as he may deem advisable. It shall be the duty of the supervisor to protect
the interest of the town in all matters, actions and proceedings relating to tax liens
and transfers of tax liens; to intervene on behalf of the town or of the holder of
a tax lien or transfer of a tax lien in, or to make the town a party to, any action
in which he believes it to be to the interest of the town so to do, by reason of any
matter arising under or relating to any tax lien or transfer of tax lien, or advertisement
of sale of tax liens. In any action or proceeding in which the attorney for the town
pursuant to this section shall be substituted, or shall appear, it shall be without
expense to the holder of the tax lien or transfer of tax lien, or advertisement of
sale of tax liens. In any action or proceeding in which the attorney for the town
pursuant to this section shall be substituted, or shall appear, it shall be without
expense to the holder of the tax lien or transfer of tax lien, and all costs recovered
on behalf of such holder of a tax lien or transfer of tax lien in any action or proceeding
conducted or defended by such attorney shall belong to the town and shall be collected,
applied and disposed of in the manner as are other costs recovered by the town.
