§542 Reservation of lien for charges; enforcement of lien; redemption

Summary

Each patent and water-right certificate must give the United States a first claim on the land and its water rights to secure payment of amounts owed to the United States or the agency running the irrigation project. If payments are missed, the United States gets title to the land free of other claims, but the person who owed the money, a mortgage holder, lien holder, judgment creditor, or a later buyer can reclaim the land within one year after notice by paying all amounts due plus 8 percent interest and costs. If nobody redeems the land, the United States, acting through the Secretary of the Interior, may sell it. From the sale money, the United States pays the amounts owed with interest and costs into the reclamation fund. Any leftover money goes to the original debtor or their assignee. The United States may bid at the sale up to the full amount owed, including interest and costs.