Sec. 25. (a) To avoid a foreclosure action on a special assessment, a municipality may:
(1) defer collection of the assessment under section 22.5 of this chapter; or
(2) accept a conveyance in satisfaction of the assessment from the owner of the assessed property.
(b) If there are bondholders other than the municipality holding bonds on the improvement for which the assessment was made, the municipality may do any of the following:
(1) Join with the other bondholders in accepting a conveyance of an undivided interest in the property.
(2) Cause a conveyance of the property to be made to a bank or trust company in the municipality and held under a trust agreement by the bank or trust company for the use and benefit of the municipality and the other bondholders.
(c) A conveyance under this section may be accepted by the municipality only if the head of the municipal legal department makes a written recommendation to the city executive or town legislative body that the conveyance be accepted.