Which type of installments are specified in the lien redemption plan?

• A. Weekly installments
• B. Equal monthly installments
• C. Quarterly installments
• D. Annual installments

Answer: (B)

In a lien redemption plan, the payment schedule is designed to be practical and predictable for both the taxpayer and the taxing authority. The plan specifies equal monthly installments because monthly payments align with regular budgeting cycles and ensure the total balance is paid off in a steady, calculable manner. Weekly installments would create more administrative work and tighter processing, while quarterly or annual installments would leave longer gaps between payments and could complicate interest accrual or increase the risk of default. By using equal monthly installments, the plan offers a clear, manageable path to redeem the lien.