Bill Text: NY A04373 | 2013-2014 | General Assembly | Introduced
Bill Title: Establishes the town of Brookhaven land bank and commission for the purposes of acquiring, holding and managing land interests; provides for elected members of the commission; authorizes the commission to issue bonds and notes and establishes a 2% transfer fee on the transfer of real property interests; makes numerous related provisions.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2014-01-08 - referred to local governments [A04373 Detail]
Download: New_York-2013-A04373-Introduced.html
S T A T E O F N E W Y O R K
________________________________________________________________________
4373
2013-2014 Regular Sessions
I N A S S E M B L Y
February 4, 2013
___________
Introduced by M. of A. ENGLEBRIGHT -- read once and referred to the
Committee on Local Governments
AN ACT to establish the town of Brookhaven land bank and commission
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
1 Section 1. For purposes of this act, the words and phrases set forth
2 in this section shall have the following meanings:
3 (a) "Commission" shall mean the town of Brookhaven land bank commis-
4 sion, established by section three of this act.
5 (b) "Fund" shall mean the town of Brookhaven land bank fund, estab-
6 lished pursuant to the provisions of section eight of this act.
7 (c) "Institutional lender" shall mean any bank, any insurance company,
8 and any mortgage company or investment company that made more than twen-
9 ty mortgages in the preceding calendar year, and any national bank,
10 federal savings and loan association, federal savings bank, bank holding
11 company, or state or federally chartered credit union.
12 (d) "Land bank" shall mean the town of Brookhaven land bank, estab-
13 lished by section two of this act.
14 (e) "Purchaser" shall mean the transferee, grantee or recipient of any
15 real property interests.
16 (f) "Purchase price" shall mean all consideration paid or transferred
17 by or on behalf of a purchaser to a seller or his or her nominee, or for
18 his or her benefit, for the transfer of any real property interest, and
19 shall include, but not be limited to, all cash or its equivalent so paid
20 or transferred; all cash or other property paid or transferred by or on
21 behalf of the purchaser to discharge or reduce any obligation of the
22 seller; the principal amount of all notes or their equivalent, or other
23 deferred payments, given or promised to be given by or on behalf of the
24 purchaser to the seller or his nominee; the outstanding balance of all
25 obligations of the seller which are assumed by the purchaser or to which
26 the real property interest transferred remains subject after the trans-
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD07643-01-3
A. 4373 2
1 fer, determined at the time of transfer, but excluding real estate taxes
2 and other municipal liens or assessments which are not overdue at the
3 time of transfer; the fair market value, at the time of transfer, of any
4 other consideration or thing of value paid or transferred by or on
5 behalf of the purchaser including, but not limited to, any property,
6 goods or services paid, transferred or rendered in exchange for such
7 real property interest.
8 (g) "Real property interest" shall mean any present or future legal or
9 equitable interest in or to real property, and any beneficial interest
10 therein, including the interest of any beneficiary in a trust which
11 holds any legal or equitable interest in real property; but shall not
12 include any interest which is limited to any or all of the following:
13 the dominant estate in any easement or right of way; the right to
14 enforce any restriction; any estate at will or at sufferance, and any
15 estate for years having a term of less than thirty years; any reversion-
16 ary right, condition or right of entry for condition broken; the inter-
17 est of a mortgage or other secured party in any mortgage or security
18 agreement; and the interest of a stockholder in a corporation, or a
19 partner in a partnership.
20 (h) "Seller" shall mean the transferor, grantor or immediate former
21 owner of any real property interest.
22 (i) "Time of transfer" shall mean the time at which the transfer of
23 real property is legally effective as between the parties thereto, and,
24 in any event, with respect to a transfer evidenced by an instrument
25 recorded with the appropriate registry of deeds or filed with the
26 assistant recorder of the appropriate registry district, not later than
27 the time of such recording or filing.
28 S 2. There is hereby established a town of Brookhaven land bank, to be
29 administered by a commission established by section three of this act,
30 for the purpose of acquiring, holding and managing land and interests in
31 land of the types set forth in section five of this act. The land bank
32 is hereby constituted a body politic and corporate and a public instru-
33 mentality and the exercise of powers conferred by this act upon the land
34 bank shall be deemed to be the performance of an essential governmental
35 function.
36 S 3. The land bank shall be administered by a commission consisting of
37 five persons elected for staggered five-year terms; and provided that
38 the town board of the town of Brookhaven shall appoint the initial five
39 members of the commission as soon as possible after the effective date
40 of this act, to serve until the first annual election of the members to
41 be held at the first general election following the effective date of
42 this act. Members shall be legal residents of the town of Brookhaven and
43 shall serve without compensation. The commission shall elect a chairman
44 and a secretary/treasurer, from among its members, and may adopt reason-
45 able rules and regulations for the conduct of its affairs and the
46 management of its holdings not inconsistent with the provisions of this
47 act. Decisions of the commission shall be by majority vote of those
48 present and voting, and no business shall be transacted without three
49 members present. The commission shall keep accurate records of its meet-
50 ings and actions and shall file an annual report which shall be printed
51 in the annual town report. Any vacancy on the commission shall be filled
52 until the next general election by majority vote of the remaining
53 commissioners then in office. At the next general election a commission-
54 er shall be elected for the balance of the unexpired term.
55 S 4. The commission shall, subject to the provisions of this act, have
56 the power and authority to (a) purchase and acquire fee simple inter-
A. 4373 3
1 ests, and any lesser interests, in any land in the town of Brookhaven,
2 of the type set forth in section five of this act, including any
3 improvements thereon; (b) accept gifts of any such interests in land or
4 of funds to further the purposes of the land bank; (c) take any such
5 interests in land by eminent domain, and only by a vote of the commis-
6 sion in which at least four members vote in favor of such taking and
7 further only after having been authorized to do so in each instance by a
8 two-thirds vote of the town board of the town of Brookhaven, and further
9 provided that a reasonable effort shall first be made to negotiate the
10 acquisition thereof by purchase prior to such taking; (d) dispose of all
11 or any portion of its interests in any land or interests thereon held by
12 it; (e) incur debt, pledging the full faith and credit of the town of
13 Brookhaven, only after having been authorized to do so in each instance
14 by a two-thirds vote of the town board of the town of Brookhaven; (f)
15 employ such staff and obtain such professional services as are necessary
16 in order to perform its duties; (g) administer and manage land and
17 interests in land held by it in a manner which allows public use and
18 enjoyment consistent with the natural and scenic resources thereof; (h)
19 lease real property as may be held by the land bank for purposes
20 consistent with this act; and (i) finance and construct recreational
21 facilities, subject to the provisions of section six of this act.
22 S 4-a. The town of Brookhaven is hereby authorized to appropriate
23 money to be deposited in the land bank fund as provided in section eight
24 of this act and to provide funds to repay notes of the town and when
25 authorized to incur debt of the town for such purposes.
26 S 4-b. The land bank is hereby empowered to issue bonds and notes,
27 including notes in anticipation of bonds, for the purpose of acquiring
28 land and interests in land as provided in section four of this act. The
29 proceeds of such bonds or notes may be used to pay, in whole or in part,
30 acquisition costs; to provide reserves for debt service and other
31 expenses; to pay consulting, appraisal, advisory and legal fees and
32 costs incidental to the issuance and sale of such bonds or notes; to
33 purchase, refund or renew bonds or notes previously issued; and to pay
34 any other costs and expenses of the land bank necessary for the accom-
35 plishment of its purposes. Bonds or notes issued pursuant to this act
36 shall be authorized by the commission which shall have full power and
37 authority to determine the amount, form, terms, conditions, provisions
38 for the payment of interest, and all other details thereof and to
39 provide for their sale and issuance at such price and in such manner as
40 the commission shall determine, subject only to any limitations set
41 forth in this act.
42 The commission may enter into any agreements, including without limi-
43 tation a loan agreement and a trust agreement, necessary to effectuate
44 and to secure any bonds or notes issued by the land bank. Such agree-
45 ments may pledge or assign, in whole or in part, the revenues and other
46 money held or to be received by the land bank. Such agreements may
47 contain such provisions for protecting and enforcing the rights, securi-
48 ty and remedies of the holders of such bonds or notes, including, with-
49 out limiting the generality of the foregoing, provisions defining
50 defaults and providing for remedies in the event thereof which may
51 include the acceleration of maturities and covenants setting forth the
52 duties of, and limitations on, the land bank in relation to the custody,
53 safeguarding, investment and application of money, the issuance of addi-
54 tional debt obligations, the use of any surplus proceeds of the borrow-
55 ing, including any investment earnings thereon, and establishment of
56 special funds and reserves.
A. 4373 4
1 The pledge of any such agreement shall be valid and binding and shall
2 be deemed continuously perfected for the purposes of the uniform commer-
3 cial code from the time when the pledge is made; the revenues, money,
4 rights and proceeds so pledged and then held or thereafter acquired or
5 received by the land bank shall immediately be subject to the lien of
6 such pledge without any physical delivery or segregation thereof or
7 further act; and the lien of any such pledge shall be valid and binding
8 against all parties having claims of any kind in tort, contract or
9 otherwise against the town or county, irrespective of whether such
10 parties have notice thereof. No document by which a pledge is created
11 need be filed or recorded except in the records of the land bank and no
12 filing need be made under the uniform commercial code.
13 The trustee with respect to any such trust agreement entered into
14 pursuant to this section shall be a trust company or a bank having the
15 powers of a trust company. Any such trust agreement may provide that any
16 money received thereunder may be held, deposited or invested by the
17 trustee, notwithstanding the provisions of section eight of this act,
18 pending the disbursement thereof, in any deposits or investments which
19 are lawful for the funds of savings banks and shall provide that any
20 officer with whom or any bank or trust company with which such money
21 shall be deposited shall act as trustee of such money and shall hold and
22 apply the same for the purposes of this act, subject to such regulation
23 or limitation as this act or such trust agreement may provide.
24 It shall be lawful for any bank or trust company to act as depository
25 of the proceeds of bonds or notes, revenues or other money pursuant to
26 this act and to furnish such indemnifying bonds or to pledge such secu-
27 rity, if any, as may be required by the commission. Any trust agreement
28 entered into pursuant to this section may set forth the rights and reme-
29 dies of the holders of any bonds or notes and of the trustee and may
30 restrict the individual rights of action by any such holders. In addi-
31 tion to the foregoing, any such trust agreement may contain such other
32 provisions as the commission may deem reasonable and proper. All
33 expenses incurred in carrying out the provisions of such trust agreement
34 may be treated as part of the cost of operation of the land bank and
35 paid from the revenues or other funds pledged or assigned to the payment
36 of the principal of and the premium, if any, and interest on the bonds
37 or notes or from any other funds available to the land bank. In addition
38 to other security required by this section in or otherwise by law, bonds
39 or notes issued under this section may be secured, in whole or in part,
40 by insurance or by letters or lines of credit or other credit facilities
41 issued to the land bank by any bank, trust company or other financial
42 institution, within or without the state, and the land bank may pledge
43 or assign any of its revenues as security for the reimbursement by the
44 land bank to the issuers of such letters or lines of credit, insurance
45 or credit facilities of any payments made thereunder.
46 S 5. Land to be acquired and held as part of the land bank, or inter-
47 ests in which are to be so acquired and held, shall be situated in the
48 town of Brookhaven, and may consist of any of the following types of
49 land and interests therein; (a) ocean, harbor and pond frontage in the
50 form of beaches, dunes and adjoining backlands; (b) barrier beaches; (c)
51 fresh and salt water marshes, estuaries and adjoining uplands; (d)
52 heathland and moors; (e) land providing access to ocean, harbor and pond
53 frontage and land for bicycle paths; (f) land for future public recre-
54 ational facilities and use; (g) recreation land to protect existing and
55 future wellfields and aquifer recharge areas; and (h) land used or to be
56 used for agricultural purposes.
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1 S 6. The commission shall retain any real property interest relating
2 to land and water areas acquired pursuant to this act predominantly in
3 its natural, scenic or open condition except as provided for by this
4 section. Except upon the approval of the commissioner of environmental
5 conservation and where appropriate, subject to law and the constitution,
6 the commission shall not allow (a) construction or placing of buildings,
7 roads, signs, billboards or other advertising utilities or other struc-
8 tures on or above the surface, (b) dumping or placing of soil or other
9 substance or material as landfill, or dumping or placing of trash, waste
10 or unsightly or offensive materials, (c) removal or destruction of
11 trees, shrubs or other vegetation, (d) excavation, dredging or removal
12 of loam, peat, gravel, soil, rock or other mineral substance in such
13 manner as to affect the surface, (e) surface use except for purposes
14 permitting the land or water area to remain predominantly in its natural
15 condition, (f) activities detrimental to drainage, flood control, water
16 conservation, erosion control or soil conservation, or (g) other acts or
17 uses detrimental to such retention of land or water areas. In determin-
18 ing whether or not to approve a request from the commission to use,
19 improve or dispose of any real property interest acquired by such
20 commission in a manner otherwise prohibited by this section, the secre-
21 tary shall consider whether such request is in the interest of conserva-
22 tion and any natural, state, regional or local program in furtherance
23 thereof, and also any public, state, regional or local comprehensive
24 land use or development plan affecting the land, and any known proposal
25 by a governmental body for use of the land.
26 S 7. The commission shall file annually with the commissioner of envi-
27 ronmental conservation, a public access and outdoor recreation plan
28 which shall be, as far as possible, consistent with the town master plan
29 and with any regional planning relating to the area. The commission may,
30 from time to time, amend such plan. The plan shall show all real proper-
31 ty interests then held by the commission including a description of the
32 use thereof, and all acquisitions, improvements or dispositions of real
33 property interests held by the commission at any time during the year
34 preceding each filing, including the reasons for such acquisition,
35 improvement or disposition; the commissioner of environmental conserva-
36 tion may require any other information he or she deems important.
37 S 8. The commission shall meet its financial obligations by drawing
38 upon a land bank fund, to be set up as a revolving or sinking account
39 within the treasury of the town of Brookhaven. Deposits into the fund
40 shall include (a) funds appropriated to be deposited into the fund by
41 vote of the town board of the town of Brookhaven; (b) voluntary contrib-
42 utions of money and other liquid assets to the fund; (c) revenues from
43 fees imposed upon the transfer of real property interests as set forth
44 in section ten of this act occurring after the effective date of this
45 act as set forth in section fifteen of this act, together with payments
46 of interest and penalties under section thirteen of this act; (d)
47 proceeds from disposal of real property or interests; and (e) funds
48 received from any federal, state, county, region, district or municipal
49 source. The commission is further authorized to accept state and federal
50 funds to carry out the purposes of this act as if the commission were in
51 fact a district, city, town, region, county, state or state agency with-
52 in the meaning of any provision of law authorizing any grant consistent
53 with the purposes of this act. All expenses lawfully incurred by the
54 commission in carrying out the provisions of this act shall be evidenced
55 by proper vouchers and the town comptroller only upon submission of
56 warrants duly approved by the commission. The town comptroller shall
A. 4373 6
1 prudently invest available assets of the fund, and all income thereon
2 shall accrue to the fund. Real property held in the name of the land
3 bank or its designee shall be exempt from property taxes as of the date
4 of the acquisition of title by the land bank or its designee; and any
5 taxes assessed against such real property interests shall be abated for
6 that portion of any fiscal year during which the real property interests
7 were owned by the land bank or its designee.
8 S 9. (a) The commission shall keep a full and accurate account of its
9 actions including a record as to when, from or to whom, and on what
10 account money has been paid or received relative to this act, and as to
11 when, from and to whom and for what consideration real property inter-
12 ests have been acquired, improved or disposed of. Such records and
13 accounts shall be subject to examination by the state comptroller.
14 The town comptroller shall keep a full and accurate account stating
15 when, from or to whom, and on what account money has been paid or
16 received relative to the activities of the commission and the land bank.
17 Such account shall be subject to examination by the state comptroller.
18 (b) Schedules of beneficiaries of trusts, lists of stockholders of
19 corporations and lists of partnerships filed with the commission for the
20 purpose of determining or fixing the amount of the fee imposed under
21 section ten of this act or for the purpose of determining the existence
22 of any exemption under section twelve of this act shall not be public
23 records for purposes of the freedom of information law.
24 S 10. There is hereby imposed a fee equal to two percent of the
25 purchase price upon the transfer of any interest in any real property
26 situated in the town of Brookhaven. Such fee shall be the liability of
27 the purchaser of such real property interest, and any agreement between
28 the purchaser and the seller or any other person with reference to the
29 allocation of the responsibility for bearing such fee shall not affect
30 such liability of the purchaser. The fee shall be paid to the commis-
31 sion, or its designee, and shall be accompanied by a copy of the deed or
32 other instrument evidencing such transfer, if any, and an affidavit
33 signed under oath or under the penalty of perjury by the purchaser or
34 his or her legal representative, attesting to the true and complete
35 purchase price and the basis, if any, upon which the transfer is claimed
36 to be exempt in whole or in part from the fee imposed by this section.
37 The commission, or its designee, shall promptly thereafter execute and
38 issue a certificate indicating that the appropriate fee has been paid or
39 that the transfer is exempt from the fee, stating the basis for the
40 exemption. The county clerk of the county of Suffolk shall not record or
41 register, or receive or accept for recording or registration, any deed,
42 except a mortgage deed, to which has not been affixed such a certificate
43 executed by the commission or its designee. Failure to comply with this
44 requirement shall not affect the validity of any instrument. The commis-
45 sion shall deposit all fees received pursuant to this section with the
46 town comptroller of the town of Brookhaven, as a part of the fund estab-
47 lished by section eight of this act. The fee imposed pursuant to this
48 section shall be due simultaneously with the time of transfer of the
49 transfer upon which it is imposed. Notwithstanding the foregoing, when-
50 ever there is a conveyance of real property interests and a conveyance
51 of personalty related thereto at or about the same time, the allocations
52 of payments between real and personal property agreed to by the purchas-
53 er and seller shall not determine the amount of the fee due pursuant to
54 this section; instead, the commission may require payment of the fee
55 referred to in real property interests so conveyed as determined by the
56 commission.
A. 4373 7
1 S 10-a. To the extent not otherwise subject to payment of a fee pursu-
2 ant to section ten of this act, and notwithstanding the exemptions set
3 forth in paragraphs (i) and (j) of section twelve of this act, unless
4 otherwise exempted pursuant to such section twelve excluding such para-
5 graphs (i) and (j), there shall be paid a fee equal to two percent of
6 the fair market value of real property interests held in the name of or
7 otherwise owned by a corporation upon the transfer by the controlling
8 stockholders of their interest of the stock of such corporation. Such
9 fee shall be due on or before the time of transfer of the stock.
10 To the extent not otherwise subject to payment of a fee pursuant to
11 section ten of this act and notwithstanding the exemptions referred to
12 in said paragraphs (i) and (j) of section twelve of this act, unless
13 otherwise exempted pursuant to such section twelve excluding such para-
14 graphs (i) and (j), there shall be paid a fee equal to two percent of
15 the fair market value of real property interests held in the name of a
16 partnership or otherwise owned by a partnership upon the change in
17 composition of such partnership either in one transaction or a series of
18 related transactions which change in composition results in a transfer
19 of capital interests in excess of fifty percent of the total capital
20 interests within such partnerships or results in a transfer of the
21 ownership rights to profit interests within such partnership in excess
22 of fifty percent of the total profit interests within such partnerships.
23 S 11. At any time within seven days following the issuance of the
24 certificate of payment of the fee imposed by section ten of this act,
25 the purchaser or his legal representative may return such certificate to
26 the commission or its designee for cancellation, together with an affi-
27 davit signed under oath or under the penalty of perjury that the trans-
28 fer, with respect to which such certificate was issued, has not been
29 consummated, and thereupon the fee paid with respect to such transfer
30 shall be forthwith returned to the purchaser or his or her legal repre-
31 sentative.
32 S 12. The following transfers of real property interests shall be
33 exempt from the fee established by section ten or ten-a of this act.
34 Except as otherwise provided, the purchaser shall have the burden of
35 proof that any transfer is exempt pursuant to this section.
36 (a) Transfers to the government of the United States, the state, or
37 any of their instrumentalities, agencies or subdivisions.
38 (b) Transfers which, without additional consideration, confirm,
39 correct, modify or supplement a transfer previously made.
40 (c) Transfers made as gifts without consideration. In any proceeding
41 to determine the amount of any fee due pursuant to this act, it shall be
42 presumed that any transfer for consideration of less than fair market
43 value of the real property interests transferred was made as a gift
44 without consideration to the extent of the difference between the fair
45 market value of the real property interests transferred and the amount
46 of consideration claimed by the purchaser to have been paid or trans-
47 ferred, if the purchaser shall have been at the time of transfer the
48 spouse, the lineal descendant or the lineal ancestor of the seller, by
49 blood or adoption, and otherwise it shall be presumed that consideration
50 was paid in an amount equal to the fair market value of the real proper-
51 ty interest transferred, at the time of transfer.
52 (d) Transfer to the trustees of a trust in exchange for a beneficial
53 interest received by the seller in such trust; distributions by the
54 trustees of a trust to the beneficiaries of such trust.
A. 4373 8
1 (e) Transfers by operation of law without actual consideration,
2 including but not limited to transfers occurring by virtue of the death
3 or bankruptcy of the owner of a real property interest.
4 (f) Transfers made in partition of land and improvements thereto.
5 (g) Transfers to any charitable organization or any religious organ-
6 ization, provided that the real property interests so transferred will
7 be held by the charitable or religious organization solely for its
8 public charitable or religious purposes.
9 (h) Transfers to a mortgagee in foreclosure of the mortgage held by
10 such mortgagee, and transfers of the property subject to a mortgage to
11 the mortgagee in consideration of the forbearance of the mortgagee from
12 foreclosing said mortgage.
13 (i) Transfers made to a corporation or partnership at the time of its
14 formation, pursuant to which transfer no gain or loss is recognized
15 under the provisions of section three hundred and fifty-one or seven
16 hundred and twenty-one of the Internal Revenue Code of 1986, as amended;
17 provided, however, that such transfer shall be exempt only in the event
18 that (i) with respect to a corporation, the transferor retains a
19 controlling interest in such corporation after such formation or (ii)
20 with respect to a partnership, the transferor retains after such forma-
21 tion rights to capital interests in excess of fifty percent of the capi-
22 tal interests within such partnership or retains rights to profit inter-
23 ests within such partnership in excess of fifty percent of the total
24 profit interests within such partnership.
25 (j) Transfers made to a stockholder of a corporation in liquidation of
26 the corporation, and transfers made to a partner of a partnership in
27 dissolution of the partnership; provided, however, that such transfer
28 shall be exempt only in the event that (i) with respect to a corpo-
29 ration, the transferee had prior to the transfer a controlling interest
30 in such corporation or (ii) with respect to a partnership, the transfer-
31 ee had prior to the transfer rights to capital interests in excess of
32 fifty percent of the total capital interests within such partnership or
33 had rights to profit interest within such partnership in excess of fifty
34 percent of the total profit interests within such partnership.
35 (k) Transfers consisting of the equitable distribution of marital
36 assets.
37 (l) Transfers of property consisting in part of real property inter-
38 ests situated in the town of Brookhaven and in part of other property
39 interests, to the extent that the property transferred consists of prop-
40 erty other than real property situated in the town of Brookhaven;
41 provided that the purchaser shall furnish the commission with such
42 information as it shall require or request in support of the claim of
43 exemption and manner of allocation of the consideration for such trans-
44 fers.
45 (m) The first one hundred thousand dollars of the purchase price of a
46 transfer made to a purchaser who, or whose spouse at the time of trans-
47 fer, has at no time prior to such transfer owned or possessed any real
48 property interest as defined in section one of this act either within or
49 without the town of Brookhaven; provided that the purchaser shall make
50 the real property interest which is the subject of the transfer the
51 purchaser's actual domicile within two years of the time of transfer;
52 provided further that in the event of a subsequent transfer within five
53 years of the transfer exempted from the fee pursuant to this subdivi-
54 sion, other than the transfer of a mortgage to an institutional lender,
55 the fee exempted shall become due, together with the accumulated inter-
56 est and penalties, and in addition to any fee otherwise due as a result
A. 4373 9
1 of the subsequent transfer. The purchaser shall certify as to the fore-
2 going, and the commission shall attach to the deed a certificate which
3 shall recite the fact that there is running with the land a lien equal
4 to the amount of the fee exempted plus accumulated interest and penal-
5 ties until such time as all conditions of this subdivision have been
6 met.
7 S 13. A purchaser who fails to pay all or any portion of the fee
8 established by section ten or ten-a of this act on or before the time
9 when the same is due shall be liable for the following additional
10 payments in addition to such fee:
11 (a) Interest. The purchaser shall pay interest on the unpaid amount of
12 the fee to be calculated from the time of transfer at a rate equal to
13 fourteen percent per annum.
14 (b) Penalties. Any person who, without fraud or willful intent to
15 defeat or evade a fee imposed by this act, fails to pay all or a portion
16 of the fee within thirty days after the time of transfer, shall pay a
17 penalty equal to five percent of the outstanding fee as determined by
18 the commission for each month or portion thereof thereafter that the
19 fee is not paid in full; provided, however, that in no event shall the
20 amount of any penalty imposed pursuant to this subdivision exceed twen-
21 ty-five percent of the unpaid fee due at the time of transfer. Whenever
22 the commission determines that all or a portion of a fee due under this
23 act was unpaid due to fraud with intent to defeat or evade the fee
24 imposed by this act, a penalty equal to the amount of such fee as deter-
25 mined by the commission shall be paid by the purchaser in addition to
26 such fee.
27 S 14. (a) The commission shall notify a purchaser by registered or
28 certified mail of any failure to discharge in full the amount of the fee
29 due under this act and any penalty or interest assessed. The commission
30 shall grant a hearing on the matter of the imposition of such fee, or of
31 any penalty or interest assessed, if a petition requesting such hearing
32 is received by the commission within thirty days after the mailing of
33 such notice. The commission shall notify the purchaser in writing by
34 registered or certified mail of its determination concerning the defi-
35 ciency, penalty or interest within fifteen days after such hearing. Any
36 party aggrieved by a determination of the commission concerning a defi-
37 ciency, penalty or interest may, after payment of such deficiency,
38 appeal to the supreme court within three months after the mailing of
39 notification of the determination of the commission. Upon the failure to
40 timely petition for a hearing, or appeal to such court, within the time
41 limits established by this section, the purchaser shall be bound by the
42 terms of the notification, assessment or determination, as the case may
43 be, and shall be barred from contesting the fee, and any interest and
44 penalty, as determined by the commission. All decisions of such court
45 shall be appealable. Every notice to be given under this section by the
46 commission shall be effective if mailed by certified or registered mail
47 to the purchaser at the address stated in a recorded or registered
48 instrument by virtue of which the purchaser holds any interest in land,
49 the transfer of which gives rise to the fee which is the subject of such
50 notice; and if no such address is stated or if such transfer is not
51 evidenced by an instrument recorded or registered in the public records
52 in Suffolk county, such notice shall be effective when so mailed to the
53 purchaser in care of any person appearing of record to have a fee inter-
54 est in such land, at the address of such person as set forth in an
55 instrument recorded or registered in the county of Suffolk.
A. 4373 10
1 (b) All fees, penalties and interest required to be paid pursuant to
2 this act shall constitute a personal debt of the purchaser and may be
3 recovered in an action of contract or in any other appropriate action,
4 suit or proceeding brought by the commission.
5 (c) If any purchaser liable to pay the fee established by this act
6 neglects or refuses to pay the same, the amount, including any interest
7 and penalty thereon, shall be a lien in favor of the commission upon all
8 property and rights to property, whether real or personal, belonging to
9 such purchaser. Such lien shall arise at the time of transfer and shall
10 continue until the liability for such amount is satisfied. Such lien
11 shall in any event terminate not later than six years following the time
12 of transfer. Such lien shall not be valid as against any mortgagee,
13 pledgee, purchaser or judgment creditor unless notice thereof has been
14 filed by the commission (i) with respect to real property or fixtures,
15 in the office of the county clerk of the county of Suffolk or (ii) with
16 respect to personal property, in the office in which a security or
17 financing statement or notice with respect to the property would be
18 filed in order to perfect a nonpossessory security interest belonging to
19 the person named in the relevant notice.
20 In any case where there has been a refusal or neglect to pay any fee,
21 interest or penalties imposed by this act, whether or not levy has been
22 made, the commission, in addition to other modes of relief, may direct a
23 civil action to be filed in supreme court to enforce the lien of the
24 commission under this section with respect to such liability or to
25 subject any property of whatever nature of the delinquent, or in which
26 he or she has any right, title or interest, to the payment of such
27 liability.
28 The commission may issue a waiver or release of any lien imposed by
29 this section. Such waiver or release shall be conclusive evidence that
30 the lien upon the property covered by the waiver or release is extin-
31 guished.
32 S 15. Upon termination of dissolution of the land bank, the title to
33 all funds and other properties owned by it which remain after payment or
34 the making of provision for payment of all bonds, notes and other obli-
35 gations of the land bank shall vest in the town of Brookhaven.
36 S 16. This act, being necessary for the welfare of the town of Brook-
37 haven and its inhabitants, shall be liberally construed to effect the
38 purposes thereof.
39 S 17. The provisions of this act are severable, and if any provision
40 thereof, including without limitation any exemption from the fee imposed
41 thereby, shall be held invalid in any circumstances such invalidity
42 shall not affect any other provisions or circumstances. This act shall
43 be construed in all respects so as to meet all constitutional require-
44 ments. In carrying out the purposes and provisions of this act, all
45 steps shall be taken which are necessary to meet constitutional require-
46 ments whether or not such steps are required by statute.
47 S 18. This act shall take effect immediately.
