Bill Text: NY A10604 | 2015-2016 | General Assembly | Introduced

---

Bill Title: Relates to the village of Plandome Manor entering into contracts to sell delinquent tax liens.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2016-06-17 - substituted by s7981a [A10604 Detail]

Download: New_York-2015-A10604-Introduced.html

---

                STATE OF NEW YORK
        ________________________________________________________________________
                                          10604
                   IN ASSEMBLY
                                      June 8, 2016
                                       ___________
        Introduced  by COMMITTEE ON RULES -- (at request of M. of A. Schimel) --
          read once and referred to the Committee on Local Governments
        AN ACT to authorize the village  of  Plandome  Manor  to  enter  into  a
          contract to sell or pledge as collateral for a loan some or all of the
          delinquent  liens  held by such village to a private party or engage a
          private party to collect some or all of the delinquent tax liens  held
          by it; and providing for the repeal of such provisions upon expiration
          thereof
          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:
     1    Section 1. Notwithstanding any provision of any  general,  special  or
     2  local  law to the contrary, the village of Plandome Manor may enter into
     3  a contract to sell some or all of the delinquent tax liens held by it to
     4  a private party, subject to the following conditions:
     5    (a) The consideration to be paid for a  sale  of  the  delinquent  tax
     6  liens  held  by  it  may be more or less than the face amount of the tax
     7  liens sold.
     8    (b) Property owners shall be given at least 30 days advance notice  of
     9  sale in the same form and manner as provided by subdivision 2 of section
    10  1190 of the real property tax law. Failure to provide such notice or the
    11  failure of the addressee to receive the same shall not in any way affect
    12  the  validity  of any sale of a tax lien or tax liens or the validity of
    13  the taxes or interest prescribed by law with respect thereto.
    14    (c) The village of Plandome Manor shall set the terms  and  conditions
    15  of the contract of sale or loan.
    16    (d)  The  tax lien purchaser must 30 days prior to the commencement of
    17  any foreclosure action provide to the village of Plandome Manor  a  list
    18  of  liens  to  be  foreclosed. The village of Plandome Manor may, at its
    19  sole option and discretion, repurchase a lien or liens on  the  foreclo-
    20  sure list from the tax lien purchaser. The repurchase price shall be the
    21  amount  of  the  lien  or liens plus any accrued interest and collection
    22  fees incurred by the tax lien purchaser through the date of  repurchase.
    23  The tax lien purchaser shall provide the foreclosure list to the village
    24  of  Plandome  Manor,  along with the applicable repurchase price of each
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD15790-02-6
        A. 10604                            2
     1  lien, by certified mail, and the village of Plandome Manor shall have 30
     2  days from receipt to notify the tax lien  purchaser  of  its  option  to
     3  purchase one or more of the liens. If the village of Plandome Manor opts
     4  to purchase the lien, it shall provide payment within 30 days of receipt
     5  of  the  repurchase price of said lien or liens. If the village of Plan-
     6  dome Manor shall fail to repurchase the  lien  or  liens  the  tax  lien
     7  purchaser  shall  have  the right to commence a foreclosure action imme-
     8  diately upon notice from the village of Plandome Manor of its refusal or
     9  at the expiration of the 30 day review period whichever occurs first.
    10    (e) The sale of a tax lien pursuant to this act shall not  operate  to
    11  shorten  the otherwise applicable redemption period or change the other-
    12  wise applicable interest rate.
    13    (f) Upon the expiration of the redemption period  prescribed  by  law,
    14  the  purchaser  of  a delinquent tax lien, or its successors or assigns,
    15  may foreclose the lien as in  an  action  to  foreclose  a  mortgage  as
    16  provided  in section 1194 of the real property tax law. The procedure in
    17  such action shall be the procedure prescribed by article 13 of the  real
    18  property  actions  and proceedings law for the foreclosure of mortgages.
    19  At any time following the commencement of an action to foreclose a lien,
    20  the amount required to redeem the lien, or the amount received upon sale
    21  of a property, shall include reasonable and necessary collection  costs,
    22  attorneys' fees, legal costs, allowances, and disbursements.
    23    (g)  The  provisions of title 5 of article 11 of the real property tax
    24  law shall apply so far as is practicable to a contract for the  sale  of
    25  tax liens pursuant to this act.
    26    §  2.  Notwithstanding  any provision of any general, special or local
    27  law to the contrary, the village of Plandome  Manor  may  enter  into  a
    28  contract  to  pledge  as collateral for a loan some or all of the delin-
    29  quent tax liens held by it to a third party or engage a third  party  to
    30  collect  some  or  all of the delinquent tax liens held by it subject to
    31  the following conditions:
    32    (a) Any loan provided under this section shall bear an  interest  rate
    33  to be determined by the village of Plandome Manor.
    34    (b)  Any  contract  for the collection of delinquent tax liens the fee
    35  paid by the village of Plandome  Manor  shall  not  exceed  10%  of  the
    36  outstanding  balance  of the tax lien being collected and said fee shall
    37  be borne by the delinquent taxpayer.
    38    § 3. This act shall take effect immediately and shall expire  December
    39  31,  2019 when upon such date the provisions of this act shall be deemed
    40  repealed.