Bill Text: NY S04170 | 2019-2020 | General Assembly | Introduced


Bill Title: Authorizes land banks to lend money, to make grants and take and hold real and personal property as security for the payment of funds so loaned or for the performance and enforcement of grant agreements.

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Introduced) 2019-05-08 - ADVANCED TO THIRD READING [S04170 Detail]

Download: New_York-2019-S04170-Introduced.html


                STATE OF NEW YORK
        ________________________________________________________________________
                                          4170
                               2019-2020 Regular Sessions
                    IN SENATE
                                      March 4, 2019
                                       ___________
        Introduced  by  Sen. BRESLIN -- read twice and ordered printed, and when
          printed to be committed to the Committee on Corporations,  Authorities
          and Commissions
        AN  ACT to amend the not-for-profit corporation law, in relation to land
          banks
          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:
     1    Section  1.  Clauses 21 and 22 of paragraph (a) of section 1607 of the
     2  not-for-profit corporation law, as amended by chapter 338 of the laws of
     3  2016, are amended to read as follows:
     4    (21) to organize a subsidiary for a project or projects which the land
     5  bank has the power to pursue under this article when the primary  reason
     6  for which the subsidiary shall be organized shall be to limit the poten-
     7  tial  liability  impact  of  the subsidiary's project or projects on the
     8  land bank or because state or federal law requires that the purpose of a
     9  subsidiary be undertaken through a specific corporate or business struc-
    10  ture. All real property of a subsidiary  organized  under  this  article
    11  shall  be  maintained on the inventory lists required in this article of
    12  the land bank of which it is a subsidiary and the subsidiary shall  make
    13  all  reports  and  other disclosures as are required of land banks under
    14  this article and as local public authorities,  unless  the  subsidiary's
    15  operations  and finances are consolidated with those of the land bank of
    16  which it is a subsidiary.  Subsidiaries  organized  under  this  article
    17  shall be established in the form of a New York charitable not-for-profit
    18  corporation  or  a  New  York  single  member limited liability company.
    19  Subsidiaries shall not have the authority to issue bonds, notes or other
    20  debts, provided, however, that such  subsidiaries  may  issue  notes  or
    21  other  debt  to the land bank of which it is a subsidiary. The organiza-
    22  tional documents filed to create a subsidiary under this  article  shall
    23  state  that  the land bank is organizing the subsidiary for the purposes
    24  set forth in this article and  the  name  of  the  subsidiary  shall  be
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD00128-01-9

        S. 4170                             2
     1  reasonably related to the name of the land bank of which it is a subsid-
     2  iary. The real property of a subsidiary organized under this article and
     3  its  income  and operations are exempt from all taxation by the state of
     4  New York and by any of its political subdivisions; [and]
     5    (22) to lend money, to make grants and take and hold real and personal
     6  property  as  security  for  the  payment  of funds so loaned or for the
     7  performance and enforcement of grant agreements; and
     8    (23) to do all other things necessary to achieve  the  objectives  and
     9  purposes  of the land bank or other laws that relate to the purposes and
    10  responsibility of the land bank.
    11    § 2. This act shall take effect immediately.
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