S T A T E O F N E W Y O R K
Cal. No. 215
2009-2010 Regular Sessions
I N S E N A T E
January 28, 2009
Introduced by Sen. FARLEY -- read twice and ordered printed, and when
printed to be committed to the Committee on Local Government --
committee discharged, bill amended, ordered reprinted as amended and
recommitted to said committee -- reported favorably from said commit-
tee, ordered to first and second report, ordered to a third reading,
amended and ordered reprinted, retaining its place in the order of
AN ACT to authorize the city of Schenectady to enter into a contract to
sell some or all of the delinquent tax liens held by such city to a
private party; and providing for the repeal of such provisions upon
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Notwithstanding any provision of any general, special or
local law to the contrary and until December 31, 2009, the City of Sche-
nectady may enter into a contract to sell some or all of the delinquent
tax liens held by it which have been attached to real property on or
before January 31, 2010, to a private party, subject to the following
(a) The consideration to be paid may be more or less than the face
amount of the tax liens sold.
(b) Property owners shall be given at least 30 days advance notice of
such sale in the same form and manner as is provided by subdivision 2 of
section 1190 of the real property tax law. Failure to provide such
notice or the failure of the addressee to receive the same shall not in
any way affect the validity of any sale of a tax lien or tax liens or
the validity of the taxes or interest prescribed by law with respect
(c) The City of Schenectady shall set the terms and conditions of the
contract of sale.
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
S. 1261--B 2
(d) The tax lien purchaser must 30 days prior to the commencement of
any foreclosure action provide to the City of Schenectady a list of
liens to be foreclosed. The City of Schenectady may, at its sole option
and discretion, repurchase a lien or liens on the foreclosure list from
the tax lien purchaser. The repurchase price shall be the amount of the
lien or liens and may include any accrued interest and reasonable and
necessary collection fees incurred by the tax lien purchaser. The tax
lien purchaser shall provide the foreclosure list to the City of Sche-
nectady, along with the applicable repurchase price of each lien, by
certified mail, and the City of Schenectady shall have 30 days from
receipt to notify the tax lien purchaser of its option to purchase one
or more of the liens. If the City of Schenectady opts to purchase the
lien, it shall provide payment within 30 days of receipt of the repur-
chase price of said lien or liens. If the City of Schenectady shall
fail to opt to repurchase the lien or liens the tax lien purchaser shall
have the right to commence a foreclosure action immediately.
(e) The sale of a tax lien pursuant to this act shall not operate to
shorten the otherwise applicable redemption period or change the other-
wise applicable interest rate.
(f) Upon the expiration of the redemption period prescribed by law,
the purchaser of a delinquent tax lien, or its successors or assigns,
may foreclose the lien as in an action to foreclose a mortgage as
provided in section 1194 of the real property tax law. The procedure in
such action shall be the procedure prescribed by article 13 of the real
property actions and proceedings law for the foreclosure of mortgages.
At any time following the commencement of an action to foreclose a lien,
the amount required to redeem the lien, or the amount received upon sale
of a property, may include reasonable and necessary collection costs,
attorneys' fees, legal costs, allowances, and disbursements.
(g) The provisions of title 5 of article 11 of the real property tax
law shall apply so far as is practicable to a contract for the sale of
tax liens pursuant to this act.
S 2. This act shall take effect immediately and shall expire and be
deemed repealed on and after December 31, 2011.