S T A T E   O F   N E W   Y O R K
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                                 6212--A

                       2015-2016 Regular Sessions

                          I N  A S S E M B L Y

                             March 17, 2015
                               ___________

Introduced by M. of A. MURRAY -- read once and referred to the Committee
  on  Ways  and  Means  --  committee  discharged, bill amended, ordered
  reprinted as amended and recommitted to said committee

AN ACT to authorize the village of Mastic Beach to enter into a contract
  to sell or pledge as collateral for a loan some or all of  the  delin-
  quent  liens  held by such city 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 there-
  of

  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, the village of Mastic Beach may enter into a
contract to sell some or all of the delinquent tax liens held by it to a
private party, subject to the following conditions:
  (a) The consideration to be paid for a  sale  of  the  delinquent  tax
liens  held  by  it  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
sale in the same form and manner as 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 thereto.
  (c) The village of Mastic Beach shall set the terms and conditions  of
the contract of sale or loan.
  (d)  The  tax lien purchaser must 30 days prior to the commencement of
any foreclosure action provide to the village of Mastic Beach a list  of
liens  to  be  foreclosed.  The village of Mastic Beach 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

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD02436-02-5
              

A. 6212--A                          2

amount of the lien or liens plus any  accrued  interest  and  collection
fees  incurred by the tax lien purchaser through the date of repurchase.
The tax lien purchaser shall provide the foreclosure list to the village
of  Mastic  Beach,  along  with  the applicable repurchase price of each
lien, by certified mail, and the village of Mastic Beach 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 village of Mastic  Beach  opts
to purchase the lien, it shall provide payment within 30 days of receipt
of  the repurchase price of said lien or liens. If the village of Mastic
Beach shall fail to repurchase the lien or liens the tax lien  purchaser
shall  have  the right to commence a foreclosure action immediately upon
notice from the village of Mastic Beach of its refusal or at the expira-
tion of the 30 day review period whichever occurs first.
  (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, shall 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.  Notwithstanding  any provision of any general, special or local
law to the contrary, the village  of  Mastic  Beach  may  enter  into  a
contract  to  pledge  as collateral for a loan some or all of the delin-
quent tax liens held by it to a third party or engage a third  party  to
collect  some  or  all of the delinquent tax liens held by it subject to
the following conditions:
  (a) Any loan provided under this section shall bear an  interest  rate
to be determined by the village of Mastic Beach.
  (b)  Any  contract  for the collection of delinquent tax liens the fee
paid by the village  of  Mastic  Beach  shall  not  exceed  10%  of  the
outstanding  balance  of the tax lien being collected and said fee shall
be borne by the delinquent taxpayer.
  S 3. This act shall take effect immediately and shall expire  December
31,  2019 when upon such date the provisions of this act shall be deemed
repealed.