Senate Bill S7738

                            
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

    S. 7738--A                                           A. 10978--A

                      S E N A T E - A S S E M B L Y

                               May 5, 2010
                               ___________

IN  SENATE -- Introduced by Sen. FARLEY -- read twice and ordered print-
  ed, and when printed to be committed to the Committee on Local Govern-
  ment -- committee  discharged,  bill  amended,  ordered  reprinted  as
  amended and recommitted to said committee

IN  ASSEMBLY -- Introduced by M. of A. AMEDORE, TEDISCO -- read once and
  referred to the Committee on  Cities  --  committee  discharged,  bill
  amended,  ordered reprinted as amended and recommitted to said commit-
  tee

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
  expiration thereof

  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, 2010, the city of Sche-
nectady  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 condi-
tions:
  (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
thereto.
  (c) The city of Schenectady shall set the terms and conditions of  the
contract of sale.
  (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

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

                                                           LBD16940-02-0

S. 7738--A                          2                        A. 10978--A

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 plus any accrued interest and collection fees incurred  by
the  tax  lien purchaser. The tax lien purchaser shall provide the fore-
closure list to the city  of  Schenectady,  along  with  the  applicable
repurchase  price of each lien, by certified mail, and the city of Sche-
nectady 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 repurchase 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 foreclo-
sure 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, 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.  This  act shall take effect immediately and shall expire and be
deemed repealed on and after December 31, 2012.