Senate Bill S6525A

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

                                 6525--A
    Cal. No. 228

                            I N  S E N A T E

                            February 3, 2014
                               ___________

Introduced  by  Sen.  ZELDIN -- read twice and ordered printed, and when
  printed to be committed  to  the  Committee  on  Local  Government  --
  reported  favorably  from  said committee, ordered to first and second
  report, ordered to a third reading,  amended  and  ordered  reprinted,
  retaining its place in the order of third reading

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 45 days advance notice of
sale in the same manner as is provided by paragraph (b) of subdivision 1
of section 1125 of the real property tax law. Failure  to  provide  such
notice shall invalidate any sale of a tax lien or tax liens. Such notice
shall  be  in  the  form  set forth in paragraph (b) of subdivision 2 of
section 1190 of the real property tax law.
  (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
amount of the lien or liens plus any  accrued  interest  and  collection

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
              

                      [ ] is old law to be omitted.
                                                           LBD13397-05-4

S. 6525--A                          2

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, 2018 when upon such date the provisions of this act shall be  deemed
repealed.