Senate Bill S7981A

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

                                 7981--A

                            I N  S E N A T E

                              June 2, 2016
                               ___________

Introduced  by  Sen. MARTINS -- 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

AN ACT to authorize the village  of  Plandome  Manor  to  enter  into  a
  contract to sell or pledge as collateral for a loan some or all of the
  delinquent  liens  held by such village 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
  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, the village of Plandome Manor 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 Plandome Manor 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 Plandome Manor  a  list
of  liens  to  be  foreclosed. The village of Plandome Manor may, at its
sole option and discretion, repurchase a lien or liens on  the  foreclo-
sure 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 through the date of  repurchase.

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

                                                           LBD15730-02-6

S. 7981--A                          2

The tax lien purchaser shall provide the foreclosure list to the village
of  Plandome  Manor,  along with the applicable repurchase price of each
lien, by certified mail, and the village of Plandome Manor 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 Plandome Manor 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  Plan-
dome  Manor  shall  fail  to  repurchase  the lien or liens the tax lien
purchaser shall have the right to commence a  foreclosure  action  imme-
diately upon notice from the village of Plandome Manor of its refusal or
at the expiration 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 Plandome Manor 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 Plandome Manor.
  (b) Any contract for the collection of delinquent tax  liens  the  fee
paid  by  the  village  of  Plandome  Manor  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.