S T A T E   O F   N E W   Y O R K
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                                  10604

                          I N  A S S E M B L Y

                              June 8, 2016
                               ___________

Introduced  by COMMITTEE ON RULES -- (at request of M. of A. Schimel) --
  read once and referred to the Committee on Local Governments

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.
The tax lien purchaser shall provide the foreclosure list to the village
of  Plandome  Manor,  along with the applicable repurchase price of each

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

                                                           LBD15790-02-6

A. 10604                            2

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.