S T A T E O F N E W Y O R K
________________________________________________________________________
6362
2017-2018 Regular Sessions
I N A S S E M B L Y
March 6, 2017
___________
Introduced by M. of A. MAGNARELLI -- read once and referred to the
Committee on Local Governments
AN ACT to amend the not-for-profit corporation law, in relation to land
banks
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Clauses 21 and 22 of paragraph (a) of section 1607 of the
not-for-profit corporation law, as amended by chapter 338 of the laws of
2016, are amended to read as follows:
(21) to organize a subsidiary for a project or projects which the land
bank has the power to pursue under this article when the primary reason
for which the subsidiary shall be organized shall be to limit the poten-
tial liability impact of the subsidiary's project or projects on the
land bank or because state or federal law requires that the purpose of a
subsidiary be undertaken through a specific corporate or business struc-
ture. All real property of a subsidiary organized under this article
shall be maintained on the inventory lists required in this article of
the land bank of which it is a subsidiary and the subsidiary shall make
all reports and other disclosures as are required of land banks under
this article and as local public authorities, unless the subsidiary's
operations and finances are consolidated with those of the land bank of
which it is a subsidiary. Subsidiaries organized under this article
shall be established in the form of a New York charitable not-for-profit
corporation or a New York single member limited liability company.
Subsidiaries shall not have the authority to issue bonds, notes or other
debts, provided, however, that such subsidiaries may issue notes or
other debt to the land bank of which it is a subsidiary. The organiza-
tional documents filed to create a subsidiary under this article shall
state that the land bank is organizing the subsidiary for the purposes
set forth in this article and the name of the subsidiary shall be
reasonably related to the name of the land bank of which it is a subsid-
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD10368-01-7
A. 6362 2
iary. The real property of a subsidiary organized under this article and
its income and operations are exempt from all taxation by the state of
New York and by any of its political subdivisions; [and]
(22) TO LEND MONEY, TO MAKE GRANTS AND TAKE AND HOLD REAL AND PERSONAL
PROPERTY AS SECURITY FOR THE PAYMENT OF FUNDS SO LOANED OR FOR THE
PERFORMANCE AND ENFORCEMENT OF GRANT AGREEMENTS; AND
(23) to do all other things necessary to achieve the objectives and
purposes of the land bank or other laws that relate to the purposes and
responsibility of the land bank.
§ 2. This act shall take effect immediately.