S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   7940
 
                        2025-2026 Regular Sessions
 
                             I N  S E N A T E
 
                               May 14, 2025
                                ___________
 
 Introduced  by  Sen.  BAILEY -- read twice and ordered printed, and when
   printed to be committed to the Committee on Local Government
 
 AN ACT to amend the real property tax law, in relation to procedures for
   the foreclosure of tax lien proceedings
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  Section  1166 of the real property tax law, as amended by
 section 13 of part BB of chapter 55 of the laws of 2024, is  amended  to
 read as follows:
   §  1166.  Real  property  acquired  by tax district; right of sale. 1.
 Whenever any tax district shall become vested with  the  title  to  real
 property,  and  whenever an enforcing officer shall have been authorized
 to sell and convey real property directly to another party, by virtue of
 a foreclosure proceeding brought pursuant  to  the  provisions  of  this
 article,  such tax district or enforcing officer is hereby authorized to
 sell and convey such real property, which shall include any and all gas,
 oil or mineral rights associated with such real property,  [either  with
 or  without advertising for bids,] notwithstanding the provisions of any
 general, special or local law.
   2. [No such sale shall be effective unless and until such  sale  shall
 have  been  approved  and  confirmed by a majority vote of the governing
 body of the tax district, except that no such approval shall be required
 when the property is sold at public auction to the highest bidder.]  (A)
 NOTICE  OF SUCH SALE SHALL BE GIVEN BY THE OFFICER MAKING IT BY PUBLISH-
 ING A NOTICE OF THE TIME AND PLACE OF THE SALE, CONTAINING A DESCRIPTION
 OF THE PROPERTY TO BE SOLD, IN A NEWSPAPER PUBLISHED IN  THE  COUNTY  IN
 WHICH  THE  PROPERTY  IS  LOCATED,  OR, IF THERE IS NONE, IN A NEWSPAPER
 PUBLISHED IN AN ADJOINING COUNTY, UNLESS THE PROPERTY IS SITUATED WHOLLY
 OR PARTLY IN A CITY, OR IN AN INCORPORATED VILLAGE  IN  WHICH  A  DAILY,
 SEMI-WEEKLY  OR TRI-WEEKLY NEWSPAPER IS PUBLISHED, AND, IN THAT CASE, BY
 PUBLISHING NOTICE OF THE SALE IN SUCH A DAILY, SEMI-WEEKLY OR TRI-WEEKLY
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD09285-01-5
              

 S. 7940                             2
 
 PAPER, EXCEPT THAT WHERE SUCH REAL PROPERTY IS LOCATED IN A COUNTY WITH-
 IN THE CITY OF NEW YORK SUCH PUBLICATION SHALL BE IN A  DAILY  NEWSPAPER
 PUBLISHED  WITHIN  SUCH COUNTY, OR IN A WEEKLY PAPER PUBLISHED IN A CITY
 OR  IN SUCH INCORPORATED VILLAGE. IF THE PROPERTY BE SITUATED IN A CITY,
 OR A VILLAGE IN WHICH NO NEWSPAPER IS PUBLISHED  DAILY,  SEMI-WEEKLY  OR
 TRI-WEEKLY,  AND  THERE  BE  AN ADJOINING CITY OR VILLAGE IN THE SAME OR
 ANOTHER COUNTY, IN WHICH A NEWSPAPER IS PUBLISHED DAILY, SEMI-WEEKLY  OR
 TRI-WEEKLY,  SUCH  NOTICE MAY BE PUBLISHED IN SUCH DAILY, SEMI-WEEKLY OR
 TRI-WEEKLY NEWSPAPER OF THE LATTER CITY OR VILLAGE OR IN A WEEKLY  NEWS-
 PAPER OF SUCH CITY. IN EACH CASE, PUBLICATION MAY BE EITHER ONCE IN EACH
 WEEK  FOR FOUR SUCCESSIVE WEEKS OR AT LEAST TWICE IN EACH WEEK FOR THREE
 SUCCESSIVE WEEKS PRECEDING THE ORIGINAL DATE FIXED FOR THE SALE. IF  THE
 PUBLICATION IS FOR THREE WEEKS, SUCH SALE SHALL TAKE PLACE ON ANY DAY ON
 OR  AFTER  THE  TWENTY-FIRST  DAY AND ON OR BEFORE THE TWENTY-EIGHTH DAY
 AFTER THE DAY OF THE FIRST PUBLICATION; AND IF THE  PUBLICATION  IS  FOR
 FOUR  WEEKS  SUCH SALE SHALL TAKE PLACE ON ANY DAY ON OR AFTER THE TWEN-
 TY-EIGHTH DAY AND ON OR BEFORE THE THIRTY-FIFTH DAY AFTER THE DAY OF THE
 FIRST PUBLICATION. ANY PERIOD OF SEVEN SUCCESSIVE DAYS SHALL  CONSTITUTE
 A WEEK UNDER THIS SECTION.
   (B)  WHERE THE PROPERTY IS SITUATED WHOLLY OUTSIDE A CITY OR AN INCOR-
 PORATED VILLAGE REFERRED TO IN PARAGRAPH (A) OF THIS SUBDIVISION, NOTICE
 OF SUCH SALE SHALL ALSO BE GIVEN BY POSTING A COPY OF THE NOTICE OF SALE
 AT LEAST TWENTY-EIGHT DAYS PRECEDING THE ORIGINAL  DATE  FIXED  FOR  THE
 SALE  IN  THREE  PUBLIC  PLACES  IN  THE  TOWN  IN WHICH THE PROPERTY IS
 LOCATED, AND, IF THE SALE IS TO BE HELD IN ANOTHER TOWN OR IN A CITY, IN
 THREE PUBLIC PLACES THEREIN.
   (C) IF THE OFFICER APPOINTED TO MAKE SUCH SALE DOES NOT APPEAR AT  THE
 TIME  AND  PLACE  WHERE SUCH SALE HAS BEEN ADVERTISED TO TAKE PLACE, THE
 ATTORNEY FOR THE PLAINTIFF MAY POSTPONE OR  ADJOURN  SUCH  SALE  NOT  TO
 EXCEED  FOUR WEEKS, DURING WHICH TIME SUCH ATTORNEY MAY MAKE APPLICATION
 TO THE COURT TO HAVE ANOTHER PERSON APPOINTED TO MAKE SUCH SALE.  NOTICE
 OF POSTPONEMENT OF THE SALE SHALL BE POSTED AT LEAST THREE DAYS PRIOR TO
 THE  POSTPONED  DATE  IN  THE SAME PLACES AS THE ORIGINAL NOTICE OF SALE
 WHEN POSTING OF THE NOTICE OF SALE IS REQUIRED, AND SHALL  BE  PUBLISHED
 ONCE AT LEAST THREE DAYS PRIOR TO THE POSTPONED DATE IN THE NEWSPAPER IN
 WHICH THE NOTICE OF SALE WAS ORIGINALLY PUBLISHED.
   (D) THE TERMS OF THE SALE SHALL BE MADE KNOWN AT THE SALE.
   (E)  IF THE PROPERTY CONSISTS OF TWO OR MORE DISTINCT BUILDINGS, FARMS
 OR LOTS, THEY SHALL BE SOLD SEPARATELY, UNLESS OTHERWISE ORDERED BY  THE
 COURT;  BUT  WHERE  TWO  OR MORE BUILDINGS ARE SITUATED IN THE SAME CITY
 LOT, THEY SHALL BE SOLD TOGETHER.
   (F) AT ANY TIME WITHIN ONE YEAR AFTER THE SALE,  BUT  NOT  THEREAFTER,
 THE  COURT,  UPON  SUCH TERMS AS MAY BE JUST, MAY SET THE SALE ASIDE FOR
 FAILURE TO COMPLY WITH THE PROVISIONS OF THIS SECTION AS TO THE  NOTICE,
 TIME OR MANNER OF SUCH SALE IF A SUBSTANTIAL RIGHT OF A PARTY WAS PREJU-
 DICED BY THE DEFECT.
   3. AFTER THE SALE PURSUANT TO THIS SECTION, ALL SURPLUS MONEYS ARISING
 FROM  THE  SALE  SHALL  BE PAID INTO COURT BY THE OFFICER CONDUCTING THE
 SALE WITHIN FIVE DAYS AFTER THE SAME SHALL BE RECEIVED.
   4. (A) WITHIN THIRTY DAYS AFTER COMPLETING THE SALE AND EXECUTING  THE
 PROPER  CONVEYANCE TO THE PURCHASER, UNLESS SUCH TIME BE EXTENDED BY THE
 COURT WITHIN SAID THIRTY DAYS, THE OFFICER MAKING THE  SALE  SHALL  FILE
 WITH  THE  CLERK  SUCH OFFICER'S REPORT UNDER OATH OF THE DISPOSITION OF
 THE PROCEEDS OF THE SALE, ACCOMPANIED BY THE VOUCHERS OF THE PERSONS  TO
 WHOM PAYMENTS WERE MADE.
 S. 7940                             3
 
   (B)   A MOTION TO CONFIRM SUCH REPORT OF SALE SHALL NOT BE MADE WITHIN
 THREE MONTHS AFTER THE FILING OF THE REPORT AND SHALL IN  ANY  EVENT  BE
 MADE  NOT LATER THAN FOUR MONTHS AFTER THE FILING OF SUCH REPORT, EXCEPT
 THAT IF THERE BE NO SURPLUS MONEYS ARISING FROM THE SALE  OF  THE  MORT-
 GAGED  PREMISES  UNDER SUCH JUDGMENT, AN APPLICATION FOR CONFIRMATION OF
 THE REPORT OF SALE MAY BE MADE AT ANY TIME AFTER THE REPORT  SHALL  HAVE
 BEEN  FILED  EIGHT  DAYS.  WHERE THE REPORT OF SALE SHOWS SURPLUS MONEY,
 SUCH REPORT MUST INCLUDE THE AMOUNT OF SURPLUS AND INSTRUCTIONS FOR  HOW
 INTERESTED  PARTIES  MAY  APPLY  TO  CLAIM  AN INTEREST FOR SUCH SURPLUS
 PURSUANT TO SUBDIVISION FIVE OF THIS SECTION.
   (C) SUCH REPORT REQUIRED PURSUANT TO THIS SUBDIVISION SHALL BE  POSTED
 PUBLICLY  IN  ACCORDANCE  WITH  THE PROVISIONS OF SECTION ELEVEN HUNDRED
 TWENTY-FOUR OF THIS ARTICLE.
   (D) PERSONAL NOTICE OF THE SALE OF PROPERTY PURSUANT TO  THIS  SECTION
 SHALL BE ADMINISTERED IN ACCORDANCE WITH THE PROVISIONS OF SECTION ELEV-
 EN HUNDRED TWENTY-FIVE OF THIS ARTICLE.
   5. (A) ANY PERSON CLAIMING THE SURPLUS MONEYS ARISING UPON THE SALE OF
 PREMISES  PURSUANT  TO THIS SECTION, OR ANY PART THEREOF, EITHER IN SUCH
 PERSON'S OWN NAME, OR BY SUCH PERSON'S ATTORNEY, AT ANY TIME BEFORE  THE
 CONFIRMATION  OF  THE  REPORT  OF SALE, MAY FILE WITH THE CLERK IN WHOSE
 OFFICE THE REPORT OF SALE IS FILED, A  WRITTEN  NOTICE  OF  SUCH  CLAIM,
 STATING  THE NATURE AND EXTENT OF SUCH PERSON'S CLAIM AND THE ADDRESS OF
 SUCH PERSON OR SUCH PERSON'S ATTORNEY.
   (B) ON THE MOTION FOR CONFIRMATION, OR AT ANY TIME WITHIN THREE MONTHS
 THEREAFTER, ON NOTICE TO ALL PARTIES WHO HAVE APPEARED IN THE ACTION  OR
 FILED  CLAIMS,  ON  MOTION OF ANY PARTY TO THE ACTION, OR ANY PERSON WHO
 HAS FILED A NOTICE OF CLAIM ON THE SURPLUS MONEYS, THE COURT, BY  REFER-
 ENCE  OR  OTHERWISE,  SHALL  ASCERTAIN AND REPORT THE AMOUNT DUE TO SUCH
 PERSON OR ANY OTHER PERSON WHO HAS A LIEN ON SUCH  SURPLUS  MONEYS,  AND
 THE  PRIORITY  OF  THE  SEVERAL  LIENS THEREON AND ORDER DISTRIBUTION OF
 SURPLUS MONEYS.
   (C) THE OWNER OF THE EQUITY  OF  REDEMPTION,  OR  ANY  PARTY  WHO  HAS
 APPEARED  IN THE ACTION OR ANY PERSON WHO FILES A NOTICE OF CLAIM OR WHO
 HAS A RECORDED LIEN AGAINST THE PROPERTY SHALL BE GIVEN NOTICE  BY  MAIL
 OR IN SUCH OTHER MANNER AS THE COURT SHALL DIRECT, TO ATTEND ANY HEARING
 ON DISPOSITION OF SURPLUS MONEY.
   6.  WHENEVER  ANY  TAX  DISTRICT SHALL BECOME VESTED WITH THE TITLE TO
 REAL PROPERTY BY VIRTUE OF A FORECLOSURE PROCEEDING BROUGHT PURSUANT  TO
 THE  PROVISIONS  OF THIS ARTICLE, SUCH TAX DISTRICT IS HEREBY AUTHORIZED
 TO KEEP THE REAL PROPERTY SO ACQUIRED FOR SUCH TAX  DISTRICT'S  USE.  IN
 SUCH  CASE, A VALUATION PROCEEDING SHALL BE COMMENCED IN ACCORDANCE WITH
 ARTICLE FIVE OF THE EMINENT DOMAIN PROCEDURE LAW. ONCE  A  DETERMINATION
 OF THE PROPERTY'S FAIR MARKET VALUE HAS BEEN MADE, THE COURT SHALL ORDER
 THE  TAX  DISTRICT  TO  PAY JUST COMPENSATION TO THE OWNERS OF THE FORE-
 CLOSED PROPERTY, REPRESENTING  THE  DIFFERENCE  BETWEEN  THE  PROPERTY'S
 VALUE AND THE TOTAL TAX DEBT OWED.
   [3.]  7.  The provisions of title six of this article shall govern the
 distribution of any surplus attributable to such sales.
   § 2. Paragraph (d) of subdivision 2 and subdivision 3 of section  1136
 of  the real property tax law, paragraph (d) of subdivision 2 as amended
 by section 9 and subdivision 3 as amended by section 10 of  part  BB  of
 chapter 55 the laws of 2024, are amended to read as follows:
   (d)  In  directing  any  conveyance  pursuant to this subdivision, the
 judgment shall direct the enforcing  officer  of  the  tax  district  to
 prepare  and  execute a deed conveying title to the parcel or parcels of
 real property concerned. Such title shall be full and  complete  in  the
 S. 7940                             4
 
 absence of an agreement between tax districts as herein provided that it
 shall be subject to the tax liens of one or more tax districts. Upon the
 execution  of such deed, the grantee shall be seized of an estate in fee
 simple  absolute  in such parcel unless the conveyance is expressly made
 subject to tax liens of a tax district  as  herein  provided[,  and  all
 persons,  including the state, infants, incompetents, absentees and non-
 residents, who may have had any right, title, interest, claim,  lien  or
 equity of redemption in or upon such parcel, shall be barred and forever
 foreclosed  of all such right, title, interest, claim, lien or equity of
 redemption]. Nothing contained herein shall be construed to preclude any
 such person from filing a claim pursuant to section eleven hundred thir-
 ty-five or title six of this article for a share of any surplus that may
 be attributable to the sale of such parcel.
   3. When no answer has been interposed. (a)  The  court  shall  make  a
 final  judgment  awarding  to  such  tax  district the possession of any
 parcel of real property described in the  petition  of  foreclosure  not
 redeemed  as  provided in this title and as to which no answer is inter-
 posed as provided  herein.  In  addition  thereto  such  judgment  shall
 contain  a  direction  to  the  enforcing officer of the tax district to
 prepare, execute and cause to be recorded a deed conveying to  such  tax
 district full and complete title to such parcel.
   (b)  Alternatively, at the request of the enforcing officer, the court
 may make a final judgment authorizing the enforcing officer to  prepare,
 execute  and  cause  to  be  recorded a deed conveying full and complete
 title to such parcel directly to a party other than  the  tax  district,
 without the tax district taking title thereto.
   (c)  Upon the execution of such deed, the tax district, or the grantee
 as the case may be, shall be seized of an estate in fee simple  absolute
 in  such parcel [and all persons, including the state, infants, incompe-
 tents, absentees and non-residents who may have had  any  right,  title,
 interest,  claim,  lien  or  equity of redemption in or upon such parcel
 shall be barred and forever foreclosed of all such right, title,  inter-
 est,  claim,  lien  or  equity  of redemption]. Nothing contained herein
 shall be construed to preclude any  such  person  from  filing  a  claim
 pursuant  to  section  eleven  hundred  thirty-five or title six of this
 article for a share of any surplus that may be attributable to the  sale
 of such parcel.
   §  3.  Subdivision 10 of section 1194 of the real property tax law, as
 amended by chapter 149 of the laws  of  2003,  is  amended  to  read  as
 follows:
   10.  The  conveyance made pursuant to a judgment in any action brought
 under this title shall vest in the purchaser [all] A PROPORTION  OF  THE
 right,  title,  interest,  claim,  lien  and equity of redemption in and
 against the real property sold of all parties to the action, and of  all
 persons  whose  right, title, interest, claim, lien or equity of redemp-
 tion has accrued subsequent in time to the filing of the notice  of  the
 pendency of the action by assignment of an interest existing prior ther-
 eto  from one of the parties to the action or any or either of them. All
 such parties and persons shall [be barred and forever foreclosed by  the
 judgment  in such action of all] RETAIN A right, title, interest, claim,
 lien and equity of redemption in and to the real property  sold  or  any
 part  thereof IN PROPORTION TO THE SURPLUS EQUITY REMAINING IN THE PROP-
 ERTY AFTER SALE, except that the conveyance  shall  be  subject  to  all
 taxes  or  other legal charges of all tax districts which accrued subse-
 quent to the taxes or other legal charges which were the subject of  the
 action.  [Notwithstanding the provisions of subdivision two of] PROCEEDS
 S. 7940                             5
 
 OF THE SALE SHALL BE DISTRIBUTED IN  ACCORDANCE  WITH  section  thirteen
 hundred  fifty-four  of  the real property actions and proceedings law[,
 this subdivision shall prevail].
   §  4. Subdivision 1 and paragraph (a) of subdivision 2 of section 1112
 of the real property tax law, as amended by chapter 532 of the  laws  of
 1994, are amended to read as follows:
   1.  When a tax district holds more than one tax lien against a parcel,
 the liens need not be redeemed simultaneously. However, the liens [must]
 SHALL  be  redeemed  in  [reverse] chronological order, so that the lien
 with the [most recent] EARLIEST lien date is  redeemed  first,  and  the
 lien  with  the  [earliest]  MOST  RECENT  lien  date  is redeemed last.
 Notwithstanding the redemption of one or more of  the  liens  against  a
 parcel as provided herein, the enforcement process shall proceed accord-
 ing  to  the  provisions  of this article as long as the [earliest] MOST
 RECENT lien remains unredeemed.
   (a) When one or more liens against a parcel are redeemed  as  provided
 herein,  but  the  [earliest]  MOST  RECENT lien remains unredeemed, the
 receipt issued to the person redeeming  shall  include  a  statement  in
 substantially  the  following form:  "This parcel remains subject to one
 or more delinquent tax liens. The payment you have made will  not  post-
 pone the enforcement of the outstanding lien or liens. Continued failure
 to pay the entire amount owed will result in the loss of the property."
   §  5. Paragraph (b) of subdivision 1 of section 1125 of the real prop-
 erty tax law, as added by chapter 415 of the laws of 2006  and  subpara-
 graph  (i)  as amended by chapter 275 of the laws of 2009, is amended to
 read as follows:
   (b) Notification method. (i) IN THE CASE OF AN  OWNER,  THE  ENFORCING
 OFFICER SHALL CAUSE A COPY OF SUCH NOTICE TO BE POSTED AS PROVIDED HERE-
 IN ON THE PROPERTY TO WHICH THE DELINQUENT TAX LIEN RELATES; IN THE CASE
 OF  A NON-OWNER, THE ENFORCING OFFICER SHALL CAUSE A COPY OF SUCH NOTICE
 TO BE POSTED IN SUCH NON-OWNER'S OFFICE AND IN THE OFFICE OF  THE  CLERK
 OF  THE  COURT  IN  WHICH  THE  PETITION  OF FORECLOSURE HAS BEEN FILED.
 NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY, THE PARTY TO  WHOM
 SUCH  NOTICE  IS  DIRECTED  MAY REDEEM THE PARCEL IN QUESTION OR SERVE A
 DULY VERIFIED ANSWER TO THE PETITION OF  FORECLOSURE  UNTIL  EITHER  THE
 THIRTIETH  DAY  AFTER SUCH POSTING OR DELIVERY, OR THE DATE SPECIFIED BY
 THE NOTICE OF FORECLOSURE AS THE LAST DAY FOR REDEMPTION,  WHICHEVER  IS
 LATER.
   (II)  Such notice shall ALSO be sent to each such party both by certi-
 fied mail and ordinary first class mail, subject to  the  provisions  of
 subparagraph (iv) of this paragraph. The notice shall be deemed received
 unless  both  the certified mailing and the ordinary first class mailing
 are returned by the United States postal service within forty-five  days
 after being mailed. In that event, the enforcing officer or [his or her]
 SUCH  OFFICER'S  agent  shall  attempt  to obtain an alternative mailing
 address from the United States postal service. When notice  is  required
 to  be  sent to the commissioner of taxation and finance, an alternative
 notice may  be  used  by  the  enforcing  officer,  in  accordance  with
 instructions prescribed by the commissioner of taxation and finance.
   [(ii)] (III) If an alternative mailing address is found, the enforcing
 officer  shall  cause  the  notice  to  be  mailed to such owner at such
 address both by  certified  mail  and  by  ordinary  first  class  mail.
 Notwithstanding  any  provision  of  law to the contrary, such owner may
 redeem the parcel in question or serve a duly  verified  answer  to  the
 petition  of foreclosure until either the thirtieth day after such mail-
 S. 7940                             6
 
 ing, or the date specified by the notice of foreclosure as the last  day
 for redemption, whichever is later.
   [(iii)  If  no  alternative  mailing address can be found, then in the
 case of an owner, the enforcing officer  shall  cause  a  copy  of  such
 notice  to  be  posted  as  provided herein on the property to which the
 delinquent tax lien relates; in the case of a non-owner,  the  enforcing
 officer  shall  cause  a  copy of such notice to be posted in his or her
 office and in the office of the clerk of the court in which the petition
 of foreclosure has been filed. Notwithstanding any provision of  law  to
 the  contrary,  the party to whom such notice is directed may redeem the
 parcel in question or serve a duly verified answer to  the  petition  of
 foreclosure  until either the thirtieth day after such posting or deliv-
 ery, or the date specified by the notice of foreclosure as the last  day
 for redemption, whichever is later.]
   (iv)  Where  an  owner  is listed as "unknown" on the tax roll and the
 name of such owner cannot be found in  the  public  record,  the  notice
 shall  be  mailed  to  the property address by ordinary first class mail
 addressed to "occupant" and a copy thereof shall be posted on the  prop-
 erty to which the tax lien relates.
   §  6.  Subdivision  3 of section 1180 of the real property tax law, as
 amended by chapter 579 of the laws  of  1995,  is  amended  to  read  as
 follows:
   3.  If such lands are not redeemed, every person despoiling such lands
 or interested in making such  despoliation  upon  whom  service  of  the
 notice  has  been  made,  shall be liable to pay to the tax district the
 [full] DIFFERENTIAL value [of] BETWEEN  THAT  TOTAL  TAX  DEBT  AND  THE
 MARKET  VALUE OF THE PROPERTY AT THE TIME OF FORECLOSURE ATTRIBUTABLE TO
 any buildings, timber or other products  cut  or  destroyed  or  removed
 therefrom,  from  the date of the filing of the list of delinquent taxes
 to the termination of such action or proceeding, and may  be  restrained
 by  injunction from committing any waste thereon. WHERE THE VALUE OF THE
 PROPERTY AT THE TIME OF FORECLOSURE EXCEEDS THE AMOUNT OF THE TOTAL  TAX
 DEBT,  THERE  SHALL  BE  NO LIABILITY FOR DESPOLIATION. THE VALUE OF THE
 PROPERTY AT THE TIME OF FORECLOSURE MAY BE MEASURED BY EITHER THE AMOUNT
 GENERATED BY SALE OF THE PROPERTY AT PUBLIC AUCTION, IN ACCORDANCE  WITH
 SECTION  ELEVEN  HUNDRED  SIXTY-SIX  OF  THIS  TITLE,  OR  BY  VALUATION
 PROCEEDINGS IN ACCORDANCE WITH ARTICLE FIVE OF THE EMINENT DOMAIN PROCE-
 DURE LAW.
   § 7. This act shall take effect on the sixtieth  day  after  it  shall
 have become a law. Effective immediately, the addition, amendment and/or
 repeal  of  any  rule  or regulation necessary for the implementation of
 this act on its effective date are authorized to be made  and  completed
 on or before such effective date.