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A06212 Summary:

A06212 Actions:

A06212 Committee Votes:

A06212 Floor Votes:

A06212 Text:

 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                         6212--A
 
                               2015-2016 Regular Sessions
 
                   IN ASSEMBLY
 
                                     March 17, 2015
                                       ___________
 
        Introduced by M. of A. MURRAY -- read once and referred to the Committee
          on  Ways  and  Means  --  committee  discharged, bill amended, ordered
          reprinted as amended and recommitted to said committee
 
        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:
 
     1    Section 1. Notwithstanding any provision of any  general,  special  or
     2  local  law to the contrary, the village of Mastic Beach may enter into a
     3  contract to sell some or all of the delinquent tax liens held by it to a
     4  private party, subject to the following conditions:
     5    (a) The consideration to be paid for a  sale  of  the  delinquent  tax
     6  liens  held  by  it  may be more or less than the face amount of the tax
     7  liens sold.
     8    (b) Property owners shall be given at least 30 days advance notice  of
     9  sale in the same form and manner as provided by subdivision 2 of section
    10  1190 of the real property tax law. Failure to provide such notice or the
    11  failure of the addressee to receive the same shall not in any way affect
    12  the  validity  of any sale of a tax lien or tax liens or the validity of
    13  the taxes or interest prescribed by law with respect thereto.
    14    (c) The village of Mastic Beach shall set the terms and conditions  of
    15  the contract of sale or loan.
    16    (d)  The  tax lien purchaser must 30 days prior to the commencement of
    17  any foreclosure action provide to the village of Mastic Beach a list  of
    18  liens  to  be  foreclosed.  The village of Mastic Beach may, at its sole
    19  option and discretion, repurchase a lien or  liens  on  the  foreclosure
    20  list  from  the  tax  lien  purchaser. The repurchase price shall be the
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD02436-02-5
        A. 6212--A                          2
 
     1  amount of the lien or liens plus any  accrued  interest  and  collection
     2  fees  incurred by the tax lien purchaser through the date of repurchase.
     3  The tax lien purchaser shall provide the foreclosure list to the village
     4  of  Mastic  Beach,  along  with  the applicable repurchase price of each
     5  lien, by certified mail, and the village of Mastic Beach shall  have  30
     6  days  from  receipt  to  notify  the tax lien purchaser of its option to
     7  purchase one or more of the liens. If the village of Mastic  Beach  opts
     8  to purchase the lien, it shall provide payment within 30 days of receipt
     9  of  the repurchase price of said lien or liens. If the village of Mastic
    10  Beach shall fail to repurchase the lien or liens the tax lien  purchaser
    11  shall  have  the right to commence a foreclosure action immediately upon
    12  notice from the village of Mastic Beach of its refusal or at the expira-
    13  tion of the 30 day review period whichever occurs first.
    14    (e) The sale of a tax lien pursuant to this act shall not  operate  to
    15  shorten  the otherwise applicable redemption period or change the other-
    16  wise applicable interest rate.
    17    (f) Upon the expiration of the redemption period  prescribed  by  law,
    18  the  purchaser  of  a delinquent tax lien, or its successors or assigns,
    19  may foreclose the lien as in  an  action  to  foreclose  a  mortgage  as
    20  provided  in section 1194 of the real property tax law. The procedure in
    21  such action shall be the procedure prescribed by article 13 of the  real
    22  property  actions  and proceedings law for the foreclosure of mortgages.
    23  At any time following the commencement of an action to foreclose a lien,
    24  the amount required to redeem the lien, or the amount received upon sale
    25  of a property, shall include reasonable and necessary collection  costs,
    26  attorneys' fees, legal costs, allowances, and disbursements.
    27    (g)  The  provisions of title 5 of article 11 of the real property tax
    28  law shall apply so far as is practicable to a contract for the  sale  of
    29  tax liens pursuant to this act.
    30    §  2.  Notwithstanding  any provision of any general, special or local
    31  law to the contrary, the village  of  Mastic  Beach  may  enter  into  a
    32  contract  to  pledge  as collateral for a loan some or all of the delin-
    33  quent tax liens held by it to a third party or engage a third  party  to
    34  collect  some  or  all of the delinquent tax liens held by it subject to
    35  the following conditions:
    36    (a) Any loan provided under this section shall bear an  interest  rate
    37  to be determined by the village of Mastic Beach.
    38    (b)  Any  contract  for the collection of delinquent tax liens the fee
    39  paid by the village  of  Mastic  Beach  shall  not  exceed  10%  of  the
    40  outstanding  balance  of the tax lien being collected and said fee shall
    41  be borne by the delinquent taxpayer.
    42    § 3. This act shall take effect immediately and shall expire  December
    43  31,  2019 when upon such date the provisions of this act shall be deemed
    44  repealed.