STATE OF NEW YORK
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S. 7738--A A. 10978--A
SENATE - ASSEMBLY
May 5, 2010
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IN SENATE -- Introduced by Sen. FARLEY -- read twice and ordered print-
ed, and when printed to be committed to the Committee on Local Govern-
ment -- committee discharged, bill amended, ordered reprinted as
amended and recommitted to said committee
IN ASSEMBLY -- Introduced by M. of A. AMEDORE, TEDISCO -- read once and
referred to the Committee on Cities -- committee discharged, bill
amended, ordered reprinted as amended and recommitted to said commit-
tee
AN ACT to authorize the city of Schenectady to enter into a contract to
sell some or all of the delinquent tax liens held by such city to a
private party; 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:
1 Section 1. Notwithstanding any provision of any general, special or
2 local law to the contrary and until December 31, 2010, the city of Sche-
3 nectady may enter into a contract to sell some or all of the delinquent
4 tax liens held by it to a private party, subject to the following condi-
5 tions:
6 (a) The consideration to be paid may be more or less than the face
7 amount of the tax liens sold.
8 (b) Property owners shall be given at least 30 days advance notice of
9 such sale in the same form and manner as is provided by subdivision 2 of
10 section 1190 of the real property tax law. Failure to provide such
11 notice or the failure of the addressee to receive the same shall not in
12 any way affect the validity of any sale of a tax lien or tax liens or
13 the validity of the taxes or interest prescribed by law with respect
14 thereto.
15 (c) The city of Schenectady shall set the terms and conditions of the
16 contract of sale.
17 (d) The tax lien purchaser must 30 days prior to the commencement of
18 any foreclosure action provide to the city of Schenectady a list of
19 liens to be foreclosed. The city of Schenectady may, at its sole option
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD16940-02-0
S. 7738--A 2 A. 10978--A
1 and discretion, repurchase a lien or liens on the foreclosure list from
2 the tax lien purchaser. The repurchase price shall be the amount of the
3 lien or liens plus any accrued interest and collection fees incurred by
4 the tax lien purchaser. The tax lien purchaser shall provide the fore-
5 closure list to the city of Schenectady, along with the applicable
6 repurchase price of each lien, by certified mail, and the city of Sche-
7 nectady shall have 30 days from receipt to notify the tax lien purchaser
8 of its option to purchase one or more of the liens. If the city of
9 Schenectady opts to purchase the lien, it shall provide payment within
10 30 days of receipt of the repurchase price of said lien or liens. If
11 the city of Schenectady shall fail to opt to repurchase the lien or
12 liens the tax lien purchaser shall have the right to commence a foreclo-
13 sure action immediately.
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. This act shall take effect immediately and shall expire and be
31 deemed repealed on and after December 31, 2012.
