STATE OF NEW YORK
________________________________________________________________________
7589--B
IN SENATE
May 10, 2016
___________
Introduced by Sen. VALESKY -- read twice and ordered printed, and when
printed to be committed to the Committee on Corporations, Authorities
and Commissions -- committee discharged, bill amended, ordered
reprinted as amended and recommitted to said committee -- committee
discharged, bill amended, ordered reprinted as amended and recommitted
to said committee
AN ACT to amend the not-for-profit corporation law, in relation to the
powers of a land bank
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Clauses 20 and 21 of paragraph (a) of section 1607 of the
2 not-for-profit corporation law, as added by chapter 257 of the laws of
3 2011, are amended to read as follows:
4 (20) to enter in agreements with a foreclosing governmental unit for
5 the distribution of revenues to the foreclosing governmental unit and
6 school district; [and]
7 (21) to organize a subsidiary for a project or projects which the land
8 bank has the power to pursue under this article when the primary reason
9 for which the subsidiary shall be organized shall be to limit the poten-
10 tial liability impact of the subsidiary's project or projects on the
11 land bank or because state or federal law requires that the purpose of a
12 subsidiary be undertaken through a specific corporate or business struc-
13 ture. All real property of a subsidiary organized under this article
14 shall be maintained on the inventory lists required in this article of
15 the land bank of which it is a subsidiary and the subsidiary shall make
16 all reports and other disclosures as are required of land banks under
17 this article and as local public authorities, unless the subsidiary's
18 operations and finances are consolidated with those of the land bank of
19 which it is a subsidiary. Subsidiaries organized under this article
20 shall be established in the form of a New York charitable not-for-profit
21 corporation or a New York single member limited liability company.
22 Subsidiaries shall not have the authority to issue bonds, notes or other
23 debts, provided, however, that such subsidiaries may issue notes or
24 other debt to the land bank of which it is a subsidiary. The organiza-
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD15351-03-6
S. 7589--B 2
1 tional documents filed to create a subsidiary under this article shall
2 state that the land bank is organizing the subsidiary for the purposes
3 set forth in this article and the name of the subsidiary shall be
4 reasonably related to the name of the land bank of which it is a subsid-
5 iary. The real property of a subsidiary organized under this article and
6 its income and operations are exempt from all taxation by the state of
7 New York and by any of its political subdivisions; and
8 (22) to do all other things necessary to achieve the objectives and
9 purposes of the land bank or other laws that relate to the purposes and
10 responsibility of the land bank.
11 § 2. Paragraph (a) of section 1609 of the not-for-profit corporation
12 law, as added by chapter 257 of the laws of 2011, is amended to read as
13 follows:
14 (a) The land bank shall hold in its own name, or in the name of a
15 lawfully organized subsidiary, all real property acquired by the land
16 bank irrespective of the identity of the transferor of such property.
17 § 3. This act shall take effect immediately.
