STATE OF NEW YORK
________________________________________________________________________
6525--A
Cal. No. 228
IN SENATE
February 3, 2014
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Introduced by Sen. ZELDIN -- read twice and ordered printed, and when
printed to be committed to the Committee on Local Government --
reported favorably from said committee, ordered to first and second
report, ordered to a third reading, amended and ordered reprinted,
retaining its place in the order of third reading
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 45 days advance notice of
9 sale in the same manner as is provided by paragraph (b) of subdivision 1
10 of section 1125 of the real property tax law. Failure to provide such
11 notice shall invalidate any sale of a tax lien or tax liens. Such notice
12 shall be in the form set forth in paragraph (b) of subdivision 2 of
13 section 1190 of the real property tax law.
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
21 amount of the lien or liens plus any accrued interest and collection
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD13397-05-4
S. 6525--A 2
1 fees incurred by the tax lien purchaser through the date of repurchase.
2 The tax lien purchaser shall provide the foreclosure list to the village
3 of Mastic Beach, along with the applicable repurchase price of each
4 lien, by certified mail, and the village of Mastic Beach shall have 30
5 days from receipt to notify the tax lien purchaser of its option to
6 purchase one or more of the liens. If the village of Mastic Beach opts
7 to purchase the lien, it shall provide payment within 30 days of receipt
8 of the repurchase price of said lien or liens. If the village of Mastic
9 Beach shall fail to repurchase the lien or liens the tax lien purchaser
10 shall have the right to commence a foreclosure action immediately upon
11 notice from the village of Mastic Beach of its refusal or at the expira-
12 tion of the 30 day review period whichever occurs first.
13 (e) The sale of a tax lien pursuant to this act shall not operate to
14 shorten the otherwise applicable redemption period or change the other-
15 wise applicable interest rate.
16 (f) Upon the expiration of the redemption period prescribed by law,
17 the purchaser of a delinquent tax lien, or its successors or assigns,
18 may foreclose the lien as in an action to foreclose a mortgage as
19 provided in section 1194 of the real property tax law. The procedure in
20 such action shall be the procedure prescribed by article 13 of the real
21 property actions and proceedings law for the foreclosure of mortgages.
22 At any time following the commencement of an action to foreclose a lien,
23 the amount required to redeem the lien, or the amount received upon sale
24 of a property, shall include reasonable and necessary collection costs,
25 attorneys' fees, legal costs, allowances, and disbursements.
26 (g) The provisions of title 5 of article 11 of the real property tax
27 law shall apply so far as is practicable to a contract for the sale of
28 tax liens pursuant to this act.
29 § 2. Notwithstanding any provision of any general, special or local
30 law to the contrary, the village of Mastic Beach may enter into a
31 contract to pledge as collateral for a loan some or all of the delin-
32 quent tax liens held by it to a third party or engage a third party to
33 collect some or all of the delinquent tax liens held by it subject to
34 the following conditions:
35 (a) Any loan provided under this section shall bear an interest rate
36 to be determined by the village of Mastic Beach.
37 (b) Any contract for the collection of delinquent tax liens the fee
38 paid by the village of Mastic Beach shall not exceed 10% of the
39 outstanding balance of the tax lien being collected and said fee shall
40 be borne by the delinquent taxpayer.
41 § 3. This act shall take effect immediately and shall expire December
42 31, 2018 when upon such date the provisions of this act shall be deemed
43 repealed.
