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S07981 Summary:

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S07981 Text:

 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                         7981--A
 
                    IN SENATE
 
                                      June 2, 2016
                                       ___________
 
        Introduced  by  Sen. MARTINS -- read twice and ordered printed, and when
          printed to be committed  to  the  Committee  on  Local  Government  --
          committee  discharged,  bill amended, ordered reprinted as amended and
          recommitted to said committee
 
        AN ACT to authorize the village  of  Plandome  Manor  to  enter  into  a
          contract to sell or pledge as collateral for a loan some or all of the
          delinquent  liens  held by such village 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
          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, the village of Plandome Manor may enter into
     3  a contract to sell some or all of the delinquent tax liens held by it to
     4  a 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 Plandome Manor shall set the terms  and  conditions
    15  of 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 Plandome Manor  a  list
    18  of  liens  to  be  foreclosed. The village of Plandome Manor may, at its
    19  sole option and discretion, repurchase a lien or liens on  the  foreclo-
    20  sure 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
    22  fees incurred by the tax lien purchaser through the date of  repurchase.
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD15730-02-6
        S. 7981--A                          2
 
     1  The tax lien purchaser shall provide the foreclosure list to the village
     2  of  Plandome  Manor,  along with the applicable repurchase price of each
     3  lien, by certified mail, and the village of Plandome Manor shall have 30
     4  days  from  receipt  to  notify  the tax lien purchaser of its option to
     5  purchase one or more of the liens. If the village of Plandome Manor opts
     6  to purchase the lien, it shall provide payment within 30 days of receipt
     7  of the repurchase price of said lien or liens. If the village  of  Plan-
     8  dome  Manor  shall  fail  to  repurchase  the lien or liens the tax lien
     9  purchaser shall have the right to commence a  foreclosure  action  imme-
    10  diately upon notice from the village of Plandome Manor of its refusal or
    11  at the expiration of the 30 day review period whichever occurs first.
    12    (e)  The  sale of a tax lien pursuant to this act shall not operate to
    13  shorten the otherwise applicable redemption period or change the  other-
    14  wise applicable interest rate.
    15    (f)  Upon  the  expiration of the redemption period prescribed by law,
    16  the purchaser of a delinquent tax lien, or its  successors  or  assigns,
    17  may  foreclose  the  lien  as  in  an  action to foreclose a mortgage as
    18  provided in section 1194 of the real property tax law. The procedure  in
    19  such  action shall be the procedure prescribed by article 13 of the real
    20  property actions and proceedings law for the foreclosure  of  mortgages.
    21  At any time following the commencement of an action to foreclose a lien,
    22  the amount required to redeem the lien, or the amount received upon sale
    23  of  a property, shall include reasonable and necessary collection costs,
    24  attorneys' fees, legal costs, allowances, and disbursements.
    25    (g) The provisions of title 5 of article 11 of the real  property  tax
    26  law  shall  apply so far as is practicable to a contract for the sale of
    27  tax liens pursuant to this act.
    28    § 2. Notwithstanding any provision of any general,  special  or  local
    29  law  to  the  contrary,  the  village of Plandome Manor may enter into a
    30  contract to pledge as collateral for a loan some or all  of  the  delin-
    31  quent  tax  liens held by it to a third party or engage a third party to
    32  collect some or all of the delinquent tax liens held by  it  subject  to
    33  the following conditions:
    34    (a)  Any  loan provided under this section shall bear an interest rate
    35  to be determined by the village of Plandome Manor.
    36    (b) Any contract for the collection of delinquent tax  liens  the  fee
    37  paid  by  the  village  of  Plandome  Manor  shall not exceed 10% of the
    38  outstanding balance of the tax lien being collected and said  fee  shall
    39  be borne by the delinquent taxpayer.
    40    §  3. This act shall take effect immediately and shall expire December
    41  31, 2019 when upon such date the provisions of this act shall be  deemed
    42  repealed.