S T A T E   O F   N E W   Y O R K
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                                 3183--A
    Cal. No. 243

                       2009-2010 Regular Sessions

                            I N  S E N A T E

                             March 12, 2009
                               ___________

Introduced  by  Sen. BONACIC -- read twice and ordered printed, and when
  printed to be committed to the Committee on Investigations and Govern-
  ment Operations -- 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 city of Middletown 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:

  Section 1. Notwithstanding any provision of any  general,  special  or
local  law  to  the  contrary  and  until December 31, 2009, the city of
Middletown may enter into a contract to sell some or all of  the  delin-
quent  tax liens held by it to a private party, subject to the following
conditions:
  (a) The consideration to be paid may be more or  less  than  the  face
amount of the tax liens sold.
  (b)  Property owners shall be given at least 30 days advance notice of
such sale in the same form and manner as is provided by subdivision 2 of
section 1190 of the real property  tax  law.  Failure  to  provide  such
notice  or the failure of the addressee to receive the same shall not in
any way affect the validity of any sale of a tax lien or  tax  liens  or
the  validity  of  the  taxes or interest prescribed by law with respect
thereto.
  (c) The city of Middletown shall set the terms and conditions  of  the
contract of sale.
  (d)  The  tax lien purchaser must 30 days prior to the commencement of
any foreclosure action provide to the city of Middletown a list of liens
to be foreclosed. The city of Middletown may, at  its  sole  option  and
discretion,  repurchase a lien or liens on the foreclosure list from the

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
              

                                                           LBD08451-03-9

S. 3183--A                          2

tax lien purchaser. The repurchase price shall be the amount of the lien
or liens plus any accrued interest and collection fees incurred  by  the
tax lien purchaser. The tax lien purchaser shall provide the foreclosure
list  to  the  city  of Middletown, along with the applicable repurchase
price of each lien, by certified mail, and the city of Middletown  shall
have 30 days from receipt to notify the tax lien purchaser of its option
to purchase one or more of the liens.  If the city of Middletown opts to
purchase the lien, it shall provide payment within 30 days of receipt of
the  repurchase  price of said lien or liens.  If the city of Middletown
shall fail to opt to repurchase the lien or liens the tax lien purchaser
shall have the right to commence a foreclosure action immediately.
  (e) The sale of a tax lien pursuant to this act shall not  operate  to
shorten  the otherwise applicable redemption period or change the other-
wise applicable interest rate.
  (f) Upon the expiration of the redemption period  prescribed  by  law,
the  purchaser  of  a delinquent tax lien, or its successors or assigns,
may foreclose the lien as in  an  action  to  foreclose  a  mortgage  as
provided  in section 1194 of the real property tax law. The procedure in
such action shall be the procedure prescribed by article 13 of the  real
property  actions  and proceedings law for the foreclosure of mortgages.
At any time following the commencement of an action to foreclose a lien,
the amount required to redeem the lien, or the amount received upon sale
of a property, shall include reasonable and necessary collection  costs,
attorneys' fees, legal costs, allowances, and disbursements.
  (g)  The  provisions of title 5 of article 11 of the real property tax
law shall apply so far as is practicable to a contract for the  sale  of
tax liens pursuant to this act.
  S  2.  This  act shall take effect immediately and shall expire and be
deemed repealed on and after December 31, 2011.