S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   5783
 
                        2017-2018 Regular Sessions
 
                             I N  S E N A T E
 
                              April 28, 2017
                                ___________
 
 Introduced  by  Sen. VALESKY -- read twice and ordered printed, and when
   printed to be committed to the Committee on Corporations,  Authorities
   and Commissions
 
 AN  ACT to amend the not-for-profit corporation law, in relation to land
   banks
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  Clauses 21 and 22 of paragraph (a) of section 1607 of the
 not-for-profit corporation law, as amended by chapter 338 of the laws of
 2016, are amended to read as follows:
   (21) to organize a subsidiary for a project or projects which the land
 bank has the power to pursue under this article when the primary  reason
 for which the subsidiary shall be organized shall be to limit the poten-
 tial  liability  impact  of  the subsidiary's project or projects on the
 land bank or because state or federal law requires that the purpose of a
 subsidiary be undertaken through a specific corporate or business struc-
 ture. All real property of a subsidiary  organized  under  this  article
 shall  be  maintained on the inventory lists required in this article of
 the land bank of which it is a subsidiary and the subsidiary shall  make
 all  reports  and  other disclosures as are required of land banks under
 this article and as local public authorities,  unless  the  subsidiary's
 operations  and finances are consolidated with those of the land bank of
 which it is a subsidiary.  Subsidiaries  organized  under  this  article
 shall be established in the form of a New York charitable not-for-profit
 corporation  or  a  New  York  single  member limited liability company.
 Subsidiaries shall not have the authority to issue bonds, notes or other
 debts, provided, however, that such  subsidiaries  may  issue  notes  or
 other  debt  to the land bank of which it is a subsidiary. The organiza-
 tional documents filed to create a subsidiary under this  article  shall
 state  that  the land bank is organizing the subsidiary for the purposes
 set forth in this article and  the  name  of  the  subsidiary  shall  be

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

                                                            LBD10368-01-7

 S. 5783                             2
 
 reasonably related to the name of the land bank of which it is a subsid-
 iary. The real property of a subsidiary organized under this article and
 its  income  and operations are exempt from all taxation by the state of
 New York and by any of its political subdivisions; [and]
   (22) TO LEND MONEY, TO MAKE GRANTS AND TAKE AND HOLD REAL AND PERSONAL
 PROPERTY  AS  SECURITY  FOR  THE  PAYMENT  OF FUNDS SO LOANED OR FOR THE
 PERFORMANCE AND ENFORCEMENT OF GRANT AGREEMENTS; AND
   (23) to do all other things necessary to achieve  the  objectives  and
 purposes  of the land bank or other laws that relate to the purposes and
 responsibility of the land bank.
   § 2. This act shall take effect immediately.