S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   1341
 
                        2021-2022 Regular Sessions
 
                           I N  A S S E M B L Y
 
                              January 8, 2021
                                ___________
 
 Introduced  by  M.  of  A.  MAGNARELLI  -- read once and referred to the
   Committee on Local Governments
 
 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
 reasonably related to the name of the land bank of which it is a subsid-
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD01753-01-1

 A. 1341                             2
 
 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.