§ 1190. Contracts for the sale of delinquent tax liens. 1. (a)
Notwithstanding any general or special law to the contrary, a tax
district may enter into a contract to sell some or all of the delinquent
tax liens held by it to the state of New York municipal bond bank agency
created pursuant to section twenty-four hundred thirty-three of the
public authorities law, hereinafter referred to as the "bond bank", or
to one or more tax lien entities created by the bond bank pursuant to
section twenty-four hundred thirty-five-b of the public authorities law.
A tax district may enter into such a contract whether or not it is
otherwise subject to the provisions of this article; provided, however,
that any county, city or town that is not subject to the provisions of
this article pursuant to subdivision two of section eleven hundred four
of this article may continue to enforce the collection of delinquent
taxes, including through the sale of tax liens, pursuant to a county
charter, city charter, administrative code or special law.

(b) The interest rate applicable to all delinquent tax liens sold
pursuant to this section shall be as prescribed by section nine hundred
twenty-four-a of this chapter or such higher rate as is applicable to
such delinquent tax liens in the tax district which is selling its held
delinquent tax liens to the bond bank, as of the date of the tax lien
sale. Such rate shall be applied to the total amount due as of the date
of the tax lien sale, including interest, penalties, and charges.

2. (a) At least thirty days prior to the date on which a sale of
delinquent tax liens is scheduled to occur, the enforcing officer shall
cause a notice to be mailed, by either ordinary first class mail or
certified mail, to: (i) the owner or owners of each affected parcel as
appearing on the tax roll, or, if a parcel has been transferred after
the applicable taxable status date, to the new owner or owners as
reported pursuant to section five hundred seventy-four of this chapter
or a comparable law; and (ii) to any other person who has filed a
declaration of interest pursuant to section eleven hundred twenty-six of
this article, or a comparable instrument pursuant to a comparable law,
which has not expired. Failure to provide notice, or failure of the
addressee to receive notice pursuant to this subdivision shall not in
any way affect the validity of any sale of a tax lien or tax liens
pursuant to this chapter, the validity of the taxes or interest
prescribed by law with respect thereto.

(b) Such notice shall identify the affected parcel and be in
substantially the following form:

"The real property identified in this notice is subject to a
delinquent tax lien held by __________ (enter name of tax district) for
________ (identify fiscal year). According to our records, you own or
have an interest in that property. You are hereby advised that on or
after __________ (enter expected date of sale), the delinquent tax lien
on this property will be sold to ____________________ (enter name of
purchaser). To pay the delinquent taxes prior to the sale, contact
______________ (enter the name, title, business address and telephone
number of enforcing officer of the tax district)."

(c) Where appropriate, the notice may also include language
substantially as follows: "Following the sale, the purchaser of the lien
will have the right to collect and enforce the delinquent taxes against
your property, and, if necessary, to hire a private collection agency to
assist it in securing payment of the amount due. To pay the delinquent
taxes on or after the sale, you will have to contact _________________
(enter name of tax lien purchaser or its tax collection agent)
directly."

(d) Where the property in question is subject to an installment
agreement executed pursuant to section eleven hundred eighty-four of
this article, the notice shall further include language substantially as
follows: "The sale of the tax liens on your property will not affect
your right to continue making installment payments in the amounts and at
the times called for by your agreement with ________________________
(enter name of tax district). However, following the sale, the tax lien
purchaser will assume the rights of the tax district under the
agreement, and future installment payments should be made to
_______________ (enter name of tax lien purchaser or its tax collection
agent) directly."

3. Upon a sale of delinquent tax liens pursuant to this section, the
enforcing officer shall issue and deliver to the purchaser one or more
certificates identifying the affected parcels and the total amount due
on each as of the date of the sale, including interest, penalties, and
charges. The enforcing officer shall retain a copy of each such
certificate in his or her office, and shall maintain records that will
enable interested parties to determine which liens have been sold, to
whom, and the total amount due on such liens when they were sold. When
the enforcing officer is duly notified by the tax lien purchaser or its
successor in interest that a lien has been redeemed, he or she shall
update those records to reflect such redemption. The purchaser of such
tax lien may record the certificates evidencing the purchase and sale of
the liens in the office of the county recording officer for the tax
district. The tax district shall have no further rights or
responsibilities relative to delinquent tax liens which have been sold
pursuant to this section, except as may otherwise be provided in the
contract for the sale of delinquent tax liens.

4. The bond bank or its tax lien entity may, at its discretion, accept
partial payments and may enter into installment agreements with owners
on such terms and conditions as the tax lien purchaser shall deem
advisable, without regard to any restrictions that might be applicable
if such purchaser were a tax district. Where a property is subject to
more than one delinquent tax lien, the liens shall be redeemed in the
manner set forth in section eleven hundred twelve of this article,
provided, however, that payments made on a tax lien shall be applied
first to pay any reasonable costs incurred in the collection of the tax
lien including reasonable attorneys' fees, legal costs, allowances and
disbursements, next to pay accrued interest due on the tax lien, and
finally to pay the principal of the tax lien, until the entire amount of
the lien has been paid.