§ 99-S — Transfer and sale of delinquent real estate tax receivables

New York § 99-S

• Jurisdiction: New York
• Law GMU: General Municipal
• Art. 5: Powers, Limitations and Liabilities

Text

§ 99-s. Transfer and sale of delinquent real estate tax receivables.\n1. A city with a population of one million or more, acting through its\nfinance commissioner, collector of taxes or other officer responsible\nfor the collection of real estate taxes, may sell or transfer any\nportion of or all its interest in any or all of its delinquent real\nestate tax receivables, including any penalty or interest thereon.\nProvided, however, no such sale or transfer shall take place without\nadoption of a local law, ordinance or resolution authorizing each such\nsale or transfer.\n 2. a. Delinquent real estate tax receivables shall be sold only at\npublic sale to the bidder offering the highest total return to such city\nincluding fees and other payments.\n b. There shall be published, at least once, not less than five nor\nmore than thirty days before the date fixed for the public sale of\ndelinquent real estate tax receivables, a notice of such public sale.\nSuch notice shall be published in any financial newspaper published and\ncirculated in such city which the state comptroller, by rules and\nregulations, shall designate for such publication, or in lieu thereof,\nsuch notice shall be circulated in such manner as the state comptroller\nshall prescribe, within ninety days after this section shall take\neffect, pursuant to such rules and regulations and shall be published in\nany newspaper or newspapers which the finance board of such city may\ndesignate for such purpose.\n c. Such notice shall call for sealed bids for the purchase of such\ndelinquent real estate tax receivables, and shall state:\n 1. The place where bids will be received and considered.\n 2. (a) The time and date for the opening of bids, which shall be only\non weekdays, Saturdays and holidays excluded, between the hours of ten\no'clock ante meridian and four o'clock post meridian, eastern standard\ntime.\n (b) In lieu of the statement of the time and date for the opening of\nbids required by clause (a) of this subparagraph, a statement (i) that\nthe time and date for the opening of bids will be provided on not less\nthan twenty-four hours prior notice by means of a supplemental notice of\nsale and indicating the manner in which such supplemental notice will be\nprovided, or (ii) setting a time and date for the opening of bids,\nstating that notice of a change in the time or date for the opening of\nbids may be provided not less than twenty-four hours prior to the time\noriginally scheduled for the opening of bids by means of a supplemental\nnotice of sale and indicating the manner in which such supplemental\nnotice will be provided. Where notice is given that the time or date of\na sale will be changed without specifying the new time or date, notice\nof the new time or date of sale must be provided by means of a second\nsupplemental notice of sale at least twenty-four hours prior to the new\ntime for the opening of bids.\n (c) A supplemental notice of sale shall refer to and be deemed a part\nof the notice of sale required by this section and shall not establish\nor change the terms of the sale other than the time or date for the\nopening of bids. The time set for the opening of bids in the\nsupplemental notice of sale shall not be less than five nor more than\nthirty days after publication of the notice of sale required pursuant to\nparagraph a of this subdivision.\n (d) Public notice of the time and date set for the opening of bids\nshall be given to the news media and shall be posted in one or more\ndesignated public locations within such city at least twenty-four hours\nprior to the time and date set for the opening of bids or, in the case\nof a time and date set or changed in a supplemental notice of sale, at\nleast twenty-four hours prior to such time and date; provided, however,\nthat such public notice shall not be construed to require publication as\na legal notice.\n d. All bids shall be opened publicly at the time and place stated in\nthe notice of sale, and not before, and shall be publicly announced.\nPrior to the time fixed for such public opening of bids, a sealed bid\nmay be amended by a bidder by delivery to the official to whom the\nsealed bid was delivered of a sealed amendment to such bid. No bid shall\nbe amended by a telegraphic or telephonic communication.\n e. Advertisements shall contain a provision to the effect that such\ncity, in its discretion, may reject any or all bids made in pursuance of\nsuch advertisements, and in the event of such rejection, such city is\nauthorized to readvertise for bids in the form and manner above\ndescribed as many times as, in its judgement, may be necessary to effect\na satisfactory sale.\n 3. Without limitation of the foregoing, any sale or transfer agreement\nentered into pursuant hereto may also contain provisions requiring such\ncity to undertake to replace such receivable with the transferee or\npurchaser for any misrepresentation or mistake as to the description or\nstatus of any delinquent real estate tax receivable which is the subject\nof such sale or transfer agreement.\n 4. In no event shall such city pay any such receivable other than from\nmoneys collected thereon by such city. Any revenues received by such\ncity for payment of delinquent real estate taxes including any penalties\nand interest thereon where the interest in such delinquent real estate\ntax receivable has been sold or transferred, shall be deposited in a\nspecial fund to be created by such city. Such fund shall be kept\nseparate and apart from any other funds and accounts of such city.\nMoneys in such fund shall first be used to pay any such receivables.\nMoneys in the fund in excess of that needed to pay such receivables may\nbe used for any other city purpose as authorized by law. In no event\nshall such city guarantee payment, or be construed as guarantor of\npayment for such receivables.\n 5. Such city shall remain responsible for servicing, collecting and\nenforcing any such receivables in the same manner as if such receivables\nhad not been sold. The obligation of such city to service or collect\nany such receivables on behalf of the purchaser or transferee thereof\nshall terminate with respect to each receivable upon the date three\nyears from the date such receivable was sold or transferred by such city\nor such earlier date as payment is made to such purchaser or transferee\nof such receivable, including any penalty or interest thereon, equal to\nthe consideration paid for such sale or transfer plus any fees or other\npayments in accordance with the terms of sale or transfer of the\nreceivables and such city shall thereafter collect and enforce such\nreceivables solely on its own behalf.\n 6. The transferee of the delinquent real estate tax receivables or\ninterests therein, during the term of an agreement with such city, may\nperfect a security interest in such delinquent real estate tax\nreceivables or interests therein by the filing of financing statements,\nas provided in article nine of the uniform commercial code, with respect\nthereto giving a reasonable description of such receivables or interests\nso transferred as identified on the records kept for such purpose by the\nofficer of such city responsible for the collection of real estate\ntaxes.\n