§ 2435-B — Tax lien purchase and sale agreements

New York § 2435-B

• Jurisdiction: New York
• Law PBA: Public Authorities
• Title 18: State of New York Municipal Bond Bank Agency Act
• Art. 8: Miscellaneous Authorities

Text

§ 2435-b. Tax lien purchase and sale agreements. (1) In order to\nfulfill the purposes of this title and to provide a means by which\nmunicipalities may collect the moneys necessary to fund their\nexpenditures and provide revenue to fund any other lawful purpose and\nnotwithstanding any general or special law to the contrary, the agency\nor its tax lien entity and any municipality are hereby authorized to\nenter into one or more purchase and sale agreements for the sale of tax\nliens by such municipality and the purchase of such tax liens by the\nagency or its tax lien entity, which purchase and sale agreements shall,\nconsistent with the provisions of this title, contain such terms,\nprovisions and conditions as, in the judgment of the agency or its tax\nlien entity, shall be necessary or desirable. Each purchase and sale\nagreement shall specify the amount to be made available to the\nrespective municipality from the proceeds of an issue of tax lien\ncollateralized securities which amount may be more or less than the face\namount of the tax liens purchased by the agency or its tax lien entity,\nand any other amounts which may be made available to the respective\nmunicipality on a contingent basis under the terms of the agreement. In\naddition, each purchase and sale agreement may require such\nmunicipality, subject to appropriation by the appropriate legislative\nbody of such municipality, to make provisions for the payment of such\nother fees, charges, costs and other amounts as the agency shall in its\njudgment determine to be necessary or desirable.\n (2) Any purchase and sale agreement entered into pursuant to\nsubdivision one of this section shall provide that the obligation of the\nmunicipality executing such purchase and sale agreement to fund or pay\nthe amounts therein provided for shall not constitute a debt of such\nmunicipality within the meaning of any constitutional or statutory\nprovision and shall be deemed executory only to the extent of moneys\navailable and that no liability shall be incurred by such municipality\nbeyond the moneys available for such purpose, and that any such payment\nobligation of such municipality other than the timely payment of any\nmoneys collected by it and due to the agency or its tax lien entity as a\nresult of the redemption of tax liens which are the subject of such\npurchase and sale agreements, is subject to appropriation by the\nappropriate legislative body of such municipality.\n