§ 1190 — Contracts for the sale of delinquent tax liens

§ 1190. Contracts for the sale of delinquent tax liens. 1. (a)\nNotwithstanding any general or special law to the contrary, a tax\ndistrict may enter into a contract to sell some or all of the delinquent\ntax liens held by it to the state of New York municipal bond bank agency\ncreated pursuant to section twenty-four hundred thirty-three of the\npublic authorities law, hereinafter referred to as the "bond bank", or\nto one or more tax lien entities created by the bond bank pursuant to\nsection twenty-four hundred thirty-five-b of the public authorities law.\nA tax district may enter into such a contract whether or not it is\notherwise subject to the provisions of this article; provided, however,\nthat any county, city or town that is not subject to the provisions of\nthis article pursuant to subdivision two of section eleven hundred four\nof this article may continue to enforce the collection of delinquent\ntaxes, including through the sale of tax liens, pursuant to a county\ncharter, city charter, administrative code or special law.\n (b) The interest rate applicable to all delinquent tax liens sold\npursuant to this section shall be as prescribed by section nine hundred\ntwenty-four-a of this chapter or such higher rate as is applicable to\nsuch delinquent tax liens in the tax district which is selling its held\ndelinquent tax liens to the bond bank, as of the date of the tax lien\nsale. Such rate shall be applied to the total amount due as of the date\nof the tax lien sale, including interest, penalties, and charges.\n 2. (a) At least thirty days prior to the date on which a sale of\ndelinquent tax liens is scheduled to occur, the enforcing officer shall\ncause a notice to be mailed, by either ordinary first class mail or\ncertified mail, to: (i) the owner or owners of each affected parcel as\nappearing on the tax roll, or, if a parcel has been transferred after\nthe applicable taxable status date, to the new owner or owners as\nreported pursuant to section five hundred seventy-four of this chapter\nor a comparable law; and (ii) to any other person who has filed a\ndeclaration of interest pursuant to section eleven hundred twenty-six of\nthis article, or a comparable instrument pursuant to a comparable law,\nwhich has not expired. Failure to provide notice, or failure of the\naddressee to receive notice pursuant to this subdivision shall not in\nany way affect the validity of any sale of a tax lien or tax liens\npursuant to this chapter, the validity of the taxes or interest\nprescribed by law with respect thereto.\n (b) Such notice shall identify the affected parcel and be in\nsubstantially the following form:\n "The real property identified in this notice is subject to a\ndelinquent tax lien held by __________ (enter name of tax district) for\n________ (identify fiscal year). According to our records, you own or\nhave an interest in that property. You are hereby advised that on or\nafter __________ (enter expected date of sale), the delinquent tax lien\non this property will be sold to ____________________ (enter name of\npurchaser). To pay the delinquent taxes prior to the sale, contact\n______________ (enter the name, title, business address and telephone\nnumber of enforcing officer of the tax district)."\n (c) Where appropriate, the notice may also include language\nsubstantially as follows: "Following the sale, the purchaser of the lien\nwill have the right to collect and enforce the delinquent taxes against\nyour property, and, if necessary, to hire a private collection agency to\nassist it in securing payment of the amount due. To pay the delinquent\ntaxes on or after the sale, you will have to contact _________________\n(enter name of tax lien purchaser or its tax collection agent)\ndirectly."\n (d) Where the property in question is subject to an installment\nagreement executed pursuant to section eleven hundred eighty-four of\nthis article, the notice shall further include language substantially as\nfollows: "The sale of the tax liens on your property will not affect\nyour right to continue making installment payments in the amounts and at\nthe times called for by your agreement with ________________________\n(enter name of tax district). However, following the sale, the tax lien\npurchaser will assume the rights of the tax district under the\nagreement, and future installment payments should be made to\n_______________ (enter name of tax lien purchaser or its tax collection\nagent) directly."\n 3. Upon a sale of delinquent tax liens pursuant to this section, the\nenforcing officer shall issue and deliver to the purchaser one or more\ncertificates identifying the affected parcels and the total amount due\non each as of the date of the sale, including interest, penalties, and\ncharges. The enforcing officer shall retain a copy of each such\ncertificate in his or her office, and shall maintain records that will\nenable interested parties to determine which liens have been sold, to\nwhom, and the total amount due on such liens when they were sold. When\nthe enforcing officer is duly notified by the tax lien purchaser or its\nsuccessor in interest that a lien has been redeemed, he or she shall\nupdate those records to reflect such redemption. The purchaser of such\ntax lien may record the certificates evidencing the purchase and sale of\nthe liens in the office of the county recording officer for the tax\ndistrict. The tax district shall have no further rights or\nresponsibilities relative to delinquent tax liens which have been sold\npursuant to this section, except as may otherwise be provided in the\ncontract for the sale of delinquent tax liens.\n 4. The bond bank or its tax lien entity may, at its discretion, accept\npartial payments and may enter into installment agreements with owners\non such terms and conditions as the tax lien purchaser shall deem\nadvisable, without regard to any restrictions that might be applicable\nif such purchaser were a tax district. Where a property is subject to\nmore than one delinquent tax lien, the liens shall be redeemed in the\nmanner set forth in section eleven hundred twelve of this article,\nprovided, however, that payments made on a tax lien shall be applied\nfirst to pay any reasonable costs incurred in the collection of the tax\nlien including reasonable attorneys' fees, legal costs, allowances and\ndisbursements, next to pay accrued interest due on the tax lien, and\nfinally to pay the principal of the tax lien, until the entire amount of\nthe lien has been paid.\n