§ 1192 — Additional powers of tax districts in connection with the sale of delinquent tax liens

§ 1192. Additional powers of tax districts in connection with the sale\nof delinquent tax liens. 1. Notwithstanding any general or special law\nto the contrary, a contract for the sale of tax liens from a tax\ndistrict to the bond bank or its tax lien entity shall, consistent with\nthe provisions of title eighteen of article eight of the public\nauthorities law, contain such terms, provisions and conditions as, in\nthe judgment of the tax district shall be necessary or desirable. Each\nsuch contract shall specify the amount to be made available to a tax\ndistrict from the proceeds of an issue of tax lien collateralized\nsecurities, which amount may be more or less than the face amount of the\ntax liens sold to the bond bank or its tax lien entity, and any other\namounts which may be made available to the tax district on a contingent\nbasis under the terms of the contract. In addition, each contract may\nrequire such tax district, subject to appropriation by the appropriate\nlegislative body of such tax district, to make provisions for the\npayment of such other fees, charges, costs and other amounts as the tax\ndistrict shall in its judgment determine to be necessary or desirable.\n 2. Any contract entered into pursuant to subdivision one of this\nsection shall provide that the obligation of the tax district executing\nsuch contract to fund or pay the amounts therein provided for shall not\nconstitute a debt of such tax district within the meaning of any\nconstitutional or statutory provision and shall be deemed executory only\nto the extent of moneys available and that no liability shall be\nincurred by such tax district beyond the moneys available for such\npurpose, and that any such payment obligation of such tax district other\nthan the timely payment of any moneys collected and due to the bond bank\nor its tax lien entity as a result of the redemption of tax liens which\nare the subject of such contract, is subject to appropriation by the\nappropriate legislative body of such tax district.\n 3. A tax district may sell, and contract to sell, tax liens, and all\nor part of any other amounts which may be made available to the tax\ndistrict on a contingent basis under the terms of the purchase and sale\nagreement, to the bond bank or its tax lien entity at such price or\nprices, upon such terms and conditions and in such manner, as the tax\ndistrict shall deem advisable. A tax district may also sell, or contract\nto sell, real property acquired by the tax district pursuant to any tax\nenforcement proceeding and not yet disposed of by such tax district, to\nthe bond bank or its tax lien entity in connection with the sale or\nproposed sale of tax liens to the bond bank or its tax lien entity.\n 4. As a condition of sale of tax liens to the bond bank or its tax\nlien entity, each tax district shall agree (a) to promptly pay, as\ndirected by the bond bank, any moneys collected by the tax district in\nconnection with the redemption and cancellation of such tax liens, (b)\nto pay, subject to appropriation by the appropriate legislative body of\nsuch tax district, any amounts due and owing to the bond bank or its tax\nlien entity as a result of the sale of such tax liens, (c) to make such\ncovenants, representations, and warranties with respect to the tax liens\nsold as required to effectuate the sale of such tax liens and facilitate\nthe marketing of tax lien collateralized securities issued by the bond\nbank or its tax lien entity and (d) to accept a note or other instrument\nissued by the bond bank or its tax lien entity to evidence any\ncontingent amounts payable under the terms of the contract.\n 5. In connection with the sale or proposed sale of tax liens to the\nbond bank or its tax lien entity, a tax district may, notwithstanding\nthe provisions of any general or special law to the contrary, pay (a)\nsuch fixed or annual charges as may be prescribed from time to time by\nthe bond bank for or with respect to the purchase by the bond bank or\nits tax lien entity of the tax liens of such tax district, and (b) all\ncharges or expenses necessary for the conversion or reconversion of any\nof its tax liens into such form as may be required by the bond bank in\nconnection with any sale or other disposition of such tax liens.\n 6. A contract to sell tax liens pursuant to this section may require\nthe tax district to repurchase a delinquent tax lien under the\nconditions specified therein. If a delinquent tax lien should be\nrepurchased by the tax district, the tax district may resume the\nenforcement of the delinquent tax lien pursuant to the locally\napplicable procedures.\n