N.Y. Public Authorities Law § 2435-b: Tax lien purchase and sale agreements

§ 2435-b. Tax lien purchase and sale agreements. (1) In order to

fulfill the purposes of this title and to provide a means by which

municipalities may collect the moneys necessary to fund their

expenditures and provide revenue to fund any other lawful purpose and

notwithstanding any general or special law to the contrary, the agency

or its tax lien entity and any municipality are hereby authorized to

enter into one or more purchase and sale agreements for the sale of tax

liens by such municipality and the purchase of such tax liens by the

agency or its tax lien entity, which purchase and sale agreements shall,

consistent with the provisions of this title, contain such terms,

provisions and conditions as, in the judgment of the agency or its tax

lien entity, shall be necessary or desirable. Each purchase and sale

agreement shall specify the amount to be made available to the

respective municipality from the proceeds of an issue of tax lien

collateralized securities which amount may be more or less than the face

amount of the tax liens purchased by the agency or its tax lien entity,

and any other amounts which may be made available to the respective

municipality on a contingent basis under the terms of the agreement. In

addition, each purchase and sale agreement may require such

municipality, subject to appropriation by the appropriate legislative

body of such municipality, to make provisions for the payment of such

other fees, charges, costs and other amounts as the agency shall in its

judgment determine to be necessary or desirable.

(2) Any purchase and sale agreement entered into pursuant to

subdivision one of this section shall provide that the obligation of the

municipality executing such purchase and sale agreement to fund or pay

the amounts therein provided for shall not constitute a debt of such

municipality within the meaning of any constitutional or statutory

provision and shall be deemed executory only to the extent of moneys

available and that no liability shall be incurred by such municipality

beyond the moneys available for such purpose, and that any such payment

obligation of such municipality other than the timely payment of any

moneys collected by it and due to the agency or its tax lien entity as a

result of the redemption of tax liens which are the subject of such

purchase and sale agreements, is subject to appropriation by the

appropriate legislative body of such municipality.