N.Y. Real Property Tax Law § 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

of delinquent tax liens. 1. Notwithstanding any general or special law

to the contrary, a contract for the sale of tax liens from a tax

district to the bond bank or its tax lien entity shall, consistent with

the provisions of title eighteen of article eight of the public

authorities law, contain such terms, provisions and conditions as, in

the judgment of the tax district shall be necessary or desirable. Each

such contract shall specify the amount to be made available to a tax

district 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 sold to the bond bank or its tax lien entity, and any other

amounts which may be made available to the tax district on a contingent

basis under the terms of the contract. In addition, each contract may

require such tax district, subject to appropriation by the appropriate

legislative body of such tax district, to make provisions for the

payment of such other fees, charges, costs and other amounts as the tax

district shall in its judgment determine to be necessary or desirable.

2. Any contract entered into pursuant to subdivision one of this

section shall provide that the obligation of the tax district executing

such contract to fund or pay the amounts therein provided for shall not

constitute a debt of such tax district 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 tax district beyond the moneys available for such

purpose, and that any such payment obligation of such tax district other

than the timely payment of any moneys collected and due to the bond bank

or its tax lien entity as a result of the redemption of tax liens which

are the subject of such contract, is subject to appropriation by the

appropriate legislative body of such tax district.

3. A tax district may sell, and contract to sell, tax liens, and all

or part of any other amounts which may be made available to the tax

district on a contingent basis under the terms of the purchase and sale

agreement, to the bond bank or its tax lien entity at such price or

prices, upon such terms and conditions and in such manner, as the tax

district shall deem advisable. A tax district may also sell, or contract

to sell, real property acquired by the tax district pursuant to any tax

enforcement proceeding and not yet disposed of by such tax district, to

the bond bank or its tax lien entity in connection with the sale or

proposed sale of tax liens to the bond bank or its tax lien entity.

4. As a condition of sale of tax liens to the bond bank or its tax

lien entity, each tax district shall agree (a) to promptly pay, as

directed by the bond bank, any moneys collected by the tax district in

connection with the redemption and cancellation of such tax liens, (b)

to pay, subject to appropriation by the appropriate legislative body of

such tax district, any amounts due and owing to the bond bank or its tax

lien entity as a result of the sale of such tax liens, (c) to make such

covenants, representations, and warranties with respect to the tax liens

sold as required to effectuate the sale of such tax liens and facilitate

the marketing of tax lien collateralized securities issued by the bond

bank or its tax lien entity and (d) to accept a note or other instrument

issued by the bond bank or its tax lien entity to evidence any

contingent amounts payable under the terms of the contract.

5. In connection with the sale or proposed sale of tax liens to the

bond bank or its tax lien entity, a tax district may, notwithstanding

the provisions of any general or special law to the contrary, pay (a)

such fixed or annual charges as may be prescribed from time to time by

the bond bank for or with respect to the purchase by the bond bank or

its tax lien entity of the tax liens of such tax district, and (b) all

charges or expenses necessary for the conversion or reconversion of any

of its tax liens into such form as may be required by the bond bank in

connection with any sale or other disposition of such tax liens.

6. A contract to sell tax liens pursuant to this section may require

the tax district to repurchase a delinquent tax lien under the

conditions specified therein. If a delinquent tax lien should be

repurchased by the tax district, the tax district may resume the

enforcement of the delinquent tax lien pursuant to the locally

applicable procedures.