N.Y. Real Property Tax Law § 968: Tax sale provisions

§ 968. Tax sale provisions. 1. Notwithstanding the issuance of a

conditional tax receipt as herein provided, the procedure provided by a

law for the sale of tax liens or properties for non-payment of taxes

shall in all cases remain unchanged as if the conditional tax receipt

had not been issued; provided, however, that such sale shall not be held

before the expiration of one year from the date of the issuance of any

conditional tax receipt, but must be held within three years from such

date, notwithstanding the provision of any general or special law or

charter provision to the contrary.

2. Prior to a sale, the loan corporation shall be required to exhibit

to the municipal officer having jurisdiction over the sale of tax liens

or properties, the conditional tax receipt showing payments made on the

loan contract, if any, which payments shall be credited, as of the date

of issuance of the conditional tax receipt against the amount of taxes

due against the property to be sold. The municipal corporation receiving

the proceeds of the tax sale shall, upon surrender of the conditional

tax receipt, pay from such proceeds the amount due the loan corporation

on the loan contract in connection with which the conditional tax

receipt was issued.

3. Until payment from the proceeds of the sale has been made to the

loan corporation, or a receipted tax bill has been issued in exchange

for the conditional tax receipt, the loan corporation shall have an

interest in and lien upon the tax lien or properties to the extent of

the unliquidated portion of its loan and the municipal corporation shall

hold such interest and lien for the account of the loan corporation,

subject to the provisions of this title.