2023 New York Laws › RPT - Real Property Tax › Article 11 - Procedures for Enforcement of Collection of Delinquent Taxes › Title 5 - Sales of Delinquent Tax Liens › 1190 - Contracts for the Sale of Delinquent Tax Liens.

§  1190.  Contracts  for  the  sale  of  delinquent  tax liens. 1. (a)
Notwithstanding any general or  special  law  to  the  contrary,  a  tax
district may enter into a contract to sell some or all of the delinquent
tax liens held by it to the state of New York municipal bond bank agency
created  pursuant  to  section  twenty-four  hundred thirty-three of the
public authorities law, hereinafter referred to as the "bond  bank",  or
to  one  or  more tax lien entities created by the bond bank pursuant to
section twenty-four hundred thirty-five-b of the public authorities law.
A tax district may enter into such a  contract  whether  or  not  it  is
otherwise  subject to the provisions of this article; provided, however,
that any county, city or town that is not subject to the  provisions  of
this  article pursuant to subdivision two of section eleven hundred four
of this article may continue to enforce  the  collection  of  delinquent
taxes,  including  through  the  sale of tax liens, pursuant to a county
charter, city charter, administrative code or special law.
(b) The interest rate applicable to  all  delinquent  tax  liens  sold
pursuant  to this section shall be as prescribed by section nine hundred
twenty-four-a of this chapter or such higher rate as  is  applicable  to
such  delinquent tax liens in the tax district which is selling its held
delinquent tax liens to the bond bank, as of the date of  the  tax  lien
sale.  Such rate shall be applied to the total amount due as of the date
of the tax lien sale, including interest, penalties, and charges.
2. (a) At least thirty days prior to the  date  on  which  a  sale  of
delinquent  tax liens is scheduled to occur, the enforcing officer shall
cause a notice to be mailed, by either  ordinary  first  class  mail  or
certified  mail,  to: (i) the owner or owners of each affected parcel as
appearing on the tax roll, or, if a parcel has  been  transferred  after
the  applicable  taxable  status  date,  to  the  new owner or owners as
reported pursuant to section five hundred seventy-four of  this  chapter
or  a  comparable  law;  and  (ii)  to  any other person who has filed a
declaration of interest pursuant to section eleven hundred twenty-six of
this article, or a comparable instrument pursuant to a  comparable  law,
which  has  not  expired.  Failure  to provide notice, or failure of the
addressee to receive notice pursuant to this subdivision  shall  not  in
any  way  affect  the  validity  of  any sale of a tax lien or tax liens
pursuant to  this  chapter,  the  validity  of  the  taxes  or  interest
prescribed by law with respect thereto.
(b)  Such  notice  shall  identify  the  affected  parcel  and  be  in
substantially the following form:
"The  real  property  identified  in  this  notice  is  subject  to  a
delinquent  tax lien held by __________ (enter name of tax district) for
________ (identify fiscal year). According to our records,  you  own  or
have  an  interest  in  that property. You are hereby advised that on or
after __________ (enter expected date of sale), the delinquent tax  lien
on  this  property  will  be sold to ____________________ (enter name of
purchaser). To pay the delinquent  taxes  prior  to  the  sale,  contact
______________  (enter  the  name, title, business address and telephone
number of enforcing officer of the tax district)."
(c)  Where  appropriate,  the  notice  may   also   include   language
substantially as follows: "Following the sale, the purchaser of the lien
will  have the right to collect and enforce the delinquent taxes against
your property, and, if necessary, to hire a private collection agency to
assist it in securing payment of the amount due. To pay  the  delinquent
taxes  on  or after the sale, you will have to contact _________________
(enter  name  of  tax  lien  purchaser  or  its  tax  collection  agent)
directly."
(d)  Where  the  property  in  question  is  subject to an installment
agreement executed pursuant to section  eleven  hundred  eighty-four  of

this article, the notice shall further include language substantially as
follows:  "The  sale  of  the tax liens on your property will not affect
your right to continue making installment payments in the amounts and at
the  times  called  for  by your agreement with ________________________
(enter name of tax district). However, following the sale, the tax  lien
purchaser  will  assume  the  rights  of  the  tax  district  under  the
agreement,  and  future  installment  payments   should   be   made   to
_______________  (enter name of tax lien purchaser or its tax collection
agent) directly."
3. Upon a sale of delinquent tax liens pursuant to this  section,  the
enforcing  officer  shall issue and deliver to the purchaser one or more
certificates identifying the affected parcels and the total  amount  due
on  each  as of the date of the sale, including interest, penalties, and
charges. The  enforcing  officer  shall  retain  a  copy  of  each  such
certificate  in  his or her office, and shall maintain records that will
enable interested parties to determine which liens have  been  sold,  to
whom,  and  the total amount due on such liens when they were sold. When
the enforcing officer is duly notified by the tax lien purchaser or  its
successor  in  interest  that  a lien has been redeemed, he or she shall
update those records to reflect such redemption. The purchaser  of  such
tax lien may record the certificates evidencing the purchase and sale of
the  liens  in  the  office  of the county recording officer for the tax
district.  The  tax  district  shall   have   no   further   rights   or
responsibilities  relative  to delinquent tax liens which have been sold
pursuant to this section, except as may otherwise  be  provided  in  the
contract for the sale of delinquent tax liens.
4. The bond bank or its tax lien entity may, at its discretion, accept
partial  payments  and may enter into installment agreements with owners
on such terms and conditions  as  the  tax  lien  purchaser  shall  deem
advisable,  without  regard to any restrictions that might be applicable
if such purchaser were a tax district. Where a property  is  subject  to
more  than  one  delinquent tax lien, the liens shall be redeemed in the
manner set forth in section  eleven  hundred  twelve  of  this  article,
provided,  however,  that  payments  made on a tax lien shall be applied
first to pay any reasonable costs incurred in the collection of the  tax
lien  including  reasonable attorneys' fees, legal costs, allowances and
disbursements, next to pay accrued interest due on  the  tax  lien,  and
finally to pay the principal of the tax lien, until the entire amount of
the lien has been paid.