2023 New York Laws › GMU - General Municipal › Article 5 - Powers, Limitations and Liabilities › 99-S - Transfer and Sale of Delinquent Real Estate Tax Receivables.

§  99-s.  Transfer and sale of delinquent real estate tax receivables.
1. A city with a population of one million or more, acting  through  its
finance  commissioner,  collector  of taxes or other officer responsible
for the collection of real  estate  taxes,  may  sell  or  transfer  any
portion  of  or  all  its  interest in any or all of its delinquent real
estate tax receivables,  including  any  penalty  or  interest  thereon.
Provided,  however,  no  such  sale or transfer shall take place without
adoption of a local law, ordinance or resolution authorizing  each  such
sale or transfer.
2.  a.  Delinquent  real  estate tax receivables shall be sold only at
public sale to the bidder offering the highest total return to such city
including fees and other payments.
b. There shall be published, at least once, not  less  than  five  nor
more  than  thirty  days  before  the  date fixed for the public sale of
delinquent real estate tax receivables, a notice of  such  public  sale.
Such  notice shall be published in any financial newspaper published and
circulated in such city  which  the  state  comptroller,  by  rules  and
regulations,  shall  designate for such publication, or in lieu thereof,
such notice shall be circulated in such manner as the state  comptroller
shall  prescribe,  within  ninety  days  after  this  section shall take
effect, pursuant to such rules and regulations and shall be published in
any newspaper or newspapers which the finance board  of  such  city  may
designate for such purpose.
c.  Such  notice  shall  call for sealed bids for the purchase of such
delinquent real estate tax receivables, and shall state:
1. The place where bids will be received and considered.
2. (a) The time and date for the opening of bids, which shall be  only
on  weekdays,  Saturdays and holidays excluded, between the hours of ten
o'clock ante meridian and four o'clock post meridian,  eastern  standard
time.
(b)  In  lieu of the statement of the time and date for the opening of
bids required by clause (a) of this subparagraph, a statement  (i)  that
the  time  and date for the opening of bids will be provided on not less
than twenty-four hours prior notice by means of a supplemental notice of
sale and indicating the manner in which such supplemental notice will be
provided, or (ii) setting a time and  date  for  the  opening  of  bids,
stating  that  notice of a change in the time or date for the opening of
bids may be provided not less than twenty-four hours prior to  the  time
originally  scheduled for the opening of bids by means of a supplemental
notice of sale and indicating the  manner  in  which  such  supplemental
notice  will be provided. Where notice is given that the time or date of
a sale will be changed without specifying the new time or  date,  notice
of  the  new  time or date of sale must be provided by means of a second
supplemental notice of sale at least twenty-four hours prior to the  new
time for the opening of bids.
(c)  A supplemental notice of sale shall refer to and be deemed a part
of the notice of sale required by this section and shall  not  establish
or  change  the  terms  of  the sale other than the time or date for the
opening  of  bids.  The  time  set  for  the  opening  of  bids  in  the
supplemental  notice  of  sale shall not be less than five nor more than
thirty days after publication of the notice of sale required pursuant to
paragraph a of this subdivision.
(d) Public notice of the time and date set for  the  opening  of  bids
shall  be  given  to  the  news media and shall be posted in one or more
designated public locations within such city at least twenty-four  hours
prior  to  the time and date set for the opening of bids or, in the case
of a time and date set or changed in a supplemental notice of  sale,  at
least  twenty-four hours prior to such time and date; provided, however,

that such public notice shall not be construed to require publication as
a legal notice.
d.  All  bids shall be opened publicly at the time and place stated in
the notice of sale, and not before, and  shall  be  publicly  announced.
Prior  to  the  time fixed for such public opening of bids, a sealed bid
may be amended by a bidder by delivery  to  the  official  to  whom  the
sealed bid was delivered of a sealed amendment to such bid. No bid shall
be amended by a telegraphic or telephonic communication.
e.  Advertisements  shall  contain a provision to the effect that such
city, in its discretion, may reject any or all bids made in pursuance of
such advertisements, and in the event of such rejection,  such  city  is
authorized  to  readvertise  for  bids  in  the  form  and  manner above
described as many times as, in its judgement, may be necessary to effect
a satisfactory sale.
3. Without limitation of the foregoing, any sale or transfer agreement
entered into pursuant hereto may also contain provisions requiring  such
city  to  undertake  to  replace  such receivable with the transferee or
purchaser for any misrepresentation or mistake as to the description  or
status of any delinquent real estate tax receivable which is the subject
of such sale or transfer agreement.
4. In no event shall such city pay any such receivable other than from
moneys  collected  thereon  by  such city. Any revenues received by such
city for payment of delinquent real estate taxes including any penalties
and interest thereon where the interest in such delinquent  real  estate
tax  receivable  has  been  sold or transferred, shall be deposited in a
special fund to be created by such  city.    Such  fund  shall  be  kept
separate  and  apart  from  any  other  funds and accounts of such city.
Moneys in such fund shall first be used to  pay  any  such  receivables.
Moneys  in the fund in excess of that needed to pay such receivables may
be used for any other city purpose as authorized by  law.  In  no  event
shall  such  city  guarantee  payment,  or  be construed as guarantor of
payment for such receivables.
5. Such city shall remain responsible for  servicing,  collecting  and
enforcing any such receivables in the same manner as if such receivables
had  not  been sold.   The obligation of such city to service or collect
any such receivables on behalf of the purchaser  or  transferee  thereof
shall  terminate  with  respect  to  each receivable upon the date three
years from the date such receivable was sold or transferred by such city
or such earlier date as payment is made to such purchaser or  transferee
of  such receivable, including any penalty or interest thereon, equal to
the consideration paid for such sale or transfer plus any fees or  other
payments  in  accordance  with  the  terms  of  sale  or transfer of the
receivables and such city shall  thereafter  collect  and  enforce  such
receivables solely on its own behalf.
6.  The  transferee  of  the delinquent real estate tax receivables or
interests therein, during the term of an agreement with such  city,  may
perfect   a  security  interest  in  such  delinquent  real  estate  tax
receivables or interests therein by the filing of financing  statements,
as provided in article nine of the uniform commercial code, with respect
thereto giving a reasonable description of such receivables or interests
so transferred as identified on the records kept for such purpose by the
officer  of  such  city  responsible  for  the collection of real estate
taxes.