2023 New York Laws › RPT - Real Property Tax › Article 9 - Levy and Collection of Taxes › Title 5 - Provisions of General Application; Miscellaneous › 996 - Contracts With Banks for the Collection of Taxes and Certain Special Assessments.

§  996.  Contracts  with banks for the collection of taxes and certain
special assessments. 1. Notwithstanding any general,  special  or  local
law  to  the contrary, a municipal corporation having the responsibility
for collection of taxes or special assessments, or both, may enter  into
agreements with a bank, or with two or more banks, for the collection of
taxes  and  special  assessments  which are collected together with such
taxes. For purposes of this section, the term "bank" shall have the same
meaning as in paragraph d of subdivision  one  of  section  ten  of  the
general  municipal  law. The term "special assessments" shall be limited
to those special assessments collected together with taxes.
2. A bank that has entered into an agreement pursuant to this  section
shall: (a) accept payments of taxes or special assessments, or both, for
a period beginning on the day on which the warrant for the collection of
taxes  is  delivered to the collecting officer, and ending on the day on
which such warrant expires;
(b) decline any partial payments of a tax bill, or special assessment,
or both,  except  where  the  municipal  corporation  is  one  which  is
authorized to accept partial payments of taxes or special assessments or
both;
(c) collect the appropriate amount of interest on any taxes or special
assessments, or both, paid after the end of the interest-free collection
period;
(d)   furnish  receipts  to  each  person  paying  a  tax  or  special
assessment, or both, except that when a tax or  special  assessment  has
been paid by a mortgage investing institution pursuant to the provisions
of  title three-A of this article, receipts shall be delivered or mailed
to such mortgage investing institution, subject  to  the  provisions  of
such title;
(e)  deposit all taxes and special assessments and interest collected,
immediately upon receipt, in the account or accounts designated  by  the
municipal  corporation  in such bank, or in any other bank designated by
the municipal corporation;
(f) continually maintain records of  deposit  showing  the  dates  and
amounts  of  all  taxes  and  special  assessments  collected,  and  the
taxpayers from whom such taxes and special assessments were collected;
(g) transmit to the collecting officer a daily report of the taxes and
special assessments collected, which report shall be  accompanied  by  a
statement  showing the deposits credited to the account of the municipal
corporation; and
(h) perform such other duties, and maintain such other records, as the
contract may provide.
3. (a) A bank which has entered into an  agreement  with  a  municipal
corporation  pursuant  to  this section shall be liable to the municipal
corporation for all loss or damage which may result from any failure  of
its  officers  or agents to discharge their duties, or from any improper
or incorrect  discharge  of  those  duties.  The  bank  shall  save  the
municipal corporation free and harmless from any and all loss occasioned
by  or incurred in the performance of services under a contract pursuant
to this section.
(b) A bank which has  entered  into  an  agreement  with  a  municipal
corporation  pursuant  to this section, and which receives moneys from a
taxpayer for payment of real property taxes or special  assessments,  or
both,  shall be liable to such taxpayer, upon failure to properly credit
such payment, for the amount of the taxes  or  special  assessments,  or
both, plus interest and penalties imposed thereon.
4.  Moneys  deposited  with  a  bank pursuant to this section shall be
secured in the manner provided by section ten of the  general  municipal
law.
5.  The  statutory  powers  and  duties  of  a tax collecting officer,
including the authority to receive taxes, shall not be affected  by  the
existence  of  a contract executed pursuant to this section, except that
the collecting officer shall: (a) notify the  bank  upon  receiving  the
warrant for the collection of taxes or special assessments, or both;
(b)  include in the appropriate notices the fact that taxes or special
assessments, or both, may be paid to the bank;
(c) notify the bank of the date on which the interest-free  collection
period expires;
(d)  make  the  appropriate  entries  in  the  official  records, upon
receiving each daily report of taxes and special  assessments  collected
by the bank; and
(e)  make  the accounting and return, as provided by law, upon receipt
from the bank of the final daily report of taxes and special assessments
collected.
6. A contract executed pursuant to this section shall  be  subject  to
the  requirements  of  article  five-A of the general municipal law, and
shall be for a term not to exceed five years, except that  it  shall  be
subject  to  cancellation  by the municipal corporation at any time upon
thirty days notice to the bank.