N.Y.
Public Authorities Law Section 2435-B
Tax lien purchase and sale agreements
(1)
In order to fulfill the purposes of this title and to provide a means by which municipalities may collect the moneys necessary to fund their expenditures and provide revenue to fund any other lawful purpose and notwithstanding any general or special law to the contrary, the agency or its tax lien entity and any municipality are hereby authorized to enter into one or more purchase and sale agreements for the sale of tax liens by such municipality and the purchase of such tax liens by the agency or its tax lien entity, which purchase and sale agreements shall, consistent with the provisions of this title, contain such terms, provisions and conditions as, in the judgment of the agency or its tax lien entity, shall be necessary or desirable. Each purchase and sale agreement shall specify the amount to be made available to the respective municipality 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 purchased by the agency or its tax lien entity, and any other amounts which may be made available to the respective municipality on a contingent basis under the terms of the agreement. In addition, each purchase and sale agreement may require such municipality, subject to appropriation by the appropriate legislative body of such municipality, to make provisions for the payment of such other fees, charges, costs and other amounts as the agency shall in its judgment determine to be necessary or desirable.(2)
Any purchase and sale agreement entered into pursuant to subdivision one of this section shall provide that the obligation of the municipality executing such purchase and sale agreement to fund or pay the amounts therein provided for shall not constitute a debt of such municipality 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 municipality beyond the moneys available for such purpose, and that any such payment obligation of such municipality other than the timely payment of any moneys collected by it and due to the agency or its tax lien entity as a result of the redemption of tax liens which are the subject of such purchase and sale agreements, is subject to appropriation by the appropriate legislative body of such municipality.
Source:
Section 2435-B — Tax lien purchase and sale agreements, https://www.nysenate.gov/legislation/laws/PBA/2435-B (updated Sep. 22, 2014; accessed Apr. 27, 2024).
