Bill Text: NY A01896 | 2019-2020 | General Assembly | Introduced

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Bill Title: Authorizes land banks to lend money, to make grants and take and hold real and personal property as security for the payment of funds so loaned or for the performance and enforcement of grant agreements.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2020-01-08 - referred to local governments [A01896 Detail]

Download: New_York-2019-A01896-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________
                                          1896
                               2019-2020 Regular Sessions
                   IN ASSEMBLY
                                    January 17, 2019
                                       ___________
        Introduced  by  M.  of  A.  MAGNARELLI  -- read once and referred to the
          Committee on Local Governments
        AN ACT to amend the not-for-profit corporation law, in relation to  land
          banks
          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:
     1    Section 1. Clauses 21 and 22 of paragraph (a) of section 1607  of  the
     2  not-for-profit corporation law, as amended by chapter 338 of the laws of
     3  2016, are amended to read as follows:
     4    (21) to organize a subsidiary for a project or projects which the land
     5  bank  has the power to pursue under this article when the primary reason
     6  for which the subsidiary shall be organized shall be to limit the poten-
     7  tial liability impact of the subsidiary's project  or  projects  on  the
     8  land bank or because state or federal law requires that the purpose of a
     9  subsidiary be undertaken through a specific corporate or business struc-
    10  ture.  All  real  property  of a subsidiary organized under this article
    11  shall be maintained on the inventory lists required in this  article  of
    12  the  land bank of which it is a subsidiary and the subsidiary shall make
    13  all reports and other disclosures as are required of  land  banks  under
    14  this  article  and  as local public authorities, unless the subsidiary's
    15  operations and finances are consolidated with those of the land bank  of
    16  which  it  is  a  subsidiary.  Subsidiaries organized under this article
    17  shall be established in the form of a New York charitable not-for-profit
    18  corporation or a New  York  single  member  limited  liability  company.
    19  Subsidiaries shall not have the authority to issue bonds, notes or other
    20  debts,  provided,  however,  that  such  subsidiaries may issue notes or
    21  other debt to the land bank of which it is a subsidiary.  The  organiza-
    22  tional  documents  filed to create a subsidiary under this article shall
    23  state that the land bank is organizing the subsidiary for  the  purposes
    24  set  forth  in  this  article  and  the  name of the subsidiary shall be
    25  reasonably related to the name of the land bank of which it is a subsid-
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD00128-01-9
        A. 1896                             2
     1  iary. The real property of a subsidiary organized under this article and
     2  its income and operations are exempt from all taxation by the  state  of
     3  New York and by any of its political subdivisions; [and]
     4    (22) to lend money, to make grants and take and hold real and personal
     5  property  as  security  for  the  payment  of funds so loaned or for the
     6  performance and enforcement of grant agreements; and
     7    (23) to do all other things necessary to achieve  the  objectives  and
     8  purposes  of the land bank or other laws that relate to the purposes and
     9  responsibility of the land bank.
    10    § 2. This act shall take effect immediately.