Bill Text: NY S01977 | 2009-2010 | General Assembly | Introduced

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Bill Title: Relates to the disposition of surplus funds resulting from a tax lien foreclosure sales in the city of Buffalo; provides that a judgment may be entered, upon request of the tax district, without such district taking title to the property.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2010-01-06 - REFERRED TO LOCAL GOVERNMENT [S01977 Detail]

Download: New_York-2009-S01977-Introduced.html

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                           S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________
                                         1977
                              2009-2010 Regular Sessions
                                   I N  S E N A T E
                                   February 10, 2009
                                      ___________
       Introduced  by  Sen.  STACHOWSKI  -- read twice and ordered printed, and
         when printed to be committed to the Committee on Local Government
       AN ACT relating to final judgment in foreclosures by in rem  proceedings
         in the city of Buffalo
         THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
       BLY, DO ENACT AS FOLLOWS:
    1    Section 1.  Final  judgment;  proceedings  in  the  city  of  Buffalo.
    2  Notwithstanding  the provisions of section 1136 of the real property tax
    3  law, the following provisions shall apply to final judgments in  in  rem
    4  proceedings taken in the city of Buffalo.  1. Generally. The court shall
    5  have full power to determine and enforce in all respects the priorities,
    6  rights,  claims and demands of the several parties to the proceeding, as
    7  the same exist according  to  law,  including  the  priorities,  rights,
    8  claims  and  demands of the respondents as between themselves. The court
    9  shall further determine upon proof and shall  make  findings  upon  such
   10  proof whether there has been due compliance by the tax district with the
   11  provisions of article 11 of the real property tax law.
   12    2.  When  an  answer  has been interposed. (a) When an answer has been
   13  interposed by a party other than a tax district as to any parcel of real
   14  property included in the petition described in section 1123 of the  real
   15  property  tax  law and the court determines that the answer is meritori-
   16  ous, the court shall dismiss the petition of foreclosure, with or  with-
   17  out prejudice, as to the affected parcel or parcels, unless an agreement
   18  is  executed pursuant to subdivision 2 of section 1150 of the real prop-
   19  erty tax law.  If the court determines that the answer is not  meritori-
   20  ous, the court shall make a final judgment awarding to such tax district
   21  the  right to convey title to the affected parcel or parcels in the same
   22  manner as provided by subdivision three of this section.
   23    (b) When an answer has been interposed by another tax district  as  to
   24  any  parcel  and  the court shall determine that such other tax district
   25  has an interest in such parcel, then and in that event the tax districts
        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD03105-01-9
       S. 1977                             2
    1  having an interest in such parcel may by  agreement  between  themselves
    2  pursuant to subdivision one of section 1150 of the real property tax law
    3  provide  (i)  for a conveyance without sale of any such parcel to one of
    4  such  tax districts free and clear of any right, title or interest in or
    5  lien upon such parcel or such other tax district or  districts  or  (ii)
    6  for  a  conveyance  without  sale of any such  parcel to one of such tax
    7  districts subject to any right, title or interest in or lien  upon  such
    8  parcel  of  such  other  tax  district  or  districts. In either of such
    9  events, the court shall in its judgment expressly dispense with the sale
   10  and direct the making and execution of a  conveyance  by  the  enforcing
   11  officer  in  accordance  with  such agreement. In the absence of such an
   12  agreement, the court shall make a final judgment directing the  sale  of
   13  such  parcel  in the same manner as provided by subdivision four of this
   14  section, except that the conveyance may expressly be made subject to tax
   15  liens of a tax district as provided herein.
   16    3. When no answer has been interposed. The court shall  make  a  final
   17  judgment  awarding to such tax district the right to convey title to any
   18  parcel of real property described in the  petition  of  foreclosure  not
   19  redeemed  as  provided in article 11 of the real property tax law and as
   20  to which no answer is interposed as provided herein. In addition  there-
   21  to, where the enforcing officer has requested that such a parcel be sold
   22  pursuant to subdivision four of this section without  the  tax  district
   23  taking title thereto, the judgment shall so direct. Otherwise such judg-
   24  ment  shall  contain  a  direction  to  the enforcing officer of the tax
   25  district to prepare, execute and cause to be recorded a  deed  conveying
   26  to  such  tax  district full and complete title to such parcel. Upon the
   27  execution of such deed, the tax district shall be seized of an estate in
   28  fee simple absolute in such parcel and all persons, including the state,
   29  infants, incompetents, absentees and non-residents who may have had  any
   30  right,  title,  interest, claim, lien or equity of redemption in or upon
   31  such parcel shall be barred and forever foreclosed of  all  such  right,
   32  title,  interest,  claim, lien or equity of redemption. The tax district
   33  may sell any parcel so acquired in the manner provided by  section  1166
   34  of  the real property tax law if it does not choose to retain the parcel
   35  for a public use.
   36    4. Court-ordered sales. Where the enforcing officer  requests  that  a
   37  parcel  be sold without the tax district taking title thereto, the judg-
   38  ment shall direct that a public auction shall be conducted by  or  under
   39  the direction of the enforcing officer. Public notice of such sale shall
   40  be  given once a week for at least three successive weeks in a newspaper
   41  published in the county in which such  tax  district  is  situated.  The
   42  terms and conditions of such sale shall be as prescribed by court order,
   43  provided  that  all proceeds including any surplus, shall be paid to the
   44  enforcing officer for the benefit of the tax district. At the conclusion
   45  of such sale the enforcing officer shall  prepare  and  execute  a  deed
   46  conveying  to  the  purchaser or its designee full and complete title to
   47  such parcel. Upon the delivery and acceptance of such deed, the  grantee
   48  shall  be  seized of an estate in fee simple absolute in such parcel and
   49  all persons, including the state, infants, incompetents,  absentees  and
   50  non-residents  who  may have had any right, title, interest, claim, lien
   51  or equity of redemption in or upon  such  parcel  shall  be  barred  and
   52  forever  foreclosed  of  all such right, title, interest, claim, lien or
   53  equity of redemption.
   54    S 2. This act shall take effect immediately and  shall  apply  to  any
   55  surplus  funds  from  the proceeds of a tax lien foreclosure sale in the
   56  city of Buffalo paid into court on or after such effective date.