Bill Text: NY S07589 | 2015-2016 | General Assembly | Amended

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Bill Title: Authorizes holding title of real property of a land bank in the name of a subsidiary; grants additional powers to land banks.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2016-06-16 - SUBSTITUTED BY A7529B [S07589 Detail]

Download: New_York-2015-S07589-Amended.html

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                STATE OF NEW YORK
        ________________________________________________________________________
                                         7589--B
                    IN SENATE
                                      May 10, 2016
                                       ___________
        Introduced  by  Sen. VALESKY -- read twice and ordered printed, and when
          printed to be committed to the Committee on Corporations,  Authorities
          and   Commissions  --  committee  discharged,  bill  amended,  ordered
          reprinted as amended and recommitted to said  committee  --  committee
          discharged, bill amended, ordered reprinted as amended and recommitted
          to said committee
        AN  ACT  to amend the not-for-profit corporation law, in relation to the
          powers of a land bank
          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:
     1    Section  1.  Clauses 20 and 21 of paragraph (a) of section 1607 of the
     2  not-for-profit corporation law, as added by chapter 257 of the  laws  of
     3  2011, are amended to read as follows:
     4    (20)  to  enter in agreements with a foreclosing governmental unit for
     5  the distribution of revenues to the foreclosing  governmental  unit  and
     6  school district; [and]
     7    (21) to organize a subsidiary for a project or projects which the land
     8  bank  has the power to pursue under this article when the primary reason
     9  for which the subsidiary shall be organized shall be to limit the poten-
    10  tial liability impact of the subsidiary's project  or  projects  on  the
    11  land bank or because state or federal law requires that the purpose of a
    12  subsidiary be undertaken through a specific corporate or business struc-
    13  ture.  All  real  property  of a subsidiary organized under this article
    14  shall be maintained on the inventory lists required in this  article  of
    15  the  land bank of which it is a subsidiary and the subsidiary shall make
    16  all reports and other disclosures as are required of  land  banks  under
    17  this  article  and  as local public authorities, unless the subsidiary's
    18  operations and finances are consolidated with those of the land bank  of
    19  which  it  is  a  subsidiary.  Subsidiaries organized under this article
    20  shall be established in the form of a New York charitable not-for-profit
    21  corporation or a New  York  single  member  limited  liability  company.
    22  Subsidiaries shall not have the authority to issue bonds, notes or other
    23  debts,  provided,  however,  that  such  subsidiaries may issue notes or
    24  other debt to the land bank of which it is a subsidiary.  The  organiza-
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD15351-03-6
        S. 7589--B                          2
     1  tional  documents  filed to create a subsidiary under this article shall
     2  state that the land bank is organizing the subsidiary for  the  purposes
     3  set  forth  in  this  article  and  the  name of the subsidiary shall be
     4  reasonably related to the name of the land bank of which it is a subsid-
     5  iary. The real property of a subsidiary organized under this article and
     6  its  income  and operations are exempt from all taxation by the state of
     7  New York and by any of its political subdivisions; and
     8    (22) to do all other things necessary to achieve  the  objectives  and
     9  purposes  of the land bank or other laws that relate to the purposes and
    10  responsibility of the land bank.
    11    § 2. Paragraph (a) of section 1609 of the  not-for-profit  corporation
    12  law,  as added by chapter 257 of the laws of 2011, is amended to read as
    13  follows:
    14    (a) The land bank shall hold in its own name, or  in  the  name  of  a
    15  lawfully  organized  subsidiary,  all real property acquired by the land
    16  bank irrespective of the identity of the transferor of such property.
    17    § 3. This act shall take effect immediately.