§ 99-s. Transfer and sale of delinquent real estate tax receivables.1. A city with a population of one million or more, acting through itsfinance commissioner, collector of taxes or other officer responsiblefor the collection of real estate taxes, may sell or transfer anyportion of or all its interest in any or all of its delinquent realestate tax receivables, including any penalty or interest thereon.Provided, however, no such sale or transfer shall take place withoutadoption of a local law, ordinance or resolution authorizing each suchsale or transfer.2. a. Delinquent real estate tax receivables shall be sold only atpublic sale to the bidder offering the highest total return to such cityincluding fees and other payments.
b. There shall be published, at least once, not less than five normore than thirty days before the date fixed for the public sale ofdelinquent real estate tax receivables, a notice of such public sale.Such notice shall be published in any financial newspaper published andcirculated in such city which the state comptroller, by rules andregulations, shall designate for such publication, or in lieu thereof,such notice shall be circulated in such manner as the state comptrollershall prescribe, within ninety days after this section shall takeeffect, pursuant to such rules and regulations and shall be published inany newspaper or newspapers which the finance board of such city maydesignate for such purpose.
c. Such notice shall call for sealed bids for the purchase of suchdelinquent real estate tax receivables, and shall state:
See AlsoSeize the Opportunity: Expert Guidance Essential as Estate Tax Exemption Sunset Approaches | Henson Efron – Minneapolis Law FirmHow a Transfer on Death Deed WorksWhat is Crummey Trust? - How does it help reduce Estate Tax?Will & Estate Tax Planning Canada | Estate Tax Lawyer | Taxpage1. The place where bids will be received and considered.
2. (a) The time and date for the opening of bids, which shall be onlyon weekdays, Saturdays and holidays excluded, between the hours of teno'clock ante meridian and four o'clock post meridian, eastern standardtime.
(b) In lieu of the statement of the time and date for the opening ofbids required by clause (a) of this subparagraph, a statement (i) thatthe time and date for the opening of bids will be provided on not lessthan twenty-four hours prior notice by means of a supplemental notice ofsale and indicating the manner in which such supplemental notice will beprovided, or (ii) setting a time and date for the opening of bids,stating that notice of a change in the time or date for the opening ofbids may be provided not less than twenty-four hours prior to the timeoriginally scheduled for the opening of bids by means of a supplementalnotice of sale and indicating the manner in which such supplementalnotice will be provided. Where notice is given that the time or date ofa sale will be changed without specifying the new time or date, noticeof the new time or date of sale must be provided by means of a secondsupplemental notice of sale at least twenty-four hours prior to the newtime for the opening of bids.
See AlsoBasic Estate Tax Planning For Married Couples: Opportunities For Use Of Estate Tax Exemptions(c) A supplemental notice of sale shall refer to and be deemed a partof the notice of sale required by this section and shall not establishor change the terms of the sale other than the time or date for theopening of bids. The time set for the opening of bids in thesupplemental notice of sale shall not be less than five nor more thanthirty days after publication of the notice of sale required pursuant toparagraph a of this subdivision.
(d) Public notice of the time and date set for the opening of bidsshall be given to the news media and shall be posted in one or moredesignated public locations within such city at least twenty-four hoursprior to the time and date set for the opening of bids or, in the caseof a time and date set or changed in a supplemental notice of sale, atleast twenty-four hours prior to such time and date; provided, however,that such public notice shall not be construed to require publication asa legal notice.
d. All bids shall be opened publicly at the time and place stated inthe notice of sale, and not before, and shall be publicly announced.Prior to the time fixed for such public opening of bids, a sealed bidmay be amended by a bidder by delivery to the official to whom thesealed bid was delivered of a sealed amendment to such bid. No bid shallbe amended by a telegraphic or telephonic communication.
e. Advertisem*nts shall contain a provision to the effect that suchcity, in its discretion, may reject any or all bids made in pursuance ofsuch advertisem*nts, and in the event of such rejection, such city isauthorized to readvertise for bids in the form and manner abovedescribed as many times as, in its judgement, may be necessary to effecta satisfactory sale.
3. Without limitation of the foregoing, any sale or transfer agreemententered into pursuant hereto may also contain provisions requiring suchcity to undertake to replace such receivable with the transferee orpurchaser for any misrepresentation or mistake as to the description orstatus of any delinquent real estate tax receivable which is the subjectof such sale or transfer agreement.
4. In no event shall such city pay any such receivable other than frommoneys collected thereon by such city. Any revenues received by suchcity for payment of delinquent real estate taxes including any penaltiesand interest thereon where the interest in such delinquent real estatetax receivable has been sold or transferred, shall be deposited in aspecial fund to be created by such city. Such fund shall be keptseparate and apart from any other funds and accounts of such city.Moneys in such fund shall first be used to pay any such receivables.Moneys in the fund in excess of that needed to pay such receivables maybe used for any other city purpose as authorized by law. In no eventshall such city guarantee payment, or be construed as guarantor ofpayment for such receivables.
5. Such city shall remain responsible for servicing, collecting andenforcing any such receivables in the same manner as if such receivableshad not been sold. The obligation of such city to service or collectany such receivables on behalf of the purchaser or transferee thereofshall terminate with respect to each receivable upon the date threeyears from the date such receivable was sold or transferred by such cityor such earlier date as payment is made to such purchaser or transfereeof such receivable, including any penalty or interest thereon, equal tothe consideration paid for such sale or transfer plus any fees or otherpayments in accordance with the terms of sale or transfer of thereceivables and such city shall thereafter collect and enforce suchreceivables solely on its own behalf.
6. The transferee of the delinquent real estate tax receivables orinterests therein, during the term of an agreement with such city, mayperfect a security interest in such delinquent real estate taxreceivables or interests therein by the filing of financing statements,as provided in article nine of the uniform commercial code, with respectthereto giving a reasonable description of such receivables or interestsso transferred as identified on the records kept for such purpose by theofficer of such city responsible for the collection of real estatetaxes.
