[HISTORY: Adopted by the Council of the City of Rye 11-18-1964 as L.L. No. 3-1964. Amendments noted where applicable.]
Tax administration — See Charter, Art. 22.
Taxation — See Ch. 177.
The right of the City of Rye, hereinafter referred to as the "city," to receive taxes and assessments and the lien or liens therefor may be sold by the city, and after such sale, shall be transferred in the manner provided by this chapter. For the purposes of this chapter, each installment of an assessment payable in annual installments shall be deemed a separate assessment. In this chapter, unless the context otherwise requires, the word "tax" shall be interpreted as including water rents, expenses incurred in repairing, grading and removing snow and ice from sidewalks and all other items inserted in the annual tax roll and made a part of the annual tax upon lands and tenements thereon. The right and lien so sold shall be called "tax lien" and the instrument by which it is assigned shall be called "transfer of tax lien." Whenever any tax or assessment on lands or tenements in the City of Rye shall remain unpaid on the tax rolls of the City of Rye for the previous year, the Comptroller shall advertise, in the manner hereinafter provided, the tax liens on the said lands and tenements, including in such advertisement the tax lien for all items due and unpaid for said year and all years previous thereto, with interest thereon, up to a date named in the advertisement, except the city taxes or assessments of the current year for which a transfer of tax lien has not been sold, but including the unpaid school taxes affecting such lands and tenements, and included in such advertisement shall be a statement to the effect that the owner or owners of such lands and tenements, respectively, shall be required to pay the amount of such taxes and assessments with the penalties thereon so remaining unpaid, to the time of payment, with the charges of such notice and advertisement, to the said Comptroller, and notice shall be given by such advertisement that if default shall be made in such payment on or before the date specified in said notice, the tax lien on such lands and tenements will be sold at public auction at a day and place therein to be specified, for the lowest rate of interest, not exceeding 12% per annum, at which any person or persons shall offer to take the same, in consideration of advancing the aggregate sum of said taxes, assessments and penalties, as the case may be, the interest thereon to the time of sale, the charges of the above-mentioned notice and advertisement and all other costs and charges accruing thereon; and if, notwithstanding such notice, the owner or owners shall refuse or neglect to pay such tax, assessment and penalties with interest as aforesaid and the charges attending such notice and advertisement, then it shall and may be lawful for the said Comptroller to cause such tax lien on said lands and tenements to be sold at public auction for the purpose and in the manner expressed in said advertisement, and such sale shall be made on the day and at the place for that purpose mentioned in said advertisement as aforesaid and such sale shall be continued from time to time, if necessary, without further notice, until all of the tax liens on the lands and tenements so advertised shall be sold. The sale of tax liens under the provisions of this chapter shall be held on the second Thursday of May in each year.
No such sale of any tax lien for the nonpayment of any tax or assessment as herein provided shall be held unless notice of such sale shall have been published once in each week for the three consecutive weeks next preceding the date fixed for such sale in the official newspaper of the city; such sale shall take place on or after the 21st day and on or before the 28th day after the day of the first publication. Any period of seven successive days shall constitute a week under this section; said advertisement shall contain appended to such notice a detailed statement of the property the tax lien on which is to be sold, by giving the block and lot number or numbers, together with such other description, if any, as the Comptroller may direct, or the said Comptroller, at his option, may cause such detailed statement and description of the premises the tax lien on which is to be sold to be printed in a pamphlet, in which case copies of the pamphlet shall be deposited in the Comptroller's office and shall be delivered to any person applying therefor. Such detailed statement and description shall also give the total sum for the nonpayment of which a tax lien is to be sold. In the event that the Comptroller shall determine to print a pamphlet as aforesaid, the notice provided for in this section to be given of the sale of tax liens on lands and tenements shall state that the detailed statement of taxes and assessments and the property taxes or assessments as aforesaid is to be in pamphlet form and that copies of the pamphlet are deposited in the office of the Comptroller and will be delivered to any person applying for the same. No other notice or demand of the tax or assessment shall be required to authorize the sale of tax or assessment liens on any lands and tenements as hereinbefore provided. The Comptroller may cancel any transfer of tax lien for unpaid taxes and assessments held by the City of Rye or to which the city has acquired the right, and upon such cancellation the lien of such tax or assessment shall be the same as if no sale for such unpaid tax or assessment has been made.
In addition to the annual sale of tax liens as herein provided, the Council may at any time direct the Comptroller to sell the lien of taxes and assessments unpaid for more than one year since the same became due and payable, in which case the Comptroller shall forthwith take the same steps hereinbefore provided, without regard to the time limitations hereinbefore specified, and offer such liens for sale in the same manner as hereinbefore provided.
It shall be lawful for the Comptroller to suspend or postpone any sale or sales of tax or assessment liens on lands and tenements or any portion thereof which shall have been advertised for sale, to any time not exceeding 30 days from the day specified in any such advertisement. All sales which shall be so postponed or suspended may be made without further advertisement, other than a general notice of such postponement, to be published once in the official newspaper of the city. Interest at the rate of 12% per annum shall be added to the amount of tax and assessment liens for the period of such postponement.
The Comptroller or his deputy shall conduct the sales hereinbefore provided to be made, and no auctioneer other than said Comptroller or his deputy shall be employed to make such sale, and no auctioneer's fees shall be charged thereon. The Comptroller shall require from each purchaser of a tax or assessment lien at the time of such sale a deposit on account of 20% of the amount of the tax lien purchased by him, and not later than 30 days from the date of the sale, the balance shall be paid to the Comptroller at his office. If no bid shall be received for a tax lien offered for sale, the Comptroller on behalf of the City of Rye may bid in the said tax or assessment lien, and upon such bid no deposit or payment in cash shall be required from the city. When the city has bid in any tax or assessment lien, a transfer of tax or assessment lien to the city shall be executed by the said Comptroller in the form and manner prescribed for other transfers of tax liens, and the city shall have the same rights in, to and under such transfer of tax or assessment liens as if the same had been bought by any other person. The city at any time either before or after the institution of a foreclosure action may accept a deed of conveyance of the property covered by the transfer of tax lien, conveying to the city the fee of said premises, but such deed shall not be taken subject to any mortgage, lien, judgment or other encumbrance, except unpaid taxes, leases and restrictive covenants of record. The city shall sell any such property so acquired upon such terms and for such sums as the Council may by resolution fix and determine, and the Mayor on behalf of the city shall execute, acknowledge and deliver a deed therefor. Transfers of tax or assessment liens shall be made and delivered to the purchaser without charge upon payment of the amounts therein shown to be due. In case any purchaser shall not complete his purchase in accordance with the terms prescribed as herein provided, then the amount deposited by him at the time of the sale shall be forfeited to the city, and the entire tax or assessment lien upon the lands affected by such purchase shall be sold again. Such resale shall be held at such time as the Comptroller may direct, and shall be advertised in the official newspaper of the city twice in the 10 days immediately preceding the sale. All deposits forfeited as aforesaid shall be paid into the general fund of the City of Rye.
A transfer of tax lien shall operate to transfer and assign the tax lien upon the lands or tenements described therein for taxes and assessments with the penalties and interest thereon and the charges of the notices and advertisement given pursuant to this chapter and all other costs and charges so advertised for sale, and to create a lien upon property affected thereby for the interest to which the purchaser may be entitled under his bid, but such tax lien so sold shall be subject to all taxes and assessments, including school taxes or interest acquired from the sale, or lease of the premises for the same, which are still unpaid and due and owing to the city and to the Town of Rye, and subject to tax liens and transfers of tax liens which are still unpaid and due and owing to the city and to the Town of Rye, also subject to all city taxes, special district assessments and school taxes which have or may become a lien subsequent to the lien of the taxes or assessments for which the tax lien is sold, also subject to any and all subsequent transfer of tax lien against said premises. A transfer of tax lien shall contain a transfer and assignment by the city of the tax lien sold to the purchaser, the date of the sale, the aggregate amount of the lien so transferred and the items of taxes, assessments, penalties and interest composing the tax lien, the annual rate of interest which the purchaser has bid and will be entitled to receive, the date when the amount of the tax lien will be due and the description of the real property affected by the tax lien, and shall refer for certainty to the designation of said property on the Official City Map by its block and lot number and such other identifying description as the Comptroller may deem proper to advertise. Each transfer of tax lien shall be subscribed by the Comptroller or his deputy, or his successor in office, and shall be acknowledged by the officer subscribing the same in the manner in which a deed is required to be acknowledged to be recorded in Westchester County. The Comptroller may assign any transfer of tax lien made and delivered to the city upon payment of the amount thereof with interest at the rate bid to the time of such assignment.
The Comptroller shall keep in his office a public record of sales of tax liens and a copy of each transfer of such liens issued by him. Assignments of transfer of tax liens duly acknowledged may be filed and recorded in the office of the Comptroller. Transfer of tax liens and all assignments thereof shall, upon request, be recorded by recording officers of Westchester County in the same manner as mortgages and assignments thereof but without the payment of a mortgage tax under the Tax Law. A transcript of any record of a transfer of tax lien or assignment thereof in the office of the Comptroller or any recording officer, duly certified, shall be evidence in any court with like effect as the original instrument of record. Unless a contrary intent appears, a tax or assessment lien shall be presumed to be satisfied and discharged whenever it shall appear from recorded instruments that the tax lien has been transferred or assigned to the owner of such lands or tenements, notwithstanding other intervening estates or liens.
The aggregate amount of each tax lien transferred pursuant to this chapter shall be due one year from the date of the sale. Until such aggregate amount is fully paid and discharged, the holder of the transfer of tax lien shall be entitled to receive interest on such aggregate amount from the day of sale, semiannually on the first day of June and December, at the rate which the purchaser shall have bid. At the option of the holder of any transfer of tax lien, the aggregate amount thereof shall become due and payable after the expiration of nine months from the date of sale either after default in the payment of interest on such transfer of tax lien for three months and/or after default for three months after the date of the sale of the tax lien in the payment of any taxes or assessments which become a lien subsequent to the taxes and assessments for which the tax lien so held is sold. The holder of a tax lien may pay to the Comptroller, after default, the amount of any subsequent taxes or assessments which have become a lien subsequent to the taxes and/or assessments for which the lien so held was sold, and the amount so paid shall bear interest at the rate of 6% per annum from the date of such payment, and the amount so paid with interest may be added to the aggregate amount of the tax lien upon foreclosure of the tax lien. Upon the payment of such tax or assessment as aforesaid by the holder of such a tax lien, the Comptroller shall note such payment with the name and address of the holder of such tax lien on the tax record. The owner of the property affected thereby shall have the right to repay such amount so paid with interest at any time before the starting of an action to foreclose the tax lien. In any instance where the city has bid in the tax lien and received a transfer thereof, and the assessed value of the lot or parcel of land as assessed upon any subsequent roll is less than $100, the Comptroller is authorized to advance on behalf of the city the amount of any subsequent tax or assessment, and in that event the tax lien for the amount of such tax so paid shall not be sold, but the amount so paid with 12% interest from the date of such payment shall be due and payable upon any redemption of the transfer of the tax lien so held, or upon foreclosure thereof, as hereinafter provided as a part of such tax lien.
Any person having an interest as owner or mortgagee in the property affected by a tax lien may satisfy or obtain an assignment of the same by payment to the Comptroller of the city in the following manner:
At any time prior to the service of notice to redeem, as hereinafter provided, the payment shall consist of the principal amount due and/or unpaid for or on account of such transfer of tax lien with interest at the rate bid to 30 days after the date of payment, less any payments made by any party on account thereof.
The holder of the transfer of tax lien or any party to an action to foreclose the same or any party in interest may give written notice to the Comptroller of the city that notice to redeem has been served or that an action to foreclose has been commenced, and upon receiving such written notice the said Comptroller shall require the payment of the amounts hereinafter set forth.
After the service of notice to redeem, as provided in § 183-13 hereof, if payment is made within the 30 days provided in said notice, such payment shall consist of the amount set forth in the notice to redeem, or if such payment is made after the expiration of such 30 days but prior to the time that the Comptroller shall have had notice of the commencement of a foreclosure thereof, attached to a copy of the lis pendens with the date of filing in the County Clerk's office endorsed thereon, the payment shall consist of the amount unpaid and due on such transfer of tax lien with interest at the rate bid for all unpaid interest thereon to 30 days after the date of payment with disbursements as hereinafter set forth.
After the Comptroller shall have had notice of the commencement of an action to foreclose such transfer of tax lien and prior to judgment of foreclosure, any person having an interest as owner or mortgagee in the property affected by such tax lien may file in the office of the Comptroller of the city a written notice of his intention to redeem and shall pay to said Comptroller a sum equal to the principal amount unpaid and due on such tax lien with interest at the rate bid to 30 days after the date of payment. Such notice and payment shall stay the proceedings in the foreclosure action except as hereinafter provided. Upon receiving such notice and payment, the Comptroller shall thereupon within five days give notice of such filing and payment personally or by mail to the attorney for the holder of such tax lien at the address appearing on the copy of lis pendens filed with the lien; and therein direct that costs be taxed by the clerk of the court in which the action is pending on five days' written notice to the person filing notice of intention to redeem, mailed to the address stated in such notice of intention. The bill of costs shall not exceed $10 for costs, and disbursements actually made or incurred not exceeding $25 for all authorized searches for each tax parcel and postage paid in connection with the service of notice to redeem and not exceeding $2 for each person served with a summons, together with the other taxable disbursements, including referee's fees, if any, actually paid or incurred to which the plaintiff may be entitled and $5 for discontinuance, cancellation and other services as hereinafter provided. Such bill of costs shall also set forth the names and addresses of persons to whom said disbursements were paid or are payable and the nature of each item of disbursement. After said costs have been taxed by the clerk of the court in which the action is pending, a certified copy thereof shall be filed in the office of the Comptroller. If such certified copy of bill of costs be filed with the Comptroller within 25 days after the filing of such notice of intention to redeem and payment, the transfer of tax lien, by the further payment to the Comptroller of the amount of said bill of costs within said period of 30 days after the filing of the notice of intention to redeem as above provided, shall be discharged and satisfied of record or an assignment thereof given. If no such certified copy of bill of costs be filed with the Comptroller within said 25 days as above provided, the holder of such transfer of tax lien shall immediately execute and deliver to the party redeeming a duly acknowledged satisfaction or a duly acknowledged assignment thereof. At the time of the delivery of any satisfaction or assignment as provided in this subsection and before the payment by the Comptroller of any sum to the holder of the transfer of tax lien or to his attorney, such holder of the transfer of tax lien shall cause to be delivered without any further payments the original transfer of tax lien and any and all assignments thereof, if any, also a consent to the discontinuance of the action and a cancellation of the lis pendens without costs, also an affidavit showing the parties served, the date of service and whether any of them have appeared, attaching to the affidavit the original or a copy of all notices of appearances and answers, if any. If payment of costs is not made in the manner above provided, the stay of proceedings shall be thereby vacated and the plaintiff authorized to continue the action but shall give credit in the judgment of foreclosure for all amounts paid as hereinafter provided.
All payments made to the Comptroller as provided in this section shall be received by him for the benefit of the holder of the tax lien so paid, and he shall give notice thereof to said holder or a personal representative or assignee by mail, addressed to such address that may appear on the records of the Comptroller. The Comptroller shall pay the amount of such payments so received to the person who, according to the records of his office, appears to be entitled thereto, or to the personal representative of such person, upon such Comptroller's receiving a surrender of such transfer of tax lien with assignment thereof, if any, together with a certificate of cancellation or an assignment thereof as requested by the party paying, and, in the event a foreclosure of such tax lien is pending, a consent to the discontinuance of such action and the cancellation of the lis pendens without costs. If a foreclosure action shall have been pending at the time of payment and such payment shall have been insufficient to discharge said transfer of tax lien as provided in Subsection A(4) hereof, and shall so continue within the times therein provided, the Comptroller shall pay the amount so received by him to the person who, according to the records of his office, appears to be entitled thereto or the personal representative of such person. Any foreclosure of tax lien action may be ordered discontinued, and any notice of pendency of such action ordered canceled, by the court in which such action is pending upon proof of the discharge of the tax lien being foreclosed in the manner aforesaid.
Any person having an interest as owner or mortgagee in property affected by a tax lien may pay the amount due on such tax lien directly to the holder thereof. The amount payable shall be the same amount as may be paid to the Comptroller of the city, and it shall be unlawful to demand or receive a greater amount in payment of a transfer of tax lien than that provided in Subsection A hereof. Upon making such payment, such person shall be entitled to receive from the holder of such tax lien the same documents as if such payment had been made to the Comptroller, all as provided in Subsection A(4) hereof.
The record owner or holder of a transfer of tax lien shall, on request by any person having a legal or beneficial interest in property affected by a transfer of tax lien, furnish a statement of the balance due and unpaid on account of any such lien, giving balance due on account of principal and interest thereof, giving rate and date from which interest is charged to date of statement.
The Comptroller shall furnish suggested forms for assignment and also for satisfying transfer of tax liens.
The City Assessor shall, at the written request of the owner, mortgagee or prospective purchaser or mortgagee, apportion any transfer of tax lien affecting property which is to be subdivided, or a part thereof sold or mortgaged, or where two or more lots have been assessed together, and file such apportionment with the Comptroller. The Comptroller shall, upon the filing of such apportionment in his office, give written notice thereof by mail to the holder of any transfer of tax lien so apportioned and also to all owners or mortgagees as are shown in an affidavit to be filed by the applicant for such apportionment. The applicant shall file with the Comptroller an affidavit showing who are the owners of the property, with their names and addresses, and also the names and addresses of all mortgagees holding mortgages against the whole or any part of the property in reference to which the transfer of tax lien is to be apportioned. The holder of any such transfer of tax lien or any owner or mortgagee may, within 10 days thereafter, given written notice to the Comptroller if he objects to the apportionment and shall, within 10 days after filing written notice, proceed to review by certiorari the action of the Assessor in making such apportionment. In the event of the failure of the holder of any transfer of tax lien or owner or mortgagee to file objections to the apportionment within said 10 days, or, if he files objections, to proceed to review said apportionment within 20 days, such apportionment shall be effective and the Comptroller or the holder of any transfer of tax lien shall thereupon accept payment of the amount so apportioned as affecting any part so apportioned, and thereafter all provisions in this chapter contained in reference to the payment of the transfer of tax lien or the foreclosure thereof shall apply to the apportioned amounts.
A tax lien sold pursuant to the provisions of this chapter must be discharged upon the record thereof by the Comptroller when payment is made to him of the amount due under the transfer of tax lien as provided in this chapter, and also when the transfer of tax lien is surrendered to him for cancellation and there is presented to him a certificate executed by the purchaser or the personal representative or assignee of the purchaser, acknowledged so as to be entitled to be recorded in Westchester County, certifying that the tax lien has been paid or has been otherwise satisfied and discharged. The transfer of tax lien thus surrendered and such certificate of discharge must be filed by the Comptroller, and he must note upon the margin of the record of such sale, upon such transfer of tax lien and upon the copy of the transfer of tax lien kept in his office, a minute of such discharge and the date of filing thereof. If the transfer of tax lien shall have been lost, destroyed or mutilated and if payment of the amount due thereon be made to the Comptroller, the said amount shall not be paid to the alleged holder or owner of such transfer of tax lien except on an order of the court after notice of application to the party or person paying such amount due and due proof that such transfer of tax lien has been lost, destroyed or mutilated. The filing of a certified copy of such order with the Comptroller shall be taken in the place and stead of the transfer of tax lien so lost, destroyed or mutilated. The Comptroller shall upon demand issue his certificate showing the discharge of any tax lien which may have been duly discharged as provided in this section, and such certificate may be filed in the office of the Clerk of the County of Westchester, and said Clerk shall record the same and, upon the margin of the record of such transfer of tax lien in his office, shall note a statement that the same has been discharged, with reference to the record of such certificate in his office.
Tax liens and transfers of tax liens shall be exempt from taxation by the state or any local subdivision thereof, except as to taxes imposed by Article 10 of the Tax Law. The real property affected by any tax lien shall not be exempt from taxation by reason of this section.
If the amount of any tax lien which shall have been transferred by a transfer of tax lien shall not be paid as provided in this chapter, or redeemed after notice as provided in this chapter, when under the terms and provisions of this chapter and of the transfer of tax lien such amount shall be due, the holder of such tax lien may maintain an action in the Supreme Court or in the County Court of Westchester County to foreclose such tax lien. No action to foreclose a tax lien shall be instituted hereunder unless the holder of such tax lien shall have served notice to redeem upon the record owner or owners of the premises affected by such tax lien, and also on the mortgagee or mortgagees affected by such tax lien. Said notice to redeem shall require the persons served to pay the amount due under such transfer of tax lien to the Comptroller of the city or to the holder of such transfer of tax lien within 30 days from the service of said notice, and shall set forth a verified statement of the amount required for redemption, which shall consist of the amount due on account of such tax lien with interest at the rate bid up to the date of the expiration of said thirty-day period, together with disbursements actually made or incurred not exceeding $25 for all authorized searches for each tax parcel and disbursements for postage. The notice shall be served by registered mail addressed to the last known address, if any, as shown by the records in the office of the Comptroller and/or in the office of the Clerk of the County of Westchester. In the event that such records fail to disclose the names of such owners or mortgagees or fail to disclose the addresses of any such owners or mortgagees, the Comptroller shall, at the request of the owner of such transfer of tax lien or his or its representative, post such notice in his office, and upon the expiration of 30 days from the date of such posting, the transfer of tax lien holder shall have the same rights as if the registered notice was given as herein provided. In an action to foreclose a tax lien any person shall be a proper party of whom the plaintiff alleges that such person has or may have or whom the plaintiff has reason to believe that such person has or may have an interest in or claim upon the real property affected by the tax lien. Except as otherwise provided in this chapter, an action to foreclose a tax lien shall be regulated by the provisions of the Civil Practice Law and Rules, including the right to the appointment of a receiver of rents and profits pending such foreclosure proceedings as in the case of the foreclosure of a mortgage, the same rules and laws applying, and by all other provisions of law and rules of practice applicable to actions to foreclose mortgages on real property. The people of the State of New York may be made party to an action to foreclose a tax lien in the same manner as a natural person. Where the people of the State of New York or the city is made a party defendant, the complaint shall set forth, in addition to the other matters required to be set forth by law, detailed facts showing the particular nature of the interest in or the lien on the said real property of the people of the State of New York or the city, and detailed facts showing the particular nature of the interest in or the lien on said real property which plaintiff has reason to believe that the people of the State of New York or the city has or may have in the said real property, and the reason for making the people of the State of New York or the city a party defendant. Upon failure to state such facts, the complaint shall be dismissed as to the people of the State of New York or the city. Separate transfer of tax liens against the same lot or against two or more lots or parcels of land may be foreclosed in one action. In the event that any defendant to such an action desires to have the action severed, an order to that effect may be granted upon due notice to the plaintiff, and continued as to such defendant or defendants under such conditions as the court may provide, or the complaint dismissed as to such defendants, but without costs, or it may be severed on the application of the plaintiff as to one or more defendants upon due notice to such defendants as to which the severance is sought who have appeared, but upon such conditions as the court may provide, or the complaint dismissed as to such defendants but without costs.
In any transfer of tax lien foreclosure brought by and on behalf of the city where the property affected thereby has heretofore been sold for any lien against the same and all back taxes and assessments due at the time of such sale are not paid within 35 days after the date of such sale, the city shall be entitled, on application to the court in which its action is pending or any judge thereof, without notice, to the immediate appointment of the City Comptroller as receiver of the rents and profits of such property so affected by such lien, without bond or security, and all fees received by him shall be paid into the city treasury.
A description of the property by block, lot or other description as shown on the Tax Map, used in the tax rolls and shown in the transfer of tax lien shall be sufficient for such foreclosure.
The referee or other official making the sale shall sell each transfer of tax lien parcel separately, except that he may sell adjoining parcels with a frontage of not to exceed 75 feet in width on the street front together, but the court in and by the judgment may direct such other or different method as may seem just and proper.
The referee or other official making the sale insert such additional description in the deed as to him shall seem proper for convenience of record identification.
The attorney for the plaintiff in the foreclosure of a transfer of tax lien shall append to the notice of sale the approximate amount, including penalties and interest, due for unpaid real property taxes and assessments, including the amount due on the transfer of tax lien being foreclosed, which are a lien against the premises so being sold.
Whenever a cause of action, defense or counterclaim is for the foreclosure of a tax lien or is in any manner founded upon a tax lien or a transfer of a tax lien, the production in evidence of an instrument executed by the Comptroller, in the form prescribed in § 183-6 hereof for a transfer of tax lien subscribed by or in behalf of the Comptroller, shall be presumptive evidence that the lien purported to be transferred by such an instrument was a valid and enforceable lien and that it has been duly assigned to the purchaser, and it shall not be necessary to plead or prove any act, proceeding, notice or action preceding the delivery of such transfer of tax lien nor to establish the validity of the tax lien transferred by such transfer of tax lien. If a party or person in interest in any such action or proceeding claims that a tax lien is irregular or invalid or that there is any defect therein or that a transfer of tax lien is irregular, invalid or defective, such invalidity, irregularity or defect must be specifically pleaded or set forth and must be established affirmatively by the party or person pleading or setting forth the same.
In every action for the foreclosure of a tax lien and in every action or proceeding in which a cause of action, defense or counterclaim is in any manner founded upon a tax lien or transfer of tax lien, such transfer of tax lien and the tax lien which it transfers shall be presumed to be regular and valid and effectual to transfer to the purchaser named therein a valid and enforceable tax lien. Unless in such an action or proceeding such tax lien or transfer of tax lien is found to be invalid, they shall be adjudged to be enforceable and valid for the amount thereof and the interest to which the holder may be entitled, and to be a tax lien transferred by a transfer of tax lien effectual to transfer such tax lien to the purchaser named therein.
In an action to foreclose a tax lien, unless the defendants obtain judgment, the plaintiff shall be entitled to a judgment establishing the validity of the tax lien so far as the same shall not be adjudged invalid, and of the transfer of tax lien, and directing the sale of the real property affected thereby or such part thereof as shall be sufficient to discharge the tax lien or such items thereof as shall not be adjudged invalid and the interest thereon and all other accrued taxes, assessments and water rents affecting the real property, together with the expenses of the sale and the costs of the action, except that the fees and/or allowances to a referee or other official appointed to compute shall not exceed $10 unless there are five or more tax parcels in the action, in which event the allowance shall not exceed $20, and the fee and/or allowance to the referee or other official appointed to sell shall not exceed the rate allowed to the referee appointed to compute. Costs in any foreclosure action brought under the provisions of this chapter shall be in the discretion of the court, but in no event shall such costs exceed the sum of $20 unless there are five or more separate tax parcels included in one action, in which event the costs shall not exceed $40. The award of costs in any action shall carry with it the right to recover taxable disbursements, together with such amount as the court shall allow for authorized searches, not to exceed $10 for each tax parcel included in the action. The judgment of foreclosure shall direct the payment of:
The costs, disbursements and expenses of the foreclosure action.
All taxes, assessments, tax liens and transfers of tax liens due and owing to the Town of Rye, or shall provide that the tax parcel be sold subject thereto, and if sold subject thereto, the notice of sale shall state the approximate amount thereof, including penalties and interest.
All taxes and special district assessments, school taxes and penalties payable to the Comptroller, and also all liens or transfers of tax liens for same which are a lien against the premises so sold subsequent to the taxes or assessments covered by the lien so foreclosed, or shall provide that the tax parcel be sold subject thereto, and if sold subject thereto, the notice of sale shall state the approximate amount thereof, including penalties and interest.
All taxes and assessments, including school taxes or interest acquired from the sale or lease of the premises for the same, which are still unpaid and due and owing to the city, making the sale as of the date of the taxes for which such tax lien has been sold, or shall provide that the tax parcel be sold subject thereto, and if sold subject thereto, the notice of sale shall state the approximate amount thereof, including penalties and interest.
The amount of the tax lien foreclosed with interest thereon.
In the event that the city is the plaintiff, the holder of any city tax lien affecting the tax parcel sought to be sold shall be made a party to the action, and such tax lien shall be sold free and clear of all city tax liens and/or taxes due or owing to the city for state, county and city and school taxes and special district assessments, and the proceeds of such a sale after paying the costs and disbursements as herein provided shall be applied to the cancellation of all such taxes and special district assessments or tax liens therefor in the inverse order of the dates of the liens of such taxes or assessments. The judgment of foreclosure and sale shall also recite the transfer of the tax lien and each assignment thereof, and unless such transfer of tax lien and each assignment thereof has been duly recorded in the office of the County Clerk, the same shall be attached to and form a part of the judgment.
In the event that the owners of one or more parcels are joined as defendants, the judgment of foreclosure and sale shall provide for an equitable division of the costs and disbursements as against each parcel to be sold as in said judgment provided.
Every final judgment in an action to foreclose a tax lien shall be binding upon, and every conveyance upon a sale pursuant thereto shall transfer to and vest in the purchaser all the right, title, interest and estate in the real property affected by such judgment of:
Each defendant upon whom the summons is served or who appeared in the action either in person or by attorney.
Each person claiming from, through or under such a defendant by title accruing after the filing of notice of pendency of the action or after the entry of the judgment and filing of the judgment roll in the proper County Clerk's office.
Each person not in being when the judgment is rendered, who afterward may become entitled to a beneficial interest attaching to, or an estate or interest in, such real property or any portion thereof, provided that the person presumptively entitled to such beneficial interest, estate or interest is a party to such action or bound by such judgment.
In the event that the amount bid at such foreclosure sale is not sufficient to pay the taxes, assessments, interest and penalties due the city and the Town of Rye, then and in that event the final judgment shall provide that the premises are sold subject to the lien of the same, after deducting the amount actually paid on account thereof in connection with such sale, but the City Council may after such sale direct that the whole or any part of such taxes, interest and penalties be canceled if it finds the total thereof exceeds the value of the property so sold. So much of Section 317 of the Civil Practice Law and Rules as requires the court to allow a defendant to defend an action after final judgment shall not apply to an action to foreclose a tax lien. Delivery of the possession of real property affected by a judgment to foreclose a tax lien may be compelled in the manner prescribed in § 221 of the Real Property Actions and Proceedings Law.
Any surplus of proceeds of sale, after paying the expenses of sale and the costs and disbursements, together with the payments as provided in § 183-16 hereof, must be paid into court for the use of the person or persons entitled thereto, and the judgment shall provide that if such surplus remains in court for a period of upwards of three months and no application has been made therefor, the same shall be invested at interest for the benefit of the person or persons entitled thereto, to be paid upon the direction of the court.
The Comptroller is hereby authorized to sell any or all of the real property acquired by the city upon the foreclosure of any tax or assessment lien or the transfer of such lien, either at private sale or public auction, for the best price that can be obtained. He shall not, however, sell the same at private sale for a price less than the amount fixed and determined by a committee consisting of the Comptroller, the Corporation Counsel and the Assessor, which determination must be in writing, shall be approved by the Council and shall be filed in the office of the Comptroller. The proceeds of the sale of all such property shall be deposited to the credit of the miscellaneous revenue of the city, subject to any interest therein or claim thereto by the Towns of Rye and/or Harrison arising out of unpaid taxes on such property.
If at any time prior to the sale of real property in an action to foreclose a transfer of tax lien held by the city, it shall be determined by the Comptroller, the Corporation Counsel and the Assessor that the property is not reasonably worth or will not sell for a price sufficient to pay all of the taxes, assessments and charges against the property and the expenses of foreclosure and sale, they are hereby authorized and empowered, subject to the approval of the Council, to fix a fair market price for the same, and the Comptroller may, but shall not be obligated to, bid above the price so fixed, and he hereby is further authorized and empowered to cancel all of the taxes, assessments and charges against the same upon receiving payment of the amount so fixed. The amount received from such sale shall be applied in the manner provided for in the preceding section. The determination of the Comptroller, the Corporation Counsel and the Assessor shall be stated in writing, shall be approved by the Council and shall be filed in the office of the Comptroller.
It shall be the duty of the Corporation Counsel to protect the interest of the city in all matters, actions and proceedings relating to tax liens and transfers of tax liens; to intervene on behalf of the city or of the holder of a transfer of a tax lien in, or to make the city a party to, any action in which he believes it to be to the interest to the city so to do, by reason of any matter arising under or relating to any tax lien or transfer of tax lien, or advertisement of sale of tax liens.
Whenever any transfer of tax lien given by the Comptroller as provided in this chapter shall be lost, destroyed or mutilated, the holder or owner thereof may apply to the court, on due proof of such loss, destruction or mutilation, for an order directing the Comptroller to execute and deliver a duplicate to such holder or owner. The filing of a certified copy of such order with the Comptroller shall be taken in the place and stead of the transfer of tax lien so lost, destroyed or mutilated.
The remedy provided herein for the collection of taxes is in addition to the other methods provided by law for the collection of taxes and assessments in the City of Rye, including the procedure for the collection of delinquent taxes under Article 11 of the Real Property Tax Law.