2006 New York Code - Contracts With Banks For The Collection Of Taxes And Certain Special Assessments.

 
    §  996.  Contracts  with banks for the collection of taxes and certain
  special assessments. 1. Notwithstanding any general,  special  or  local
  law  to  the contrary, a municipal corporation having the responsibility
  for collection of taxes or special assessments, or both, may enter  into
  agreements with a bank, or with two or more banks, for the collection of
  taxes  and  special  assessments  which are collected together with such
  taxes. For purposes of this section, the term "bank" shall have the same
  meaning as in paragraph d of subdivision  one  of  section  ten  of  the
  general  municipal  law. The term "special assessments" shall be limited
  to those special assessments collected together with taxes.
    2. A bank that has entered into an agreement pursuant to this  section
  shall: (a) accept payments of taxes or special assessments, or both, for
  a period beginning on the day on which the warrant for the collection of
  taxes  is  delivered to the collecting officer, and ending on the day on
  which such warrant expires;
    (b) decline any partial payments of a tax bill, or special assessment,
  or both,  except  where  the  municipal  corporation  is  one  which  is
  authorized to accept partial payments of taxes or special assessments or
  both;
    (c) collect the appropriate amount of interest on any taxes or special
  assessments, or both, paid after the end of the interest-free collection
  period;
    (d)   furnish  receipts  to  each  person  paying  a  tax  or  special
  assessment, or both, except that when a tax or  special  assessment  has
  been paid by a mortgage investing institution pursuant to the provisions
  of  title three-A of this article, receipts shall be delivered or mailed
  to such mortgage investing institution, subject  to  the  provisions  of
  such title;
    (e)  deposit all taxes and special assessments and interest collected,
  immediately upon receipt, in the account or accounts designated  by  the
  municipal  corporation  in such bank, or in any other bank designated by
  the municipal corporation;
    (f) continually maintain records of  deposit  showing  the  dates  and
  amounts  of  all  taxes  and  special  assessments  collected,  and  the
  taxpayers from whom such taxes and special assessments were collected;
    (g) transmit to the collecting officer a daily report of the taxes and
  special assessments collected, which report shall be  accompanied  by  a
  statement  showing the deposits credited to the account of the municipal
  corporation; and
    (h) perform such other duties, and maintain such other records, as the
  contract may provide.
    3. (a) A bank which has entered into an  agreement  with  a  municipal
  corporation  pursuant  to  this section shall be liable to the municipal
  corporation for all loss or damage which may result from any failure  of
  its  officers  or agents to discharge their duties, or from any improper
  or incorrect  discharge  of  those  duties.  The  bank  shall  save  the
  municipal corporation free and harmless from any and all loss occasioned
  by  or incurred in the performance of services under a contract pursuant
  to this section.
    (b) A bank which has  entered  into  an  agreement  with  a  municipal
  corporation  pursuant  to this section, and which receives moneys from a
  taxpayer for payment of real property taxes or special  assessments,  or
  both,  shall be liable to such taxpayer, upon failure to properly credit
  such payment, for the amount of the taxes  or  special  assessments,  or
  both, plus interest and penalties imposed thereon.
    4.  Moneys  deposited  with  a  bank pursuant to this section shall be
  secured in the manner provided by section ten of the  general  municipal
  law.
    5.  The  statutory  powers  and  duties  of  a tax collecting officer,
  including the authority to receive taxes, shall not be affected  by  the
  existence  of  a contract executed pursuant to this section, except that
  the collecting officer shall: (a) notify the  bank  upon  receiving  the
  warrant for the collection of taxes or special assessments, or both;
    (b)  include in the appropriate notices the fact that taxes or special
  assessments, or both, may be paid to the bank;
    (c) notify the bank of the date on which the interest-free  collection
  period expires;
    (d)  make  the  appropriate  entries  in  the  official  records, upon
  receiving each daily report of taxes and special  assessments  collected
  by the bank; and
    (e)  make  the accounting and return, as provided by law, upon receipt
  from the bank of the final daily report of taxes and special assessments
  collected.
    6. A contract executed pursuant to this section shall  be  subject  to
  the  requirements  of  article  five-A of the general municipal law, and
  shall be for a term not to exceed five years, except that  it  shall  be
  subject  to  cancellation  by the municipal corporation at any time upon
  thirty days notice to the bank.