NY A01407

Expands entities eligible to make tax payment loans from specialized loan corporations to any corporation, limited liability company, or partnership registered in New York State, requiring property owner authorization via affidavit.

Increases allowable interest rates on tax loans from 4% to 1.25% per month (approximately 15% annually), with fees exceeding 10% of loan amount counted toward effective interest rate calculations.

Requires lending entities to record transferred tax liens in county clerk or register offices to make them enforceable and allows entities to add reasonable loan closing and recording costs to the lien amount.

Establishes foreclosure procedures for transferred tax liens using mortgage foreclosure rules, with 60-day notice requirement to borrower and property redemption rights for up to two years at 18% annual interest.

Repeals obsolete provisions restricting loan corporations' capital requirements and banking institution deposit requirements, and eliminates automatic penalty and interest cancellation upon loan discharge.