Section 1184. Payment of delinquent taxes in installments

1. Definitions.
  As used in this section:
    (a) "Eligible delinquent taxes" means the delinquent taxes,  including
  interest,  penalties  and  other  charges,  which have accrued against a
  parcel as of the date on which an installment agreement is executed.
    (b) "Eligible owner" means an owner of real property who  is  eligible
  to or has entered into an installment agreement.
    (c)  "Farm  property"  means property which qualifies as farm property
  pursuant to section eleven hundred eleven of this article.
    (d) "Installment agreement"  means  a  written  agreement  between  an
  eligible  owner  and  the enforcing officer providing for the payment of
  eligible delinquent taxes in installments pursuant to the provisions  of
  this section and the local law adopted hereunder.
    (e)   "Residential   property"   means  property  which  qualifies  as
  residential property pursuant to section eleven hundred eleven  of  this
  article.
    2.  Installment  payment  of  eligible delinquent taxes. The governing
  body of a tax district is hereby authorized and empowered to  enact  and
  amend  a  local  law  providing  for the installment payment of eligible
  delinquent taxes. Such installment payment of eligible delinquent  taxes
  shall  be  made  available  to  each  eligible  owner on a uniform basis
  pursuant to the provisions of this  section  and  the  local  law.  Such
  installment payment of eligible delinquent taxes shall commence upon the
  signing  of  an agreement between the enforcing officer and the eligible
  owner. The agreement shall  be  kept  on  file  in  the  office  of  the
  enforcing officer.
    3. The local law enacted pursuant to this section shall provide:
    (a) the maximum term of installment agreements, which shall not exceed
  twenty-four months;
    (b) the payment schedule, which shall be monthly, bi-monthly quarterly
  or semi-annually;
    (c)  the required initial down payment, if any, which shall not exceed
  twenty-five percent of the eligible delinquent taxes;
    (d) the properties to which the local law shall apply, which shall  be
  either   (i)  residential  property,  (ii)  both  residential  and  farm
  property, or (iii) all properties within such tax district; and
    (e) other terms and conditions consistent with the provisions of  this
  section.
    4.  A  property owner shall not be eligible to enter into an agreement
  pursuant to this section where:
    (a) there is a delinquent tax lien on the same property for which  the
  application is made or on another property owned by such person and such
  delinquent  tax  lien  is  not eligible to be made part of the agreement
  pursuant to this section;
    (b) such person is the owner of another parcel within the tax district
  on which there is a delinquent tax lien, unless such delinquent tax lien
  is eligible to be and is made part of the  agreement  pursuant  to  this
  section;
    (c)  such  person  was  the owner of property on which there existed a
  delinquent tax lien and which lien was foreclosed within three years  of
  the  date  on  which  an  application  is  made  to execute an agreement
  pursuant to this section; or
    (d) such person defaulted on an agreement executed  pursuant  to  this
  section  within  three years of the date on which an application is made
  to execute an agreement pursuant to this section.
    5. A property owner shall be  eligible  to  enter  into  an  agreement
  pursuant  to this section no earlier than thirty days after the delivery
  of the return of unpaid taxes to the enforcing officer.

    6. The amount due under an installment agreement shall be the eligible
  delinquent taxes plus the interest that is to accrue on each installment
  payment up to and including the date on which  each  payment  is  to  be
  made.  The agreement shall provide that the amount due shall be paid, as
  nearly  as  possible,  in  equal  amounts on each payment due date. Each
  installment payment shall be due on the last day of the month  in  which
  it is to be paid.
    7.  Interest  and  penalties. Interest on the total amount of eligible
  delinquent taxes, less the amount  of  the  down  payment  made  by  the
  eligible  owner,  if any is required, shall be that amount as determined
  pursuant to section nine hundred twenty-four-a of this chapter, or  such
  other  law  as  may be applicable. The rate of interest in effect on the
  date the agreement is signed shall remain constant during the period  of
  the agreement. If an installment is not paid on or before the date it is
  due,  interest  shall  be added at the applicable rate for each month or
  portion thereof until paid. In addition, if an installment is  not  paid
  by  the  end of the fifteenth calendar day after the payment due date, a
  late charge of five percent of the overdue payment shall be added.
    8. Default. (a) The eligible owners shall be deemed to be  in  default
  of the agreement upon:
    (i) non-payment of any installment within thirty days from the payment
  due date;
    (ii)  non-payment  of  any  tax,  special  ad  valorem levy or special
  assessment which is levied subsequent to the signing of the agreement by
  the tax district, and which is not paid prior  to  the  receipt  of  the
  return of unpaid taxes by the enforcing officer; or
    (iii)  default  of  the  eligible  owner on another agreement made and
  executed pursuant to this section.
    (b) In the event of a default, the tax district shall have  the  right
  to require the entire unpaid balance, with interest and late charges, to
  be  paid  in full. The tax district shall also have the right to enforce
  the collection of the delinquent tax lien  pursuant  to  the  applicable
  sections of law, special tax act, charter or local law.
    (c)  Where  an  eligible owner is in default and the tax district does
  not either require the eligible owner to pay in full the balance of  the
  delinquent  taxes or elect to institute foreclosure proceedings, the tax
  district shall not be deemed to have waived the right to do so.
    9. Notification of potential eligible owners.  (a)  Within  forty-five
  days  after  receiving  the  return  of unpaid taxes from the collecting
  officer, or as soon thereafter as is practicable, the enforcing  officer
  shall  notify,  by  first  class  mail, all potential eligible owners of
  their possible eligibility to make  installment  payments  on  such  tax
  delinquencies.  The enforcing officer shall add one dollar to the amount
  of the tax lien for such mailing, if the local law provided for  such  a
  charge.
    (b)  The  failure  to  mail  any  such  notice,  or the failure of the
  addressee to receive the same, shall not in any way affect the  validity
  of taxes or interest prescribed by law with respect thereto.
    (c) The enforcing officer shall not be required to notify the eligible
  owner when an installment is due.
    10.  Where  an installment agreement so provides, the lien or liens to
  which the agreement relates may  be  sold  to  the  state  of  New  York
  municipal  bond  bank  agency,  or  a  tax  lien entity created thereby,
  pursuant to title five of this article. In case  of  such  a  sale,  the
  rights  and  duties  of  the  tax  district under the agreement shall be
  assumed by the tax lien purchaser. The tax lien purchaser shall continue
  to allow the owner or owners to make installment payments in the amounts
  and at the times called for by the agreement, as they did prior  to  the

  sale  to the tax lien purchaser. However, such payments shall be made to
  the tax lien purchaser or its tax collection agent, rather than  to  the
  tax  district,  unless  the tax district and the tax lien purchaser have
  agreed otherwise.
    11.  The  provisions  of  this  section  shall not affect the tax lien
  against the property except that  the  lien  shall  be  reduced  by  the
  payments  made  under  an installment agreement, and that the lien shall
  not be foreclosed during the period  of  installment  payments  provided
  that such installment payments are not in default.