New York Laws
Title 2-A - New York City Municipal Water Finance Authority
1045-J - Imposition and Disposition of Sewer and Water Fees, Rates, Rents or Charges.

(b) If the water board has entered into an agreement pursuant to
paragraph (a) of this subdivision, it may accept credit cards as a means
of payment of fees, rates, rent or other charges, as provided in any
agreement entered into pursuant to paragraph (a) of this subdivision and
may pay such fees as are specified in such agreement to such financing
agency or card issuer in consideration of the services rendered by such
financing agency or card issuer thereunder; provided, however, that the
water board may require any person offering a credit card as a means of
payment of such fee, rate, rent or other charge to pay to the water
board a reasonable administrative service fee not to exceed the costs
incurred by the water board in connection with such credit card
transaction, which costs shall include any fee payable by the water
board to such financing agency or card issuer.
(c) The water board may promulgate any rules or regulations necessary
to carry out the provisions of this subdivision.
(d) For purposes of this subdivision, the terms "card issuer", "credit
card", "financing agency" and "person" shall have the same meaning as

provided in subdivision (a) of section five of the general municipal
law.
5. Such fees, rates, rents or other charges, if not paid when due,
shall constitute a lien upon the premises served and a charge against
the owners thereof, which lien and charge shall bear interest at the
same rate as would unpaid taxes of the city. Such lien shall take
precedence over all other liens or encumbrances, except taxes, and may
be foreclosed against the lot or building served in the same manner as a
lien for such taxes. The amount which remains due and unpaid for sixty
days may, with interest thereon at the same rate as unpaid city taxes
and with reasonable attorneys' fees, be recovered by the water board in
a civil action in the name of the water board against such owners. The
city, and any state agency shall be subject to the same fees, rates,
rents or other charges under the same conditions as other users of such
water system or sewerage system, or both, as the case may be. Tax exempt
organizations shall be charged according to the provisions of chapter
six hundred ninety-six of the laws of eighteen hundred eighty-seven, as
amended by chapters eight hundred ninety-three and eight hundred
ninety-four of the laws of nineteen hundred eighty and by provisions
which may by law extend the provisions of such chapters from time to
time. Any agreement for the supply of water or sewerage services between
the city or an agency thereof and any other municipality or water supply
system, or any administrative determination by a state agency, or any
other arrangement in this regard, in effect at the time the water board
shall be established, shall remain in full force and effect and be
binding upon the water board as if it were a party to such agreement,
determination or other arrangement. All rights, powers, duties,
obligations and functions provided by law with respect to the fixing of
charges or rates for the supply of water or sewerage services to users
outside the city, including but not limited to those set forth in
article one of title K of chapter fifty-one of the administrative code
of the city of New York and article eight of the environmental
conservation law, shall be deemed to apply, as appropriate, to the water
board established pursuant to this title. In addition to any other
lawful enforcement methods and pursuant to rules and regulations of the
water board promulgated pursuant to this title, the payment of fees,
rates, rents or other charges for water service or sewerage service to
any premises may be enforced by discontinuing the water service or
sewerage service to such premises provided that such discontinuance or
disconnection of any supply of water or the provision of sewerage
service, or both, as the case may be, shall not be carried out except in
the manner and upon the notice as is required of a water-works
corporation pursuant to subdivisions three-a, three-b and three-c of
section eighty-nine-b and section one hundred sixteen of the public
service law.
6. The water board shall pay to the authority such amounts at such
times and in such manner as may be provided in the agreement by and
among the authority, the water board and the city consistent with the
priorities set forth in such agreement. There is hereby created a lien,
by this title made a statutory lien within the meaning of the uniform
commercial code and any other state or federal law, upon the gross
revenues of the water board, in favor of the payment of all amounts due
pursuant to such agreement and in the order and priority set forth
therein and which lien shall be a first lien upon such gross revenues.
The gross revenues so subject to such statutory lien shall be and remain
subject to such statutory lien until the payment in full of each such
item in accordance with such priority. Said statutory lien shall not be
construed to give any holder or owner of any bond of the authority power

to compel the sale of any water system or sewerage system, as the case
may be.
7. If there be any default by the water board in the making of the
payments to the authority required under this section, as a result of
the failure by the water board to impose sufficient fees, rates, rents
or other charges, the authority may petition for the appointment by any
court having jurisdiction in any proper action of a receiver to
administer on behalf of the water board, under the direction of said
court, the affairs of the water board in order to achieve system
revenues at least sufficient to make such payments; and by and with the
approval of said court, to establish, fix and revise, from time to time,
fees, rates, rents or other charges at least sufficient therefor in
conformity with this title, and the resolution or trust indenture of the
authority providing for the issuance of its bonds and in accordance with
such orders as the court shall make.
8. The water board shall prepare and transmit to the city on or before
the first day of December in each year a list of those persons or
property owners within such city who are in arrears in the payment of
fees, rates, rents or other charges for a period of sixty days or more
after the last day fixed for payment thereof without penalty. The list
shall contain a brief description of the properties for which the
services were provided, the names of the persons liable to pay for the
same and the amounts chargeable to each, including penalties and
interest computed to the next succeeding December thirty-first. The city
shall levy such sums against the properties liable and shall state the
amount thereof in a separate column in the annual tax rolls of such city
under the name of "delinquent water charges" or "delinquent sewerage
charges" or "delinquent water and sewerage charges" as may be
appropriate and as may be directed by the water board. Such amounts, as
and when collected by the commissioner of finance of the city, shall be
paid over to the water board. All of the provisions of the tax laws of
the state covering the enforcement and collection of unpaid taxes of the
city shall apply to the collection of such unpaid fees, rates, rents or
other charges.
9. Neither the public service commission, nor any city or state
agency, shall have any jurisdiction over the water board or authority or
any power over the regulation of the fees, rates, rents or other charges
established, fixed or revised by the water board except with respect to
the supply of water or sewerage services to users outside the city as
provided in article one of title K of chapter fifty-one of the
administrative code of the city of New York.
9-a. The water board shall hold public hearings, in each borough of
the city of New York, prior to promulgating or fixing annual water and
sewer rates for such city. Notice of such public hearing shall be
conspicuously published in a newspaper of general circulation, within
each borough, at least one week prior to the hearing.