The MBBA was dissolved in Sept '07 after disappointing results.
It is interesting to note that the one and only transaction in the program
was the original one in 2003 involving four cities, Buffalo, Syracuse,
Binghamton and Plattsburgh.
The scheme to securitize the tax liens paid off even if not to the extent
that the lien based bond buyers would have probably liked. Instead of
forcing the bondholders* to take a substantial loss at the closure of the
program, the settlement cushioned the impact of the MBBA failure:
<<To end the trust, a settlement was reached with the bondholders. Prior
to the settlement, $8.6 million of the bonds were outstanding. Last
month, MBBA settled with the bondholders for $5.34 million. MBBA was
also able to reach concessions from the legal and financial advisors
involved in the transaction to subordinate, reduce or return their fees.
With the settlement, the MBBA now plans to resolve or return the
outstanding liens to the cities. When those actions are completed, the
trust will be terminated.>>
Link:
https://readme.readmedia.com/news/show/NYS-Municipal-Bond-Bank-Ag
ency-Resolves-Tax-Lien-Securitization-Trust/8629
*The bondholders being, in this case, mostly the same parties who
would otherwise have held the tax liens directly.