Bill Text: NY A02667 | 2019-2020 | General Assembly | Introduced

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Bill Title: Prohibits pre-payment penalties for mortgages secured by real property owned in a cooperative form of ownership where over fifty percent of the units are shareholder occupied.

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Engrossed - Dead) 2020-07-23 - REFERRED TO RULES [A02667 Detail]

Download: New_York-2019-A02667-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________
                                          2667
                               2019-2020 Regular Sessions
                   IN ASSEMBLY
                                    January 24, 2019
                                       ___________
        Introduced by M. of A. DINOWITZ -- read once and referred to the Commit-
          tee on Judiciary
        AN  ACT to amend the general obligations law, in relation to pre-payment
          penalties for mortgages secured by real property owned  in  a  cooper-
          ative form of ownership
          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:
     1    Section 1. Paragraph b of subdivision 3 of section 5-501 of the gener-
     2  al obligations law, as amended by chapter 472 of the laws  of  2008,  is
     3  amended to read as follows:
     4    b.  notwithstanding  any other provision of law, the unpaid balance of
     5  the loan or forbearance may be prepaid, in whole  or  in  part,  at  any
     6  time.  If prepayment is made on or after one year from the date the loan
     7  or forbearance is made, no penalty may be imposed. If prepayment is made
     8  prior to such time, no penalty may be imposed unless provision  therefor
     9  is  expressly made in the loan contract, provided that no penalty may be
    10  imposed if prohibited by sections six-l and six-m of the banking law. No
    11  prepayment penalty or fee shall be charged or collected  on  a  loan  or
    12  forbearance  secured  by  real  property  owned in a cooperative form of
    13  ownership where over fifty percent of the units  are  shareholder  occu-
    14  pied.  Such prepayment penalty shall be unenforceable. In all cases, the
    15  right of prepayment shall be stated in  the  instrument  evidencing  the
    16  loan  or  forbearance,  provided,  however,  that the provisions of this
    17  subdivision shall not apply to the extent such provisions are inconsist-
    18  ent with any federal law or regulation.
    19    § 2. This act shall take effect immediately.
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD01343-01-9