Bill Text: NY A04001 | 2019-2020 | General Assembly | Introduced
Bill Title: Relates to prohibiting a lender from blocking access to funds issued under a credit line mortgage.
Spectrum: Moderate Partisan Bill (Democrat 9-1)
Status: (Introduced - Dead) 2020-01-08 - referred to banks [A04001 Detail]
Download: New_York-2019-A04001-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 4001 2019-2020 Regular Sessions IN ASSEMBLY January 31, 2019 ___________ Introduced by M. of A. WEPRIN -- Multi-Sponsored by -- M. of A. ABINAN- TI, COOK, DenDEKKER, GALEF, JAFFEE, McDONOUGH, PERRY, RIVERA, ZEBROW- SKI -- read once and referred to the Committee on Banks AN ACT to amend the banking law and the real property law, in relation to credit line mortgages The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Section 380-g of the banking law, as added by chapter 625 2 of the laws of 1976, is amended to read as follows: 3 § 380-g. Power to engage in line of credit financing of residential 4 real estate. 1. A savings and loan association is authorized to invest 5 an amount, not exceeding the lesser of (a) ten per centum of the sum of 6 its surplus, undivided profits, and reserves or (b) one per centum of 7 its assets, in loans or in interests therein the principal purpose of 8 which is to provide financing with respect to what is or is expected to 9 become primarily residential real estate within this state, where (i) 10 the association relies substantially for repayment on the borrower's 11 general credit standing, with or without other security, or (ii) the 12 association relies on other assurances for repayment, including but not 13 limited to a guaranty or similar obligation of a third party, and, in 14 either case described in clause (i) or (ii), regardless of whether or 15 not the association takes security. 16 2. A savings and loan association shall not have the authority to 17 block access to credit line funds by a borrower or to otherwise revoke 18 the terms of a credit line mortgage when a borrower is current on repay- 19 ment of such indebtedness. 20 § 2. Section 281 of the real property law is amended by adding a new 21 subdivision 2-a to read as follows: 22 2-a. An authorized lender shall not have the authority to block access 23 to credit line funds by a borrower or to otherwise revoke the terms of a 24 credit line mortgage when a borrower is current on repayment of such 25 indebtedness. 26 § 3. This act shall take effect immediately. EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD08228-01-9