Bill Text: NY A05592 | 2013-2014 | General Assembly | Introduced


Bill Title: Authorizes a religious corporation to sell real property where consideration paid therefor and fair market value thereof is less than $200,000, and mortgage real property when such mortgage secures debt of less than $200,000, without leave of supreme court.

Spectrum: Partisan Bill (Democrat 3-0)

Status: (Introduced - Dead) 2014-01-08 - referred to corporations, authorities and commissions [A05592 Detail]

Download: New_York-2013-A05592-Introduced.html
                           S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________
                                         5592
                              2013-2014 Regular Sessions
                                 I N  A S S E M B L Y
                                     March 4, 2013
                                      ___________
       Introduced  by  M. of A. BRENNAN, LUPARDO -- Multi-Sponsored by -- M. of
         A. JACOBS -- read once and referred to the Committee on  Corporations,
         Authorities and Commissions
       AN ACT to amend the religious corporations law, in relation to the sale,
         mortgage and lease of real property of a religious corporation
         THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
       BLY, DO ENACT AS FOLLOWS:
    1    Section 1. Subdivisions 1 and 9 of section 12 of the religious  corpo-
    2  rations law, subdivision 1 as amended by chapter 244 of the laws of 1981
    3  and  subdivision  9  as  amended by chapter 962 of the laws of 1969, are
    4  amended to read as follows:
    5    1. (A) A religious corporation shall not sell, mortgage or lease for a
    6  term exceeding five years any of its real property without applying  for
    7  and  obtaining  leave  of  the  court  therefor pursuant to section five
    8  hundred eleven of the not-for-profit corporation law as that section  is
    9  modified  by  paragraph (d-1) of [subsection] SUBDIVISION one of section
   10  two-b of this chapter, except that a religious corporation may execute a
   11  purchase money mortgage or a purchase money security agreement  creating
   12  a security interest in personal property purchased by it without obtain-
   13  ing leave of the court therefor.
   14    (B)  NOTWITHSTANDING  THE PROVISIONS OF PARAGRAPH (A) OF THIS SUBDIVI-
   15  SION, ANY SOLVENT RELIGIOUS CORPORATION MAY SELL ANY OF ITS REAL PROPER-
   16  TY WITHOUT A COURT ORDER IN THE FOLLOWING CIRCUMSTANCES:
   17    (I) THE RELIGIOUS CORPORATION SHALL HAVE AND MAINTAIN IN  ITS  RECORDS
   18  AN  APPRAISAL  REPORT  PREPARED BY A PROFESSIONAL APPRAISER AND DATED OR
   19  UPDATED WITHIN NINETY DAYS OF THE SALE SHOWING THE FAIR MARKET VALUE  TO
   20  BE LESS THAN TWO HUNDRED THOUSAND DOLLARS;
   21    (II)  THE SALE SHALL BE AN ARM'S LENGTH TRANSACTION FOR A CASH CONSID-
   22  ERATION AT THE FAIR MARKET VALUE OF THE PROPERTY WHICH SHALL  BE  WITHIN
   23  TEN PERCENT OF THE APPRAISED VALUE;
        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD09457-01-3
       A. 5592                             2
    1    (III) THE GOVERNING BODY OF THE RELIGIOUS CORPORATION SHALL HAVE GIVEN
    2  NOTICE  FOR NOT LESS THAN THIRTY DAYS TO THE MEMBERS OF THE CONGREGATION
    3  SERVED BY THE RELIGIOUS CORPORATION IN A MANNER LIKELY TO BE SEEN  BY  A
    4  MAJORITY OF SUCH MEMBERS INCLUDING BUT NOT LIMITED TO PUBLICATION IN ANY
    5  BULLETIN,  NEWSLETTER,  OR SIMILAR DOCUMENT NORMALLY DISTRIBUTED TO SUCH
    6  MEMBERS; AND
    7    (IV) A CERTIFICATE OF COMPLIANCE WITH THE REQUIREMENTS OF  THIS  PARA-
    8  GRAPH  EXECUTED BY THE PERSON OR PERSONS EXECUTING THE DEED ON BEHALF OF
    9  THE RELIGIOUS CORPORATION  UNDER  THE  PENALTIES  OF  PERJURY  SHALL  BE
   10  ATTACHED  TO  AND  RECORDED WITH THE DEED; AND WITH RESPECT TO RELIGIOUS
   11  CORPORATIONS SUBJECT TO SUBDIVISION  TWO,  THREE,  FOUR,  FIVE,  FIVE-A,
   12  FIVE-B,  OR FIVE-C OF THIS SECTION, SUCH CERTIFICATE SHALL HAVE ENDORSED
   13  THEREON THE CONSENT OF THE CHURCH AUTHORITY OR AUTHORITIES WHOSE CONSENT
   14  WOULD BE REQUIRED UNDER SUCH SUBDIVISIONS OF  THIS  SECTION  BEFORE  THE
   15  FILING OF AN APPLICATION TO THE COURT.
   16    (C)  NOTWITHSTANDING  THE PROVISIONS OF PARAGRAPH (A) OF THIS SUBDIVI-
   17  SION, ANY SOLVENT RELIGIOUS CORPORATION MAY MORTGAGE  ANY  OF  ITS  REAL
   18  PROPERTY WITHOUT A COURT ORDER IN THE FOLLOWING CIRCUMSTANCES:
   19    (I)  THE  RELIGIOUS CORPORATION SHALL HAVE AND MAINTAIN IN ITS RECORDS
   20  AN APPRAISAL REPORT PREPARED BY A PROFESSIONAL APPRAISER  AND  DATED  OR
   21  UPDATED WITHIN NINETY DAYS OF THE MORTGAGE SHOWING THE FAIR MARKET VALUE
   22  TO BE LESS THAN TWO HUNDRED THOUSAND DOLLARS;
   23    (II)  THE MORTGAGE SHALL BE AN ARM'S LENGTH TRANSACTION WITH A MORTGA-
   24  GEE LICENSED TO MAKE MORTGAGE LOANS IN THE STATE FOR AN ADVANCE OF  CASH
   25  IN A PRINCIPAL AMOUNT NOT MORE THAN TWO HUNDRED THOUSAND DOLLARS;
   26    (III) THE GOVERNING BODY OF THE RELIGIOUS CORPORATION SHALL HAVE GIVEN
   27  NOTICE  FOR NOT LESS THAN THIRTY DAYS TO THE MEMBERS OF THE CONGREGATION
   28  SERVED BY THE RELIGIOUS CORPORATION IN A MANNER LIKELY TO BE SEEN  BY  A
   29  MAJORITY OF SUCH MEMBERS INCLUDING BUT NOT LIMITED TO PUBLICATION IN ANY
   30  BULLETIN,  NEWSLETTER,  OR SIMILAR DOCUMENT NORMALLY DISTRIBUTED TO SUCH
   31  MEMBERS; AND
   32    (IV) A CERTIFICATE OF COMPLIANCE WITH THE REQUIREMENTS OF  THIS  PARA-
   33  GRAPH  EXECUTED BY THE PERSON OR PERSONS EXECUTING THE DEED ON BEHALF OF
   34  THE RELIGIOUS CORPORATION  UNDER  THE  PENALTIES  OF  PERJURY  SHALL  BE
   35  ATTACHED  TO  AND  RECORDED WITH THE MORTGAGE; AND WITH RESPECT TO RELI-
   36  GIOUS CORPORATIONS  SUBJECT  TO  SUBDIVISION  TWO,  THREE,  FOUR,  FIVE,
   37  FIVE-A,  FIVE-B,  OR FIVE-C OF THIS SECTION, SUCH CERTIFICATE SHALL HAVE
   38  ENDORSED THEREON THE CONSENT OF  THE  CHURCH  AUTHORITY  OR  AUTHORITIES
   39  WHOSE  CONSENT WOULD BE REQUIRED UNDER SUCH SUBDIVISIONS OF THIS SECTION
   40  BEFORE THE FILING OF AN APPLICATION TO THE COURT.
   41    9. If a sale, mortgage or lease for a term exceeding five years of any
   42  real property of any such religious corporation WITH RESPECT TO WHICH  A
   43  COURT  ORDER WAS REQUIRED UNDER SUBDIVISION ONE OF THIS SECTION has been
   44  heretofore or shall be hereafter  made  and  a  conveyance  or  mortgage
   45  executed  and  delivered  without  the authority of a court of competent
   46  jurisdiction, obtained as required by law, or not in accordance with its
   47  directions, the court may,  thereafter,  upon  the  application  of  the
   48  corporation,  or  of  the grantee or mortgagee in any such conveyance or
   49  mortgage or of any person claiming through or under any such grantee  or
   50  mortgagee  upon  such  notice to such corporation, or its successor, and
   51  such other person or persons as may be interested in such  property,  as
   52  the  court may prescribe, confirm said previously executed conveyance or
   53  mortgage, and order and direct the execution and delivery of a confirma-
   54  tory deed or mortgage, or the recording of such  confirmatory  order  in
   55  the office where deeds and mortgages are recorded in the county in which
   56  the  property  is  located; and upon compliance with the said order such
       A. 5592                             3
    1  original conveyance or mortgage shall be as valid and of the same  force
    2  and  effect  as  if  it  had  been  executed  and  delivered  after  due
    3  proceedings had in accordance with the statute and the direction of  the
    4  court.    But  no  confirmatory order may be granted unless the consents
    5  required in the first part of this section for a  Protestant  Episcopal,
    6  Roman Catholic, Presbyterian church or an incorporated African Methodist
    7  Episcopal  Zion  church  or an incorporated United Methodist church have
    8  first been given by the prescribed authority thereof,  either  upon  the
    9  original application or upon the application for the confirmatory order.
   10    S  2.  This act shall take effect immediately and shall apply to sales
   11  and mortgages of real property occurring on or after the effective  date
   12  of this act.
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