Bill Text: NY A05752 | 2011-2012 | 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) 2012-01-04 - referred to corporations, authorities and commissions [A05752 Detail]
Download: New_York-2011-A05752-Introduced.html
S T A T E O F N E W Y O R K
________________________________________________________________________
5752
2011-2012 Regular Sessions
I N A S S E M B L Y
February 28, 2011
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Introduced by M. of A. BRENNAN, LUPARDO -- 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;
24 (III) THE GOVERNING BODY OF THE RELIGIOUS CORPORATION SHALL HAVE GIVEN
25 NOTICE FOR NOT LESS THAN THIRTY DAYS TO THE MEMBERS OF THE CONGREGATION
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD09595-01-1
A. 5752 2
1 SERVED BY THE RELIGIOUS CORPORATION IN A MANNER LIKELY TO BE SEEN BY A
2 MAJORITY OF SUCH MEMBERS INCLUDING BUT NOT LIMITED TO PUBLICATION IN ANY
3 BULLETIN, NEWSLETTER, OR SIMILAR DOCUMENT NORMALLY DISTRIBUTED TO SUCH
4 MEMBERS; AND
5 (IV) A CERTIFICATE OF COMPLIANCE WITH THE REQUIREMENTS OF THIS PARA-
6 GRAPH EXECUTED BY THE PERSON OR PERSONS EXECUTING THE DEED ON BEHALF OF
7 THE RELIGIOUS CORPORATION UNDER THE PENALTIES OF PERJURY SHALL BE
8 ATTACHED TO AND RECORDED WITH THE DEED; AND WITH RESPECT TO RELIGIOUS
9 CORPORATIONS SUBJECT TO SUBDIVISION TWO, THREE, FOUR, FIVE, FIVE-A,
10 FIVE-B, OR FIVE-C OF THIS SECTION, SUCH CERTIFICATE SHALL HAVE ENDORSED
11 THEREON THE CONSENT OF THE CHURCH AUTHORITY OR AUTHORITIES WHOSE CONSENT
12 WOULD BE REQUIRED UNDER SUCH SUBDIVISIONS OF THIS SECTION BEFORE THE
13 FILING OF AN APPLICATION TO THE COURT.
14 (C) NOTWITHSTANDING THE PROVISIONS OF PARAGRAPH (A) OF THIS SUBDIVI-
15 SION, ANY SOLVENT RELIGIOUS CORPORATION MAY MORTGAGE ANY OF ITS REAL
16 PROPERTY 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 MORTGAGE SHOWING THE FAIR MARKET VALUE
20 TO BE LESS THAN TWO HUNDRED THOUSAND DOLLARS;
21 (II) THE MORTGAGE SHALL BE AN ARM'S LENGTH TRANSACTION WITH A MORTGA-
22 GEE LICENSED TO MAKE MORTGAGE LOANS IN THE STATE FOR AN ADVANCE OF CASH
23 IN A PRINCIPAL AMOUNT NOT MORE THAN TWO HUNDRED THOUSAND DOLLARS;
24 (III) THE GOVERNING BODY OF THE RELIGIOUS CORPORATION SHALL HAVE GIVEN
25 NOTICE FOR NOT LESS THAN THIRTY DAYS TO THE MEMBERS OF THE CONGREGATION
26 SERVED BY THE RELIGIOUS CORPORATION IN A MANNER LIKELY TO BE SEEN BY A
27 MAJORITY OF SUCH MEMBERS INCLUDING BUT NOT LIMITED TO PUBLICATION IN ANY
28 BULLETIN, NEWSLETTER, OR SIMILAR DOCUMENT NORMALLY DISTRIBUTED TO SUCH
29 MEMBERS; AND
30 (IV) A CERTIFICATE OF COMPLIANCE WITH THE REQUIREMENTS OF THIS PARA-
31 GRAPH EXECUTED BY THE PERSON OR PERSONS EXECUTING THE DEED ON BEHALF OF
32 THE RELIGIOUS CORPORATION UNDER THE PENALTIES OF PERJURY SHALL BE
33 ATTACHED TO AND RECORDED WITH THE MORTGAGE; AND WITH RESPECT TO RELI-
34 GIOUS CORPORATIONS SUBJECT TO SUBDIVISION TWO, THREE, FOUR, FIVE,
35 FIVE-A, FIVE-B, OR FIVE-C OF THIS SECTION, SUCH CERTIFICATE SHALL HAVE
36 ENDORSED THEREON THE CONSENT OF THE CHURCH AUTHORITY OR AUTHORITIES
37 WHOSE CONSENT WOULD BE REQUIRED UNDER SUCH SUBDIVISIONS OF THIS SECTION
38 BEFORE THE FILING OF AN APPLICATION TO THE COURT.
39 9. If a sale, mortgage or lease for a term exceeding five years of any
40 real property of any such religious corporation WITH RESPECT TO WHICH A
41 COURT ORDER WAS REQUIRED UNDER SUBDIVISION ONE OF THIS SECTION has been
42 heretofore or shall be hereafter made and a conveyance or mortgage
43 executed and delivered without the authority of a court of competent
44 jurisdiction, obtained as required by law, or not in accordance with its
45 directions, the court may, thereafter, upon the application of the
46 corporation, or of the grantee or mortgagee in any such conveyance or
47 mortgage or of any person claiming through or under any such grantee or
48 mortgagee upon such notice to such corporation, or its successor, and
49 such other person or persons as may be interested in such property, as
50 the court may prescribe, confirm said previously executed conveyance or
51 mortgage, and order and direct the execution and delivery of a confirma-
52 tory deed or mortgage, or the recording of such confirmatory order in
53 the office where deeds and mortgages are recorded in the county in which
54 the property is located; and upon compliance with the said order such
55 original conveyance or mortgage shall be as valid and of the same force
56 and effect as if it had been executed and delivered after due
A. 5752 3
1 proceedings had in accordance with the statute and the direction of the
2 court. But no confirmatory order may be granted unless the consents
3 required in the first part of this section for a Protestant Episcopal,
4 Roman Catholic, Presbyterian church or an incorporated African Methodist
5 Episcopal Zion church or an incorporated United Methodist church have
6 first been given by the prescribed authority thereof, either upon the
7 original application or upon the application for the confirmatory order.
8 S 2. This act shall take effect immediately and shall apply to sales
9 and mortgages of real property occurring on or after the effective date
10 of this act.
