S. 7034--A 2
5. all wearing apparel, household furniture, one mechanical, gas or
electric refrigerator, one radio receiver, one television set, ONE
COMPUTER AND ASSOCIATED EQUIPMENT, ONE CELLPHONE, crockery, tableware
and cooking utensils necessary for the judgment debtor and the family;
ALL PRESCRIBED HEALTH AIDS;
6. a wedding ring; a watch, JEWELRY AND ART not exceeding [thirty-
five] ONE THOUSAND dollars in value; [and]
7. TOOLS OF TRADE, necessary working tools and implements, including
those of a mechanic, farm machinery, team, professional instruments,
furniture and library, not exceeding [six hundred] THREE THOUSAND
dollars in value, together with the necessary food for the team for
[sixty] ONE HUNDRED TWENTY days, provided, however, that the articles
specified in this paragraph are necessary to the carrying on of the
judgment debtor's profession or calling[.];
8. ONE MOTOR VEHICLE NOT EXCEEDING FOUR THOUSAND DOLLARS IN VALUE
ABOVE LIENS AND ENCUMBRANCES OF THE DEBTOR; IF SUCH VEHICLE HAS BEEN
EQUIPPED FOR USE BY A DISABLED DEBTOR, THEN TEN THOUSAND DOLLARS IN
VALUE ABOVE LIENS AND ENCUMBRANCES OF THE DEBTOR; PROVIDED, HOWEVER,
THAT THIS EXEMPTION FOR ONE MOTOR VEHICLE SHALL NOT APPLY IF THE DEBT
ENFORCED IS FOR CHILD SUPPORT, SPOUSAL SUPPORT, MAINTENANCE, ALIMONY OR
EQUITABLE DISTRIBUTION; AND
9. IF NO HOMESTEAD EXEMPTION IS CLAIMED, THEN ONE THOUSAND DOLLARS IN
PERSONAL PROPERTY, BANK ACCOUNT OR CASH.
S 2. Section 5206 of the civil practice law and rules, as amended by
chapter 181 of the laws of 1977, subdivisions (a), (d) and (e) as
amended by chapter 623 of the laws of 2005, is amended to read as
follows:
S 5206. Real property exempt from application to the satisfaction of
money judgments. (a) Exemption of homestead. Property of one of the
following types, not exceeding ONE HUNDRED fifty thousand dollars FOR
THE COUNTIES OF KINGS, QUEENS, NEW YORK, BRONX, RICHMOND, NASSAU,
SUFFOLK, ROCKLAND, WESTCHESTER AND PUTNAM; ONE HUNDRED TWENTY-FIVE THOU-
SAND DOLLARS FOR THE COUNTIES OF DUTCHESS, ALBANY, COLUMBIA, ORANGE,
SARATOGA AND ULSTER; AND SEVENTY-FIVE THOUSAND DOLLARS FOR THE REMAINING
COUNTIES OF THE STATE in value above liens and encumbrances, owned and
occupied as a principal residence, is exempt from application to the
satisfaction of a money judgment, unless the judgment was recovered
wholly for the purchase price thereof:
1. a lot of land with a dwelling thereon,
2. shares of stock in a cooperative apartment corporation,
3. units of a condominium apartment, or
4. a mobile home.
But no exempt homestead shall be exempt from taxation or from sale for
non-payment of taxes or assessments.
(b) Homestead exemption after owner's death. The homestead exemption
continues after the death of the person in whose favor the property was
exempted for the benefit of the surviving spouse and surviving children
until the majority of the youngest surviving child and until the death
of the surviving spouse.
(c) Suspension of occupation as affecting homestead. The homestead
exemption ceases if the property ceases to be occupied as a residence by
a person for whose benefit it may so continue, except where the suspen-
sion of occupation is for a period not exceeding one year, and occurs in
consequence of injury to, or destruction of, the dwelling house upon the
premises.
S. 7034--A 3
(d) Exemption of homestead exceeding ONE HUNDRED fifty thousand
dollars in value FOR THE COUNTIES OF KINGS, QUEENS, NEW YORK, BRONX,
RICHMOND, NASSAU, SUFFOLK, ROCKLAND, WESTCHESTER AND PUTNAM; ONE HUNDRED
TWENTY-FIVE THOUSAND DOLLARS FOR THE COUNTIES OF DUTCHESS, ALBANY,
COLUMBIA, ORANGE, SARATOGA AND ULSTER; AND SEVENTY-FIVE THOUSAND DOLLARS
FOR THE REMAINING COUNTIES OF THE STATE. The exemption of a homestead
is not void because the value of the property exceeds ONE HUNDRED fifty
thousand dollars FOR THE COUNTIES OF KINGS, QUEENS, NEW YORK, BRONX,
RICHMOND, NASSAU, SUFFOLK, ROCKLAND, WESTCHESTER AND PUTNAM; ONE HUNDRED
TWENTY-FIVE THOUSAND DOLLARS FOR THE COUNTIES OF DUTCHESS, ALBANY,
COLUMBIA, ORANGE, SARATOGA AND ULSTER; AND SEVENTY-FIVE THOUSAND DOLLARS
FOR THE REMAINING COUNTIES OF THE STATE but the lien of a judgment
attaches to the surplus.
(e) Sale of homestead exceeding ONE HUNDRED fifty thousand dollars FOR
THE COUNTIES OF KINGS, QUEENS, NEW YORK, BRONX, RICHMOND, NASSAU,
SUFFOLK, ROCKLAND, WESTCHESTER AND PUTNAM; ONE HUNDRED TWENTY-FIVE THOU-
SAND DOLLARS FOR THE COUNTIES OF DUTCHESS, ALBANY, COLUMBIA, ORANGE,
SARATOGA AND ULSTER; AND SEVENTY-FIVE THOUSAND DOLLARS FOR THE REMAINING
COUNTIES OF THE STATE in value. A judgment creditor may commence a
special proceeding in the county in which the homestead is located
against the judgment debtor for the sale, by a sheriff or receiver, of a
homestead exceeding ONE HUNDRED fifty thousand dollars FOR THE COUNTIES
OF KINGS, QUEENS, NEW YORK, BRONX, RICHMOND, NASSAU, SUFFOLK, ROCKLAND,
WESTCHESTER AND PUTNAM; ONE HUNDRED TWENTY-FIVE THOUSAND DOLLARS FOR THE
COUNTIES OF DUTCHESS, ALBANY, COLUMBIA, ORANGE, SARATOGA AND ULSTER; AND
SEVENTY-FIVE THOUSAND DOLLARS FOR THE REMAINING COUNTIES OF THE STATE in
value. The court may direct that the notice of petition be served upon
any other person. The court, if it directs such a sale, shall so marshal
the proceeds of the sale that the right and interest of each person in
the proceeds shall correspond as nearly as may be to his right and
interest in the property sold. Money, not exceeding ONE HUNDRED fifty
thousand dollars FOR THE COUNTIES OF KINGS, QUEENS, NEW YORK, BRONX,
RICHMOND, NASSAU, SUFFOLK, ROCKLAND, WESTCHESTER AND PUTNAM; ONE HUNDRED
TWENTY-FIVE THOUSAND DOLLARS FOR THE COUNTIES OF DUTCHESS, ALBANY,
COLUMBIA, ORANGE, SARATOGA AND ULSTER; AND SEVENTY-FIVE THOUSAND DOLLARS
FOR THE REMAINING COUNTIES OF THE STATE, paid to a judgment debtor, as
representing his interest in the proceeds, is exempt for one year after
the payment, unless, before the expiration of the year, he acquires an
exempt homestead, in which case, the exemption ceases with respect to so
much of the money as was not expended for the purchase of that property;
and the exemption of the property so acquired extends to every debt
against which the property sold was exempt. Where the exemption of prop-
erty sold as prescribed in this subdivision has been continued after the
judgment debtor's death, or where he dies after the sale and before
payment to him of his portion of the proceeds of the sale, the court may
direct that portion of the proceeds which represents his interest be
invested for the benefit of the person or persons entitled to the bene-
fit of the exemption, or be otherwise disposed of as justice requires.
(f) Exemption of burying ground. Land, set apart as a family or
private burying ground, is exempt from application to the satisfaction
of a money judgment, upon the following conditions only:
1. a portion of it must have been actually used for that purpose;
2. it must not exceed in extent one-fourth of an acre; and
3. it must not contain any building or structure, except one or more
vaults or other places of deposit for the dead, or mortuary monuments.
S. 7034--A 4
S 3. Subdivision 1 of section 282 of the debtor and creditor law, as
added by chapter 540 of the laws of 1982, is amended to read as follows:
1. Bankruptcy exemption of a motor vehicle. One motor vehicle not
exceeding [twenty-four hundred] FOUR THOUSAND dollars in value above
liens and encumbrances of the debtor; PROVIDED, HOWEVER, IF SUCH VEHICLE
HAS BEEN EQUIPPED FOR USE BY A DISABLED DEBTOR, THEN TEN THOUSAND
DOLLARS IN VALUE ABOVE LIENS AND ENCUMBRANCES OF THE DEBTOR.
S 4. Section 283 of the debtor and creditor law, as added by chapter
540 of the laws of 1982, is amended to read as follows:
S 283. Aggregate individual bankruptcy exemption for certain annuities
and personal property. 1. General application. The aggregate amount the
debtor may exempt from the property of the estate for personal property
exempt from application to the satisfaction of a money judgment under
subdivision (a) of section fifty-two hundred five of the civil practice
law and rules and for benefits, rights, privileges, and options of annu-
ity contracts described in the following sentence shall not exceed
[five] TEN thousand dollars. Annuity contracts subject to the foregoing
limitation are those that are: (a) initially purchased by the debtor
within six months of the debtor's filing a petition in bankruptcy, (b)
not described in any paragraph of section eight hundred five (d) of the
Internal Revenue Code of nineteen hundred fifty-four, and (c) not
purchased by application of proceeds under settlement options of annuity
contracts purchased more than six months before the debtor's filing a
petition in bankruptcy or under settlement options of life insurance
policies.
2. Contingent alternative bankruptcy exemption. Notwithstanding
section two hundred eighty-two of this article, a debtor, who (a) does
not elect, claim, or otherwise avail himself of an exemption described
in section fifty-two hundred six of the civil practice law and rules;
(b) utilizes to the fullest extent permitted by law as applied to said
debtor's property, the exemptions referred to in subdivision one of this
section which are subject to the [five] TEN thousand dollar aggregate
limit; and (c) does not reach such aggregate limit, may exempt cash in
the amount by which [five] TEN thousand dollars exceeds the aggregate of
his OR HER exemptions referred to in subdivision one of this section or
in the amount of [two] FIVE thousand [five hundred] dollars, whichever
amount is less. For purposes of this subdivision, cash means currency of
the United States at face value, savings bonds of the United States at
face value, the right to receive a refund of federal, state and local
income taxes, and deposit accounts in any state or federally chartered
depository institution.
S 5. The debtor and creditor law is amended by adding a new section
285 to read as follows:
S 285. ALTERNATIVE FEDERAL EXEMPTIONS. NOTWITHSTANDING ANY INCONSIST-
ENT PROVISION OF LAW, AN INDIVIDUAL DEBTOR MAY OPT TO EXEMPT FROM PROP-
ERTY OF THE ESTATE SUCH PROPERTY AS IS PERMITTED TO BE EXEMPTED PURSUANT
TO SECTION FIVE HUNDRED TWENTY-TWO OF TITLE ELEVEN OF THE UNITED STATES
CODE IN LIEU OF SUCH PROPERTY AS IS PERMITTED TO BE EXEMPTED PURSUANT TO
THE APPLICABLE PROVISIONS OF THIS ARTICLE.
S 6. The civil practice law and rules is amended by adding a new
section 5253 to read as follows:
S 5253. COST OF LIVING ADJUSTMENT FOR PERSONAL AND REAL PROPERTY
EXEMPT FROM APPLICATION TO THE SATISFACTION OF MONEY JUDGMENTS AND
EXEMPTIONS IN BANKRUPTCY. (A) BEGINNING ON APRIL FIRST, TWO THOUSAND
TWELVE, AND AT EACH THREE-YEAR INTERVAL ENDING ON APRIL FIRST THEREAFT-
ER, THE DOLLAR AMOUNT OF THE EXEMPTION PROVIDED IN SECTIONS FIFTY-TWO
S. 7034--A 5
HUNDRED FIVE AND FIFTY-TWO HUNDRED SIX OF THIS ARTICLE AND SECTIONS TWO
HUNDRED EIGHTY-TWO AND TWO HUNDRED EIGHTY-THREE OF THE DEBTOR AND CREDI-
TOR LAW SHALL BE ADJUSTED AS PROVIDED IN SUBDIVISION (B) OF THIS
SECTION.
(B) THE SUPERINTENDENT OF BANKS SHALL DETERMINE THE AMOUNT OF THE
ADJUSTMENT BASED ON THE CHANGE IN THE CONSUMER PRICE INDEX FOR ALL URBAN
CONSUMERS, NEW YORK-NORTHERN NEW JERSEY-LONG ISLAND, NY-NJ-CT-PA,
PUBLISHED BY THE U.S. DEPARTMENT OF LABOR, BUREAU OF LABOR STATISTICS,
FOR THE MOST RECENT THREE-YEAR PERIOD ENDING ON DECEMBER THIRTY-FIRST
PRECEDING THE ADJUSTMENT, WITH EACH ADJUSTED AMOUNT ROUNDED TO THE NEAR-
EST TWENTY-FIVE DOLLARS.
(C) BEGINNING ON APRIL FIRST, TWO THOUSAND TWELVE, AND AT EACH THREE-
YEAR INTERVAL ENDING ON APRIL FIRST THEREAFTER, THE SUPERINTENDENT OF
BANKS SHALL PUBLISH THE CURRENT DOLLAR AMOUNT OF THE APPLICABLE
EXEMPTION PROVIDED IN THIS ARTICLE, TOGETHER WITH THE DATE OF THE NEXT
SCHEDULED ADJUSTMENT. THE PUBLICATION SHALL BE SUBSTANTIALLY IN THE FORM
SET FORTH BELOW:
"CURRENT DOLLAR AMOUNT OF EXEMPTION FROM APPLICATION TO THE SATISFAC-
TION OF MONEY JUDGMENTS UNDER NEW YORK CIVIL PRACTICE LAW AND RULES
SECTIONS 5205 AND 5206 AND EXEMPTIONS IN BANKRUPTCY UNDER DEBTOR AND
CREDITOR LAW SECTIONS 282 AND 283:
THE FOLLOWING IS THE CURRENT DOLLAR AMOUNT OF EXEMPTIONS FROM THE
SATISFACTION OF MONEY JUDGMENTS UNDER CIVIL PRACTICE LAW AND RULES
SECTIONS 5205 AND 5206 AND UNDER DEBTOR AND CREDITOR LAW SECTIONS 282
AND 283:
(AMOUNT)
THIS AMOUNT IS EFFECTIVE ON APRIL 1, (YEAR) AND SHALL NOT APPLY TO
CASES COMMENCED BEFORE APRIL 1, (YEAR). THE NEXT ADJUSTMENT IS SCHEDULED
FOR APRIL 1, (YEAR). SUCH ADJUSTMENTS SHALL NOT APPLY WITH RESPECT TO
RESTRAINING NOTICES SERVED OR EXECUTIONS EFFECTED BEFORE THE DATE OF THE
ADJUSTMENT. NOTHING IN THIS SECTION LIMITS THE JUDGMENT DEBTOR'S
EXEMPTION RIGHTS IN THIS SECTION OR UNDER ANY OTHER LAW."
S 7. This act shall take effect on the thirtieth day after it shall
have become a law and shall apply to the satisfaction of judgments on or
after such date.