S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                   615

                       2009-2010 Regular Sessions

                          I N  A S S E M B L Y

                               (PREFILED)

                             January 7, 2009
                               ___________

Introduced by M. of A. JEFFRIES -- read once and referred to the Commit-
  tee on Judiciary

AN  ACT  to  amend  the  civil  practice  law  and rules, in relation to
  increasing the value of homesteads which are to be exempt  from  civil
  judgments

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. Subdivisions (a), (d) and (e) of section 5206 of the  civil
practice  law  and rules, as amended by chapter 623 of the laws of 2005,
are amended to read as follows:
  (a) Exemption of homestead. Property of one of  the  following  types,
not  exceeding  TWO  HUNDRED fifty thousand dollars 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.
  (d)  Exemption  of  homestead  exceeding  TWO  HUNDRED  fifty thousand
dollars in value.  The exemption of a homestead is not void because  the
value of the property exceeds TWO HUNDRED fifty thousand dollars but the
lien of a judgment attaches to the surplus.
  (e)  Sale of homestead exceeding TWO HUNDRED fifty thousand dollars 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 TWO HUNDRED
fifty thousand dollars in value. The court may direct that the notice of

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
              

                                                           LBD00170-01-9

A. 615                              2

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 TWO HUNDRED fifty thousand dollars, 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 property 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 enti-
tled to the benefit of the exemption, or be  otherwise  disposed  of  as
justice requires.
  S  2.  This  act  shall take effect immediately and shall be deemed to
have been in full force and effect on and after August 30, 2005.