Senate Bill S405

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

                                   405

                       2009-2010 Regular Sessions

                            I N  S E N A T E

                               (PREFILED)

                             January 7, 2009
                               ___________

Introduced  by  Sen.  ROBACH -- read twice and ordered printed, and when
  printed to be committed to the Committee on Judiciary

AN ACT to amend the  real  property  actions  and  proceedings  law,  in
  relation  to  requiring  service  of  notice  of  foreclosure upon all
  tenants of the building to be foreclosed upon

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

  Section  1. Subdivision 1 of section 1402 of the real property actions
and proceedings law, as amended by chapter 123 of the laws of  2005,  is
amended to read as follows:
  1.  Not later than ten days after commencing the non-judicial proceed-
ing by filing the  notice  of  pendency  pursuant  to  section  fourteen
hundred  three  of this article, and not less than ten days prior to the
first service of the notice of sale pursuant to section fourteen hundred
six of this article, a copy of the notice of pendency, together  with  a
notice  of  intention to foreclose, in a writing complying with subdivi-
sion two of this section, shall be sent to the mortgagor, the obligor on
the note, bond, or other obligation if other than the mortgagor, TO  ANY
TENANT  RESIDING  WITHIN  THE  MORTGAGED PROPERTY AT THE TIME SERVICE OF
NOTICE IS MADE, the owner of the mortgaged property, if other  than  the
mortgagor,  and to any person or entity having a lien of record upon the
mortgaged property, or interest in the mortgaged property subordinate to
the mortgage that the mortgagee seeks to foreclose, at the time  of  the
filing of the notice of pendency of which the mortgagee has actual know-
ledge  or  is  on  constructive  notice,  both by (a) registered mail or
certified mail and (b) ordinary first class mail, or by personal service
in the same manner as service of a summons. Such notice shall be sent to
the owner of the mortgaged property at the address of the property or at
such other address that is known to the mortgagee, to a mortgagor at the
mortgagor's address specified in the mortgage or to such other place  as

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

                                                           LBD03507-01-9

S. 405                              2

may  have  been  directed by the mortgagor in writing in accordance with
the mortgage, TO A TENANT AT SUCH TENANT'S  UNIT  WITHIN  THE  MORTGAGED
PROPERTY,  and  to any person or entity having a lien of record subordi-
nate  to  the  mortgage  that  the  mortgagee  seeks to foreclose at the
address shown on such lien. The notice shall be  sent  to  a  person  or
entity  having  any  subordinate interest in the mortgaged property that
the mortgagee seeks to foreclose and of which  the  mortgagee  has  such
actual  knowledge  or  constructive  notice at such person's or entity's
last known personal or business address.
  S 2. Subdivision 1 of section 1405 of the real  property  actions  and
proceedings law, as added by chapter 231 of the laws of 1998, is amended
to read as follows:
  1.  A  copy  of  the  notice shall be served, as prescribed in section
fourteen hundred six of this article, upon:
  (a) the mortgagor;
  (b) the obligor on the note, bond or other obligation, if  other  than
the mortgagor;
  (c) the owner of the mortgaged property, if other than the mortgagor;
  (d)  any  other person or entity in the mortgage designated to receive
notice;
  (e) a subsequent lienor of the mortgaged property that  the  mortgagee
seeks to foreclose whose interest was recorded or docketed in the proper
office  for  recording  or  filing  in the county in which the mortgaged
property is located at the time of the filing of the notice of pendency;
  (f) any person having a lien upon or interest in the mortgaged proper-
ty, or any part thereof, at the time of the  filing  of  the  notice  of
pendency  that  is  subordinate  to  the mortgage and that the mortgagee
seeks to foreclose;
  (G) ANY TENANT RESIDING WITHIN THE  MORTGAGED  PROPERTY  AT  THE  TIME
SERVICE OF NOTICE IS MADE.
  Affidavits  of service or mailing upon each of the persons or entities
entitled to notice of the sale shall be filed prior to the date of  sale
under  the index number of the non-judicial proceeding with the clerk of
the county in which the sale is to take place.
  S 3. This act shall take effect immediately and shall apply  to  fore-
closures commenced on or after the effective date of this act; provided,
however, that the amendments to subdivision 1 of section 1402 and subdi-
vision  1  of  section 1405 of the real property actions and proceedings
law, made by sections one and two of this  act,  shall  not  affect  the
repeal of such sections and shall be deemed repealed therewith.