Assembly Bill A707

2023-2024 Legislative Session

Relates to prohibiting pre-payment penalties for mortgages secured by real property owned in a cooperative form of ownership

download bill text pdf

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Current Bill Status - In Assembly Committee

  • Introduced
    • In Committee Assembly
    • In Committee Senate
    • On Floor Calendar Assembly
    • On Floor Calendar Senate
    • Passed Assembly
    • Passed Senate
  • Delivered to Governor
  • Signed By Governor

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2023-A707 (ACTIVE) - Details

See Senate Version of this Bill:
S161
Current Committee:
Assembly Judiciary
Law Section:
General Obligations Law
Laws Affected:
Amd §5-501, Gen Ob L
Versions Introduced in Other Legislative Sessions:
2017-2018: A10727
2019-2020: A2667, S3347
2021-2022: A1877, S4056

2023-A707 (ACTIVE) - Summary

Prohibits pre-payment penalties for mortgages secured by real property owned in a cooperative form of ownership where over fifty percent of the units are shareholder occupied.

2023-A707 (ACTIVE) - Bill Text download pdf 

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                    707
 
                        2023-2024 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             January 11, 2023
                                ___________
 
 Introduced  by  M.  of A. DINOWITZ, CARROLL -- read once and referred to
   the Committee on Election Law
 
 AN ACT to amend the general obligations law, in relation to  pre-payment
   penalties  for  mortgages  secured by real property owned in a cooper-
   ative form of ownership

   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Paragraph b of subdivision 3 of section 5-501 of the gener-
 al  obligations  law,  as amended by chapter 472 of the laws of 2008, is
 amended to read as follows:
   b. notwithstanding any other provision of law, the unpaid  balance  of
 the  loan  or  forbearance  may  be prepaid, in whole or in part, at any
 time. If prepayment is made on or after one year from the date the  loan
 or forbearance is made, no penalty may be imposed. If prepayment is made
 prior  to such time, no penalty may be imposed unless provision therefor
 is expressly made in the loan contract, provided that no penalty may  be
 imposed if prohibited by sections six-l and six-m of the banking law. NO
 PREPAYMENT  PENALTY  OR  FEE  SHALL BE CHARGED OR COLLECTED ON A LOAN OR
 FORBEARANCE SECURED BY REAL PROPERTY OWNED  IN  A  COOPERATIVE  FORM  OF
 OWNERSHIP  WHERE  OVER  FIFTY PERCENT OF THE UNITS ARE SHAREHOLDER OCCU-
 PIED. SUCH PREPAYMENT PENALTY SHALL BE UNENFORCEABLE. In all cases,  the
 right  of  prepayment  shall  be stated in the instrument evidencing the
 loan or forbearance, provided, however,  that  the  provisions  of  this
 subdivision shall not apply to the extent such provisions are inconsist-
 ent with any federal law or regulation.
   § 2. This act shall take effect immediately.
 
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD00740-01-3

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