Senate Bill S9801

2023-2024 Legislative Session

Prohibits lenders from blocking access to funds from a credit line mortgage

download bill text pdf

Sponsored By

Current Bill Status - In Senate Committee Banks 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-S9801 (ACTIVE) - Details

See Assembly Version of this Bill:
A6358
Current Committee:
Senate Banks
Law Section:
Banking Law
Laws Affected:
Amd §380-g, Bank L; amd §281, RP L

2023-S9801 (ACTIVE) - Summary

Prohibits lenders from blocking access to funds from a credit line mortgage.

2023-S9801 (ACTIVE) - Sponsor Memo

2023-S9801 (ACTIVE) - Bill Text download pdf 

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   9801
 
                             I N  S E N A T E
 
                               May 30, 2024
                                ___________
 
 Introduced  by  Sen.  COMRIE -- read twice and ordered printed, and when
   printed to be committed to the Committee on Banks
 
 AN ACT to amend the banking law and the real property law,  in  relation
   to credit line mortgages
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:

   Section 1. Section 380-g of the banking law, as added by  chapter  625
 of the laws of 1976, is amended to read as follows:
   § 380-g.  Power  to  engage in line of credit financing of residential
 real estate. 1. A savings and loan association is authorized  to  invest
 an  amount, not exceeding the lesser of (a) ten per centum of the sum of
 its surplus, undivided profits, and reserves or (b) one  per  centum  of
 its  assets,  in  loans or in interests therein the principal purpose of
 which is to provide financing with respect to what is or is expected  to
 become  primarily  residential  real estate within this state, where (i)
 the association relies substantially for  repayment  on  the  borrower's
 general  credit  standing,  with  or without other security, or (ii) the
 association relies on other assurances for repayment, including but  not
 limited  to  a  guaranty or similar obligation of a third party, and, in
 either case described in clause (i) or (ii), regardless  of  whether  or
 not the association takes security.
   2.  A  SAVINGS  AND  LOAN  ASSOCIATION  SHALL NOT REVOKE, OR OTHERWISE
 BLOCK, A BORROWER'S ACCESS  TO  CREDIT  FINANCING  OF  RESIDENTIAL  REAL
 ESTATE  AUTHORIZED  PURSUANT  TO SUBDIVISION ONE OF THIS SECTION IF SUCH
 BORROWER IS CURRENT ON REPAYMENT RELATED TO  SUCH  CREDIT  FINANCING  OF
 RESIDENTIAL REAL ESTATE.
   §  2.  Section 281 of the real property law is amended by adding a new
 subdivision 2-a to read as follows:
   2-A. AN AUTHORIZED LENDER SHALL NOT  REVOKE,  OR  OTHERWISE  BLOCK,  A
 BORROWER'S  ACCESS  TO CREDIT LINE MORTGAGES AUTHORIZED PURSUANT TO THIS
 SECTION IF SUCH BORROWER IS CURRENT ON REPAYMENT RELATED TO SUCH  CREDIT
 LINE MORTGAGE.
   § 3. This act shall take effect immediately.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD10424-03-4

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