S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  7922--A
 
                        2021-2022 Regular Sessions
 
                           I N  A S S E M B L Y
 
                               May 28, 2021
                                ___________
 
 Introduced  by  M.  of  A.  WALKER,  DAVILA,  GALLAGHER -- read once and
   referred to the Committee on Judiciary -- committee  discharged,  bill
   amended,  ordered reprinted as amended and recommitted to said commit-
   tee
 
 AN ACT to amend the civil practice law  and  rules,  the  general  obli-
   gations  law,  and  the  real property actions and proceedings law, in
   relation to the rights of parties involved in foreclosure actions
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  Short  title. This act shall be known and may be cited as
 the "Foreclosure Process Abuse Prevention Act".
   § 2. Section 203 of the civil practice law and  rules  is  amended  by
 adding a new subdivision (h) to read as follows:
   (H) CLARIFICATION. ONCE A CAUSE OF ACTION UPON AN INSTRUMENT DESCRIBED
 UNDER  SUBDIVISION  FOUR OF SECTION TWO HUNDRED THIRTEEN OF THIS ARTICLE
 HAS ACCRUED, NO PARTY MAY UNILATERALLY WAIVE, POSTPONE, CANCEL, OR RESET
 THE ACCRUAL THEREOF, OR OTHERWISE EFFECTUATE A UNILATERAL  EXTENSION  OF
 THE  LIMITATIONS PERIOD PRESCRIBED BY LAW TO INTERPOSE THE CLAIM, UNLESS
 EXPRESSLY PERMITTED BY LAW.
   § 3. Subdivision (c) of section 205 of  the  civil  practice  law  and
 rules, as amended by chapter 216 of the laws of 1992, is amended to read
 as follows:
   (c)  Application.  This  section  also applies to a proceeding brought
 under  the  workers'  compensation  law  BUT  SHALL  NOT  APPLY  TO  ANY
 PROCEEDINGS GOVERNED BY SECTION TWO HUNDRED FIVE-A OF THIS ARTICLE.
   §  4.  The  civil  practice  law  and rules is amended by adding a new
 section 205-a to read as follows:
   § 205-A. TERMINATION OF CERTAIN ACTIONS RELATED TO REAL PROPERTY.  (A)
 IF AN ACTION UPON AN INSTRUMENT  DESCRIBED  UNDER  SUBDIVISION  FOUR  OF
 SECTION  TWO HUNDRED THIRTEEN OF THIS ARTICLE IS TIMELY COMMENCED AND IS
 TERMINATED IN ANY OTHER MANNER THAN BY  A  VOLUNTARY  DISCONTINUANCE,  A
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD09373-09-1

 A. 7922--A                          2
 
 FAILURE  TO OBTAIN PERSONAL JURISDICTION OVER THE DEFENDANT, A DISMISSAL
 OF THE COMPLAINT FOR ANY FORM OF NEGLECT, INCLUDING, BUT NOT LIMITED TO,
 THOSE SPECIFIED IN SUBDIVISION THREE OF SECTION THIRTY-ONE HUNDRED TWEN-
 TY-SIX,  SUBDIVISION  (C)  OF  SECTION THIRTY-TWO HUNDRED FIFTEEN, RULES
 THIRTY-TWO HUNDRED SIXTEEN AND THIRTY-FOUR HUNDRED FOUR OF THIS CHAPTER,
 FOR VIOLATION OF, OR NON-COMPLIANCE WITH, ANY UNIFORM COURT RULES, LOCAL
 COURT RULES, INDIVIDUAL JUDGE PART RULES, OR COURT  ORDER,  OR  A  FINAL
 JUDGMENT  UPON  THE  MERITS, THE ORIGINAL PLAINTIFF, OR, IF THE ORIGINAL
 PLAINTIFF DIES, AND THE CAUSE OF ACTION SURVIVES, HIS OR HER EXECUTOR OR
 ADMINISTRATOR, MAY COMMENCE A NEW ACTION UPON THE  SAME  TRANSACTION  OR
 OCCURRENCE  OR  SERIES  OF TRANSACTIONS OR OCCURRENCES WITHIN SIX MONTHS
 AFTER THE TERMINATION PROVIDED THAT THE NEW ACTION WOULD HAVE BEEN TIME-
 LY COMMENCED WITHIN THE APPLICABLE LIMITATIONS PERIOD PRESCRIBED BY  LAW
 AT  THE  TIME  OF COMMENCEMENT OF THE PRIOR ACTION AND THAT SERVICE UPON
 THE ORIGINAL DEFENDANT IS EFFECTED WITHIN SUCH SIX-MONTH  PERIOD.    FOR
 PURPOSES OF THIS SUBDIVISION:
   1. A SUCCESSOR IN INTEREST, EXECUTOR OR ADMINISTRATOR OF THE PLAINTIFF
 SHALL  NOT  BE  DEEMED  THE  PLAINTIFF, UNLESS PLEADING AND PROVING UPON
 CLEAR AND CONVINCING EVIDENCE THAT SAID SUCCESSOR IN INTEREST,  EXECUTOR
 OR  ADMINISTRATOR  IS  ACTING  ON  BEHALF OR ASSERTING THE RIGHTS OF THE
 ORIGINAL PLAINTIFF; AND
   2. IN NO EVENT SHALL THE PLAINTIFF RECEIVE  MORE  THAN  ONE  SIX-MONTH
 EXTENSION UNDER THIS SUBDIVISION.
   (B)  WHERE  THE  DEFENDANT HAS SERVED AN ANSWER AND THE ACTION UPON AN
 INSTRUMENT DESCRIBED UNDER SUBDIVISION FOUR OF SECTION TWO HUNDRED THIR-
 TEEN OF THIS ARTICLE IS TERMINATED IN ANY MANNER, AND A NEW ACTION  UPON
 THE  SAME  TRANSACTION OR OCCURRENCE OR SERIES OF TRANSACTIONS OR OCCUR-
 RENCES IS COMMENCED BY THE ORIGINAL PLAINTIFF OR A SUCCESSOR  IN  INTER-
 EST,  EXECUTOR OR ADMINISTRATOR OF THE ORIGINAL PLAINTIFF, THE ASSERTION
 OF ANY CAUSE OF ACTION OR DEFENSE BY THE DEFENDANT  IN  THE  NEW  ACTION
 SHALL BE TIMELY IF IT WAS TIMELY ASSERTED IN THE PRIOR ACTION.
   §  5.  Section  206  of the civil practice law and rules is amended by
 adding a new subdivision (e) to read as follows:
   (E) BASED ON STANDARDIZED MORTGAGE INSTRUMENTS.  IN AN ACTION TO FORE-
 CLOSE UPON ANY UNIFORM OR MODEL MORTGAGE INSTRUMENT  SECURING REAL PROP-
 ERTY OR ANY INTEREST THEREIN, AS ADOPTED BY THE FEDERAL  NATIONAL  MORT-
 GAGE  ASSOCIATION  (FANNIE  MAE), FEDERAL HOME LOAN MORTGAGE CORPORATION
 (FREDDIE MAC), OR U.S.  DEPARTMENT  OF  HOUSING  AND  URBAN  DEVELOPMENT
 (HUD),  THE TIME WITHIN WHICH THE ACTION MUST BE COMMENCED AND THE CLAIM
 INTERPOSED SHALL BE COMPUTED FROM THE TIME THE RIGHT TO DEMAND IMMEDIATE
 PAYMENT IN FULL OF ALL SUMS SO SECURED THEREBY MAY BE  EXERCISED.    FOR
 PURPOSES  OF THIS SUBDIVISION ONLY, THERE SHALL BE A REBUTTABLE PRESUMP-
 TION THAT ALL SUBSTANTIVE CONDITIONS PRECEDENT TO ACCRUAL OF A CAUSE  OF
 ACTION TO FORECLOSE UPON ANY SUCH MORTGAGE INSTRUMENT, IF ANY, HAVE BEEN
 SATISFIED.  THE  PRESUMPTION  MAY  BE  REBUTTED  BY CLEAR AND CONVINCING
 EVIDENCE. NOTHING CONTAINED HEREIN SHALL GIVE RISE  TO  THE  PRESUMPTION
 THAT  ANY  EVENT  OF DEFAULT UNDER THE MORTGAGE INSTRUMENT HAS OCCURRED,
 EXCEPT FOR PURPOSES OF COMPUTATION OF THE TIME WITHIN WHICH  THE  ACTION
 MUST BE COMMENCED AND THE CLAIM INTERPOSED.
   § 6. Subdivision (d) of rule 3217 of the civil practice law and rules,
 as  added  by section 29 of part J of chapter 62 of the laws of 2003, is
 amended to read as follows:
   (d) EFFECT OF DISCONTINUANCE OF ACTIONS BASED UPON CERTAIN INSTRUMENTS
 RELATED TO REAL PROPERTY.  UNLESS EFFECTUATED IN STRICT ACCORDANCE  WITH
 THE  APPLICABLE  PROVISIONS  OF  ARTICLE  SEVENTEEN OF THE GENERAL OBLI-
 GATIONS  LAW,  THE  DISCONTINUANCE  OF  AN  ACTION  UPON  AN  INSTRUMENT

 A. 7922--A                          3

 DESCRIBED UNDER SUBDIVISION FOUR OF SECTION TWO HUNDRED THIRTEEN OF THIS
 CHAPTER, BY ANY MEANS, SHALL NOT, IN FORM OR EFFECT:
   1.  ACT AS A WAIVER, POSTPONEMENT, CANCELLATION, RESETTING, OR TOLLING
 OF ACCRUAL OF THE CAUSE OF ACTION;
   2. EXTEND THE LIMITATIONS PERIOD PRESCRIBED BY LAW  TO  INTERPOSE  THE
 CLAIM; OR
   3. AUTOMATICALLY REVOKE OR NULLIFY AN ELECTION OF REMEDIES MADE IN ANY
 COMPLAINT.
   (E)  All  notices, stipulations, or certificates pursuant to this rule
 shall be filed with the county clerk by the defendant.
   § 7. Subdivisions 4 and 5 of section 17-105 of the general obligations
 law are amended to read as follows:
   4. [Except as provided in subdivision  five,  no]  AN  acknowledgment,
 waiver  [or promise has any effect to], PROMISE OR AGREEMENT, EXPRESS OR
 IMPLIED IN FACT OR IN LAW, SHALL  NOT,  IN  FORM  OR  EFFECT,  POSTPONE,
 CANCEL,  RESET,  TOLL,  REVIVE  OR OTHERWISE extend the time limited for
 commencement of an action to foreclose [or] A mortgage for  any  greater
 time  or  in  any other manner than that provided in this section, [nor]
 unless it is made as provided in this section.
   5. This section does not change the requirements[,] or the effect with
 respect to the ACCRUAL OF A CAUSE OF ACTION, NOR THE  time  limited  for
 commencement of an action[, of] BASED UPON EITHER:
   a.  a  payment or part payment of the principal or interest secured by
 the mortgage, or
   b. a stipulation made in an action or proceeding.
   § 8. Subdivision 3 of section 1301 of the real  property  actions  and
 proceedings law, as added by chapter 312 of the laws of 1962, is amended
 and a new subdivision 4 is added to read as follows:
   3.  While the action is pending or after final judgment for the plain-
 tiff therein, no other  action  shall  be  commenced  or  maintained  to
 recover  any  part  of  the mortgage debt, without leave of the court in
 which the former action was brought. FOR  PURPOSES  OF  CALCULATING  THE
 TIME  WITHIN  WHICH AN ACTION MUST BE COMMENCED AND THE CLAIM INTERPOSED
 UNDER SUBDIVISION FOUR OF SECTION TWO  HUNDRED  THIRTEEN  OF  THE  CIVIL
 PRACTICE  LAW AND RULES, THIS SUBDIVISION SHALL NOT CONSTITUTE A STAY OF
 PROCEEDINGS OR STATUTORY PROHIBITION WITH THE  MEANING  OF  SECTION  TWO
 HUNDRED FOUR OF THE CIVIL PRACTICE LAW AND RULES.
   4.  IF  AN ACTION TO FORECLOSE THE MORTGAGE OR RECOVER ANY PART OF THE
 MORTGAGE DEBT IS ADJUDICATED TO BE BARRED BY THE APPLICABLE  STATUTE  OF
 LIMITATIONS,  ANY  OTHER ACTION TO RECOVER ANY PART OF THE SAME MORTGAGE
 DEBT SHALL ALSO BE BARRED BY THE STATUTE OF LIMITATIONS.
   § 9. Severability clause. If any clause, sentence, paragraph,  section
 or  part  of this act shall be adjudged by any court of competent juris-
 diction to be invalid, such judgment shall not affect, impair or invali-
 date the remainder thereof, but shall be confined in  its  operation  to
 the  clause,  sentence,  paragraph,  section  or  part  thereof directly
 involved in the controversy in  which  such  judgment  shall  have  been
 rendered.
   § 10. This act shall take effect immediately; provided, however:
   a.  for causes of action pursuant to subdivision (e) of section 206 of
 the civil practice law and rules as added by section five of  this  act,
 having  accrued prior to, and would be time barred immediately upon, the
 effective date of this act, suits thereupon shall be commenced  and  the
 claims  interposed  within  one  year after this act shall have become a
 law; and

 A. 7922--A                          4
 
   b. for causes of action pursuant to subdivision (e) of section 206  of
 the  civil  practice law and rules as added by section five of this act,
 having accrued prior to the effective date of such section and for which
 less than one year remains upon the applicable  limitations  period  for
 the  commencement of an action or proceeding thereupon, such suits shall
 be commenced and the claims interposed within one year  after  this  act
 shall have become a law.