NY State Assembly Bill 2009-A8610

Archive: Last 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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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jun 03, 2010	print number 8610a
Jun 03, 2010	amend and recommit to banks
Jan 06, 2010	referred to banks
May 29, 2009	referred to banks

Bill Amendments

Original

A (Active)

2009-A8610 - Details

Current Committee:: Assembly Banks
Law Section:: Banking Law
Laws Affected:: Add §595-c, Bank L; amd §771, Gen Bus L

2009-A8610 - Summary

Provides that where a home improvement contractor is acting as a mortgage broker without being registered as required under the Banking Law, a mortgage banker, mortgage broker or exempt organization may not engage in such transaction with the contractor, and shall promptly notify the banking department that such person is acting as an unregistered broker.

2009-A8610 - Sponsor Memo

                                BILL NUMBER:A8610

TITLE OF BILL:  An act to amend the banking law and the general
business law, in relation to home improvement contractors

PURPOSE OR GENERAL IDEA OF BILL:  To help address and prevent abusive
practices which have resulted from relationships between some home
improvement contractors and some mortgage lenders or mortgage brokers.

SUMMARY OF SPECIFIC PROVISIONS:  A new Section 595-c is added to the
Banking Law. Subdivision one of this new section provides that a
mortgage banker, exempt organization (i.e. a banking institution or
insurance company) or mortgage broker shall not pay a referral fee or
other compensation to a home improvement contractor, in connection
with a mortgage loan, unless the following conditions are met:

*the contractor is an agent or employee of the lender or broker;

*the lender or broker has given prior notice to the Banking Department
of such relationship;

*the consumer is provided conspicuous notice in writing about the
relationship between the contractor and lender or broker; and

*such relationship is subject to any additional requirements or
conditions as provided in regulations of the Banking Board.

Subdivision two of this new section specifically provides that where a
home improvement contractor is acting as a mortgage broker without
being registered as required under the Banking Law, a mortgage banker,
mortgage broker or exempt organization may not engage in such
transaction with the contractor, and shall promptly notify the Banking
Department that such person is acting as an unregistered broker.

Subdivision three of this new section authorizes the Superintendent of
Banks to impose special conditions and restrictions on a mortgage
banker, mortgage broker or exempt organization if there has been a
pattern of bona fide complaints of abusive practices involving a
relationship between such entity and a home improvement contractor
with whom it has a formal or informal business arrangement.

Subdivision four of this new section defines "home improvement
contractor" and "home improvement contract."

The bill also amends Section 771 of the General Business Law in regard
to the written agreement which a home improvement contractor must
provide to the homeowner. This amendment provides that, where the
contractor is referring or recommending the homeowner to a lender for
a loan that will be secured by the property, the written agreement
must include a conspicuous statement that "If you obtain or use any
type of mortgage loan to finance this project, you could lose your
home and any money you have put into it if you do not meet your
obligations under the loan."

JUSTIFICATION:  State and federal regulators have been focusing on the
problem of abusive lending practices, in which some lenders and
mortgage brokers use unfair, deceptive or fraudulent means to target


vulnerable homeowners for excessive high cost loans. The elderly, in
particular, are a frequent target, since they may own their homes or
have a high level of equity that can be exploited.

One continuing problem involves abusive or questionable practices
which have resulted' from relationships between some home improvement
contractors and some mortgage lenders or mortgage brokers.

Some homeowners have been subjected to high pressure sales tactics,
often by door-to-door salespeople, to agree to home repairs and to
finance such improvements. These contractors or salespeople may
pressure, intimidate, and mislead homeowners into taking out a
high-priced home equity loan, or refinancing an existing mortgage as a
high cost loan, to pay for these repairs. In the most egregious cases,
homeowners may not realize that, in agreeing to the home improvement
contract, they are also signing documents which commit them to a
mortgage loan or a refinancing.

There has also been concern about contractors which have been acting
in the capacity of a mortgage broker, without being registered and
regulated as required by the Banking Law. Through the regulation of
mortgage brokers, the State seeks to ensure that consumers are treated
fairly and are protected from abusive practices. When a contractor or
other person evades regulation and acts as a broker, there is a much
greater likelihood of deceptive and fraudulent practices.

As a result of these practices, a homeowner who may have had a
relatively low-balance, low rate loan may now be burdened with a
high-balance, high-rate loan that they cannot afford. Furthermore, in
many cases the home improvement work may be poor and inferior, or may
not even be undertaken or completed.  This bill seeks to improve
accountability and ensure that mortgage bankers and mortgage brokers
are responsible for the activities of any home improvement contractors
with whom they have relationships.

This bill enables the Banking Department to impose special conditions
and restrictions in any cases where it identifies a pattern of abusive
practices between a lender or broker and home improvement contractors.

PRIOR LEGISLATIVE HISTORY:  2007-08: S.2613-A/52-A; 2005-06:
S.7148/A.2152, passed Assembly both years; 2003-04: A.4980; 2001-02:
A.5969; 1999-00: A.4046; 1997-98:  S.256/A.124; 1995-96: A.3150;
1993-94: S.4007.

FISCAL IMPLICATIONS: None.

EFFECTIVE DATE:  Section one will take effect 120 days after it shall
have become a law; section two will take effect 180 days after it
shall have become a law.

2009-A8610 - Bill Text download pdf

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

                                  8610

                       2009-2010 Regular Sessions

                          I N  A S S E M B L Y

                              May 29, 2009
                               ___________

Introduced  by  M. of A. HOYT -- read once and referred to the Committee
  on Banks

AN ACT to amend the  banking  law  and  the  general  business  law,  in
  relation to home improvement contractors

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

  Section 1. The banking law is amended by adding a new section 595-c to
read as follows:
  S 595-C. RESTRICTIONS ON RELATIONSHIPS WITH HOME IMPROVEMENT  CONTRAC-
TORS. 1. A MORTGAGE BANKER, EXEMPT ORGANIZATION OR MORTGAGE BROKER SHALL
NOT  PAY  A  REFERRAL  FEE  OR  OTHER COMPENSATION TO A HOME IMPROVEMENT
CONTRACTOR IN CONNECTION WITH THE MAKING OF A MORTGAGE LOAN, UNLESS: THE
HOME IMPROVEMENT CONTRACTOR IS AN AGENT OR  EMPLOYEE  OF  SUCH  MORTGAGE
BANKER,  EXEMPT  ORGANIZATION  OR MORTGAGE BROKER; SUCH RELATIONSHIP HAS
BEEN PREVIOUSLY REPORTED TO THE DEPARTMENT; SUCH RELATIONSHIP  IS  SEPA-
RATELY  AND CONSPICUOUSLY DISCLOSED IN WRITING TO THE CONSUMER; AND SUCH
RELATIONSHIP IS SUBJECT TO ANY ADDITIONAL CONDITIONS OR REQUIREMENTS  AS
PROVIDED  IN REGULATIONS PROMULGATED BY THE BANKING BOARD.  FOR PURPOSES
OF THIS SUBDIVISION, THE TERM COMPENSATION SHALL   NOT MEAN  OR  INCLUDE
THE PAYMENT OF LOAN PROCEEDS FOR WORK PERFORMED OR MATERIALS PURCHASED.
  2. IF A HOME IMPROVEMENT CONTRACTOR IS SOLICITING, PROCESSING, PLACING
OR  NEGOTIATING A MORTGAGE LOAN WITHOUT BEING REGISTERED OR SPECIFICALLY
EXEMPTED FROM REGISTRATION, A MORTGAGE BANKER, MORTGAGE BROKER OR EXEMPT
ORGANIZATION MAY NOT  ENGAGE  IN  SUCH  MORTGAGE  TRANSACTION  WITH  THE
CONTRACTOR AND SHALL PROMPTLY NOTIFY THE DEPARTMENT THAT SUCH CONTRACTOR
IS ACTING AS AN UNREGISTERED MORTGAGE BROKER.
  3.  IF  THE  SUPERINTENDENT DETERMINES, IN HIS OR HER SOLE DISCRETION,
THAT THERE IS A PATTERN OF BONA FIDE  COMPLAINTS  OF  ABUSIVE  PRACTICES
INVOLVING  A  RELATIONSHIP BETWEEN A MORTGAGE BANKER, MORTGAGE BROKER OR
EXEMPT ORGANIZATION AND A HOME  IMPROVEMENT  CONTRACTOR  OR  CONTRACTORS
WITH  WHOM  IT HAS A FORMAL OR INFORMAL BUSINESS ARRANGEMENT, THE SUPER-

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD07654-02-9

A. 8610                             2

INTENDENT MAY, AFTER NOTICE AND A HEARING,  IMPOSE  CONDITIONS  ON  SUCH
MORTGAGE  BANKER,  MORTGAGE BROKER OR EXEMPT ORGANIZATION, INCLUDING BUT
NOT LIMITED TO: REQUIRING THE TERMINATION OF ANY RELATIONSHIP  OR  BUSI-
NESS  ARRANGEMENT  WITH  A  SPECIFIC  CONTRACTOR  WHICH  HAS RESULTED IN
ABUSIVE PRACTICES; REQUIRING VERIFICATION PRIOR TO MAKING ANY LOANS THAT
A CONTRACTOR IS LICENSED AND MEETING ANY OTHER REQUIREMENTS OF ANY LOCAL
LAWS; OBTAINING A COPY OF THE SIGNED WRITTEN  AGREEMENT  REQUIRED  UNDER
SECTION  SEVEN HUNDRED SEVENTY-ONE OF THE GENERAL BUSINESS LAW AND VERI-
FYING THAT THE APPLICANT HAS RECEIVED SUCH A COPY; NOTIFYING THE  APPLI-
CANT  OF  THEIR  RIGHT  TO  CONSULT  WITH THE ATTORNEY GENERAL'S OFFICE,
CONSUMER PROTECTION BOARD OR BETTER BUSINESS BUREAU TO DETERMINE IF  ANY
COMPLAINTS  HAVE  BEEN FILED AGAINST A CONTRACTOR; REQUIRING THE DISCLO-
SURE OF THE RESPONSIBILITIES OF HOME  IMPROVEMENT  CONTRACTORS  AND  THE
RIGHTS  OF  CONSUMERS  AND OPTIONS FOR PURSUING REMEDIES IN THE EVENT OF
PROBLEMS; REQUIRING THE INSPECTION OF ANY WORK DONE  TO  DATE;  AND  ANY
OTHER RESTRICTIONS OR CONDITIONS THAT THE SUPERINTENDENT DEEMS NECESSARY
AND APPROPRIATE TO PROTECT CONSUMERS.
  4. FOR THE PURPOSES OF THIS SECTION:
  (A)  "HOME  IMPROVEMENT"  MEANS  THE  REPAIRING, REMODELING, ALTERING,
CONVERTING, OR MODERNIZING OF, OR ADDING TO,  RESIDENTIAL  PROPERTY  AND
SHALL  INCLUDE,  BUT  NOT  BE  LIMITED  TO,  THE CONSTRUCTION, ERECTION,
REPLACEMENT, OR IMPROVEMENT OF DRIVEWAYS, SWIMMING POOLS, SIDING,  INSU-
LATION,  ROOFING, WINDOWS, TERRACES, PATIOS, LANDSCAPING, FENCES, PORCH-
ES, GARAGES,  SOLAR  ENERGY  SYSTEMS,  FLOORING,  BASEMENTS,  AND  OTHER
IMPROVEMENTS  OF  THE  RESIDENTIAL  PROPERTY  AND ALL STRUCTURES OR LAND
ADJACENT TO IT. "HOME IMPROVEMENT" SHALL ALSO MEAN THE  INSTALLATION  OF
HOME  IMPROVEMENT  GOODS OR THE FURNISHING OF HOME IMPROVEMENT SERVICES.
"HOME IMPROVEMENT" SHALL NOT INCLUDE:
  (1) THE SALE OR CONSTRUCTION OF A NEW HOME;
  (2) THE SALE OF GOODS BY A SELLER WHO NEITHER ARRANGES TO PERFORM  NOR
PERFORMS,  DIRECTLY  OR INDIRECTLY, ANY WORK OR LABOR IN CONNECTION WITH
THE INSTALLATION OR APPLICATION OF THE GOODS;
  (3) THE SALE OR INSTALLATION OF APPLIANCES, SUCH AS STOVES, REFRIGERA-
TORS, FREEZERS, ROOM AIR CONDITIONERS, DISHWASHERS, CLOTHES  WASHERS  OR
DRYERS,  WHICH  ARE  DESIGNED  TO BE REMOVABLE FROM THE PREMISES WITHOUT
MATERIAL ALTERATION THEREOF;
  (4) THE SALE OR INSTALLATION OF DECORATIVE GOODS OR SERVICES, SUCH  AS
DRAPERIES AND CARPETS; OR
  (5) THE PERFORMANCE OF REPAIRS, REPLACEMENTS, OR OTHER SERVICES PURSU-
ANT TO AN EXPRESS OR IMPLIED WARRANTY, OR A MAINTENANCE AGREEMENT.
  (B)  "HOME IMPROVEMENT CONTRACTOR" MEANS A PERSON, FIRM OR CORPORATION
WHICH OWNS OR OPERATES A HOME IMPROVEMENT BUSINESS  OR  WHO  UNDERTAKES,
OFFERS  TO UNDERTAKE OR AGREES TO PERFORM ANY HOME IMPROVEMENT FOR A FEE
AND FOR WHOM THE TOTAL  CASH  PRICE  OF  ALL  OF  HIS  HOME  IMPROVEMENT
CONTRACTS  WITH  ALL  HIS  CUSTOMERS  EXCEEDS  ONE THOUSAND FIVE HUNDRED
DOLLARS DURING ANY PERIOD OF TWELVE CONSECUTIVE MONTHS. HOME IMPROVEMENT
CONTRACTOR DOES NOT INCLUDE A PERSON, FIRM, CORPORATION, LANDLORD, COOP-
ERATIVE CORPORATION, CONDOMINIUM BOARD  OF  MANAGERS,  JOINT  TENANT  OR
CO-TENANT THAT OWNS, IN WHOLE OR IN PART, THE PROPERTY TO BE IMPROVED.
  S  2.  Subdivision  1  of  section  771 of the general business law is
amended by adding a new paragraph (i) to read as follows:
  (I) WHERE THE CONTRACTOR IS REFERRING OR RECOMMENDING THE OWNER  TO  A
BANKING  INSTITUTION,  MORTGAGE  BANKER  OR OTHER FINANCING ENTITY FOR A
LOAN TO BE SECURED BY A MORTGAGE ON OR A SECURITY INTEREST IN  THE  REAL
PROPERTY,  THE  FOLLOWING  NOTICE  TO THE OWNER IN CLEAR AND CONSPICUOUS
BOLD FACE TYPE: "IF YOU OBTAIN OR USE  ANY  TYPE  OF  MORTGAGE  LOAN  TO

A. 8610                             3

FINANCE  THIS  PROJECT,  YOU COULD LOSE YOUR HOME AND ANY MONEY YOU HAVE
PUT INTO IT IF YOU DO NOT MEET YOUR OBLIGATIONS UNDER THE LOAN."
  S 3. This act shall take effect on the one hundred twentieth day after
it shall have become a law, provided that any such rules and regulations
as  shall  be  necessary  to  implement  the  provisions of this act are
authorized to be promulgated prior to such effective date; and  provided
that section two of this act shall take effect on the one hundred eight-
ieth day after it shall have become a law.

2009-A8610A (ACTIVE) - Details

Current Committee:: Assembly Banks
Law Section:: Banking Law
Laws Affected:: Add §595-c, Bank L; amd §771, Gen Bus L

2009-A8610A (ACTIVE) - Summary

2009-A8610A (ACTIVE) - Bill Text download pdf

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

                                 8610--A

                       2009-2010 Regular Sessions

                          I N  A S S E M B L Y

                              May 29, 2009
                               ___________

Introduced  by  M. of A. HOYT -- read once and referred to the Committee
  on Banks -- recommitted to the Committee on Banks in  accordance  with
  Assembly Rule 3, sec. 2 -- committee discharged, bill amended, ordered
  reprinted as amended and recommitted to said committee

AN  ACT  to  amend  the  banking  law  and  the general business law, in
  relation to home improvement contractors

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

  Section 1. The banking law is amended by adding a new section 595-c to
read as follows:
  S  595-C. RESTRICTIONS ON RELATIONSHIPS WITH HOME IMPROVEMENT CONTRAC-
TORS. 1. A MORTGAGE BANKER, EXEMPT ORGANIZATION OR MORTGAGE BROKER SHALL
NOT PAY A REFERRAL FEE OR  OTHER  COMPENSATION  TO  A  HOME  IMPROVEMENT
CONTRACTOR  IN CONNECTION WITH THE MAKING OF A MORTGAGE LOAN, UNLESS (A)
THE HOME IMPROVEMENT CONTRACTOR IS AN AGENT OR EMPLOYEE OF SUCH MORTGAGE
BANKER, EXEMPT ORGANIZATION OR MORTGAGE BROKER (B) SUCH RELATIONSHIP HAS
BEEN PREVIOUSLY REPORTED TO THE  DEPARTMENT  (C)  SUCH  RELATIONSHIP  IS
SEPARATELY  AND  CONSPICUOUSLY  DISCLOSED IN WRITING TO THE CONSUMER (D)
AND SUCH  RELATIONSHIP  IS  SUBJECT  TO  ANY  ADDITIONAL  CONDITIONS  OR
REQUIREMENTS  AS  PROVIDED  IN  REGULATIONS  PROMULGATED  BY THE BANKING
BOARD.  FOR PURPOSES OF THIS SUBDIVISION, THE  TERM  COMPENSATION  SHALL
NOT  MEAN  OR INCLUDE THE PAYMENT OF LOAN PROCEEDS FOR WORK PERFORMED OR
MATERIALS PURCHASED.
  2. IF THE SUPERINTENDENT DETERMINES, IN HIS OR  HER  SOLE  DISCRETION,
THAT  THERE  IS  A  PATTERN OF BONA FIDE COMPLAINTS OF ABUSIVE PRACTICES
INVOLVING A RELATIONSHIP BETWEEN A MORTGAGE BANKER, MORTGAGE  BROKER  OR
EXEMPT  ORGANIZATION  AND  A  HOME IMPROVEMENT CONTRACTOR OR CONTRACTORS
WITH WHOM IT HAS A FORMAL OR INFORMAL BUSINESS ARRANGEMENT,  THE  SUPER-
INTENDENT  MAY,  AFTER  NOTICE  AND A HEARING, IMPOSE CONDITIONS ON SUCH
MORTGAGE BANKER, MORTGAGE BROKER OR EXEMPT ORGANIZATION,  INCLUDING  BUT
NOT  LIMITED  TO: REQUIRING THE TERMINATION OF ANY RELATIONSHIP OR BUSI-

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD07654-04-0

A. 8610--A                          2

NESS ARRANGEMENT WITH  A  SPECIFIC  CONTRACTOR  WHICH  HAS  RESULTED  IN
ABUSIVE PRACTICES; REQUIRING VERIFICATION PRIOR TO MAKING ANY LOANS THAT
A CONTRACTOR IS LICENSED AND MEETING ANY OTHER REQUIREMENTS OF ANY LOCAL
LAWS;  OBTAINING  A  COPY OF THE SIGNED WRITTEN AGREEMENT REQUIRED UNDER
SECTION SEVEN HUNDRED SEVENTY-ONE OF THE GENERAL BUSINESS LAW AND  VERI-
FYING  THAT THE APPLICANT HAS RECEIVED SUCH A COPY; NOTIFYING THE APPLI-
CANT OF THEIR RIGHT TO  CONSULT  WITH  THE  ATTORNEY  GENERAL'S  OFFICE,
CONSUMER  PROTECTION BOARD OR BETTER BUSINESS BUREAU TO DETERMINE IF ANY
COMPLAINTS HAVE BEEN FILED AGAINST A CONTRACTOR; REQUIRING  THE  DISCLO-
SURE  OF  THE  RESPONSIBILITIES  OF HOME IMPROVEMENT CONTRACTORS AND THE
RIGHTS OF CONSUMERS AND OPTIONS FOR PURSUING REMEDIES IN  THE  EVENT  OF
PROBLEMS;  REQUIRING  THE  INSPECTION  OF ANY WORK DONE TO DATE; AND ANY
OTHER RESTRICTIONS OR CONDITIONS THAT THE SUPERINTENDENT DEEMS NECESSARY
AND APPROPRIATE TO PROTECT CONSUMERS.
  3. FOR THE PURPOSES OF THIS SECTION:
  (A) "HOME IMPROVEMENT"  MEANS  THE  REPAIRING,  REMODELING,  ALTERING,
CONVERTING,  OR  MODERNIZING  OF, OR ADDING TO, RESIDENTIAL PROPERTY AND
SHALL INCLUDE, BUT  NOT  BE  LIMITED  TO,  THE  CONSTRUCTION,  ERECTION,
REPLACEMENT,  OR IMPROVEMENT OF DRIVEWAYS, SWIMMING POOLS, SIDING, INSU-
LATION, ROOFING, WINDOWS, TERRACES, PATIOS, LANDSCAPING, FENCES,  PORCH-
ES,  GARAGES,  SOLAR  ENERGY  SYSTEMS,  FLOORING,  BASEMENTS,  AND OTHER
IMPROVEMENTS OF THE RESIDENTIAL PROPERTY  AND  ALL  STRUCTURES  OR  LAND
ADJACENT  TO  IT. "HOME IMPROVEMENT" SHALL ALSO MEAN THE INSTALLATION OF
HOME IMPROVEMENT GOODS OR THE FURNISHING OF HOME  IMPROVEMENT  SERVICES.
"HOME IMPROVEMENT" SHALL NOT INCLUDE:
  (1) THE SALE OR CONSTRUCTION OF A NEW HOME;
  (2)  THE SALE OF GOODS BY A SELLER WHO NEITHER ARRANGES TO PERFORM NOR
PERFORMS, DIRECTLY OR INDIRECTLY, ANY WORK OR LABOR IN  CONNECTION  WITH
THE INSTALLATION OR APPLICATION OF THE GOODS;
  (3) THE SALE OR INSTALLATION OF APPLIANCES, SUCH AS STOVES, REFRIGERA-
TORS,  FREEZERS,  ROOM AIR CONDITIONERS, DISHWASHERS, CLOTHES WASHERS OR
DRYERS, WHICH ARE DESIGNED TO BE REMOVABLE  FROM  THE  PREMISES  WITHOUT
MATERIAL ALTERATION THEREOF;
  (4)  THE SALE OR INSTALLATION OF DECORATIVE GOODS OR SERVICES, SUCH AS
DRAPERIES AND CARPETS; OR
  (5) THE PERFORMANCE OF REPAIRS, REPLACEMENTS, OR OTHER SERVICES PURSU-
ANT TO AN EXPRESS OR IMPLIED WARRANTY, OR A MAINTENANCE AGREEMENT.
  (B) "HOME IMPROVEMENT CONTRACTOR" MEANS A PERSON, FIRM OR  CORPORATION
WHICH  OWNS  OR  OPERATES A HOME IMPROVEMENT BUSINESS OR WHO UNDERTAKES,
OFFERS TO UNDERTAKE OR AGREES TO PERFORM ANY HOME IMPROVEMENT FOR A  FEE
AND  FOR WHOM THE TOTAL CASH PRICE OF ALL OF HIS OR HER HOME IMPROVEMENT
CONTRACTS WITH ALL HIS  CUSTOMERS  EXCEEDS  ONE  THOUSAND  FIVE  HUNDRED
DOLLARS DURING ANY PERIOD OF TWELVE CONSECUTIVE MONTHS. HOME IMPROVEMENT
CONTRACTOR DOES NOT INCLUDE A PERSON, FIRM, CORPORATION, LANDLORD, COOP-
ERATIVE  CORPORATION,  CONDOMINIUM  BOARD  OF  MANAGERS, JOINT TENANT OR
CO-TENANT THAT OWNS, IN WHOLE OR IN PART, THE PROPERTY TO BE IMPROVED.
  S 2. Subdivision 1 of section 771  of  the  general  business  law  is
amended by adding a new paragraph (i) to read as follows:
  (I)  WHERE  THE CONTRACTOR IS REFERRING OR RECOMMENDING THE OWNER TO A
BANKING INSTITUTION, MORTGAGE BANKER OR OTHER  FINANCING  ENTITY  FOR  A
LOAN  TO  BE SECURED BY A MORTGAGE ON OR A SECURITY INTEREST IN THE REAL
PROPERTY, THE FOLLOWING NOTICE TO THE OWNER  IN  CLEAR  AND  CONSPICUOUS
BOLD  FACE  TYPE:  "IF  YOU  OBTAIN  OR USE ANY TYPE OF MORTGAGE LOAN TO
FINANCE THIS PROJECT, YOU COULD LOSE YOUR HOME AND ANY  MONEY  YOU  HAVE
PUT INTO IT IF YOU DO NOT MEET YOUR OBLIGATIONS UNDER THE LOAN."

A. 8610--A                          3

  S 3. This act shall take effect on the one hundred twentieth day after
it shall have become a law, provided that any such rules and regulations
as  shall  be  necessary  to  implement  the  provisions of this act are
authorized to be promulgated prior to such effective date; and  provided
that section two of this act shall take effect on the one hundred eight-
ieth day after it shall have become a law.

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Assembly Bill A8610

Sponsored By

Archive: Last Bill Status - In Assembly Committee

Bill Amendments

2009-A8610 - Details

2009-A8610 - Summary

2009-A8610 - Sponsor Memo

2009-A8610 - Bill Text download pdf

2009-A8610A (ACTIVE) - Details

2009-A8610A (ACTIVE) - Summary

2009-A8610A (ACTIVE) - Bill Text download pdf

Comments

Assembly Bill A8610

Share this bill

Sponsored By

HOYT

Archive: Last Bill Status - In Assembly Committee

Bill Amendments

2009-A8610 - Details

2009-A8610 - Summary

2009-A8610 - Sponsor Memo

2009-A8610 - Bill Text download pdf

2009-A8610A (ACTIVE) - Details

2009-A8610A (ACTIVE) - Summary

2009-A8610A (ACTIVE) - Bill Text download pdf

Comments