Senate Bill S2614B

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

                                 2614--B
    Cal. No. 53

                       2009-2010 Regular Sessions

                            I N  S E N A T E

                            February 25, 2009
                               ___________

Introduced by Sens. KLEIN, DILAN, HASSELL-THOMPSON, C. JOHNSON, KRUEGER,
  ONORATO,  SAVINO, SERRANO, THOMPSON -- read twice and ordered printed,
  and when printed to be committed to  the  Committee  on  Judiciary  --
  reported  favorably from said committee and committed to the Committee
  on Codes -- committee discharged, bill amended, ordered  reprinted  as
  amended  and  recommitted  to  said  committee  --  recommitted to the
  Committee on Judiciary in accordance with Senate Rule  6,  sec.  8  --
  reported  favorably  from  said committee, ordered to first and second
  report, ordered to a third reading, substituted by Assembly  Bill  No.
  1239A,  substitution  reconsidered  and vote reconsidered, restored to
  third reading, amended and ordered reprinted, retaining its  place  in
  the order of third reading

AN  ACT  to  amend  the  real  property law, in relation to enacting the
  "access to justice in lending act"

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

  Section  1. This act shall be known and may be cited as the "access to
justice in lending act".
  S 2. The real property law is amended by adding a new section  282  to
read as follows:
  S  282.  MORTGAGOR'S  RIGHT  TO  RECOVER ATTORNEYS' FEES IN ACTIONS OR
PROCEEDINGS ARISING OUT OF FORECLOSURES OF  RESIDENTIAL  PROPERTY.    1.
WHENEVER A COVENANT CONTAINED IN A MORTGAGE ON RESIDENTIAL REAL PROPERTY
SHALL PROVIDE THAT IN ANY ACTION OR PROCEEDING TO FORECLOSE THE MORTGAGE
THAT  THE MORTGAGEE MAY RECOVER ATTORNEYS' FEES AND/OR EXPENSES INCURRED
AS THE RESULT OF THE FAILURE OF THE MORTGAGOR TO PERFORM ANY COVENANT OR
AGREEMENT CONTAINED IN SUCH MORTGAGE, OR THAT AMOUNTS PAID BY THE  MORT-
GAGEE  THEREFOR  SHALL  BE  PAID BY THE MORTGAGOR AS ADDITIONAL PAYMENT,
THERE SHALL BE IMPLIED IN SUCH MORTGAGE A COVENANT BY THE  MORTGAGEE  TO
PAY  TO  THE  MORTGAGOR  THE  REASONABLE ATTORNEYS' FEES AND/OR EXPENSES
INCURRED BY THE MORTGAGOR AS THE RESULT OF THE FAILURE OF THE  MORTGAGEE

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

                                                           LBD01064-10-0

S. 2614--B                          2

TO  PERFORM  ANY COVENANT OR AGREEMENT ON ITS PART TO BE PERFORMED UNDER
THE MORTGAGE OR IN THE SUCCESSFUL DEFENSE OF ANY  ACTION  OR  PROCEEDING
COMMENCED  BY  THE  MORTGAGEE  AGAINST  THE MORTGAGOR ARISING OUT OF THE
CONTRACT,  AND AN AGREEMENT THAT SUCH FEES AND EXPENSES MAY BE RECOVERED
AS PROVIDED BY LAW IN AN ACTION COMMENCED AGAINST THE  MORTGAGEE  OR  BY
WAY OF COUNTERCLAIM IN ANY ACTION OR PROCEEDING COMMENCED BY THE MORTGA-
GEE  AGAINST  THE MORTGAGOR. ANY WAIVER OF THIS SECTION SHALL BE VOID AS
AGAINST PUBLIC POLICY.
  2.   FOR THE PURPOSES OF THIS  SECTION,  "RESIDENTIAL  REAL  PROPERTY"
MEANS  REAL  PROPERTY  IMPROVED  BY  A  ONE- TO FOUR-FAMILY RESIDENCE, A
CONDOMINIUM THAT IS OCCUPIED BY THE MORTGAGOR OR A COOPERATIVE UNIT THAT
IS OCCUPIED BY THE MORTGAGOR.
  S 3. This act shall take effect on the sixtieth  day  after  it  shall
have become a law, shall apply to residential real property mortgages in
existence  on  or  after  such  date  and  shall  apply  to  actions and
proceedings commenced on or after such date.