senate Bill S317

2013-2014 Legislative Session

Prohibits mortgagee from refusing to accept partial mortgage payments

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Archive: Last Bill Status - In Committee


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor

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Actions

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Assembly Actions - Lowercase
Senate Actions - UPPERCASE
Jan 08, 2014 referred to judiciary
Jan 09, 2013 referred to judiciary

Co-Sponsors

S317 - Bill Details

See Assembly Version of this Bill:
A9276
Current Committee:
Senate Judiciary
Law Section:
Real Property Law
Laws Affected:
Add ยง254-e, RP L
Versions Introduced in 2011-2012 Legislative Session:
S6541, A8040

S317 - Bill Texts

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Prohibits mortgagee from refusing to accept partial mortgage payments.

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BILL NUMBER:S317

TITLE OF BILL:
An act
to amend the real property law, in relation to prohibiting mortgagee
from refusing to accept partial mortgage payments

PURPOSE:
To require that banks, lenders and mortgagees accept partial mortgage
payments which represent at a minimum a mortgage payment but not the
total arrearages that may be due and owing.

SUMMARY OF PROVISIONS:
Section 1. Amends the Real Property Tax law by adding a new section
254-e. Provides that no mortgagee shall refuse to accept partial
payment on a mortgage which does not bring the mortgagor current on
the mortgage debt.

Section 2. Effective Date

EXISTING LAW:
None.

JUSTIFICATION:
Due to the state of the economy, many people may find themselves in
dire straits, due to loss of employment, under-employment, or
illness. Despite these circumstances, many people are still
attempting to pay their mortgage obligations and many may fall into
arrears.

The banks, lenders or mortgagees have taken the position that they
will only accept the total amount of the arrearages or if they do take
a payment, they will not apply it to the outstanding indebtedness
while placing it into a special account which gains interest; but
neither the payment or interest is credited to the mortgagor's
arrearages on their mortgage.

The provisions of this proposed section will allow payments to be
received and credited and will not act as a bar to any procedural
rights of the banks, lenders or mortgagees.

The aim of this bill is to forestall foreclosures and give mortgagors
an incentive and opportunity to redeem their property; and limit the
destructive effects of foreclosure and its concomitant societal
concerns.

LEGISLATIVE HISTORY:
2012: S.6541 - Referred to Judiciary/A.8040 - Referred to Judiciary
2011: A.8040 - Referred to Banks, Reference changed to Judiciary

FISCAL IMPLICATIONS:
None.

EFFECTIVE DATE:
Takes effect on the thirtieth day after it shall become a law.


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

                                   317

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                               (PREFILED)

                             January 9, 2013
                               ___________

Introduced  by  Sen.  DIAZ  --  read twice and ordered printed, and when
  printed to be committed to the Committee on Judiciary

AN ACT to amend the real property law, in relation to prohibiting  mort-
  gagee from refusing to accept partial mortgage payments

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

  Section 1. The real property law is amended by adding  a  new  section
254-e to read as follows:
  S  254-E. REFUSAL BY MORTGAGEE TO ACCEPT PARTIAL MORTGAGE PAYMENTS. 1.
NO MORTGAGEE SHALL REFUSE TO ACCEPT  A  PARTIAL  PAYMENT  OF  AN  ENTIRE
AMOUNT  DUE  FROM A MORTGAGOR WHICH DOES NOT BRING THE MORTGAGOR CURRENT
ON HIS OR HER MORTGAGE DEBT.
  2. THE PROVISIONS OF THIS SECTION SHALL NOT BAR ANY OTHER  CONTRACTUAL
OR STATUTORY RIGHTS OR REMEDIES AVAILABLE TO A MORTGAGOR.
  S  2.  This  act shall take effect on the thirtieth day after it shall
have become a law.





 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD01005-01-3

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