| Date of Action |
Assembly Actions -
Lowercase Senate Actions - UPPERCASE |
|---|---|
| May 15, 2014 |
referred to housing, construction and community development |
Senate Bill S7604
2013-2014 Legislative Session
Sponsored By
(D, WF) 47th Senate District
Archive: Last Bill Status - In Senate Committee Housing, Construction And Community Development Committee
Actions
2013-S7604 (ACTIVE) - Details
- Current Committee:
- Senate Housing, Construction And Community Development
- Law Section:
- General Business Law
- Laws Affected:
- Amd ยง352-e, Gen Bus L
2013-S7604 (ACTIVE) - Sponsor Memo
BILL NUMBER:S7604
TITLE OF BILL: An act to amend the general business law, in relation
to filing requirements relating to the sale of certain non-public real
estate securities offerings
PURPOSE OR GENERAL IDEA OF BILL: This bill creates a requirement to
file with the department of law an offering statement or prospectus
for non-public real estate securities offerings.
SUMMARY OF SPECIFIC PROVISIONS: This bill adds new language to
section 352-e of the General Business Law to require the submission of
an offering statement of prospectus to the department of law when a
non-public offering of real estate related securities is made.
JUSTIFICATION: Under Article 23-A of the General Business Law,
generally referred to as the "Martin Act", the issuer of a real estate
related security must file an offering plan with the New York State
Attorney General, setting forth the detailed terms of the transaction.
Prospective purchasers rely upon the statements in the offering plan
in determining whether to purchase an apartment, and therefore the
Martin Act requires that all material information be disclosed and
that all representations in the offering plan are true. Currently,
this requirement is only for publicly offered securities, and
therefore prospective purchasers are left unsure of the existence and
validity of terms of any non-public securities related to a property.
2013-S7604 (ACTIVE) - Bill Text download pdf
S T A T E O F N E W Y O R K
________________________________________________________________________
7604
I N S E N A T E
May 15, 2014
___________
Introduced by Sen. HOYLMAN -- read twice and ordered printed, and when
printed to be committed to the Committee on Housing, Construction and
Community Development
AN ACT to amend the general business law, in relation to filing require-
ments relating to the sale of certain non-public real estate securi-
ties offerings
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Paragraph (a) of subdivision 1 of section 352-e of the
general business law, as amended by chapter 1085 of the laws of 1968, is
amended to read as follows:
(a) It shall be illegal and prohibited for any person, partnership,
corporation, company, trust or association, or any agent or employee
thereof, to make or take part in a public OR NON-PUBLIC offering or sale
in or from the state of New York of securities constituted of partic-
ipation interests or investments in real estate, mortgages or leases,
including stocks, bonds, debentures, evidences of interest or indebt-
edness, limited partnership interests or other security or securities as
defined in section three hundred fifty-two of this article, when such
securities consist primarily of participation interests or investments
in one or more real estate ventures, including cooperative interests in
realty, unless and until there shall have been filed with the department
of law, prior to such offering, a written statement or statements, to be
known as an "offering statement" or "prospectus" concerning the contem-
plated offering which shall contain the information and representations
required by paragraph (b) of this subdivision unless the security offer-
ing is exempted hereunder or under SUBDIVISION TWO OF section three
hundred fifty-nine-f[, subdivision two,] of this article by rule or
action of the attorney general. The term "real estate" as used in [the]
THIS paragraph shall not include mineral, oil or timber leases or prop-
erties, or buildings, structures, land or other realty housing or
containing business offices or industry, owned or leased by the issuer,
where the issuer is not primarily engaged in the business of buying and
selling such building or other realty or leases or interests therein.
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
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