Provides that no personal liability provision of a commercial lease or other rental agreement involving real property and to which a business impacted by COVID-19 is a party as tenant may be enforced against an individual where the default or other event allowing for such enforcement occurs during the COVID-19 period.
S T A T E O F N E W Y O R K
________________________________________________________________________
10444
I N A S S E M B L Y
May 18, 2020
___________
Introduced by COMMITTEE ON RULES -- (at request of M. of A. Epstein) --
read once and referred to the Committee on Judiciary
AN ACT to amend the general obligations law, in relation to personal
liability provisions in commercial leases during the COVID-19 period
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. The general obligations law is amended by adding a new
section 5-338 to read as follows:
§ 5-338. PERSONAL LIABILITY PROVISIONS IN COMMERCIAL LEASES DURING THE
COVID-19 PERIOD. 1. DEFINITIONS. FOR THE PURPOSES OF THIS SECTION, THE
FOLLOWING TERMS HAVE THE FOLLOWING MEANINGS:
(A) "COVID-19" MEANS THE TWO THOUSAND NINETEEN NOVEL CORONAVIRUS OR
2019-NCOV.
(B) "COVID-19 PERIOD" MEANS MARCH SEVENTH, TWO THOUSAND TWENTY THROUGH
THE LATER OF:
(I) THE END OF THE FIRST MONTH THAT COMMENCES AFTER THE EXPIRATION OF
THE MORATORIUM ON ENFORCEMENT OF EVICTIONS OF RESIDENTIAL AND COMMERCIAL
TENANTS SET FORTH IN EXECUTIVE ORDER NUMBER 202.8, AS ISSUED BY THE
GOVERNOR ON MARCH TWENTIETH, TWO THOUSAND TWENTY AND THEREAFTER
EXTENDED;
(II) SEPTEMBER THIRTIETH, TWO THOUSAND TWENTY, INCLUSIVE.
(C) "IMPACTED BY COVID-19" MEANS THAT:
(I) THE BUSINESS WAS SUBJECT TO SEATING, OCCUPANCY OR ON-PREMISES
SERVICE LIMITATIONS PURSUANT TO AN EXECUTIVE ORDER ISSUED BY THE GOVER-
NOR DURING THE COVID-19 PERIOD; OR
(II) THE REVENUES OF THE BUSINESS DURING ANY THREE-MONTH PERIOD WITHIN
THE COVID-19 PERIOD WERE LESS THAN FIFTY PERCENT OF ITS REVENUES FOR THE
SAME PERIOD IN TWO THOUSAND NINETEEN OR LESS THAN FIFTY PERCENT OF ITS
AGGREGATE REVENUES FOR THE MONTHS OF DECEMBER TWO THOUSAND NINETEEN,
JANUARY TWO THOUSAND TWENTY AND FEBRUARY TWO THOUSAND TWENTY.
(D) "PERSONAL LIABILITY PROVISION" MEANS, WITH RESPECT TO A COMMERCIAL
LEASE OR OTHER RENTAL AGREEMENT INVOLVING REAL PROPERTY AND TO WHICH A
BUSINESS IS A PARTY AS TENANT, A TERM THAT PROVIDES FOR AN INDIVIDUAL TO
BECOME WHOLLY OR PARTIALLY PERSONALLY LIABLE FOR AN OBLIGATION OF SUCH
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
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