S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   4001
 
                        2019-2020 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             January 31, 2019
                                ___________
 
 Introduced  by M. of A. WEPRIN -- Multi-Sponsored by -- M. of A. ABINAN-
   TI, COOK, DenDEKKER, GALEF, JAFFEE, McDONOUGH, PERRY, RIVERA,  ZEBROW-
   SKI -- read once and referred to the Committee on Banks
 
 AN  ACT  to amend the banking law and the real property law, in relation
   to credit line mortgages

   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  Section 380-g of the banking law, as added by chapter 625
 of the laws of 1976, is amended to read as follows:
   § 380-g. Power to engage in line of credit  financing  of  residential
 real  estate.  1. A savings and loan association is authorized to invest
 an amount, not exceeding the lesser of (a) ten per centum of the sum  of
 its  surplus,  undivided  profits, and reserves or (b) one per centum of
 its assets, in loans or in interests therein the  principal  purpose  of
 which  is to provide financing with respect to what is or is expected to
 become primarily residential real estate within this  state,  where  (i)
 the  association  relies  substantially  for repayment on the borrower's
 general credit standing, with or without other  security,  or  (ii)  the
 association  relies on other assurances for repayment, including but not
 limited to a guaranty or similar obligation of a third  party,  and,  in
 either  case  described  in clause (i) or (ii), regardless of whether or
 not the association takes security.
   2. A SAVINGS AND LOAN ASSOCIATION SHALL  NOT  HAVE  THE  AUTHORITY  TO
 BLOCK  ACCESS  TO CREDIT LINE FUNDS BY A BORROWER OR TO OTHERWISE REVOKE
 THE TERMS OF A CREDIT LINE MORTGAGE WHEN A BORROWER IS CURRENT ON REPAY-
 MENT OF SUCH INDEBTEDNESS.
   § 2. Section 281 of the real property law is amended by adding  a  new
 subdivision 2-a to read as follows:
   2-A. AN AUTHORIZED LENDER SHALL NOT HAVE THE AUTHORITY TO BLOCK ACCESS
 TO CREDIT LINE FUNDS BY A BORROWER OR TO OTHERWISE REVOKE THE TERMS OF A
 CREDIT  LINE  MORTGAGE  WHEN  A BORROWER IS CURRENT ON REPAYMENT OF SUCH
 INDEBTEDNESS.
   § 3. This act shall take effect immediately.
 
              

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD08228-01-9