Senate Bill S3686

Vetoed By Governor
2019-2020 Legislative Session

Relates to reverse cooperative apartment unit loans for persons seventy years of age or older

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Sponsored By

Archive: Last Bill Status - Vetoed by Governor


  • Introduced
    • In Committee Assembly
    • In Committee Senate
    • On Floor Calendar Assembly
    • On Floor Calendar Senate
    • Passed Assembly
    • Passed Senate
  • Vetoed By Governor
  • Signed By Governor

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Bill Amendments

co-Sponsors

2019-S3686 - Details

Law Section:
Banking Law
Laws Affected:
Add §6-n, Bank L; amd §9-611, UCC; add R3410, CPLR
Versions Introduced in 2017-2018 Legislative Session:
S8888

2019-S3686 - Summary

Relates to authorizing reverse cooperative apartment unit loans for persons sixty-two years of age or older; provides additional consumer protections.

2019-S3686 - Sponsor Memo

2019-S3686 - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   3686
 
                        2019-2020 Regular Sessions
 
                             I N  S E N A T E
 
                             February 12, 2019
                                ___________
 
 Introduced  by  Sen.  BIAGGI -- read twice and ordered printed, and when
   printed to be committed to the Committee on Banks
 
 AN ACT to amend the banking law, the uniform  commercial  code  and  the
   civil  practice  law  and  rules,  in  relation to reverse cooperative
   apartment unit loans

   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  The banking law is amended by adding a new section 6-n to
 read as follows:
   § 6-N. REVERSE COOPERATIVE APARTMENT UNIT LOANS  FOR  PERSONS  SEVENTY
 YEARS  OF  AGE  OR OLDER. 1. FOR PURPOSES OF THIS SECTION, THE FOLLOWING
 TERMS SHALL HAVE THE FOLLOWING MEANINGS:
   (A) REVERSE COOPERATIVE APARTMENT UNIT LOAN. A LOAN WHICH  IS  SECURED
 BY  AN  INTEREST IN A COOPERATIVE APARTMENT THAT IS THE RESIDENCE OF THE
 BORROWER(S) THE PROCEEDS OF WHICH ARE ADVANCED TO THE BORROWER(S) DURING
 THE TERM OF THE LOAN IN EQUAL INSTALLMENTS, OR  IN  ADVANCES  THROUGH  A
 LINE  OF  CREDIT  OR  OTHERWISE,  IN LUMP SUMS, OR THROUGH A COMBINATION
 THEREOF.
   (B) TERM REVERSE COOPERATIVE APARTMENT UNIT  LOAN.  AS  USED  IN  THIS
 SECTION,  ANY  REVERSE  COOPERATIVE APARTMENT UNIT LOAN THAT HAS A FIXED
 TERM FOR PAYMENTS TO THE BORROWER(S).
   (C) TENURE COOPERATIVE APARTMENT UNIT LOAN. AS USED IN  THIS  SECTION,
 ANY  COOPERATIVE APARTMENT UNIT LOAN THAT DOES NOT HAVE A FIXED TERM FOR
 PAYMENTS TO THE BORROWER(S).
   (D) AUTHORIZED LENDER. ANY BANK, TRUST COMPANY, NATIONAL BANKING ASSO-
 CIATION, SAVINGS BANK, SAVINGS AND  LOAN  ASSOCIATION,  FEDERAL  SAVINGS
 BANK,  FEDERAL  SAVINGS  AND  LOAN ASSOCIATION, CREDIT UNION, OR FEDERAL
 CREDIT UNION OR ANY LICENSED MORTGAGE BANKER APPROVED FOR THE MAKING  OF
 REVERSE MORTGAGE LOANS BY THE SUPERINTENDENT OR ANY ENTITY EXEMPTED FROM
 LICENSING  PURSUANT  TO  SECTION FIVE HUNDRED NINETY OF THIS CHAPTER AND
 APPROVED FOR THE MAKING OF REVERSE MORTGAGE LOANS BY THE SUPERINTENDENT.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

co-Sponsors

2019-S3686A - Details

Law Section:
Banking Law
Laws Affected:
Add §6-n, Bank L; amd §9-611, UCC; add R3410, CPLR
Versions Introduced in 2017-2018 Legislative Session:
S8888

2019-S3686A - Summary

Relates to authorizing reverse cooperative apartment unit loans for persons sixty-two years of age or older; provides additional consumer protections.

2019-S3686A - Sponsor Memo

2019-S3686A - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  3686--A
 
                        2019-2020 Regular Sessions
 
                             I N  S E N A T E
 
                             February 12, 2019
                                ___________
 
 Introduced  by  Sens.  BIAGGI, PARKER -- read twice and ordered printed,
   and when printed to be committed to the Committee on Banks --  commit-
   tee  discharged, bill amended, ordered reprinted as amended and recom-
   mitted to said committee
 
 AN ACT to amend the banking law, the uniform  commercial  code  and  the
   civil  practice  law  and  rules,  in  relation to reverse cooperative
   apartment unit loans
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  The banking law is amended by adding a new section 6-n to
 read as follows:
   § 6-N. REVERSE COOPERATIVE APARTMENT UNIT LOANS FOR PERSONS  SIXTY-TWO
 YEARS  OF  AGE  OR OLDER. 1. FOR PURPOSES OF THIS SECTION, THE FOLLOWING
 TERMS SHALL HAVE THE FOLLOWING MEANINGS:
   (A) REVERSE COOPERATIVE APARTMENT UNIT LOAN. A LOAN WHICH  IS  SECURED
 BY  AN INTEREST IN A COOPERATIVE APARTMENT THAT IS OR INTENDED TO BE THE
 PRINCIPAL RESIDENCE OF THE BORROWER OR BORROWERS THE PROCEEDS  OF  WHICH
 ARE  USED  TO  PURCHASE  THE  PROPERTY,  OR  ADVANCED TO THE BORROWER OR
 BORROWERS DURING THE TERM OF THE  LOAN  IN  EQUAL  INSTALLMENTS,  OR  IN
 ADVANCES  THROUGH  A  LINE  OF  CREDIT  OR  OTHERWISE, IN A LUMP SUM, OR
 THROUGH A COMBINATION THEREOF.
   (B) LOAN PAYOUT OPTIONS:
   (I) TERM PAYMENT OPTION. UNDER THE TERM PAYMENT OPTION, EQUAL  MONTHLY
 PAYMENTS  ARE  MADE  BY  THE  LENDER TO THE BORROWER FOR A FIXED TERM OF
 MONTHS CHOSEN BY THE BORROWER.
   (II) TENURE PAYMENT OPTION. UNDER THE  TENURE  PAYMENT  OPTION,  EQUAL
 MONTHLY  PAYMENTS ARE MADE BY THE LENDER TO THE BORROWER, UNTIL THE LOAN
 IS PREPAID IN FULL OR BECOMES DUE AND PAYABLE.
   (III) LINE OF CREDIT PAYMENT OPTION. UNDER THE LINE OF CREDIT  PAYMENT
 OPTION,  PAYMENTS ARE MADE BY THE LENDER TO THE BORROWER AT TIMES AND IN
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD01344-05-9
              

co-Sponsors

2019-S3686B (ACTIVE) - Details

Law Section:
Banking Law
Laws Affected:
Add §6-n, Bank L; amd §9-611, UCC; add R3410, CPLR
Versions Introduced in 2017-2018 Legislative Session:
S8888

2019-S3686B (ACTIVE) - Summary

Relates to authorizing reverse cooperative apartment unit loans for persons sixty-two years of age or older; provides additional consumer protections.

2019-S3686B (ACTIVE) - Sponsor Memo

2019-S3686B (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  3686--B
 
                        2019-2020 Regular Sessions
 
                             I N  S E N A T E
 
                             February 12, 2019
                                ___________
 
 Introduced  by  Sens.  BIAGGI, PARKER -- read twice and ordered printed,
   and when printed to be committed to the Committee on Banks --  commit-
   tee  discharged, bill amended, ordered reprinted as amended and recom-
   mitted to  said  committee  --  committee  discharged,  bill  amended,
   ordered reprinted as amended and recommitted to said committee

 AN  ACT  to  amend  the banking law, the uniform commercial code and the
   civil practice law and  rules,  in  relation  to  reverse  cooperative
   apartment unit loans
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. The banking law is amended by adding a new section  6-n  to
 read as follows:
   §  6-N. REVERSE COOPERATIVE APARTMENT UNIT LOANS FOR PERSONS SIXTY-TWO
 YEARS OF AGE OR OLDER. 1. FOR PURPOSES OF THIS  SECTION,  THE  FOLLOWING
 TERMS SHALL HAVE THE FOLLOWING MEANINGS:
   (A)  REVERSE  COOPERATIVE APARTMENT UNIT LOAN. A LOAN WHICH IS SECURED
 BY SHARES OR MEMBERSHIP IN A COOPERATIVE APARTMENT THAT IS  OR  INTENDED
 TO BE THE PRIMARY RESIDENCE OF THE BORROWER OR BORROWERS THE PROCEEDS OF
 WHICH  ARE  ADVANCED TO THE BORROWER OR BORROWERS DURING THE TERM OF THE
 LOAN IN EQUAL INSTALLMENTS, OR IN ADVANCES THROUGH A LINE OF  CREDIT  OR
 OTHERWISE,  IN  A  LUMP SUM, OR THROUGH A COMBINATION THEREOF.  INTEREST
 AND FEES WILL ACCRUE DURING THE LIFE OF THE LOAN AND WILL  BE  ADDED  TO
 THE  PRINCIPAL  BALANCE OF THE LOAN, BUT WILL NOT BECOME DUE AND PAYABLE
 UNTIL THE   BORROWER(S)  DIES,  PERMANENTLY  VACATES  THE  APARTMENT  OR
 DEFAULTS ON THE TERMS OF THE LOAN, AND WILL CONTINUE TO ACCRUE UNTIL THE
 LOAN IS PAID IN FULL.
   (B) LOAN PAYOUT OPTIONS:
   (I)  TERM PAYMENT OPTION. UNDER THE TERM PAYMENT OPTION, EQUAL MONTHLY
 PAYMENTS ARE MADE BY THE LENDER TO THE BORROWER  FOR  A  FIXED  TERM  OF
 MONTHS CHOSEN BY THE BORROWER.
   (II)  TENURE  PAYMENT  OPTION.  UNDER THE TENURE PAYMENT OPTION, EQUAL
 MONTHLY PAYMENTS ARE MADE BY THE LENDER TO THE BORROWER, UNTIL THE  LOAN
 IS PREPAID IN FULL OR BECOMES DUE AND PAYABLE.
 
              

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