|Assembly Actions - Lowercase
Senate Actions - UPPERCASE
|Jan 13, 2020||referred to judiciary|
senate Bill S7231
Current Bill Status - In Senate Committee Judiciary Committee
- In Committee
- On Floor Calendar
- Passed Senate
- Passed Assembly
- Delivered to Governor
- Signed/Vetoed by Governor
S7231 (ACTIVE) - Details
S7231 (ACTIVE) - Sponsor Memo
BILL NUMBER: S7231 SPONSOR: SALAZAR TITLE OF BILL: An act to amend the real property law, in relation to requiring the recording of mezzanine debt; and amend the tax law, in relation to including mezzanine debt in the mortgage recording tax PURPOSE OR GENERAL IDEA OF BILL: This bill would treat mezzanine debt used to finance real estate purchases like a mortgage, subjecting it to the same recording and taxa- tion requirements. SUMMARY OF PROVISIONS: Section 1 amends the real property law by adding a new section 291-k that defines "mezzanine debt" and requires that it be recorded concur- rently with a mortgage instrument filed on a property with which mezza- nine debt is associated.
S7231 (ACTIVE) - Bill Text download pdf
S T A T E O F N E W Y O R K ________________________________________________________________________ 7231 I N S E N A T E January 13, 2020 ___________ Introduced by Sen. SALAZAR -- 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 requiring the recording of mezzanine debt; and amend the tax law, in relation to including mezzanine debt in the mortgage recording tax 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 291-k to read as follows: § 291-K. RECORDING OF MEZZANINE DEBT. WHENEVER A MORTGAGE INSTRUMENT IS RECORDED IN THE OFFICE OF THE RECORDING OFFICER OF ANY COUNTY, ANY MEZZANINE DEBT RELATED TO THE REAL PROPERTY UPON WHICH THE MORTGAGE INSTRUMENT IS FILED SHALL ALSO BE RECORDED WITH SUCH MORTGAGE INSTRU- MENT. FOR THE PURPOSES OF THIS SECTION, "MEZZANINE DEBT" SHALL MEAN DEBT CARRIED BY A BORROWER THAT MAY BE SUBORDINATE TO THE PRIMARY LIEN AND/OR COMMON SHARES AND REPORTED AS ASSETS FOR THE PURPOSES OF FINANCING SUCH PRIMARY LIEN. § 2. Section 250 of the tax law is amended by adding a new subdivision 4 to read as follows: 4. THE TERM "MEZZANINE DEBT" SHALL HAVE THE SAME MEANING AS PROVIDED IN SECTION TWO HUNDRED NINETY-ONE-K OF THE REAL PROPERTY LAW. § 3. Section 253 of the tax law, as amended by chapter 350 of the laws of 1969, subdivision 1-a as added by chapter 788 of the laws of 1978, paragraph (a) of subdivision 1-a as amended by chapter 522 of the laws of 2008, subdivision 2 as amended by chapter 151 of the laws of 1971, paragraph (a) of subdivision 2 as amended by chapter 394 of the laws of 2016 and subdivision 3 as amended by chapter 527 of the laws of 2007, is amended to read as follows: § 253. Recording tax. 1. A tax of fifty cents for each one hundred dollars and each remaining major fraction thereof of THE TOTAL SUM OF: (A) THE principal debt or obligation which is, or under any contingency may be secured at the date of the execution thereof or at any time ther- eafter by a mortgage on real property situated within the state recorded on or after the first day of July, nineteen hundred and six, AND (B) ANY EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
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