senate Bill S7231

2019-2020 Legislative Session

Relates to requiring the recording of mezzanine debt and including mezzanine debt in the mortgage recording tax

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Sponsored By

Current Bill Status - In Senate Committee Judiciary Committee


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor

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Actions

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Assembly Actions - Lowercase
Senate Actions - UPPERCASE
Jan 13, 2020 referred to judiciary

Co-Sponsors

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S7231 (ACTIVE) - Details

See Assembly Version of this Bill:
A9041
Current Committee:
Senate Judiciary
Law Section:
Real Property Law
Laws Affected:
Add §291-k, RP L; amd §§250, 253, 257 & 261, Tax L

S7231 (ACTIVE) - Summary

Relates to requiring the recording of mezzanine debt and including mezzanine debt in the mortgage recording tax; defines mezzanine debt.

S7231 (ACTIVE) - Sponsor Memo

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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