assembly Bill A9041A

2019-2020 Legislative Session

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

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Current Bill Status - In Assembly Committee


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

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Actions

view actions (3)
Assembly Actions - Lowercase
Senate Actions - UPPERCASE
Aug 17, 2020 print number 9041a
Aug 17, 2020 amend (t) and recommit to judiciary
Jan 10, 2020 referred to judiciary

Co-Sponsors

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Multi-Sponsors

A9041 - Details

See Senate Version of this Bill:
S7231
Current Committee:
Assembly Judiciary
Law Section:
Real Property Law
Laws Affected:
Add §291-k, RP L; amd §§250, 253, 253-a, 255, 257 & 258, Tax L; amd §9-601, UCC

A9041 - Summary

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

A9041 - Bill Text download pdf

 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   9041
 
                           I N  A S S E M B L Y
 
                             January 10, 2020
                                ___________
 
 Introduced  by M. of A. EPSTEIN -- read once and referred to the Commit-
   tee 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

Co-Sponsors

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Multi-Sponsors

A9041A (ACTIVE) - Details

See Senate Version of this Bill:
S7231
Current Committee:
Assembly Judiciary
Law Section:
Real Property Law
Laws Affected:
Add §291-k, RP L; amd §§250, 253, 253-a, 255, 257 & 258, Tax L; amd §9-601, UCC

A9041A (ACTIVE) - Summary

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

A9041A (ACTIVE) - Bill Text download pdf

 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  9041--A
 
                           I N  A S S E M B L Y
 
                             January 10, 2020
                                ___________
 
 Introduced  by  M. of A. EPSTEIN, CRUZ, RICHARDSON, SIMON, L. ROSENTHAL,
   D'URSO, MOSLEY, REYES,  GLICK,  BARRON,  SIMOTAS,  GOTTFRIED,  JAFFEE,
   CARROLL  --  Multi-Sponsored  by  -- M. of A. COOK, FRONTUS, LENTOL --
   read once and referred to the  Committee  on  Judiciary  --  committee
   discharged, bill amended, ordered reprinted as amended and recommitted
   to said committee

 AN  ACT  to amend the real property law and the uniform commercial code,
   in relation to requiring the recording of mezzanine debt and preferred
   equity investments; and to 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 AND PREFERRED EQUITY INVESTMENTS.
 1. WHENEVER A MORTGAGE INSTRUMENT IS  RECORDED  IN  THE  OFFICE  OF  THE
 RECORDING  OFFICER OF ANY COUNTY, ANY MEZZANINE DEBT OR PREFERRED EQUITY
 INVESTMENT RELATED TO THE REAL PROPERTY UPON WHICH THE MORTGAGE  INSTRU-
 MENT  IS FILED SHALL ALSO BE RECORDED WITH SUCH MORTGAGE INSTRUMENT. FOR
 THE PURPOSES OF THIS SECTION, "MEZZANINE  DEBT"  AND  "PREFERRED  EQUITY
 INVESTMENTS"  SHALL MEAN DEBT CARRIED BY A BORROWER THAT MAY BE SUBORDI-
 NATE TO THE PRIMARY LIEN AND IS SENIOR TO THE COMMON SHARES OF AN ENTITY
 OR THE BORROWER'S EQUITY AND REPORTED AS  ASSETS  FOR  THE  PURPOSES  OF
 FINANCING SUCH PRIMARY LIEN.  THIS SHALL INCLUDE NON-TRADITIONAL FINANC-
 ING  TECHNIQUES  SUCH  AS A DIRECT OR INDIRECT INVESTMENT BY A FINANCING
 SOURCE IN AN ENTITY THAT OWNS THE EQUALITY INTERESTS OF  THE  UNDERLYING
 MORTGAGE  WHERE  THE  FINANCING  SOURCE  HAS SPECIAL RIGHTS OR PREFERRED
 RIGHTS SUCH AS: (I) THE RIGHT TO RECEIVE A SPECIAL OR PREFERRED RATE  OF
 RETURN  ON  ITS CAPITAL INVESTMENT; AND (II) THE RIGHT TO AN ACCELERATED
 REPAYMENT OF THE INVESTORS CAPITAL CONTRIBUTION.
   2. THIS SECTION SHALL APPLY TO BOTH MEZZANINE DEBT AND PREFERRED EQUI-
 TY INVESTMENTS IF BOTH USED BY THE  BORROWER  OR  MORTGAGOR,  OR  EITHER
 MEZZANINE  DEBT  OR PREFERRED DEBT, IF EITHER IS USED BY THE BORROWER OR
 MORTGAGOR.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets