senate Bill S3686B

2019-2020 Legislative Session

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

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Current Bill Status - Passed Senate & Assembly


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

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Actions

view actions (14)
Assembly Actions - Lowercase
Senate Actions - UPPERCASE
Jun 20, 2019 returned to senate
passed assembly
ordered to third reading rules cal.587
substituted for a2632b
Jun 19, 2019 referred to codes
delivered to assembly
passed senate
ordered to third reading cal.1763
committee discharged and committed to rules
Jun 16, 2019 print number 3686b
Jun 16, 2019 amend and recommit to banks
Jun 14, 2019 print number 3686a
Jun 14, 2019 amend and recommit to banks
Feb 12, 2019 referred to banks

Co-Sponsors

S3686 - Details

See Assembly Version of this Bill:
A2632
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, A10755

S3686 - Summary

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

S3686 - Sponsor Memo

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

S3686A - Details

See Assembly Version of this Bill:
A2632
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, A10755

S3686A - Summary

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

S3686A - Sponsor Memo

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

S3686B (ACTIVE) - Details

See Assembly Version of this Bill:
A2632
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, A10755

S3686B (ACTIVE) - Summary

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

S3686B (ACTIVE) - Sponsor Memo

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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