|Assembly Actions - Lowercase
Senate Actions - UPPERCASE
|Jan 28, 2020||referred to banks|
senate Bill S7580
Archive: Last Bill Status - In Senate Committee Banks Committee
- In Committee
- On Floor Calendar
- Passed Senate
- Passed Assembly
- Delivered to Governor
- Signed/Vetoed by Governor
S7580 (ACTIVE) - Details
S7580 (ACTIVE) - Sponsor Memo
BILL NUMBER: S7580 SPONSOR: BIAGGI TITLE OF BILL: An act to amend the banking law, the uniform commercial code and the civil practice law and rules, in relation to reverse cooperative apart- ment unit loans PURPOSE: This bill would allow for owners of co-op apartments who are over the age of 62 the ability to obtain reverse mortgages on their cooperative apartment unit loans. SUMMARY OF PROVISIONS: Section 1 amends the banking law by adding a new section, 6-n providing definitions for reverse cooperative apartment unit loan, loan payout options, authorized lender, borrower, superintendent, department, and third-party contact.
S7580 (ACTIVE) - Bill Text download pdf
S T A T E O F N E W Y O R K ________________________________________________________________________ 7580 I N S E N A T E January 28, 2020 ___________ 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-o to read as follows: § 6-O. 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. (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 AMOUNTS DETERMINED BY THE BORROWER AS LONG AS THE AMOUNTS DO NOT EXCEED THE MAXIMUM AMOUNT OF LOAN PROCEEDS. EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
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