assembly Bill A3139

2021-2022 Legislative Session

Requires the recording of mezzanine debt and preferred equity investments and includes mezzanine debt in the mortgage recording tax

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Sponsored By

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 (1)
Assembly Actions - Lowercase
Senate Actions - UPPERCASE
Jan 22, 2021 referred to judiciary

Co-Sponsors

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Multi-Sponsors

A3139 (ACTIVE) - Details

See Senate Version of this Bill:
S3074
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
Versions Introduced in 2019-2020 Legislative Session:
A9041, S7231

A3139 (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.

A3139 (ACTIVE) - Bill Text download pdf

 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   3139
 
                        2021-2022 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             January 22, 2021
                                ___________
 
 Introduced  by  M. of A. EPSTEIN, CRUZ, RICHARDSON, SIMON, L. ROSENTHAL,
   REYES, GLICK, BARRON, GOTTFRIED, CARROLL, ANDERSON --  Multi-Sponsored
   by -- M. of A.  COOK, FRONTUS -- read once and referred to the Commit-
   tee on Judiciary
 
 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
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD02149-01-1