assembly Bill A1508

2021-2022 Legislative Session

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

download bill text pdf

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 (3)
Assembly Actions - Lowercase
Senate Actions - UPPERCASE
May 04, 2021 reported referred to ways and means
Apr 26, 2021 reported referred to codes
Jan 11, 2021 referred to banks

Co-Sponsors

A1508 (ACTIVE) - Details

See Senate Version of this Bill:
S760
Law Section:
Banking Law
Laws Affected:
Add §6-o, Bank L; amd §9-611, UCC; add R3410, CPLR
Versions Introduced in 2019-2020 Legislative Session:
A9095, S7580

A1508 (ACTIVE) - Summary

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

A1508 (ACTIVE) - Bill Text download pdf

 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   1508
 
                        2021-2022 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             January 11, 2021
                                ___________
 
 Introduced  by  M.  of A. DINOWITZ, AUBRY, CRUZ, JACOBSON, L. ROSENTHAL,
   SAYEGH -- read once and referred 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.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD02964-01-1