senate Bill S3074

2021-2022 Legislative Session

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

download bill text pdf

Sponsored By

Current Bill Status - In Senate Committee Judiciary Committee


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

Your Voice

do you support this bill?

Please enter your contact information

Home address is used to determine the senate district in which you reside. Your support or opposition to this bill is then shared immediately with the senator who represents you.

Optional services from the NY State Senate:

Create an account. An account allows you to officially support or oppose key legislation, sign petitions with a single click, and follow issues, committees, and bills that matter to you. When you create an account, you agree to this platform's terms of participation.

Include a custom message for your Senator? (Optional)

Enter a message to your senator. Many New Yorkers use this to share the reasoning behind their support or opposition to the bill. Others might share a personal anecdote about how the bill would affect them or people they care about.

Actions

view actions (1)
Assembly Actions - Lowercase
Senate Actions - UPPERCASE
Jan 27, 2021 referred to judiciary

Co-Sponsors

view additional co-sponsors

S3074 (ACTIVE) - Details

See Assembly Version of this Bill:
A3139
Current Committee:
Senate 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:
S7231, A9041

S3074 (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.

S3074 (ACTIVE) - Sponsor Memo

S3074 (ACTIVE) - Bill Text download pdf

 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   3074
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                             January 27, 2021
                                ___________
 
 Introduced  by Sens. SALAZAR, BIAGGI, BRISPORT, HOYLMAN, JACKSON, MYRIE,
   RIVERA -- read twice and ordered  printed,  and  when  printed  to  be
   committed to the Committee 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
 MEZZANINE  DEBT  OR PREFERRED DEBT, IF EITHER IS USED BY THE BORROWER OR
 MORTGAGOR.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

Comments

Open Legislation comments facilitate discussion of New York State legislation. All comments are subject to moderation. Comments deemed off-topic, commercial, campaign-related, self-promotional; or that contain profanity or hate speech; or that link to sites outside of the nysenate.gov domain are not permitted, and will not be published. Comment moderation is generally performed Monday through Friday.

By contributing or voting you agree to the Terms of Participation and verify you are over 13.