Assembly Bill A6358A

2023-2024 Legislative Session

Prohibits lenders from blocking access to funds from a credit line mortgage

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Sponsored By

Current Bill Status - On Floor Calendar

  • Introduced
    • In Committee Assembly
    • In Committee Senate
    • On Floor Calendar Assembly
    • On Floor Calendar Senate
    • Passed Assembly
    • Passed Senate
  • Delivered to Governor
  • Signed By Governor

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Bill Amendments

multi-Sponsors

2023-A6358 - Details

Law Section:
Banking Law
Laws Affected:
Amd §380-g, Bank L; amd §281, RP L

2023-A6358 - Summary

Prohibits lenders from blocking access to funds from a credit line mortgage.

2023-A6358 - Bill Text download pdf 

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   6358
 
                        2023-2024 Regular Sessions
 
                           I N  A S S E M B L Y
 
                               April 5, 2023
                                ___________
 
 Introduced  by  M.  of A. WEPRIN -- Multi-Sponsored by -- M. of A. COOK,
   McDONOUGH, ZEBROWSKI -- read once and referred  to  the  Committee  on
   Banks
 
 AN  ACT  to amend the banking law and the real property law, in relation
   to credit line mortgages
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  Section 380-g of the banking law, as added by chapter 625
 of the laws of 1976, is amended to read as follows:
   § 380-g. Power to engage in line of credit  financing  of  residential
 real  estate.  1. A savings and loan association is authorized to invest
 an amount, not exceeding the lesser of (a) ten per centum of the sum  of
 its  surplus,  undivided  profits, and reserves or (b) one per centum of
 its assets, in loans or in interests therein the  principal  purpose  of
 which  is to provide financing with respect to what is or is expected to
 become primarily residential real estate within this  state,  where  (i)
 the  association  relies  substantially  for repayment on the borrower's
 general credit standing, with or without other  security,  or  (ii)  the
 association  relies on other assurances for repayment, including but not
 limited to a guaranty or similar obligation of a third  party,  and,  in
 either  case  described  in clause (i) or (ii), regardless of whether or
 not the association takes security.
   2. A SAVINGS AND LOAN ASSOCIATION SHALL  NOT  HAVE  THE  AUTHORITY  TO
 BLOCK  ACCESS  TO CREDIT LINE FUNDS BY A BORROWER OR TO OTHERWISE REVOKE
 THE TERMS OF A CREDIT LINE MORTGAGE WHEN A BORROWER IS CURRENT ON REPAY-
 MENT OF SUCH INDEBTEDNESS.
   § 2. Section 281 of the real property law is amended by adding  a  new
 subdivision 2-a to read as follows:
   2-A. AN AUTHORIZED LENDER SHALL NOT HAVE THE AUTHORITY TO BLOCK ACCESS
 TO CREDIT LINE FUNDS BY A BORROWER OR TO OTHERWISE REVOKE THE TERMS OF A

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD10424-01-3
 A. 6358                             2

co-Sponsors

multi-Sponsors

2023-A6358A (ACTIVE) - Details

Law Section:
Banking Law
Laws Affected:
Amd §380-g, Bank L; amd §281, RP L

2023-A6358A (ACTIVE) - Summary

Prohibits lenders from blocking access to funds from a credit line mortgage.

2023-A6358A (ACTIVE) - Bill Text download pdf 

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  6358--A
 
                        2023-2024 Regular Sessions
 
                           I N  A S S E M B L Y
 
                               April 5, 2023
                                ___________
 
 Introduced  by  M.  of A. WEPRIN -- Multi-Sponsored by -- M. of A. COOK,
   McDONOUGH, ZEBROWSKI -- read once and referred  to  the  Committee  on
   Banks  --  committee  discharged,  bill  amended, ordered reprinted as
   amended and recommitted to said committee
 
 AN ACT to amend the banking law and the real property law,  in  relation
   to credit line mortgages
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Section 380-g of the banking law, as added by  chapter  625
 of the laws of 1976, is amended to read as follows:
   § 380-g.  Power  to  engage in line of credit financing of residential
 real estate. 1. A savings and loan association is authorized  to  invest
 an  amount, not exceeding the lesser of (a) ten per centum of the sum of
 its surplus, undivided profits, and reserves or (b) one  per  centum  of
 its  assets,  in  loans or in interests therein the principal purpose of
 which is to provide financing with respect to what is or is expected  to
 become  primarily  residential  real estate within this state, where (i)
 the association relies substantially for  repayment  on  the  borrower's
 general  credit  standing,  with  or without other security, or (ii) the
 association relies on other assurances for repayment, including but  not
 limited  to  a  guaranty or similar obligation of a third party, and, in
 either case described in clause (i) or (ii), regardless  of  whether  or
 not the association takes security.
   2.  A  SAVINGS  AND  LOAN  ASSOCIATION  SHALL NOT REVOKE, OR OTHERWISE
 BLOCK, A BORROWER'S ACCESS  TO  CREDIT  FINANCING  OF  RESIDENTIAL  REAL
 ESTATE  AUTHORIZED  PURSUANT  TO SUBDIVISION ONE OF THIS SECTION IF SUCH
 BORROWER IS CURRENT ON REPAYMENT RELATED TO  SUCH  CREDIT  FINANCING  OF
 RESIDENTIAL REAL ESTATE.
   §  2.  Section 281 of the real property law is amended by adding a new
 subdivision 2-a to read as follows:

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD10424-02-3
 A. 6358--A                          2

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