S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   6699
 
                        2025-2026 Regular Sessions
 
                           I N  A S S E M B L Y
 
                               March 7, 2025
                                ___________
 
 Introduced by M. of A. WALKER -- read once and referred to the Committee
   on Judiciary
 
 AN  ACT  to  amend  the civil practice law and rules, in relation to the
   rights of parties involved in foreclosure actions
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:

   Section  1. Section 203 of the civil practice law and rules is amended
 by adding a new subdivision (i) to read as follows:
   (I) CLARIFICATION. ONCE A CAUSE OF ACTION UPON AN INSTRUMENT DESCRIBED
 UNDER SUBDIVISION FOUR OF SECTION TWO HUNDRED THIRTEEN OF  THIS  ARTICLE
 HAS ACCRUED, NO PARTY MAY UNILATERALLY WAIVE, POSTPONE, CANCEL, OR RESET
 THE  ACCRUAL  THEREOF, OR OTHERWISE EFFECTUATE A UNILATERAL EXTENSION OF
 THE LIMITATIONS PERIOD PRESCRIBED BY LAW TO INTERPOSE THE CLAIM,  UNLESS
 EXPRESSLY PERMITTED BY LAW.
   §  2.  Section  206  of the civil practice law and rules is amended by
 adding a new subdivision (e) to read as follows:
   (E) BASED ON STANDARDIZED MORTGAGE INSTRUMENTS.  IN AN ACTION TO FORE-
 CLOSE UPON ANY UNIFORM OR MODEL MORTGAGE INSTRUMENT  SECURING REAL PROP-
 ERTY OR ANY INTEREST THEREIN, AS ADOPTED BY THE FEDERAL  NATIONAL  MORT-
 GAGE  ASSOCIATION  (FANNIE  MAE), FEDERAL HOME LOAN MORTGAGE CORPORATION
 (FREDDIE MAC), OR U.S.  DEPARTMENT  OF  HOUSING  AND  URBAN  DEVELOPMENT
 (HUD),  THE TIME WITHIN WHICH THE ACTION MUST BE COMMENCED AND THE CLAIM
 INTERPOSED SHALL BE COMPUTED FROM THE TIME THE RIGHT TO DEMAND IMMEDIATE
 PAYMENT IN FULL OF ALL SUMS SO SECURED THEREBY MAY BE  EXERCISED.    FOR
 PURPOSES  OF THIS SUBDIVISION ONLY, THERE SHALL BE A REBUTTABLE PRESUMP-
 TION THAT ALL SUBSTANTIVE CONDITIONS PRECEDENT TO ACCRUAL OF A CAUSE  OF
 ACTION TO FORECLOSE UPON ANY SUCH MORTGAGE INSTRUMENT, IF ANY, HAVE BEEN
 SATISFIED.  THE  PRESUMPTION  MAY  BE  REBUTTED  BY CLEAR AND CONVINCING
 EVIDENCE. NOTHING CONTAINED HEREIN SHALL GIVE RISE  TO  THE  PRESUMPTION
 THAT  ANY  EVENT  OF DEFAULT UNDER THE MORTGAGE INSTRUMENT HAS OCCURRED,
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD06749-01-5
 A. 6699                             2
              

 
 EXCEPT FOR PURPOSES OF COMPUTATION OF THE TIME WITHIN WHICH  THE  ACTION
 MUST BE COMMENCED AND THE CLAIM INTERPOSED.
   § 3. Subdivision (d) of rule 3217 of the civil practice law and rules,
 as  added  by section 29 of part J of chapter 62 of the laws of 2003, is
 amended to read as follows:
   (d) EFFECT OF DISCONTINUANCE OF ACTIONS BASED UPON CERTAIN INSTRUMENTS
 RELATED TO REAL PROPERTY.  UNLESS EFFECTUATED IN STRICT ACCORDANCE  WITH
 THE  APPLICABLE  PROVISIONS  OF  ARTICLE  SEVENTEEN OF THE GENERAL OBLI-
 GATIONS  LAW,  THE  DISCONTINUANCE  OF  AN  ACTION  UPON  AN  INSTRUMENT
 DESCRIBED UNDER SUBDIVISION FOUR OF SECTION TWO HUNDRED THIRTEEN OF THIS
 CHAPTER, BY ANY MEANS, SHALL NOT, IN FORM OR EFFECT:
   1.  ACT AS A WAIVER, POSTPONEMENT, CANCELLATION, RESETTING, OR TOLLING
 OF ACCRUAL OF THE CAUSE OF ACTION;
   2. EXTEND THE LIMITATIONS PERIOD PRESCRIBED BY LAW  TO  INTERPOSE  THE
 CLAIM; OR
   3. AUTOMATICALLY REVOKE OR NULLIFY AN ELECTION OF REMEDIES MADE IN ANY
 COMPLAINT.
   (E)  All  notices, stipulations, or certificates pursuant to this rule
 shall be filed with the county clerk by the defendant.
   § 4. This act shall take effect immediately; provided, however:
   a. for causes of action pursuant to subdivision (e) of section 206  of
 the  civil  practice  law and rules as added by section two of this act,
 having accrued prior to, and would be time barred immediately upon,  the
 effective  date  of this act, suits thereupon shall be commenced and the
 claims interposed within one year after this act  shall  have  become  a
 law; and
   b.  for causes of action pursuant to subdivision (e) of section 206 of
 the civil practice law and rules as added by section two  of  this  act,
 having accrued prior to the effective date of such section and for which
 less  than  one  year remains upon the applicable limitations period for
 the commencement of an action or proceeding thereupon, such suits  shall
 be  commenced  and  the claims interposed within one year after this act
 shall have become a law.