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NY A10876
Bill
Status
7/24/2020
Primary Sponsor
Kimberly Jean-Pierre
Click for details
AI Summary
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New York regulated banking institutions must make commercial mortgage forbearance applications widely available to qualified mortgagors experiencing financial hardship during the COVID-19 covered period (March 7, 2020 through the end of applicable executive orders).
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Regulated institutions must grant 120-day forbearance periods to qualified commercial mortgagors, with forbearance potentially backdated to March 7, 2020.
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Arrears accumulated during forbearance are deferred as non-interest bearing balloon payments due 12 months after forbearance ends, and all late fees are waived.
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Tenants' pro rata shares of forborne mortgage payments are deferred for the forbearance period and due within 12 months after, without interest or late fees; no eviction proceedings may be commenced for nonpayment of rents during the forbearance period.
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Lenders must comply with forbearance requirements before commencing foreclosure actions on missed payments; borrowers may raise violation of this section as a foreclosure defense, except for federally-backed or securitized mortgages.
Legislative Description
Relates to authorizing commercial mortgage forbearance during the COVID-19 pandemic; requires New York regulated institutions to make applications for forbearance available to qualified commercial mortgagors and to grant such forbearance for a period of ninety days, subject to the safety and soundness requirements of the regulated institution.
Last Action
referred to banks
7/24/2020