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NY A00707
Bill
Status
1/11/2023
Primary Sponsor
Jeffrey Dinowitz
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AI Summary
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Amends General Obligations Law Section 5-501 to prohibit prepayment penalties on loans or forbearances secured by cooperative real property where over 50% of units are shareholder-occupied.
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Makes any prepayment penalty or fee unenforceable on qualifying cooperative mortgages, regardless of loan contract terms.
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Maintains existing rules allowing prepayment penalties only if expressly stated in the loan contract and occurring before one year from loan origination.
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Takes effect immediately upon enactment.
Legislative Description
Prohibits pre-payment penalties for mortgages secured by real property owned in a cooperative form of ownership where over fifty percent of the units are shareholder occupied.
Last Action
referred to judiciary
1/3/2024