NY A09447

Prohibits mortgagees from returning, destroying, or refusing to accept payments made pursuant to a payoff letter, even if the payment does not cover the full amount of principal, interest, and other amounts owed

Requires mortgagees to apply partial payments to the unpaid principal, interest, or other amounts due under the mortgage

Allows mortgagees to refuse and return payments only if there is a defect that prevents them from identifying with reasonable diligence which mortgage the payment is for

Clarifies that partial payments do not trigger issuance of a certificate of discharge or satisfaction of mortgage unless the payment covers the full amount owed

Delays the effective date of the underlying 2025 mortgage discharge law (S. 6363/A. 2739) from immediate effect to 180 days after becoming law