Loading chat...
NY A09554
Bill
Status
Introduced
1/14/2026
Primary Sponsor
Demond Meeks
Click for details
AI Summary
- Prohibits financial institutions from taking possession of property due to loan default if the loan was made to someone who obtained the property title through deed theft
- Requires financial institutions to conduct reasonable due diligence before issuing property loans to verify the borrower legitimately owns the title
- Financial institutions lose their ability to foreclose only when they both lent to a deed thief AND failed to perform proper due diligence
- Amends the New York Banking Law by adding new section 6-q
- Takes effect immediately upon passage
Legislative Description
Enacts the "deed protection act" in relation to prohibiting a financial institution from taking possession of a property based on the failure to repay a loan provided by such financial institution for such property if such loan was provided to a person who obtained title to such property by deed theft and such financial institution failed to conduct due diligence to determine whether any such deed theft had occurred.
Last Action
print number 9554a
3/2/2026
Committee Referrals
Banks1/14/2026
Full Bill Text
No bill text available