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NY S01323

Bill

Official Source

Status

Introduced

1/9/2025

Primary Sponsor

Brad Hoylman-Sigal

Click for details

Origin

Senate

2025-2026 General Assembly

AI Summary

  • Prohibits lenders from charging or collecting any prepayment penalty or fee on loans secured by cooperative real property where more than 50% of units are shareholder-occupied

  • Makes any such prepayment penalty unenforceable under New York law

  • Amends Section 5-501 of the General Obligations Law, which currently allows prepayment penalties only within the first year of a loan

  • 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

COMMITTED TO RULES

6/13/2025

Committee Referrals

Rules6/13/2025
Judiciary1/9/2025

Full Bill Text

No bill text available