NY S08768

Prohibits mortgagees from returning, destroying, or refusing to accept payments made pursuant to the terms of a payoff letter, even if the payment does not cover the full amount owed on the mortgage

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

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

Clarifies that partial payments do not trigger the 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 immediately to 180 days after becoming law