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NY S09309

Bill

Official Source

Status

Introduced

2/27/2026

Primary Sponsor

Jabari Brisport

Click for details

Origin

Senate

2025-2026 General Assembly

AI Summary

  • Prohibits financial institutions from taking possession of property due to loan default if the loan was provided to someone who obtained the property title through deed theft
  • Requires financial institutions to conduct reasonable due diligence to verify the borrower legitimately holds the property title before providing a loan
  • Applies when lenders fail to perform proper title verification and subsequently attempt foreclosure on properties obtained through fraudulent deed transfers
  • Amends New York Banking Law by adding a new section 6-q to protect property owners victimized by deed theft schemes
  • Takes effect immediately upon enactment

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

REFERRED TO BANKS

2/27/2026

Committee Referrals

Banks2/27/2026

Full Bill Text

No bill text available