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A10898 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          10898
 
                   IN ASSEMBLY
 
                                     August 17, 2020
                                       ___________
 
        Introduced  by  COMMITTEE  ON  RULES -- (at request of M. of A. Peoples-
          Stokes, Weinstein) -- read once and referred to the Committee on Judi-
          ciary
 
        AN ACT to amend the  real  property  actions  and  proceedings  law,  in
          relation to prohibiting the registration of mortgages in default prior
          to the filing of a notice of pendency

          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:
 
     1    Section 1. The real property actions and proceedings law is amended by
     2  adding a new section 1393 to read as follows:
     3    § 1393. Mortgages in default. 1. No local law, ordinance or resolution
     4  shall allow for the registration of  residential  mortgages  in  default
     5  prior to a mortgagee filing a notice of pendency in a court of competent
     6  jurisdiction.
     7    2. No such local law, ordinance or resolution shall require a homeown-
     8  er or occupant to register.
     9    3.  Any  local law, ordinance or resolution that allows for the regis-
    10  tration of residential mortgages in default may  impose  a  registration
    11  fee  not exceeding seventy-five dollars annually. A mortgagee and/or its
    12  agents are prohibited from passing along such fees to the  mortgagor  in
    13  default.
    14    4.  For the purposes of this section, a mortgage default occurs when a
    15  mortgagor fails to fulfill its obligations under a mortgage agreement.
    16    5. "Registration" shall mean the collection, publication  or  posting,
    17  public  or  otherwise,  of  residential  mortgages in default by a local
    18  governing body or an agency thereof,  or  any  third-party  entity  that
    19  contracts with such local governing body.
    20    6.  "Notice  of  pendency"  shall  have the same meaning as defined in
    21  section sixty-five hundred one of the civil practice law and rules.
    22    7. A local governing body, through a local law,  ordinance  or  resol-
    23  ution,  may  impose  a  fine  on a mortgagee for noncompliance with this
    24  section or any local law, ordinance or resolution that  allows  for  the
    25  registration of residential mortgages in default. A mortgagee and/or its
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD16983-01-0

        A. 10898                            2
 
     1  agents  are prohibited from passing along such fines to the mortgagor in
     2  default.
     3    8. The provisions of this section shall supersede any local law, ordi-
     4  nance,  or resolution requiring the registration of mortgages in default
     5  that was enacted prior to the effective date of this section.
     6    § 2. This act shall take effect immediately.
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