STATE OF NEW YORK ________________________________________________________________________ 1136 2023-2024 Regular Sessions IN ASSEMBLY January 13, 2023 ___________ Introduced by M. of A. WALKER, ANDERSON, BURGOS, CARROLL, DAVILA, DILAN, EICHENSTEIN, EPSTEIN, FALL, GALLAGHER, HUNTER, PAULIN, RAJKUMAR, REYES, RIVERA, D. ROSENTHAL, VANEL, WEPRIN -- read once and referred to the Committee on Judiciary AN ACT to amend the civil practice law and rules, in relation to the rights of parties involved in foreclosure actions The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Section 203 of the civil practice law and rules is amended 2 by adding a new subdivision (i) to read as follows: 3 (i) Clarification. Once a cause of action upon an instrument described 4 under subdivision four of section two hundred thirteen of this article 5 has accrued, no party may unilaterally waive, postpone, cancel, or reset 6 the accrual thereof, or otherwise effectuate a unilateral extension of 7 the limitations period prescribed by law to interpose the claim, unless 8 expressly permitted by law. 9 § 2. Section 206 of the civil practice law and rules is amended by 10 adding a new subdivision (e) to read as follows: 11 (e) Based on standardized mortgage instruments. In an action to fore- 12 close upon any uniform or model mortgage instrument securing real prop- 13 erty or any interest therein, as adopted by the federal national mort- 14 gage association (Fannie Mae), federal home loan mortgage corporation 15 (Freddie Mac), or U.S. Department of Housing and Urban Development 16 (HUD), the time within which the action must be commenced and the claim 17 interposed shall be computed from the time the right to demand immediate 18 payment in full of all sums so secured thereby may be exercised. For 19 purposes of this subdivision only, there shall be a rebuttable presump- 20 tion that all substantive conditions precedent to accrual of a cause of 21 action to foreclose upon any such mortgage instrument, if any, have been 22 satisfied. The presumption may be rebutted by clear and convincing 23 evidence. Nothing contained herein shall give rise to the presumption EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD04666-01-3A. 1136 2 1 that any event of default under the mortgage instrument has occurred, 2 except for purposes of computation of the time within which the action 3 must be commenced and the claim interposed. 4 § 3. Subdivision (d) of rule 3217 of the civil practice law and rules, 5 as added by section 29 of part J of chapter 62 of the laws of 2003, is 6 amended to read as follows: 7 (d) Effect of discontinuance of actions based upon certain instruments 8 related to real property. Unless effectuated in strict accordance with 9 the applicable provisions of article seventeen of the general obli- 10 gations law, the discontinuance of an action upon an instrument 11 described under subdivision four of section two hundred thirteen of this 12 chapter, by any means, shall not, in form or effect: 13 1. act as a waiver, postponement, cancellation, resetting, or tolling 14 of accrual of the cause of action; 15 2. extend the limitations period prescribed by law to interpose the 16 claim; or 17 3. automatically revoke or nullify an election of remedies made in any 18 complaint. 19 (e) All notices, stipulations, or certificates pursuant to this rule 20 shall be filed with the county clerk by the defendant. 21 § 4. This act shall take effect immediately; provided, however: 22 a. for causes of action pursuant to subdivision (e) of section 206 of 23 the civil practice law and rules as added by section two of this act, 24 having accrued prior to, and would be time barred immediately upon, the 25 effective date of this act, suits thereupon shall be commenced and the 26 claims interposed within one year after this act shall have become a 27 law; and 28 b. for causes of action pursuant to subdivision (e) of section 206 of 29 the civil practice law and rules as added by section two of this act, 30 having accrued prior to the effective date of such section and for which 31 less than one year remains upon the applicable limitations period for 32 the commencement of an action or proceeding thereupon, such suits shall 33 be commenced and the claims interposed within one year after this act 34 shall have become a law.