Bill Text: NY A06079 | 2021-2022 | General Assembly | Introduced
Bill Title: Relates to authorizing commercial mortgage forbearance during the COVID-19 pandemic; requires New York regulated institutions to make applications for forbearance available to qualified commercial mortgagors and to grant such forbearance for a period of ninety days, subject to the safety and soundness requirements of the regulated institution.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2022-01-05 - referred to banks [A06079 Detail]
Download: New_York-2021-A06079-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 6079 2021-2022 Regular Sessions IN ASSEMBLY March 9, 2021 ___________ Introduced by M. of A. JEAN-PIERRE -- read once and referred to the Committee on Banks AN ACT to amend the banking law, in relation to authorizing commercial mortgage forbearance during the COVID-19 pandemic The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. The banking law is amended by adding a new section 9-y to 2 read as follows: 3 § 9-y. Mortgage forbearance. 1. As used in this section, the following 4 terms shall have the following meanings: 5 (a) "covered period" means March seventh, two thousand twenty until 6 the date on which none of the provisions that closed or otherwise 7 restricted public or private businesses or places of public accommo- 8 dation, or required postponement or cancellation of all non-essential 9 gatherings of individuals of any size for any reason in executive order 10 numbers 202.3, 202.4, 202.5, 202.6, 202.7, 202.8, 202.10, 202.11, 202.13 11 or 202.14 of two thousand twenty, as extended by executive order numbers 12 202.28 and 202.31 and as further extended by any future executive order, 13 issued in response to the COVID-19 pandemic continue to apply in the 14 county in which the property encumbered by the mortgage in question is 15 located; and 16 (b) "regulated institution" means any New York regulated banking 17 organization as defined under this chapter and any New York regulated 18 mortgage servicer entity subject to the authority of the department. 19 2. Notwithstanding any other provision of law, New York regulated 20 institutions shall: 21 (a) make applications for forbearance of any payment due on a commer- 22 cial mortgage of a property located in New York widely available to any 23 qualified commercial mortgagor including those who are already in 24 arrears or on a trial period plan or who have applied for loss miti- EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD04949-01-1A. 6079 2 1 gation and who demonstrate financial hardship during the covered period; 2 and 3 (b) grant such forbearance for a period of one hundred twenty days to 4 any such qualified commercial mortgagor, subject to the safety and 5 soundness requirements of the regulated institution. 6 (c) such forbearance may be backdated to March seventh, two thousand 7 twenty. 8 3. Notwithstanding any other provision of law, any mortgage forbear- 9 ance granted by a regulated institution pursuant to this section, or any 10 other law, rule or regulation, to the qualified commercial mortgagor as 11 a result of financial hardship during the covered period shall be 12 subject to the following provisions: 13 (a) the regulated institution shall defer arrears accumulated during 14 the forbearance period as a non-interest bearing balloon payment payable 15 twelve months after the end of the forbearance period and shall waive 16 any late fees accumulated as a result of the forbearance; and 17 (b) the total value of the deferred mortgage payment shall be appor- 18 tioned each month to each tenant according to the percentage of the 19 total rents due that their rental obligation represents on the mortgaged 20 property in receipt of the forbearance. Each commercial tenant shall 21 have their pro rata share of the forborne mortgage payment be deferred 22 each month for the duration of the forbearance period. Such deferred 23 rent shall be due within twelve months after the end of the forbearance 24 period, and shall not accumulate interest or be subject to late fees; 25 and 26 (c) no eviction proceedings may be commenced or continued against any 27 residential or commercial tenant for nonpayment of rents that came due 28 during the forbearance period. 29 4. Notwithstanding any other provision of law, adherence with this 30 section shall be a condition precedent to commencing a foreclosure 31 action stemming from missed payments which would have otherwise been 32 subject to this section. A defendant may raise the violation of this 33 section as a defense to a foreclosure action commenced on the defend- 34 ant's property when such action is based on missed payments that would 35 have otherwise been subject to this section. 36 5. Notwithstanding anything to the contrary in this section, this 37 section shall not apply to, and does not affect any mortgage loans made, 38 insured, or securitized by any agency or instrumentality of the United 39 States, any government sponsored enterprise, or a federal home loan 40 bank, or the rights and obligations of any lender, issuer, servicer or 41 trustee of such obligations, including servicers for the Government 42 National Mortgage Association. 43 § 2. This act shall take effect immediately.
