Bill Text: NY S05144 | 2021-2022 | General Assembly | Amended

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Bill Title: Prohibits enforcement of personal liability provisions against individuals in the event of default on a commercial lease, where the commercial tenant was restricted from operating under certain executive orders relating to the COVID-19 pandemic.

Spectrum: Partisan Bill (Democrat 5-0)

Status: (Engrossed - Dead) 2022-01-05 - REFERRED TO JUDICIARY [S05144 Detail]

Download: New_York-2021-S05144-Amended.html

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                STATE OF NEW YORK
        ________________________________________________________________________

                                         5144--B

                               2021-2022 Regular Sessions

                    IN SENATE

                                    February 25, 2021
                                       ___________

        Introduced  by  Sens. GIANARIS, BROUK, GOUNARDES, JACKSON, MYRIE -- read
          twice and ordered printed, and when printed to  be  committed  to  the
          Committee  on Judiciary -- committee discharged, bill amended, ordered
          reprinted as amended and recommitted to said  committee  --  committee
          discharged, bill amended, ordered reprinted as amended and recommitted
          to said committee

        AN ACT to amend the real property law, in relation to personal liability
          provisions in certain commercial leases

          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:

     1    Section 1. The real property law is amended by adding  a  new  section
     2  235-i to read as follows:
     3    §  235-i.  Personal  liability  provisions  in  commercial leases.   A
     4  provision in a commercial lease or other rental agreement involving real
     5  property located within New York state that provides  for  one  or  more
     6  natural  persons  who are not the tenant under such agreement to become,
     7  upon the occurrence of a default or other  event,  wholly  or  partially
     8  personally  liable  for payment of rent, utility expenses, or taxes owed
     9  by the tenant under such  agreement,  or  any  other  fees,  charges  or
    10  payments owed by the tenant under such agreement, shall not be enforcea-
    11  ble against such natural persons at any point if:
    12    (a) The tenant was:
    13    (i) required to cease serving patrons food or beverage for on-premises
    14  consumption  or  to  cease  operation under executive order number 202.3
    15  issued by the governor on March sixteenth, two thousand twenty;
    16    (ii) a non-essential business subject to in-person  limitations  under
    17  guidance issued by the New York state department of economic development
    18  pursuant to executive order number 202.6 issued by the governor on March
    19  eighteenth, two thousand twenty; or

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD09802-06-1
        S. 5144--B                          2

     1    (iii) required to close to members of the public under executive order
     2  number  202.7  issued  by the governor on March nineteenth, two thousand
     3  twenty; and
     4    (b)  The default or other event causing such natural persons to become
     5  wholly or partially  personally  liable  for  such  obligation  occurred
     6  between  March seventh, two thousand twenty and August thirty-first, two
     7  thousand twenty-one.
     8    § 2. This act shall take effect immediately.