A10530 Summary:

BILL NOA10530
 
SAME ASSAME AS S08428
 
SPONSORRules (Mosley)
 
COSPNSRLentol, Thiele, Rozic, Ortiz
 
MLTSPNSR
 
Amd Title, 2, 3 & 4, Chap of 2020 (as proposed in S.8417 & A.10492); amd 91, Pub Serv L; amd 5, Chap of 2020 (as proposed in S.8113-A & A.10521); amd 9-x, Bank L (as proposed in S.8243-C & A.10351-B); amd 180.65, CP L (as proposed in S.8414 & A.10493)
 
Relates to expenditures and temporary transfers of reserve funds for expenses related to a state disaster emergency (Part A); relates to issuing a moratorium on utility termination of services during periods of pandemics and/or state of emergencies (Part B); relates to the forbearance of residential mortgage payments for qualified mortgagors for a period of up to 180 days with the option to extend for an additional 180 days (Part C); relates to hearings conducted on a felony complaint during a state disaster emergency (Part D).
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A10530 Actions:

BILL NOA10530
 
05/28/2020referred to ways and means
05/28/2020reported referred to rules
05/28/2020reported
05/28/2020rules report cal.60
05/28/2020substituted by s8428
 S08428 AMEND= PARKER
 05/28/2020REFERRED TO RULES
 05/28/2020ORDERED TO THIRD READING CAL.673
 05/28/2020MESSAGE OF NECESSITY - 3 DAY MESSAGE
 05/28/2020PASSED SENATE
 05/28/2020DELIVERED TO ASSEMBLY
 05/28/2020referred to ways and means
 05/28/2020substituted for a10530
 05/28/2020ordered to third reading rules cal.60
 05/28/2020ruling of chair on point of order
 05/28/2020message of necessity - 3 day message
 05/28/2020passed assembly
 05/28/2020returned to senate
 06/05/2020DELIVERED TO GOVERNOR
 06/17/2020SIGNED CHAP.126
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A10530 Committee Votes:

WAYS AND MEANS Chair:Weinstein DATE:05/29/2020AYE/NAY:29/0 Action: Favorable refer to committee Rules
WeinsteinAyeRaAye
LentolAyeCrouchAye
SchimmingerExcusedFitzpatrickAye
GanttExcusedHawleyAye
GlickAyeMalliotakisAye
NolanAyeMontesanoExcused
PretlowAyeBlankenbushAye
PerryAyePalmesanoAye
ColtonAyeNorrisAye
CookExcusedBrabenecAye
CahillAye
AubryAye
CusickAye
OrtizAye
BenedettoAye
WeprinExcused
RodriguezAye
RamosAye
BraunsteinAye
McDonaldAye
RozicExcused
SimotasAye
DinowitzAye
MillerAye
JoynerAye

RULES Chair:Heastie Message of Necessity DATE:05/29/2020AYE/NAY:20/6 Action: Favorable
HeastieAyeBarclayNay
GottfriedAyeCrouchNay
LentolAyeFinchExcused
GanttExcusedHawleyExcused
NolanAyeGiglioNay
WeinsteinAyeMalliotakisNay
OrtizAyeBlankenbushNay
PretlowAyeNorrisNay
CookExcused
GlickAye
AubryAye
EnglebrightAye
DinowitzAye
ColtonAye
MagnarelliAye
PerryAye
PaulinAye
Peoples-StokesAye
BenedettoExcused
LavineAye
LupardoAye
ZebrowskiAye
ThieleAye

RULES Chair:Heastie DATE:05/29/2020AYE/NAY:26/0 Action: Favorable
HeastieAyeBarclayAye
GottfriedAyeCrouchAye
LentolAyeFinchExcused
GanttExcusedHawleyExcused
NolanAyeGiglioAye
WeinsteinAyeMalliotakisAye
OrtizAyeBlankenbushAye
PretlowAyeNorrisAye
CookExcused
GlickAye
AubryAye
EnglebrightAye
DinowitzAye
ColtonAye
MagnarelliAye
PerryAye
PaulinAye
Peoples-StokesAye
BenedettoExcused
LavineAye
LupardoAye
ZebrowskiAye
ThieleAye

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A10530 Floor Votes:

There are no votes for this bill in this legislative session.
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A10530 Memo:

NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A10530
 
SPONSOR: Rules (Mosley)
  TITLE OF BILL: /sk An act to amend a chapter of the laws of 2020 amending the local finance law relating to bond anticipation notes issued in calendar years 2015 through 2021, as proposed in legislative bills numbers S. 8417 and A. 10492, in relation to expenditures and temporary transfer of reserve funds for expenses related to state disas- ter emergency declared pursuant to executive order 202 of 2020 and authorizing the extension of repayment of inter-fund advances made for expenses related to state disaster emergency declared pursuant to execu- tive order 202 of 2020 (Part A); to amend the public service law, in relation to issuing a moratorium on utility termination of services during periods of pandemics and/or state of emergencies; and to amend a chapter of the laws of 2020 amending the public service law, relating to issuing a moratorium on utility termination of services during periods of pandemics and/or state of emergencies, as proposed in legislative bills numbers S.8113-A and A.10521, in relation to the effectiveness thereof (Part B); to amend the banking law, in relation to the forbear- ance of residential mortgage payments (Part C); and to amend the crimi- nal procedure law, in relation to hearings conducted on a felony complaint during a state disaster emergency (Part D)   PURPOSE OR GENERAL IDEA OF BILL: The purpose of this bill is to amend several chapters of the laws of 2020.   SUMMARY OF PROVISIONS: Part A would make technical changes to Assembly bill number A. 10492 and Senate bill number S.8417, which provided municipalities with greater flexibility in financing COVID-19 related expenses, to provide greater specificity to the timeframe of the disaster emergency. Part B would amend Assembly bill number A10521 to allow, during the COVID-19 state of emergency, telephone corporations disconnect service for at the request of the customer require that telephone corporations not terminate service to customers who defaulted on deferred payment agreement or owe arrears to the company for a period of 180 days after the state of emer- gency is lifted, when such customer has experienced a change in finan- cial circumstances due to the emergency. It also adds an expiration date to A10521 of 3/31/21. Section two of the bill would add an expiration clause to the chapter, of March 31, 2021. Part C would amend a chapter of the laws of 2020 creating section 9-x of the Banking Law. Section one would make the following amendments: Para- graph 1 (a) is amended to change the definition of "qualified mortgagor" to include a showing of demonstrable financial hardship due to COVID-19 during the covered period; Paragraph 2 (b) is amended to clarify that all monthly payments related to the mortgage may be forborn; Paragraph 2 (b) is amended to clarify that any forbearance granted under the Execu- tive Order are included in the 180 day forbearance period under this bill; Paragraph 3 is amended to create a new sub paragraph (c) allowing a qualified mortgagor to have the option to negotiate a loan modifica- tion or any other option that meets the changed circumstances of the qualified mortgagor; Paragraph 5 is amended to exempt loans guaranteed by the State of New York Mortgage Agency which is identified in the bill as a corporate governmental agency of the state constituted as political subdivision and public benefit corporation; A new Paragraph 6 is added to condition the forbearance on the liquidity, safety and soundness of the bank. Additionally, it mandates DFS' toll-free number and website be used as a resource for any borrower who was denied forbearance to lodge a complaint with DFS Part D: Section 1 adds additional phrases to confirm that a request for audio-visual proceedings for a preliminary hearing in a felony case during the period of the ongoing state disaster emergency may be made on motion of the parties, a witness or the court and that the court may proceed in this manner after soliciting the views of the parties and any such witness, that among the factors to be considered is whether personal appearance would create an unreasonable health risk to the public, court staff or any other person involved in the proceeding, and that a copy of any recorded appearance shall be made by the court and provided to the attorneys for the parties.   DIFFERENCE BETWEEN ORIGINAL AND AMENDED VERSION (IF APPLICABLE): N/A   JUSTIFICATION: Part A: This bill is necessary to provide technical amendments of Assem- bly bill number A. 10492 and Senate bill number S. 8417 to define the period in which this bill is intended to provide relief for, which is the time following the declaration of the COVID19 related State disaster emergency of 2020. Flexibility in municipal financing for municipalities and special districts, including fire and school districts, is benefi- cial to help local governments recover from the effects of the COVID-19 pandemic. Part B: S.8113-A /A.10521 was enacted in response to the severe health and economic hardships inflicted on New Yorkers, particularly those of low-income or who were laid off from their jobs, by the COVID-19 pandem- ic and resulting declared state of emergency. This bill was intended to give the hardest hit New Yorkers vital relief in the form of a moratori- um on providers disconnecting water, landline, gas and electricity services during and for a period of 180 days the state of emergency, for those suffering a financial hardship, for nonpayment of a charge. Tele- phone corporations, who were targeted in the bill, have expressed a valid and understandable desire to be able to disconnect land line services during this period when a customer expresses their desire to disconnect service or change providers. This bill would make changes to the chapter to give telephone corporation this ability, as well as to correct several unintentional omissions made in drafting of the bill. Part C: As the COVID-19 pandemic continues to wreak havoc on New York, and with State and local governments mandating the shuttering of all but essential businesses in the interest of protecting public health, New York has seen a rapid and unprecedented economic decline. Many New York- ers, facing severely reduced or entirely lost wages, will not be able to keep up with mortgage payments during this time. With the Governor's issuance of Executive Order 202.9, some mortgagors were given a three- month forbearance period, but this has only slightly averted the danger of mass displacement still at hand. This bill would extend the spirit of the Governor's executive order to all state-regulated mortgage lenders and servicers, requiring them to grant a six-month forbearance period with the option to extend another 180 days-to any mortgagor who certi- fies they have a loss of income during the COVID-19 crisis, including those already struggling to make payments. "While the Governor's Executive Order provides immediate relief to some homeowners, it still allows for mortgage lenders to collect the back payments as soon as the forbearance period is over. Many homeowners will not be able to pay the lump sum of their arrears once forbearance ends if they have been unable to work. This bill requires regulated lenders and servicers to allow mortgagors to either extend their mortgage for a period of time equal to the forbearance, pay their arrears in monthly installments or pay the deferred payments as a balloon payment upon the maturity of the loan. Under this legislation, mortgagors will also be prohibited from: charging interest during forbearance, or on the balloon payment; charging late fees; or negatively reporting the mortgagor's decision to a credit porting bureau. Compliance with this law will also be required in order for a foreclosure action to proceed against a mort- gagor for payments that would otherwise have been covered by this defer- ment period. "By giving homeowners this flexibility, we can provide essential securi- ty to New Yorkers, ensuring that no one will be subject to foreclosure, or punished with fees because of the economic havoc brought on by COVID-19. Part D: These changes will best assure that the legislation to authorize such appearances is effective to accomplish its purpose.   PRIOR LEGISLATIVE HISTORY: A.10492, A.10521, A.10526 and A.10527 Passed the Assembly on 5/28/2020.   FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS: None.   EFFECTIVE DATE: Immediate, provided however, that the applicable effective date of Parts A through D of this act shall be as specifically set forth in the last section of such parts.
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A10530 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          10530
 
                   IN ASSEMBLY
 
                                      May 28, 2020
                                       ___________
 
        Introduced  by  COMMITTEE  ON  RULES  -- (at request of M. of A. Mosley,
          Lentol, Thiele, Rozic) -- read once and referred to the  Committee  on
          Ways and Means
 
        AN ACT to amend a chapter of the laws of 2020 amending the local finance
          law  relating to bond anticipation notes issued in calendar years 2015
          through 2021, as proposed in legislative bills numbers S. 8417 and  A.
          10492,  in  relation to expenditures and temporary transfer of reserve
          funds for expenses related to state disaster emergency declared pursu-
          ant to executive order 202 of 2020 and authorizing  the  extension  of
          repayment  of  inter-fund  advances made for expenses related to state
          disaster emergency declared pursuant to executive order  202  of  2020
          (Part  A);  to  amend the public service law, in relation to issuing a
          moratorium on  utility  termination  of  services  during  periods  of
          pandemics  and/or  state of emergencies; and to amend a chapter of the
          laws of 2020 amending the public service law, relating  to  issuing  a
          moratorium  on  utility  termination  of  services  during  periods of
          pandemics and/or state of  emergencies,  as  proposed  in  legislative
          bills  numbers  S.8113-A and A.10521, in relation to the effectiveness
          thereof (Part B); to  amend  the  banking  law,  in  relation  to  the
          forbearance  of  residential  mortgage payments (Part C); and to amend
          the criminal procedure law, in relation to  hearings  conducted  on  a
          felony complaint during a state disaster emergency (Part D)
 
          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:
 
     1    Section 1. This act enacts into law legislation providing  for  impor-
     2  tant  provisions  relating to a state disaster emergency. Each component
     3  is wholly contained within a Part identified as Parts A through  D.  The
     4  effective  date for each particular provision contained within such Part
     5  is set forth in the last section of such  Part.  Any  provision  in  any
     6  section  contained  within  a  Part, including the effective date of the
     7  Part, which makes reference to a section "of this  act",  when  used  in
     8  connection  with  that particular component, shall be deemed to mean and
     9  refer to the corresponding section of the Part in  which  it  is  found.
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD16563-02-0

        A. 10530                            2
 
     1  Section  three of this act sets forth the general effective date of this
     2  act.
 
     3                                   PART A
 
     4    Section  1.  The  title  of a chapter of the laws of 2020 amending the
     5  local finance law relating to bond anticipation notes issued in calendar
     6  years 2015 through 2021, as proposed in legislative bills number S. 8417
     7  and A. 10492, is amended to read as follows:
     8    to amend the local finance law, in relation to bond anticipation notes
     9  issued in calendar years 2015 through 2021; to authorize the expenditure
    10  and temporary transfer of reserve funds for expenses related to  [COVID-
    11  19]  the  state  disaster emergency declared pursuant to executive order
    12  202 of 2020; and to authorize the extension of repayment  of  inter-fund
    13  advances  made  for  expenses  related  to [COVID-19] the state disaster
    14  emergency declared pursuant to executive order 202 of 2020
    15    § 2. Section 2 of a chapter of the laws of  2020  amending  the  local
    16  finance law relating to bond anticipation notes issued in calendar years
    17  2015  through 2021, as proposed in legislative bills numbers S. 8417 and
    18  A. 10492, is amended to read as follows:
    19    § 2. Notwithstanding any provision of  sections  6-c  or  6-g  of  the
    20  general  municipal  law  or  section  3651  of  the education law to the
    21  contrary, the governing board of a town, village,  county,  city,  water
    22  improvement  district,  sewer  improvement  district,  fire  district or
    23  school district, by resolution which shall not be subject to  referendum
    24  requirements,  may authorize expenditures from capital reserve funds for
    25  capital costs attributable to the  [COVID-19  pandemic]  state  disaster
    26  emergency declared pursuant to executive order 202 of 2020.
    27    §  3.  Section  3  of a chapter of the laws of 2020 amending the local
    28  finance law relating to bond anticipation notes issued in calendar years
    29  2015 through 2021, as proposed in legislative bills numbers S. 8417  and
    30  A. 10492, is amended to read as follows:
    31    §  3.  Notwithstanding any provision of the general municipal law, the
    32  town law or the education law to the contrary, the governing board of  a
    33  town,  village, county, city, water improvement district, sewer improve-
    34  ment district, fire district or school  district,  by  resolution  which
    35  shall  not  be subject to referendum requirements, if any, may authorize
    36  the temporary transfer of moneys from reserve funds to pay for operating
    37  costs attributable to the state disaster emergency declared pursuant  to
    38  executive order 202 of 2020 or other costs attributable to the [COVID-19
    39  pandemic]  state disaster emergency declared pursuant to executive order
    40  202 of 2020, provided, that the reserve fund from which the  funds  were
    41  temporarily  transferred  shall be reimbursed from the fund to which the
    42  transfer was made over a period of not  more  than  five  fiscal  years,
    43  starting  with  the  fiscal year following the transfer. At least twenty
    44  percent of the moneys temporarily transferred shall be  reimbursed  each
    45  fiscal  year.  Such  reimbursement  shall  include  an additional amount
    46  reasonably estimated to be the amount that would have been earned on the
    47  investment of the transferred moneys had they been retained in the capi-
    48  tal reserve fund.
    49    § 4. Section 4 of a chapter of the laws of  2020  amending  the  local
    50  finance law relating to bond anticipation notes issued in calendar years
    51  2015  through 2021, as proposed in legislative bills numbers S. 8417 and
    52  A. 10492, is amended to read as follows:
    53    § 4. Notwithstanding the provisions of subdivision 3 of section 9-a of
    54  the general municipal law, for inter-fund advances made pursuant to such

        A. 10530                            3
 
     1  subdivision for costs attributable  to  the  [COVID-19  pandemic]  state
     2  disaster  emergency  declared  pursuant  to executive order 202 of 2020,
     3  repayment of moneys to the fund from which they were advanced  shall  be
     4  made  by  close  of  the  fiscal year next succeeding the fiscal year in
     5  which such advance was made.
     6    § 5. This act shall take effect on the  same  date  and  in  the  same
     7  manner  as  a chapter of the laws of 2020 amending the local finance law
     8  relating to bond  anticipation  notes  issued  in  calendar  years  2015
     9  through  2021,  as  proposed in legislative bills numbers S. 8417 and A.
    10  10492, takes effect.
 
    11                                   PART B
 
    12    Section 1. Subdivisions 9, 10 and 12  of  section  91  of  the  public
    13  service  law,  as  added  by  a chapter of the laws of 2020 amending the
    14  public service law, relating to issuing a moratorium on  utility  termi-
    15  nation  of services during periods of pandemics and/or state of emergen-
    16  cies, as proposed in legislative bills numbers S.8113-A and A.10521, are
    17  amended to read as follows:
    18    9. No telephone corporation shall terminate or disconnect  a  residen-
    19  tial  service  customer for the non-payment of an overdue charge for the
    20  duration of the state disaster emergency declared pursuant to  executive
    21  order  two hundred two of two thousand twenty (hereinafter "the COVID-19
    22  state of emergency").  Telephone  corporations  shall  have  a  duty  to
    23  restore  service, to the extent not already required under this chapter,
    24  [to] at the request of any residential customer within forty-eight hours
    25  if such service has been terminated during the pendency of the  COVID-19
    26  state of emergency and disconnection of such service was due to non-pay-
    27  ment of an overdue charge.
    28    10. [After] For a period of one hundred eighty days after the COVID-19
    29  state  of emergency is lifted or expires, no telephone corporation shall
    30  terminate or disconnect the service of a  residential  customer  account
    31  because of defaulted deferred payment agreements or arrears then owed to
    32  the telephone corporation when such customer has experienced a change in
    33  financial  circumstances  due  to  the  COVID-19  state of emergency, as
    34  defined by the department.  The telephone corporation shall provide such
    35  residential customer with the right to enter  into,  or  restructure,  a
    36  deferred  payment  agreement  without the requirement of a down payment,
    37  late fees, or penalties[, as such is provided for in article two of this
    38  chapter].
    39    12. Implementation of the provisions of this section shall not prohib-
    40  it a telephone corporation from recovering  lost  or  deferred  revenues
    41  after  the  lifting  or  expiration  of the COVID-19 state of emergency,
    42  pursuant to such means for recovery as are provided for in this chapter,
    43  and by means not  inconsistent  with  any  of  the  provisions  of  this
    44  article.  Nothing in this section shall prohibit a telephone corporation
    45  from disconnecting service at the request of a customer. Nothing in this
    46  section  shall  prohibit  a  telephone  corporation  from  disconnecting
    47  service when it is necessary to protect the health and safety of custom-
    48  ers and the public.
    49    §  2.  Section  5 of a chapter of the laws of 2020 amending the public
    50  service law, relating to issuing a moratorium on utility termination  of
    51  services  during  periods  of  pandemics and/or state of emergencies, as
    52  proposed in legislative bills numbers S.8113-A and A.10521,  is  amended
    53  to read as follows:

        A. 10530                            4
 
     1    § 5. This act shall take effect immediately and shall expire March 31,
     2  2021  when  upon  such  date  the provisions of this act shall be deemed
     3  repealed.
     4    §  3.  This  act  shall  take  effect on the same date and in the same
     5  manner as a chapter of the laws of 2020 amending the public service law,
     6  relating to issuing a moratorium  on  utility  termination  of  services
     7  during  periods of pandemics and/or state of emergencies, as proposed in
     8  legislative bills numbers S.8113-A and A.10521, takes  effect;  provided
     9  however,  that the amendments to subdivisions 9, 10 and 12 of section 91
    10  of the public service law made by section one  of  this  act  shall  not
    11  affect  the  repeal  of  such  subdivisions  and  shall  be deemed to be
    12  repealed therewith.
 
    13                                   PART C
 
    14    Section 1. Section 9-x of the banking law, as added by  a  chapter  of
    15  the  laws  of 2020, amending the banking law relating to the forbearance
    16  of residential mortgage  payments,  as  proposed  in  legislative  bills
    17  numbers S. 8243-C and A. 10351-B, is amended to read as follows:
    18    § 9-x. Mortgage forbearance. 1. As used in this section, the following
    19  terms shall have the following meanings:
    20    (a)  "Covered period" means March 7, 2020 until the date on which none
    21  of the provisions that closed or otherwise restricted public or  private
    22  businesses  or  places of public accommodation, or required postponement
    23  or cancellation of all non-essential gatherings of  individuals  of  any
    24  size  for  any  reason  in  Executive Orders 202.3, 202.4, 202.5, 202.6,
    25  202.7, 202.8, 202.10, 202.11, 202.13 or 202.14, as extended by Executive
    26  Orders 202.28 and 202.31 and as further extended by any future Executive
    27  Order, issued in response to the COVID-19 pandemic continue to apply  in
    28  the county of the qualified mortgagor's residence;
    29    (b)  "qualified  mortgagor"  means  an  individual [who resides in New
    30  York] (i) whose [principal dwelling] primary residence is located in New
    31  York and is encumbered by a home  loan  pursuant  to  paragraph  (a)  of
    32  subdivision  six  of  section thirteen hundred four of the real property
    33  actions and proceedings law or whose [principal dwelling] primary  resi-
    34  dence is located in New York and is a co-operative unit whose shares are
    35  encumbered by any loan otherwise meeting the requirements of a home loan
    36  under  paragraph (a) of subdivision six of section thirteen hundred four
    37  of the real property actions and proceedings law, from or serviced by  a
    38  regulated institution; and (ii) who demonstrates financial hardship as a
    39  result of COVID-19 during the covered period;
    40    (c)  "regulated  institution"  means  any  New  York regulated banking
    41  organization as defined in this chapter and any New York regulated mort-
    42  gage servicer entity subject to supervision by the department; and
    43    (d) "trial period plan" means an agreement whereby  the  mortgagor  is
    44  required  to  make  trial  payments  in  full and on-time in order to be
    45  considered for a permanent loan modification.
    46    2. Notwithstanding any other provision  of  law,  New  York  regulated
    47  institutions shall:
    48    (a) make applications for forbearance of any payment due on a residen-
    49  tial  mortgage of a property located in New York widely available to any
    50  qualified mortgagor who, during the covered period, is in arrears or  on
    51  a  trial period plan, or who has applied for loss mitigation [and demon-
    52  strates financial hardship during the covered period]; and
    53    (b) grant such forbearance of all monthly payments due with respect to
    54  the mortgage secured by the qualified mortgagor's primary  residence  in

        A. 10530                            5

     1  New York for a period of up to one hundred eighty days to any such qual-
     2  ified mortgagor [who is in arrears or on a trial period plan, or who has
     3  applied  for  loss mitigation and demonstrates financial hardship], with
     4  the  option to extend the forbearance of such monthly payments for up to
     5  an additional one hundred eighty days provided that  this  extension  is
     6  subject to the mortgagor demonstrating continued financial hardship.  If
     7  any  qualified  mortgagor has already received a forbearance pursuant to
     8  executive order 202.9 of two thousand twenty, the time of such  forbear-
     9  ance  shall  be considered as part of the requirement of this section to
    10  provide a forbearance of up to one hundred eighty days, and  any  exten-
    11  sion thereof pursuant to this section.
    12    (c)  Such  forbearance may be backdated to March seventh, two thousand
    13  twenty, provided that the maximum length of the forbearance  may  be  no
    14  longer  than  one hundred eighty days and any extension thereof pursuant
    15  to this section.
    16    3. Notwithstanding any other provision of law, any  mortgage  forbear-
    17  ance  granted  by  a  regulated  institution pursuant to executive order
    18  number 202.9 of two thousand twenty, this section, or  [any  other  law,
    19  rule  or regulation to the] 3 NYCRR Part 119 to a qualified mortgagor as
    20  a result of financial hardship [during  the  covered  period]  shall  be
    21  subject to the following provisions:
    22    (a) the mortgagor shall have the option to extend the term of the loan
    23  for  the length of the period of forbearance.  The regulated institution
    24  shall [waive interest on the principal for the term of  the  forbearance
    25  and  waive any late fees accumulated as a result of the forbearance] not
    26  charge additional interest or any late fees or penalties on the forborne
    27  payment; or
    28    (b) the mortgagor shall have the option to have  the  arrears  accumu-
    29  lated  during  the forbearance period payable on a monthly basis for the
    30  remaining term of the loan without being subject to  penalties  or  late
    31  fees incurred as a result of the forbearance; or
    32    (c)  the mortgagor shall have the option to negotiate a loan modifica-
    33  tion or any other option that meets the  changed  circumstances  of  the
    34  qualified mortgagor; or
    35    (d) if [the mortgagor is unable to make mortgage payments due to mort-
    36  gagors'  demonstrated hardship and] the mortgagor and regulated institu-
    37  tion cannot reasonably agree on a mutually acceptable loan modification,
    38  the [mortgagor] regulated institution shall [have the option]  offer  to
    39  defer  arrears accumulated during the forbearance period as a non-inter-
    40  est bearing balloon [payment] loan payable at the maturity of  the  loan
    41  [consistent  with  the  safety  and soundness of such regulated institu-
    42  tion], or at the time the loan is satisfied through a refinance or  sale
    43  of  the  property. Any late fees accumulated as a result of the forbear-
    44  ance shall be waived.
    45    [(d)] (e) The exercising of options provided for in paragraph (a), (b)
    46  [or], (c) or (d) of this subdivision by a qualified mortgagor shall  not
    47  be  reported  negatively  to any credit bureau by any regulated institu-
    48  tion.
    49    4. Notwithstanding any other provision of  law,  adherence  with  this
    50  section  shall  be  a  condition  precedent  to commencing a foreclosure
    51  action stemming from missed payments which  would  have  otherwise  been
    52  subject  to  this section.   A defendant may raise the violation of this
    53  section as a defense to a foreclosure action commenced   on the  defend-
    54  ant's  property  when such action is based on missed payments that would
    55  have otherwise been subject to this section.

        A. 10530                            6

     1    5. Notwithstanding anything to the  contrary  in  this  section,  this
     2  section shall not apply to, and does not affect any mortgage loans made,
     3  insured,  purchased  or  securitized by any agency or instrumentality of
     4  the United States, any government sponsored  enterprise,  or  a  federal
     5  home  loan bank, or a corporate governmental agency of the state consti-
     6  tuted as a political subdivision and public benefit corporation, or  the
     7  rights  and  obligations  of  any lender, issuer, servicer or trustee of
     8  such obligations, including servicers for the Government National  Mort-
     9  gage Association.
    10    6.  Notwithstanding any other provision of law or of this section, the
    11  obligation to grant the forbearance  relief  required  by  this  section
    12  shall  be subject to the regulated institution having sufficient capital
    13  and liquidity to meet its obligations and to operate in a safe and sound
    14  manner. Any regulated institution that determines that it is not able to
    15  offer relief pursuant to this section to any  qualified  mortgagor  must
    16  notify  the department within five business days of making such determi-
    17  nation. Any such notice filed with the department shall include informa-
    18  tion about the qualified mortgagor, the reason the regulated institution
    19  determined that it was unable to  offer  any  relief  pursuant  to  this
    20  section,  information about the regulated institution's financial condi-
    21  tion supporting the regulated institution's determination, and any other
    22  information required by the department. At the same time that the  regu-
    23  lated institution provides notice to the department, it shall advise the
    24  qualified  mortgagor  that  the  application  for  relief was denied and
    25  provide a statement that the applicant may file a complaint with the New
    26  York  state  department  of  financial  services  at  1-800-342-3736  or
    27  http://www.dfs.ny.gov  if  the  applicant  believes  the application was
    28  wrongly denied.
    29    § 2. This act shall take effect on the  same  date  and  in  the  same
    30  manner as a chapter of the laws of 2020, amending the banking law relat-
    31  ing  to the forbearance of residential mortgage payments, as proposed in
    32  legislative bills numbers S. 8243-C and A. 10351-B, takes effect.
 
    33                                   PART D
 
    34    Section 1. Section 180.65 of the criminal procedure law, as added by a
    35  chapter of the laws of 2020, amending the criminal procedure law  relat-
    36  ing to conducting hearings on a felony complaint during a state disaster
    37  emergency,  as  proposed  in  legislative  bills  numbers S. 8414 and A.
    38  10493, is amended to read as follows:
    39  § 180.65 Hearing upon  felony  complaint;  emergency  provision   during
    40              disaster emergency.
    41    During  the  period  of  the  COVID-19  state  disaster  emergency, as
    42  declared pursuant to executive order number two hundred two of two thou-
    43  sand twenty and extensions thereof and article two-B  of  the  executive
    44  law, the following additional provisions shall apply to the conduct of a
    45  hearing on a felony complaint pursuant to this article:
    46    1.  The appearance of any party and any witness at such hearing may be
    47  by electronic appearance through an independent audio-visual system,  as
    48  such  terms are defined in section 182.10 of this title, where the court
    49  finds upon its own motion after hearing from the parties  and  any  such
    50  witness,  either  in person or by electronic appearance, that due to the
    51  person's circumstances and such disaster emergency a personal appearance
    52  by such party or witness would  be  an  unreasonable  hardship  to  such
    53  person  or  witness or create an unreasonable health risk to the public,
    54  court staff or anyone else involved in the proceeding.

        A. 10530                            7
 
     1    2. At any such hearing on the felony complaint, the judge must be able
     2  to hear and see the image of each witness clearly [though]  through  the
     3  independent audio-visual system and such sound and visual image shall be
     4  similar  to  the  sound  and  image  the judge would hear and see if the
     5  witness  were  present  together with the judge testifying in the court-
     6  room.  Documents, photographs and the like offered at the hearing may be
     7  exchanged among the parties by electronic means.  A  stenographic  tran-
     8  scription  or  appropriate  audio  recording of the proceedings shall be
     9  maintained, and the live testimony received  by  electronic  appearance,
    10  and  other  electronic  appearances  where  practicable,  shall be video
    11  recorded by the court, and  a  copy  provided  to  the  people  and  the
    12  defense.
    13    3. The authority for an electronic appearance pursuant to this section
    14  shall  be  considered  sufficient means to enable the court to conduct a
    15  hearing on a felony complaint within the meaning of  section  180.80  of
    16  this article.
    17    §  2.  This  act  shall  take  effect on the same date and in the same
    18  manner as a chapter of the laws of 2020, amending the criminal procedure
    19  law relating to conducting hearings on a felony complaint during a state
    20  disaster emergency, as proposed in legislative bills numbers S. 8414 and
    21  A. 10493, takes effect, provided, however, that the amendments  made  to
    22  section 180.65 of the criminal procedure law made by section one of this
    23  act  shall  not  affect  the  repeal of such section and shall be deemed
    24  repealed therewith.
    25    § 2. Severability clause. If any clause, sentence, paragraph, subdivi-
    26  sion, section or part of this act shall be  adjudged  by  any  court  of
    27  competent  jurisdiction  to  be invalid, such judgment shall not affect,
    28  impair, or invalidate the remainder thereof, but shall  be  confined  in
    29  its  operation  to the clause, sentence, paragraph, subdivision, section
    30  or part thereof directly involved in the controversy in which such judg-
    31  ment shall have been rendered. It is hereby declared to be the intent of
    32  the legislature that this act would  have  been  enacted  even  if  such
    33  invalid provisions had not been included herein.
    34    §  3.  This  act shall take effect immediately provided, however, that
    35  the applicable effective date of Parts A through D of this act shall  be
    36  as specifically set forth in the last section of such Parts.
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A10530 LFIN:

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A10530 Chamber Video/Transcript:

5-28-20Video (@ 00:14:23)
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