NY-RPP Real Property Law NY

Section 1. Short title. This chapter shall be known as the "Real

Property Law."

Definitions. 1. The terms "real property" and "lands" as used in

the first eight articles of this chapter are co-extensive in meaning

with lands, tenements and hereditaments.

2. The term "infant" or "minor" as used in this chapter means a person

who has not attained the age of eighteen years.

Capacity to hold real property. 1. A citizen of the United

States is capable of holding real property within this state, and of

taking the same by descent, devise or purchase.

2. Noncitizens are empowered to take, hold, transmit, and dispose of

real property within this state in the same manner as native-born

citizens and their heirs and devisees take in the same manner as

citizens.

3. For the purpose of maintaining offices and places of residence for

its ambassadors and consular officers and for its representatives at the

United Nations, a foreign government is empowered to hold, transmit and

dispose of real property within this state. Title to such property may

be taken either in the name of the foreign government or in the name of

its ambassador or consul or in the name of its minister to the United

Nations. If a conveyance of real property is made to an ambassador or

consul or minister of a foreign government as such, or contains

appropriate words showing the intention to vest the title in the holder

of the office rather than in the named individual, the title to the real

property shall pass from time to time without any further conveyance to

the respective successors in such office, who shall have full power to

dispose of such property.

Capacity to transfer real property. A person other than a minor,

a person with a developmental disability, or person of unsound mind,

seized of or entitled to an estate or interest in real property, may

transfer such estate or interest.

Title through noncitizen. The right, title or interest in or to

real property in this state now held or hereafter acquired by any person

entitled to hold the same can not be questioned or impeached by reason

of the noncitizen status of any person through whom such title may have

been derived. Nothing in this section affects or impairs the right of

any heir, devisee, mortgagee, or creditor by judgment or otherwise.

Liabilities of noncitizen holders of real property. Every

noncitizen holding real property in this state is subject to duties,

assessments, taxes and burdens as if such noncitizen were a citizen of

the state.

Heirs of patriotic Indian. The heirs of an Indian to whom real

property was granted for military services rendered during the war of

the Revolution may take and hold such real property by descent as if

they were citizens of the state at the time of the death of their

ancestors. A conveyance of such real property to a citizen of this

state, executed by such Indian or his heirs after March seventh,

eighteen hundred and nine, is valid, if executed with the approval of

the surveyor-general or state engineer and surveyor prior to January

first, nineteen hundred and twenty-seven, and thereafter with the

approval of the commissioner of transportation indorsed thereon.

Mines in Saint Lawrence county. The proprietors of any mines or

veins of lead or copper in the county of Saint Lawrence, may demise,

lease, or rent the same for a period not to exceed twenty-one years from

the date of any such lease, to any foreign individual or company, and

such lessee may take, hold, work, use or convey the same during the said

term, in the same manner and subject to the same liabilities as if such

lessee were a natural born citizen.

Purchase by mortgage trustee. Any banking corporation,

including corporations organized under the banking law and also national

banking associations authorized to act as trustees within this state,

which shall act as trustee, depository or in other representative or

fiduciary capacity in respect to any mortgage upon real property within

this state or upon some interest therein or in respect to any indenture

relating to such real property against which bonds or certificates of

parts or of shares have been issued to the public, may acquire such real

property in any foreclosure action now or hereafter pending; and in lieu

of paying cash therefor, may make settlement for the purchase price by

crediting upon the bond, mortgage or other obligation held by it, the

net proceeds of sale after deducting therefrom the expenses of the sale

and the costs of the action and any other sums which such trustee is

authorized to deduct under the mortgage, deed of trust or indenture. The

officer making such foreclosure sale shall accept such settlement

without requiring the production of the bonds, notes, certificates of

sharing, certificates of participation, or other security evidencing the

pro rata interest of the holders thereof in the mortgage or indenture

being foreclosed; and, without such production, there shall be deemed

credited thereon the pro rata share of the net proceeds of sale

ascertained and established as aforesaid.

Operation and sale by mortgage trustee. Such banking

corporation, upon acquiring such property, shall hold, lease, rent,

operate and manage the same for the pro rata benefit of all parties

interested in said mortgage, deed of trust or indenture and may, but

shall not be required to, issue certificates of participation in said

property and the rents, issues and profits thereof to those parties

interested in said mortgage or indenture according to their respective

interests. At any time thereafter with the consent of the holders of

eighty-five per centum of the principal amount of the bonds or

certificates outstanding, or with the approval of the court after such

notice to the bondholders or certificate holders as the court by order

may direct, the court may make an order authorizing the trustee to sell

such property for such price and upon such terms as to credit or

otherwise or for such stocks, bonds or other securities as it deems best

for those beneficially interested in said mortgage, deed of trust or

indenture. The order directing the giving of notice to bondholders and

certificate holders of the application of the trustee to sell such

property shall provide for personal service of such notice not less than

thirty days before the return date thereof, upon not less than ten

specified bondholders or certificate holders and notice by mail to all

other bond or certificate holders whose addresses are known to the

trustee and publication of such notice once a week on a week day for

three successive weeks preceding the return date thereof in one

newspaper of general circulation published in the city or county where

said real property is located.

Liquidation of mortgage by trustee. Any banking corporation

or individual acting as trustee in respect to any mortgage upon real

property against which bonds shall have been issued to the public and

which mortgage shall have been given to such trustee by a corporation

organized under the provisions of section one hundred twenty-one hereof,

pursuant to a plan of reorganization approved by the court and which

became effective under section one hundred twenty-two hereof, or which

mortgage shall have been given pursuant to a plan of reorganization

heretofore or hereafter approved and confirmed under the bankruptcy acts

of the United States, or which mortgage shall have been given to such

trustee under a voluntary plan of reorganization by a corporation caused

to be organized by a bondholders' committee for the purpose of acquiring

the property secured by such mortgage at a sale under a judgment of

foreclosure and sale of a prior mortgage given to secure bonds

theretofore issued to the public, may, with the approval of the supreme

court in the county where all or part of the property affected by such

mortgage is situate, sell, assign, discharge or satisfy such mortgage

upon such consideration in cash as the court shall deem fair and

equitable to the bondholders and as the court by order shall direct.

Such order may be made upon the application of the trustee or the holder

of twenty-five per cent of the bonds or of the mortgagor or owners of

the property securing such mortgage. The court may approve a sale,

assignment, discharge or satisfaction at such price as may appear to the

court to be fair and in the best interests of the bondholders and not

less than the cash value of said mortgage if sold at a public sale,

unless duly acknowledged dissents thereto by holders of more than

one-third of the principal amount of the bonds then outstanding have

been filed. If the application for such sale shall be consented to by

the holders of two-thirds of the principal amount of the bonds

outstanding such consent shall constitute a presumption that it is fair

and in the best interests of the bondholders that said mortgage be

liquidated at the price fixed in such consent and the court may approve

a sale at such amount unless it shall appear to the court that such

amount is less than the cash value of said mortgage if sold at a public

sale. If the application shall not be made by the trustee then notice

shall be given to the trustee and in any event the order directing

notice to the bondholders of the application to liquidate such mortgage

shall provide for personal service of such notice not less than thirty

days before the return date thereof upon not less than ten specified

bondholders whose addresses are known to the applicant and notice by

mail to all of the bondholders whose addresses are known and the

publication of such notice once a week on a week day for three

successive weeks preceding the return date thereof in one newspaper of

general circulation published in the city or county where the real

property securing said mortgage is located. Except as herein otherwise

provided all proceedings hereunder and the rights of the parties hereto,

shall be governed by section one hundred twenty-two hereof; except that

if the order shall become effective it shall be without prejudice to the

right of any particular bondholder who has filed a duly acknowledged

dissent therefrom, within the time fixed in the order, to have the court

determine the cash value of the mortgage securing such bond if sold at a

public sale and providing for the payment or securing his ratable share

of such amount as a condition for declaring the order effective.

If any provision of this section or of section one hundred twenty-two

hereof or any clause, sentence, paragraph or any part of such section or

the application thereof to any person or circumstance shall be held

unconstitutional or invalid, such decision or judgment shall not affect

or impair the constitutionality or validity of the remainder thereof,

but shall be confined in its operation to the clause, sentence,

paragraph or part thereof directly involved in such decision or

judgment.

Reorganization of property covered by trust mortgage. Such

banking corporation, under the direction of the court in the foreclosure

action may, and if directed by the court shall, purchase or cause to be

purchased said real property, pursuant to a reorganization plan, and

cause to be formed a domestic business corporation, or a foreign

corporation providing such foreign corporation is authorized to do

business within this state, or utilize any other such corporation,

providing the corporation so formed or utilized shall have provided in

its certificate of incorporation the restriction set forth in section

one hundred eleven of decedent estate law, and shall thereupon grant and

release said property to such new corporation and its assigns forever,

or by assignment of its bid to such new corporation, or otherwise, cause

the referee's deed in foreclosure to be executed and delivered directly

to such new corporation granting and releasing such property to it and

its assigns forever, in exchange for the stocks, bonds and other

securities of such new corporation except such of said securities as may

be reserved for the adjustment of liens and claims against said

property, or for other purposes as specified in the plan, including any

provision made in a plan approved by the court and thereafter becoming

effective as provided in section one hundred twenty-two for any

interest, junior or subordinate to the mortgage foreclosed; provided,

however, that such new corporation shall be authorized to raise money by

mortgage, pledge, borrowing, sale of securities or otherwise to the

extent which may be set forth in the plan of reorganization. The

trustee, upon receiving such securities and any cash available from the

new corporation, shall distribute the same and any other funds or

property constituting part of the trust estate, ratably amongst those

parties interested in such mortgage, deed of trust or indenture less

such trustee's proper expenses and charges in connection therewith; and

thereupon the trustee upon the filing and approval of its accounts in

the foreclosure action and upon assigning to such new corporation any

deficiency judgment and any guarantees and insurance policies held by

the trustee and any claim for waste or otherwise in connection with the

mortgage estate, shall be discharged of any further obligation or

liability under such mortgage or indenture or otherwise. Nothing herein

contained shall affect or impair the liability of any guarantor or any

right or remedy existing in favor of any holders of bonds, notes,

certificates or other securities which are secured by or participate in

such mortgages, deeds of trust or indentures.

Procedure of reorganization and expenses in connection

therewith. The reorganization plan may be presented to the court with

the complaint for foreclosure, or thereafter by the trustee or by any

persons owning or representing twenty-five per centum of the principal

amount of the securities covered by such mortgage, deed of trust or

indenture at any time prior to the foreclosure sale. The plan shall

contain a statement of the minimum and maximum sums which the trustee

shall bid for the property, which sums may be varied by the court upon

its approval of the plan; and the trustee shall not incur any liability

by reason of its failure to bid more than said maximum sum. The trustee

shall not be liable for any action in executing the plan of

reorganization approved by the court except for its wilful misconduct,

fraud, bad faith or gross negligence. Hearings upon such reorganization

plan shall be at such time and place and upon such notice by

publication, mailing or otherwise, as the court shall fix in an order to

show cause why the plan should not be approved. The trustee and any

person beneficially interested in said mortgage, deed of trust or

indenture, and any person whose rights may be affected by such

reorganization, may appear upon the return day of the order to show

cause or at any adjournment thereof, and submit objections to and

modifications of the plan or an alternate plan, and the court shall hear

the parties by affidavit or summarily or otherwise, as in its discretion

it may direct, and thereupon finally determine the plan of

reorganization and fix the time and method for persons affected by such

reorganization to become parties thereto. Where neither the mortgage or

indenture, nor the statute relating to the particular class of

securities nor any other statute, authorizes the purchase of the

property on behalf of all the holders of bonds or certificates of parts

or shares, then if any holder, within twenty days after the approval of

the plan, shall file with the court a duly acknowledged dissent

therefrom, the court shall determine the cash value of the property as

if sold at a public sale and such dissenting holder shall be entitled to

be secured for his ratable share of such amount as a condition for

declaring the plan effective. In all other cases the reorganization plan

shall be deemed binding on all holders of bonds or certificates of

shares or parts unless within twenty days after the approval of the plan

one-third in principal sum of such holders shall file with the court

duly acknowledged dissents therefrom; in which event the plan may be

abandoned or may be further modified as the court shall direct, with the

same right of dissent as aforesaid as to any subsequently amended plan.

Notice of the court's approval of the plan shall be given by

publication, mailing or otherwise as the court may in particular cases

or by general rule direct. Any person aggrieved by any determination

hereunder shall have such rights of appeal as are granted to a party to

a special proceeding. The expenses and compensation of the trustee and

of any committee or person who shall have submitted a plan of

reorganization or modifications thereof shall be fixed at such sum as

the court may deem reasonable and shall be chargeable as a lien upon the

property or collectible through their assumption by the new corporation

or in such other manner as the court may approve. All proceedings and

appeals in respect to the plan of reorganization shall be entitled to

preference over all other civil causes next in order to actions or

special proceedings in which the people of the state or any officer,

board or political subdivision thereof shall be a party.

Modification of trust mortgages given in prior

re-organizations. Any such banking corporation or any individual acting

as trustee in respect to any mortgage, deed of trust or indenture upon

real property, or any leasehold interest therein, against which bonds,

certificates, shares or any other evidence of interests therein (herein

called "debts") shall have been issued to the public, and which mortgage

shall have been given to such trustee by a corporation organized under

section one hundred twenty-one hereof, pursuant to a plan of

reorganization approved by the court and which became effective under

section one hundred twenty-two hereof, or which mortgage shall have been

given to or is held by such trustee pursuant to, or by reason of, a plan

of reorganization heretofore or hereafter approved and confirmed under

the bankruptcy acts of the United States or which mortgage shall have

been given to such trustee under a voluntary plan of reorganization by a

corporation caused to be organized by a bondholders' committee for the

purpose of acquiring the property secured by such mortgage, may, without

foreclosure of such mortgage, and whether or not a default exists

thereunder, present to the supreme court in the county where all or part

of the real property affected by such mortgage is situated, a plan for

the reorganization of such mortgage, deed of trust or indenture. The

plan of reorganization may provide for: (1) the extension of the

maturity of the mortgage, deed of trust or indenture and the debts

secured thereby; (2) the modification of the provisions for interest,

amortization or sinking funds; and (3) such other changes, modifications

or amendments as may be fair and feasible and for the best interests of

the security holders. Such plan may likewise be presented by holders or

representatives of twenty-five per centum in principal amount of such

securities. Such plan may cover one or more mortgages with respect to

said property. If no default shall exist in the payment of principal or

interest, such plan may be presented by the mortgagor or by the owner of

the property covered by such mortgage. Hearing upon such reorganization

plan shall be at such time and place and upon such notice by

publication, mailing or otherwise as the court shall fix in an order to

show cause why the plan should not be approved. No plan shall be

approved unless the court, after such hearing shall determine that it is

fair, feasible and for the best interests of the security holders. The

affirmative consent of the holders of two-thirds of the principal amount

of the outstanding securities shall constitute a presumption that the

plan is fair, feasible and for the best interests of the security

holders. All proceedings hereunder and the rights of the parties hereto,

including the hearing, the final order determining the plan of

reorganization embodying such modifications, the time and method for the

persons affected by such plan becoming parties thereto and the right of

appeal from any order, shall be governed by section one hundred

twenty-two hereof; except that if the reorganization shall become

effective it shall be without prejudice to the right of any particular

holder of such securities who has duly dissented therefrom to have the

court determine the cash value of such securities as he may have owned

on or before the date of the presentation of the plan of reorganization

pursuant to this section, and providing for the payment or securing his

ratable share of such amount as a condition for declaring the plan

effective. Upon the order becoming effective the plan shall be binding

upon all the security holders.

If any provision of this section or of section one hundred twenty-two

hereof or any clause, sentence, paragraph or any part of such section or

the application thereof to any person or circumstance shall be held

unconstitutional or invalid, such decision or judgment shall not affect

or impair the constitutionality or validity of the remainder thereof,

but shall be confined in its operation to the clause, sentence,

paragraph or part thereof directly involved in such decision or

judgment.

Preserving existing rights. Nothing in this act shall be deemed

to prevent any bondholder or committee of bondholders from bidding at

the foreclosure sale and in case he or they should be a successful

bidder, from applying upon the purchase price the bonds held by him or

them at the amount distributable thereon and reorganizing the property

so purchased in any manner which was lawful prior to the enactment of

this act, nor to impair any previously existing right of a trustee so to

purchase and pay for the property, or to preclude any trustee which

shall have purchased such property from submitting to the court a plan

for its reorganization. The court may provide for the qualification of

bidders other than the trustee by requiring them to deposit with the

officer conducting the sale in advance of bidding up to ten per centum

of the amount of their bid in cash or in bonds taken at the principal

amount thereof. In any action now or hereafter pending for the

foreclosure of any such mortgage or indenture, the property shall, on

application of the trustee, be sold subject to the lien of any taxes,

assessments and water rates, any prior lien, or to any liens which may

thereafter be established, which are the subject of litigation pending

at the time of the sale, provided a brief statement thereof is contained

in the notice of sale.

Purpose and application of article. It is the purpose of the

legislature, in enacting this article, to provide for the regulation and

supervision of the appointment, creation, agreements, acts, conduct,

practices and proceedings of trustees, bondholders' protective

committees, depositaries, management companies, voting trustees and

other persons administering, holding in custody or otherwise concerned

with real estate mortgages and interests therein to the end that such

interests will be properly conserved, administered and ultimately

liquidated in the public interest. This article, except as otherwise

expressly provided, shall apply, to the extent that the state has power

to provide therefor, to all mortgage investments, as hereinafter

defined, where the property constituting the underlying security

therefor, or any part thereof, is located within the state or where the

trustee, committee, depositary, management company, voting trustee or

other person administering, holding in custody, or otherwise concerned

with such investments has an office for the transaction of business with

respect thereto within the state or has obtained authority to do

business in this state.

Definitions. As used in this article, unless the context

requires otherwise:

1. "Mortgage investments" shall mean and include any and all shares

and interests, heretofore or hereafter acquired, in an issue of bonds,

notes or other evidence of indebtedness of individuals, partnerships,

associations or corporations, held by more than one person and secured

by a mortgage or mortgages upon real property, or by a deed or deeds of

trust, trust indenture or indentures or other evidence of interest in

real property, the payment of which is not guaranteed by any title and

mortgage guaranty corporation or investment company and shall include

certificates of deposit issued by or on behalf of a bondholders'

protective committee or similar group and also any bonds, notes or other

evidences of indebtedness taken in lieu of such real property by

foreclosure or otherwise, provided, however, that it shall not include

industrial securities. The term "industrial securities" shall be

construed to mean the bonds, debentures, notes or other evidences of

indebtedness of individuals, partnerships, associations or corporations

not engaged in the business of owning, improving or operating real

property but whose ownership of such real property shall be merely

incidental to the operation and conduct of its business and which real

property shall be used as incidental and additional security for such

bonds, notes, debentures or other evidences of indebtedness.

2. "Bondholder" shall mean and include any person, firm, association

or corporation owning or holding a mortgage investment.

3. "Trustee" shall mean and include any person, firm, association or

corporation named, appointed or designated as such in any deed of trust,

trust indenture or other similar instrument or any successor of such

trustee.

4. "Committee" shall mean and include a person or group of persons,

however known or designated, appointed by agreement, assignment, proxy,

consent, authorization, power of attorney, or other similar instrument

to act as an agency to receive and hold mortgage investments deposited

by bondholders and to administer or do any act in respect to the same

for the bondholders.

5. "Deposit agreement" shall include any agreement, assignment, proxy,

consent, authorization, power of attorney or other similar instrument

whereby a mortgage investment is deposited with or assigned to a

committee.

6. "Depositary" shall mean and include any person, firm, association

or corporation designated in any trust indenture, deed of trust, or

deposit agreement as the custodian or depositary of mortgage

investments.

7. "Property" shall mean and include all of the real property or any

incidental personal property constituting the underlying security for

mortgage investments.

8. "Court," unless some other court has jurisdiction over the property

or a plan of reorganization therefor, shall mean the supreme court of

the state of New York in the county in which the property or the major

portion thereof is located, or, if the property be located outside the

state, in the county of the state in which the committee, trustee or

other person dealing with the mortgage investment has or proposes to

have his principal office for the transaction of business with respect

to such mortgage investment.

Trust indentures. No trustee shall hereafter accept a trust

under any trust indenture or mortgage within the contemplation of this

article or act as trustee thereunder unless the instrument creating the

trust shall contain the following provisions, among others, which confer

the following powers and impose the following duties upon the trustees:

1. In the case of an event of default (as such term is defined in such

instrument), to exercise such of the rights and powers vested in the

trustee by such instrument, and to use the same degree of care and skill

in their exercise as a prudent man would exercise or use under the

circumstances in the conduct of his own affairs.

2. In considering what actions are or are not prudent in the

circumstances, to consider whether or not:

(a) to take such action as may be necessary or proper to sequester the

rents and income of the property;

(b) to procure from the owner of the property an assignment of rents

and/or a consent to enter into possession of the property and to collect

the rents therefrom;

(c) to apply to the court for the appointment of a receiver of the

rents and income of the property;

(d) to declare due and payable forthwith any principal amount

remaining due and unpaid and commence an action of foreclosure;

(e) to apply the moneys received as rents and income from the property

as well as moneys received by the trustee from any receiver appointed

for such property in his discretion, to the maintenance and operation of

such property, the payment of taxes, water rents and assessments levied

thereon and any arrears thereof, to the payment of underlying liens, and

to the creation and maintenance of a reserve or sinking fund.

3. If the trustee can obtain the information without unreasonable

effort or expense, to render annually to bondholders, after the

occurrence of a default, unless such default be previously cured, a

summarized statement of income and expenditures in connection with the

property.

4. To distribute the proceeds of any sale or other disposition of the

property ratably among the bondholders, subject to applicable mandatory

provisions of law.

5. To permit the obligor or other person in possession or control of

the property, or his successors in interest, to be free to select the

insurance broker or agent through whom any insurance of any kind is to

be placed or written on any property affected or covered by a mortgage

held by such trustee.

Restrictions on trustees. 1. No trustee shall accept a trust or

act as trustee under a trust mortgage affecting any property in which he

or any of the officers or directors of the trustee shall have, directly

or indirectly, any financial interest.

2. No trustee nor any officer or director of a trustee, nor any

employee of any company which is a subsidiary of, controlled by or

affiliated with the trustee shall, either directly or indirectly, act as

insurance broker or agent in connection with the placing or writing of

any insurance of any kind on any property affected or covered by a

mortgage held by such trustee under a trust indenture, deed of trust, or

other similar instrument, nor shall such trustee be an officer,

director, partner or employee of or otherwise connected with or have any

financial interest in, directly or indirectly, in any firm, agency,

business, association or corporation that shall act as broker or agent

in connection with the placing or writing of such insurance; nor shall

any trustee or any officer, director or employee of the trustee be an

officer, director, partner or an employee of or have any financial

interest in any firm, agency, association or corporation engaged by such

trustee as his or its representative or agent in the management or

supervision of, or the collection of rents and income from any property

affected or covered by the mortgage held by the trustee under a trust

indenture, deed of trust, or other similar instrument.

3. No trustee shall accept any trust or act as trustee under any other

trust indenture covering or affecting the same property.

4. No owner or mortgagor of any property covered by a trust indenture,

deed of trust, or other similar instrument and no officer, director,

stockholder or employee of such owner or mortgagor shall accept a trust

or act as trustee with respect to such property.

5. The provisions of this section shall only apply to trust indentures

or mortgages hereafter entered into.

Minimum bid of trustee at sale on foreclosure to be fixed by

court. Notwithstanding any inconsistent provision of law, on application

for judgment of foreclosure and sale in an action brought to foreclose a

trust indenture, deed of trust or mortgage upon real property, except

where a plan of reorganization shall have been consented to by one

hundred per centum of all the bondholders or where a minimum and maximum

sum at which the trustee shall bid for the property has been set forth

in a plan of reorganization and approved by the court in a proceeding

for the reorganization of the property covered by trust indenture under

sections one hundred and twenty-one and one hundred and twenty-two of

this chapter, the court shall determine what is a fair upset price below

which the property shall not be sold and the judgment directing the

foreclosure and sale shall fix the minimum price which the trustee or

his agent or nominee shall bid for the property.

No deposit agreement shall be valid or binding which does not

set forth the following provisions for the protection of the

bondholders:

(a) That the fees of the members of the committee, the assignee or the

other person or persons to whom the deposit agreement was given, as the

case may be, shall be reasonable and subject to the approval of the

court.

(b) That the deposit agreement may not be amended without the approval

of the court.

(c) That the mortgage investments deposited thereunder may not be

sold, pledged or otherwise disposed of without the unanimous consent of

the depositing bondholders or, in lieu thereof, the approval of the

court.

(d) No deposit agreement shall be valid or binding or confer any

rights whatever upon any member of a committee, assignee or other person

to whom the agreement was given, who has any financial interest directly

or indirectly in the depositary named or to be named by such committee,

assignee or other person, and no person shall act for a bondholder or a

deposit agreement who has such an interest.

Restrictions on committees. No sale of mortgage investments

by a committee shall be valid unless the fairness of the price received

at such sale shall have first been approved by the court except that

where an action to foreclose a mortgage on the property is pending, the

application to pass upon the fairness of such price shall be determined

by the court in which such action is pending. The hearing upon such

application shall be held at such time and place and upon such notice to

the depositing bondholders as the court shall direct.

Managing agents and management companies. 1. A person, firm,

association or corporation appointed, designated or employed by a

trustee entering or taking possession of mortgaged property to collect

rents from, or to manage or supervise the operation and maintenance of

property shall be bonded by a surety bond, approved by the court as to

form and sufficiency, in a sum equivalent to at least the gross rental

or income of the property for the three months immediately preceding

such appointment, designation or employment, running to the trustee,

during the period of his or its possession for the benefit of the

bondholders, conditioned upon the faithful performance by such person,

firm, association or corporation, of his or its duties and the due

accounting for all moneys received by him or it during the course of his

or its employment. The cost or premium of such bond may, in the

discretion of the court, be a charge against and paid for from the

income of the mortgaged property.

2. No trustee or committee shall employ as a managing agent any

management company or corporation any of whose officers, directors or

stockholders are also officers, directors or employees of the trustee or

members or employees of the committee.

3. No voting trustee, officer or director of a corporation acquiring

the title to property in or through a reorganization of such property

and no corporation of which he shall be an officer, director or

stockholder, shall be employed as a managing agent for the reorganized

property except with the approval of the persons owning or holding at

least fifty-one per centum of the securities issued by the reorganized

company.

Voting trustees and voting trust agreements. 1. No trustee or

member of a committee or the attorney of such trustee or committee or

any employee of either shall be eligible to become a voting trustee or

an officer or director of a corporation to be formed or used under a

plan of reorganization to acquire title to property previously

administered by such trustee or committee unless the facts with respect

to their previous connection with the property are disclosed to the

court and the affirmative approval of the holders of at least fifty-one

per centum of the mortgage investments is obtained or unless a plan of

reorganization approved by the court in proceedings under section one

hundred and twenty-two of this chapter shall so provide.

2. No agreement appointing trustees to vote the stock of any

corporation formed or used under a plan of reorganization of property

shall be valid for a longer term than five years and unless it has been

submitted to and approved by the court and no trustees appointed by such

agreement shall continue to act thereunder after the expiration of its

term, unless and until a new or an extension agreement has been entered

into and received the affirmative approval of the holders of at least

fifty-one per centum of the stock.

3. No salary or other compensation shall be paid to any voting trustee

or any officer or director of a corporation formed or used to acquire

the title to property in or through reorganization unless the same has

been approved by the court.

Fees and allowances. In the event of a default in a trust

indenture necessitating the sequestration of the rents and income of the

property covered thereby and where the trustee or committee or other

person or persons representing the bondholders is or are lawfully in

possession of the property and they or their attorneys, if any, shall

have rendered services in connection with the property at any time after

default, no fees or allowances shall be paid for such services unless

and until affidavits showing the value thereof have been presented to

the court or a justice thereof and such court or justice has approved

the same and such fees and allowances, if approved, shall be paid in

such manner and at such times as the court or justice shall direct.

Removal of trustees, committees or depositaries. A trustee,

committee or any member thereof and a depositary may be removed by the

court for cause shown upon the application of any person aggrieved by

the act or omission to act of such trustee, committee, member or

depositary after such notice and opportunity to be heard in his or its

defense as the court shall direct.

Actions for accounting by minority groups; expenses thereof.

In any special proceeding or action brought by or on behalf of any

minority bondholder or group of minority bondholders, or any person or

group of persons not holding at least fifty-one per centum of the stock

or bonds of the mortgage issue, but claiming an interest in the trust

property, for a judicial accounting, the court may take into

consideration the information as to income and disbursements theretofore

furnished to bondholders, the merits and good faith of the proceeding or

action, and whether the accounting will be of value to the bondholders,

as well as the cost of such accounting, and the court may require that

the petitioner or plaintiff furnish a surety company bond to indemnify

the estate against the expenses of the accounting, including fees of the

referee to take the accounting, stenographic fees, and the expenses of

the trustee, and may direct that, if it should appear that the

accounting result in any practical benefit to all the bondholders, the

court should then, in its discretion, release the indemnity, and that if

no such benefit accrue, the petitioner or plaintiff and his attorney

should receive no compensation, and the trust fund should be reimbursed

for the expenses saddled upon it by reason thereof.

Violations and penalties. The wilful violation of any

provision of this article, except section one hundred and twenty-six

unless elsewhere otherwise defined, shall constitute a misdemeanor and

shall be punishable, unless elsewhere otherwise prescribed by a fine of

not exceeding one thousand dollars or by imprisonment for not exceeding

one year or by both such fine and imprisonment.

Construction of article. This article shall be construed

liberally to effectuate its purpose. The enumeration by this article of

specific powers and duties in trust indentures and other instruments

shall not preclude or prevent the use, exercise or enjoyment of

additional powers and duties under or pursuant to such instruments or

excuse the failure to exercise or perform such other powers or duties.

Nothing contained in this article shall be construed to repeal any other

provision of law except in so far as it is irreconcilably in conflict

with a provision of this article in which event the latter shall

control.

Separability. If any of the provisions of this article or the

application thereof to any person or circumstance be held invalid, such

invalidity shall not affect or impair other provisions or applications

to other circumstances which can be given effect without the invalid

provision or application, and to this end the provisions of this article

are declared to be separable.

Right to appeal. Any person aggrieved by any determination

hereunder shall have such right of appeal as is granted to a party to a

special proceeding. All proceedings and appeals hereunder shall be

entitled to such preference as is granted in respect to plans of

reorganization under the provisions of section one hundred and

twenty-two of this chapter.

Exemptions from restrictions on trustees and trust

indentures. The provisions of sections one hundred and twenty-six and

one hundred and twenty-seven of this article shall not apply to any

mortgage, deed of trust, trust indenture, or other similar instrument

which has been qualified with the United States securities and exchange

commission pursuant to the provisions of the trust indenture act of

nineteen hundred thirty-nine, as from time to time amended and in force.

In the case of a mortgage, deed of trust, trust indenture, or other

similar instrument which has not been so qualified, the provisions of

section one hundred twenty-seven shall not apply if such instrument

(hereinafter referred to as the "indenture") contains provisions in

substance to the following effect:

(a) If the trustee has or shall acquire any conflicting interest as

hereinafter defined,

(1) such trustee shall, within ninety days after ascertaining that it

has such conflicting interest, either eliminate such conflicting

interest or resign, such resignation to become effective upon the

appointment of a successor trustee and such successor's acceptance of

such appointment; and the obligor upon the bonds, notes or other

evidences of indebtedness issued under the indenture (hereinafter

referred to as the "indenture securities") shall take prompt steps to

have a successor appointed in the manner provided in the indenture;

(2) in the event that such trustee shall fail to comply with the

provisions of subparagraph (1), such trustee shall, within ten days

after the expiration of such ninety-day period, transmit notice of such

failure by mail (i) to all registered holders of indenture securities,

as the names and addresses of such holders appear upon the registration

books of the obligor upon the indenture securities, (ii) to such holders

of indenture securities as have, within the two years preceding such

transmission, filed their names and addresses with the indenture trustee

for the purpose of receiving notices or reports to indenture security

holders, and (iii) to all holders of indenture securities whose names

and addresses are contained in information currently preserved by the

trustee for such purpose in accordance with provisions of the indenture

requiring the obligor to furnish or cause to be furnished to the trustee

at stated intervals of not more than six months, and at such other times

as the trustee may request in writing, all information in the possession

or control of such obligor, or of any of its paying agents, as to the

names and addresses of the indenture security holders, and requiring the

trustee to preserve, in as currrent a form as is reasonably practicable,

all such information so furnished to it or received by it in the

capacity of paying agent; and

(3) subject to any provision of the indenture to the effect that in a

suit against the trustee (unless instituted by a holder or group of

holders of more than ten per centum in principal amount of the indenture

securities outstanding) the court may in its discretion require an

undertaking for costs and may assess reasonable costs, including

reasonable attorneys' fees, against any party litigant, any security

holder who has been a bona fide holder of indenture securities for at

least six months may, on behalf of himself and all others similarly

situated, petition any court of competent jurisdiction for the removal

of such trustee, and the appointment of a successor, if such trustee

fails, after written request therefor by such holder, to comply with the

provisions of subparagraph (1).

(b) For purposes of paragraph (a), the trustee shall be deemed to have

a conflicting interest if---

(1) such trustee is trustee under another indenture under which any

other securities, or certificates of interest or participation in any

other securities, of an obligor upon the indenture securities are

outstanding unless (A) the indenture securities are collateral trust

notes under which the only collateral consists of securities issued

under such other indenture, or (B) such other indenture is a collateral

trust indenture under which the only collateral consists of indenture

securities, or (C) such obligor has no substantial unmortgaged assets

and is engaged primarily in the business of owning, or of owning and

developing and/or operating, real estate, and the indenture to be

qualified and such other indenture are secured by wholly separate and

distinct parcels of real estate: Provided, that the indenture may

contain a provision excluding from the operation of this subparagraph

any other indenture or indentures which shall have been qualified with

the United States securities and exchange commission pursuant to the

provisions of the trust indenture act of nineteen hundred thirty-nine,

as from time to time amended and in force;

(2) such trustee or any of its directors or executive officers is an

obligor upon the indenture securities or an underwriter for such an

obligor;

(3) such trustee directly or indirectly controls or is directly or

indirectly controlled by or is under direct or indirect common control

with an obligor upon the indenture securities or an underwriter for such

an obligor;

(4) such trustee or any of its directors or executive officers is a

director, officer, partner, employee, appointee, or representative of an

obligor upon the indenture securities, or of an underwriter (other than

the trustee itself) for such an obligor who is currently engaged in the

business of underwriting, except that (A) one individual may be a

director and/or an executive officer of the trustee and a director

and/or an executive officer of such obligor, but may not be at the same

time an executive officer of both the trustee and of such obligor, and

(B) if and so long as the number of directors of the trustee in office

is more than nine, one additional individual may be a director and/or an

executive officer of the trustee and a director of such obligor, and (C)

such trustee may be designated by any such obligor or by any underwriter

for any such obligor, to act in the capacity of transfer agent,

registrar, custodian, paying agent, fiscal agent, escrow agent or

depositary, or in any other similar capacity, or, subject to the

provisions of subparagraph (1) of this paragraph, to act as trustee,

whether under an indenture or otherwise;

(5) ten per centum or more of the voting securities of such trustee is

beneficially owned either by an obligor upon the indenture securities or

by any director, partner, or executive officer thereof, or twenty per

centum or more of such voting securities is beneficially owned,

collectively, by any two or more of such persons; or ten per centum or

more of the voting securities of such trustee is beneficially owned

either by an underwriter for any such obligor or by any director,

partner, or executive officer thereof, or is beneficially owned,

collectively, by any two or more such persons;

(6) such trustee is the beneficial owner of, or holds as collateral

security for an obligation which is in default as hereinafter defined,

(A) five per centum or more of the voting securities, or ten per centum

or more of any other class of security, of an obligor upon the indenture

securities, not including indenture securities and securities issued

under any other indenture under which such trustee is also such trustee,

or (B) ten per centum or more of any class of security of an underwriter

for any such obligor;

(7) such trustee is the beneficial owner of, or holds as collateral

security for an obligation which is in default as hereinafter defined,

five per centum or more of the voting securities of any person who, to

the knowledge of the trustee, owns ten per centum or more of the voting

securities of, or controls directly or indirectly or is under direct or

indirect common control with, an obligor upon the indenture securities;

(8) such trustee is the beneficial owner of, or holds as collateral

security for an obligation which is in default as hereinafter defined,

ten per centum or more of any class of security of any person who, to

the knowledge of the trustee, owns fifty per centum or more of the

voting securities of an obligor upon the indenture securities; or

(9) such trustee owns, on May fifteenth in any calendar year, in the

capacity of executor, administrator, testamentary or inter vivos

trustee, guardian, committee or conservator, or in any other similar

capacity, an aggregate of twenty-five per centum or more of the voting

securities, or of any class of security, of any person, the beneficial

ownership of a specified percentage of which would have constituted a

conflicting interest under subparagraph (6), (7) or (8) of this

paragraph. The indenture may provide, as to any such securities of

which the trustee acquired ownership through becoming executor,

administrator or testamentary trustee of an estate which included them,

that the provisions of the preceding sentence shall not apply, for a

period of not more than two years from the date of such acquisition, to

the extent that such securities included in such estate do not exceed

twenty-five per centum of such voting securities or twenty-five per

centum of any such class of security. The indenture shall provide that

promptly after May fifteenth in each calendar year, the trustee shall

make a check of its holdings of such securities in any of the

above-mentioned capacities as of such May fifteenth. Such indenture

shall also provide that if the obligor upon the indenture securities

fails to make payment in full of principal or interest under such

indenture when and as the same becomes due and payable, and such failure

continues for thirty days thereafter, the trustee shall make a prompt

check of its holdings of such securities in any of the above-mentioned

capacities as of the date of the expiration of such thirty-day period,

and after such date, notwithstanding the foregoing provisions of this

subparagraph, all such securities so held by the trustee, with sole or

joint control over such securities vested in it, shall be considered as

though beneficially owned by such trustee, for the purposes of

subparagraphs (6), (7) and (8) of this paragraph.

(c) The indenture shall provide that the specification of percentages

in subparagraphs (5) to (9), inclusive, of paragraph (b) shall not be

construed as indicating that the ownership of such percentages of the

securities of a person is or is not necessary or sufficient to

constitute direct or indirect control for the purposes of subparagraph

(3) or (7) of paragraph (b).

(d) For the purposes of subparagraphs (6), (7), (8) and (9) of

paragraph (b), (A) the terms "security" and "securities" shall include

only such securities as are generally known as corporate securities, but

shall not include any note or other evidence of indebtedness issued to

evidence an obligation to repay moneys lent to a person by one or more

banks, trust companies, or banking firms, or any certificate of interest

or participation in any such note or evidence of indebtedness; (B) an

obligation shall be deemed to be in default when a default in payment of

principal shall have continued for thirty days or more, and shall not

have been cured; and (C) the trustee shall not be deemed the owner or

holder of (i) any security which it holds as collateral security (as

trustee or otherwise) for an obligation which is not in default as above

defined, or (ii) any security which it holds as collateral security

under the indenture, irrespective of any default thereunder, or (iii)

any security which it holds as agent for collection, or as custodian,

escrow agent, or depositary, or in any similar representative capacity.

(e) For the purposes of paragraph (b), the term "underwriter" when

used with reference to an obligor upon the indenture securities means

every person who, within three years prior to the time as of which the

determination is made, was an underwriter of any security of such

obligor outstanding at such time.

(f) When used in paragraphs (b) to (e), inclusive, unless the context

otherewise requires---

(1) The term "underwriter" means any person who has purchased from an

issuer with a view to, or offers or sells for an issuer in connection

with, the distribution of any security, or participates or has a direct

or indirect participation in any such undertaking, or participates or

has a participation in the direct or indirect underwriting of any such

undertaking; but such term shall not include a person whose interest is

limited to a commission from an underwriter or dealer not in excess of

the usual and customary distributors' or sellers' commission.

(2) The term "director" means any director of a corporation, or any

individual performing similar functions with respect to any organization

whether incorporated or unincorporated.

(3) The term "executive officer" means the president, every vice

president, every trust officer, the cashier, the secretary, and the

treasurer of a corporation, and any individual customarily performing

similar functions with respect to any organization whether incorporated

or unincorporated, but shall not include the chairman of the board of

directors.

(4) The term "obligor", when used with respect to any indenture

security, means every person who is liable thereon, and, if such

security is a certificate of interest or participation, such term means

also every person who is liable upon the security or securities in which

such certificate evidences an interest or participation; but such term

shall not include the trustee under an indenture under which

certificates of interest or participation, equipment trust certificates,

or like securities are outstanding.

(5) The term "voting security" means any security presently entitling

the owner or holder thereof to vote in the direction or management of

the affairs of a person, or any security issued under or pursuant to any

trust, agreement, or arrangement whereby a trustee or trustees or agent

or agents for the owner or holder of such security are presently

entitled to vote in the direction or management of the affairs of a

person; and a specified percentage of the voting securities of a person

means such amount of the outstanding voting securities of such person as

entitles the holder or holders thereof to cast such specified percentage

of the aggregate votes which the holders of all the outstanding voting

securities of such person are entitled to cast in the direction or

management of the affairs of such person.

Estate of curtesy abolished. The common law estate by the

curtesy in the real property of a wife dying after the thirty-first day

of August, nineteen hundred and thirty, and all its incidents, are

hereby abolished.

Dower. When the parties intermarried prior to the first day of

September, nineteen hundred and thirty, a widow shall be endowed of the

third part of all the lands whereof her husband was prior to the first

day of September, nineteen hundred and thirty, seized of an estate of

inheritance, at any time during the marriage. Except as hereinbefore

provided, after the thirty-first day of August, nineteen hundred and

thirty, no inchoate right of dower shall be possessed by a wife during

coverture, and no widow shall be endowed, in any lands whereof her

husband became seized of an estate of inheritance.

Lands reacquired by the husband. Lands in which the husband

did not have an estate of inheritance on September first, nineteen

hundred thirty, and in which the wife did not then have an inchoate

right of dower, shall not be subject to dower or an inchoate right of

dower if acquired by the husband after said date, although they had been

owned by the husband prior to said date.

Dower in lands exchanged. If a husband seized of an estate of

inheritance in lands, exchanges them for other lands, his widow shall

not have dower of both, but she must make her election, to be endowed of

the lands given, or of those taken, in exchange; and if her election be

not evinced by the commencement of an action to recover her dower of the

lands given in exchange, within one year after the death of her husband,

she is deemed to have elected to take her dower of the lands received in

exchange.

Dower in lands mortgaged before marriage. Where a person seized

of an estate of inheritance in lands, executes a mortgage thereof,

before marriage, his widow is, nevertheless, entitled to dower of the

lands mortgaged, as against every person except the mortgagee and those

claiming under him.

Dower in lands mortgaged for purchase-money. Where a husband

purchases lands during the marriage, and at the same time mortgages his

estate in those lands to secure the payment of the purchase-money, his

widow is not entitled to dower of those lands, as against the mortgagee

or those claiming under him, although she did not unite in the mortgage.

She is entitled to her dower as against every other person.

Surplus proceeds of sale under purchase-money mortgages.

Where, in a case specified in the last section, the mortgagee, or a

person claiming under him, causes the land mortgaged to be sold, after

the death of the husband, either under a power of sale contained in the

mortgage, or by virtue of a judgment in an action to foreclose the

mortgage, and any surplus remains, after payment of the money due on the

mortgage and the costs and charges of the sale, the widow is

nevertheless entitled to the interest or income of one-third part of the

surplus for her life, as her dower.

Widow of mortgagee not endowed. A widow shall not be endowed of

the lands conveyed to her husband by way of mortgage, unless he acquires

an absolute estate therein, during the marriage.

When dower barred by misconduct. In case of a divorce,

dissolving the marriage contract for the misconduct of the wife, she

shall not be endowed.

When dower barred by dissolution of marriage. In case of a

dissolution of the marriage because of the absence of the wife for five

successive years, as provided in section seven-a of the domestic

relations law, she shall not be endowed.

When dower barred by jointure. Where an estate in real property

is conveyed to a person and his intended wife, or to the intended wife

alone, or to a person in trust for them or for the intended wife alone,

for the purpose of creating a jointure for her, and with her assent, the

jointure bars her right or claim of dower in all the lands of the

husband. The assent of the wife to such a jointure is evidenced, if she

be of full age, by her becoming a party to the conveyance by which it is

settled; if she be a minor, by her joining with her father or guardian

in that conveyance.

When dower barred by pecuniary provisions. Any pecuniary

provision, made for the benefit of an intended wife and in lieu of

dower, if assented to by her as prescribed in the last section, bars her

right or claim of dower in all the lands of her husband.

When widow to elect between jointure and dower. If, before the

marriage, but without her assent, or, if after the marriage, real

property is given or assured for the jointure of a wife, or a pecuniary

provision is made for her, in lieu of dower, she must make her election

whether she will take the jointure or pecuniary provision, or be endowed

of the lands of her husband; but she is not entitled to both.

Election between devise and dower. If real property is devised

to a woman, or a pecuniary or other provision is made for her by will in

lieu of her dower, she must make her election whether she will take the

property so devised, or the provisions so made, or be endowed of the

lands of her husband; but she is not entitled to both.

When deemed to have elected. Where a woman is entitled to an

election, as prescribed in either of the last two sections, she is

deemed to have elected to take the jointure, devise or pecuniary

provision, unless within six months after the death of her husband she

enters upon the lands assigned to her for her dower, or commences an

action for her dower. But, during such period of six months after the

death of her said husband, her time to make such election may be

enlarged by the order of any court competent to pass on the accounts of

executors, administrators or testamentary trustees, or to admeasure

dower, on an affidavit showing the pendency of a proceeding to contest

the probate of the will containing such jointure, devise or pecuniary

provision, or of an action to construe or set aside such will, or that

the amount of claims against the estate of the testator can not be

ascertained within the period so limited, or other reasonable cause, and

on notice given to such persons, and in such manner, as such court may

direct. Such order shall be indexed and recorded in the same manner as a

notice of pendency of action in the office of the clerk of each county

wherein the real property or a portion thereof affected thereby is

situated.

When provision in lieu of dower is forfeited. Every jointure,

devise and pecuniary provision in lieu of dower is forfeited by the

woman for whose benefit it is made in a case in which she would forfeit

her dower; and on such forfeiture, an estate so conveyed for jointure,

or devised, or a pecuniary provision so made, immediately vests in the

person or legal representatives of the person in whom they would have

vested on the determination of her interest therein, by her death.

Effect of acts of husband. An act, deed or conveyance, executed

or performed by the husband without the assent of his wife, evidenced by

her acknowledgment thereof, in the manner required by law to pass the

contingent right of dower of a married woman, or a judgment or decree

confessed by or recovered against him, or any laches, default, covin, or

crime of a husband, does not prejudice the right of his wife to her

dower or jointure, or preclude her from the recovery thereof.

Widow's quarantine. A widow may remain in the chief house of

her husband forty days after his death, whether her dower is sooner

assigned to her or not, without being liable to any rent for the same;

and in the meantime she may have her reasonable sustenance out of the

estate of her husband.

Widow may bequeath a crop. A widow may bequeath a crop in the

ground of land held by her in dower.

Divorced woman may release dower. A woman who is divorced from

her husband, whether such divorce be absolute or limited, or granted in

his or her favor, by any court of competent jurisdiction, may release to

him, by an instrument in writing, sufficient to pass title to real

estate, her inchoate right of dower in any specific real property

theretofore owned by him, or generally in all such real property, and

such as he shall thereafter acquire.

Married woman may release dower by attorney. A married woman of

full age may release her inchoate right of dower in real property by

attorney in fact in any case where she can personally release the same.

* § 210. Short title. This article shall be cited as the "good cause

eviction law".

* NB Repealed June 15, 2034

* § 211. Definitions. 1. The term "housing accommodation", as used in

this article shall mean any residential premises, including any

residential premises located within a mixed-use residential premises.

2. The term "landlord" as used in this article shall mean any fee

owner, lessor, sublessor, assignor, court appointed receiver, or any

other person or entity receiving or entitled to receive rent for the

occupancy of any housing accommodation or an agent of any of the

foregoing.

3. (a) The term "small landlord" as used in this article shall mean a

landlord of no more than (i) ten units in the state, or (ii) such other

number of units in the state designated by local law pursuant to

paragraph (b) of subdivision two of section two hundred thirteen of this

article.

(b) If a landlord is a single natural person, then that landlord is a

small landlord if they own or are a beneficial owner of, directly or

indirectly, in whole or in part, no more than the number of units

established pursuant to paragraph (a) of this subdivision; if there is

more than one natural person owner, then no one person may own or be a

beneficial owner of, directly or indirectly, in whole or in part, more

than the number of units established pursuant to paragraph (a) of this

subdivision.

(c) If a landlord is an entity, organized under the laws of this state

or of any other jurisdiction, then that landlord is a small landlord if

each natural person with a direct or indirect ownership interest in the

entity or any affiliated entity owns no more than the number of units

established pursuant to paragraph (a) of this subdivision. If an entity

cannot provide the names of all natural persons with a direct or

indirect ownership interest in the entity, such entity shall not qualify

as a small landlord.

4. The term "tenant" as used in this article shall mean a tenant,

sub-tenant, lessee, sublessee, or any other person entitled to the

lawful possession, use or occupancy of any housing accommodation. An

individual shall not be considered a tenant for the purposes of this

article if:

(a) no landlord-tenant relationship exists, as established pursuant to

any of the grounds set forth in section seven hundred thirteen of the

real property actions and proceedings law; or

(b) the individual is an occupant, as defined in paragraph (b) of

subdivision one of section two hundred thirty-five-f of this chapter,

who has not received the landlord's express or implied consent to use

the housing accommodation as their primary residence in exchange for

payment of rent.

5. The term "rent" as used in this article shall mean any

consideration, including any bonus, benefit or gratuity demanded or

received for or in connection with the possession, use or occupancy of

housing accommodations or the execution or transfer of a lease for such

housing accommodations. The term "rent" shall not include any separate

charges for services, amenities or facilities which the tenant pays in

addition to rent, including but not limited to charges for fitness

centers, parking, storage, or facility rentals, provided that such

charges are not imposed or increased for the purposes of circumventing

this article.

6. The term "disabled person" as used in this article shall mean a

person who has an impairment which results from anatomical,

physiological or psychological conditions, other than addiction to

alcohol, gambling, or any controlled substance, which are demonstrable

by medically acceptable clinical and laboratory diagnostic techniques,

and which are expected to be permanent and which substantially limit one

or more of such person's major life activities.

7. The term "inflation index" shall mean five percent plus the annual

percentage change in the consumer price index for all urban consumers

for all items as published by the United States bureau of labor

statistics for the region in which the housing accommodation is located,

as established for the most recent preceding calendar year as shall be

published by the division of housing and community renewal no later than

the first of August in any given year, provided further that for New

York city and any village, town, or city that adopts the provisions of

this article by local law pursuant to subdivision one of section two

hundred thirteen of this article in the counties of Dutchess, Nassau,

Orange, Putnam, Rockland, Suffolk, and Westchester, such consumer price

index shall be the New York-Newark-Jersey City, NY-NJ-PA consumer price

index, and provided further that for any other village, town, or city

that adopts the provisions of this article by local law pursuant to

subdivision one of section two hundred thirteen of this article, such

consumer price index shall be the Northeast Region consumer price index.

8. The term "local rent standard" shall mean a rent increase equal to

the inflation index or ten percent, whichever is lower.

* NB Repealed June 15, 2034

* § 212. Applicability in the city of New York. Upon the effective

date of this section, this article shall apply to the city of New York.

* NB Repealed June 15, 2034

* § 213. Voluntary participation by local governments outside the city

of New York. 1. Applicability. This article shall apply in any village,

town, or a city, other than the city of New York, that, acting through

its local legislative body, adopts the provisions of this article by

local law.

2. Opt-in by a village, town, or city, other than the city of New

York. A village, town, or city that adopts the provisions of this

article by local law pursuant to subdivision one of this section may:

(a) provide that any unit on or within a housing accommodation shall

be exempt from the provisions of this article if such unit has a monthly

rent above a percent of fair market rent, as published by the United

States department of housing and urban development and as shall be

published for each county in the state by the division of housing and

community renewal pursuant to subdivision fifteen of section two hundred

fourteen of this article, that shall be established in the local law

adopted pursuant to subdivision one of this section, provided that if

such local law does not establish such percent of fair market rent, any

unit on or within a housing accommodation with a monthly rent greater

than two hundred forty-five percent of such fair market rent shall be

exempt from the provisions of this article; and/or

(b) define "small landlord" as a landlord of no more than any number

of units in the state that the village, town, or city enacts by local

law, provided that if such local law does not define "small landlord," a

"small landlord" shall mean a landlord of no more than ten units in the

state.

3. Notwithstanding the foregoing provisions of this section, if a town

and a village within such town both adopt the provisions of this article

by local law pursuant to subdivision one of this section, the local law

adopted by such town shall not apply within the territorial limits of a

village within such town.

4. Nothing in this section shall permit a village, town, or city to

which this article applies to preempt or alter the terms and provisions

of this article within such village, town or city.

5. Within thirty days of receipt of a local law adopted pursuant to

subdivision one of this section, and filed with the department of state

pursuant to section twenty-seven of the municipal home rule law, the

department of state shall notify the division of housing and community

renewal of such adoption.

6. The division of housing and community renewal shall include in the

annual publication required pursuant to subdivision seven of section two

hundred eleven of this article a list including any village, town, or

city, other than the city of New York, as to which the division of

housing and community renewal has received the notice from the

department of state required pursuant to subdivision five of this

section indicating that such village, town, or city has adopted a local

law pursuant to subdivision one of this section to apply the provisions

of this article within such village, town, or city. Such list shall

include the name of each village, town, or city that has adopted such a

local law, the applicable fair market rent threshold within such

village, town, or city for exemption from the provisions of this article

established pursuant to paragraph (a) of subdivision two of this

section, and the applicable definition of small landlord within such

village, town, or city established pursuant to paragraph (b) of

subdivision two of this section.

* NB Repealed June 15, 2034

* § 214. Covered housing accommodations. Where this article applies,

it shall apply to all housing accommodations except a:

1. premises owned by a small landlord provided that in connection with

any eviction proceeding in which the landlord claims an exemption from

the provisions of this article on the basis of being a small landlord,

such landlord shall provide to the tenant or tenants subject to the

proceeding the name of each natural person who owns or is a beneficial

owner of, directly or indirectly, in whole or in part, the housing

accommodation at issue in the proceeding, the number of units owned,

jointly or separately, by each such natural person owner, and the

addresses of any such units, excluding each natural person owner's

principal residence; provided further that if the landlord is an entity,

organized under the laws of this state or of any other jurisdiction,

then such landlord shall provide to the tenant or tenants subject to the

proceeding the name of each natural person with a direct or indirect

ownership interest in such entity or any affiliated entity, the number

of units owned, jointly or separately, by each such natural person

owner, and the addresses of any such units, excluding each natural

person owner's principal residence;

2. owner-occupied housing accommodation with no more then ten units;

3. unit on or within a housing accommodation where such unit is sublet

pursuant to section two hundred twenty-six-b of this chapter, or

otherwise, where the sublessor seeks in good faith to recover possession

of such housing accommodation for their own personal use and occupancy;

4. unit on or within a housing accommodation where the possession, use

or occupancy of which is solely incident to employment and such

employment is being or has been lawfully terminated;

5. unit on or within a housing accommodation where such unit is

otherwise subject to regulation of rents or evictions pursuant to local,

state or federal law, rule, or regulation;

6. unit on or within a housing accommodation where such unit must be

affordable to tenants at a specific income level pursuant to statute,

regulation, restrictive declaration, or pursuant to a regulatory

agreement with a local, state, or federal government entity;

7. unit on or within a housing accommodation owned as a condominium or

cooperative, or a unit on or within a housing accommodation subject to

an offering plan submitted to the office of the attorney general,

provided that nothing herein shall abrogate or otherwise limit any

rights or obligations a tenant residing in a unit within a condominium

or cooperative or a purchaser, owner, or offeror of a condominium or

cooperative unit has pursuant to any other state law;

8. housing accommodation for which a temporary or permanent

certificate of occupancy was issued on or after the first of January,

two thousand nine, for a period of time of thirty years following

issuance of such certificate;

9. unit on or within a housing accommodation that qualifies as a

seasonal use dwelling unit pursuant to subdivisions four and five of

section 7-108 of the general obligations law;

10. housing accommodation in a hospital as defined in subdivision one

of section twenty-eight hundred one of the public health law, continuing

care retirement community licensed pursuant to article forty-six or

forty-six-A of the public health law, assisted living residence licensed

pursuant to article forty-six-B of the public health law, adult care

facility licensed pursuant to article seven of the social services law,

senior residential community that have submitted an offering plan to the

attorney general, and not-for-profit independent retirement community

that offer personal emergency response, housekeeping, transportation and

meals to their residents;

11. manufactured home located on or in a manufactured home park as

defined in section two hundred thirty-three of the real property law;

12. hotel room or other transient use covered by the definition of a

class B multiple dwelling under subdivision nine of section four of the

multiple dwelling law, regardless of whether such use is located in a

jurisdiction in which the multiple dwelling law applies;

13. dormitory owned and operated by an institution of higher education

or a kindergarten and grades 1 to 12, inclusive, school;

14. housing accommodation within and for use by a religious facility

or institution; and

15. unit on or within a housing accommodation where the monthly rent

is greater than the percent of fair market rent established pursuant to

paragraph (a) of subdivision two of section two hundred thirteen of this

article in a local law of a village, town, or city, other than the city

of New York, adopting the provisions of this article pursuant to

subdivision one of section two hundred thirteen of this article, or two

hundred forty-five percent of the fair market rent, provided that fair

market rent shall refer to the figure published by the United States

department of housing and urban development, for the county in which the

housing accommodation is located, as shall be published by the division

of housing and community renewal no later than the first of August in

any given year. The division of housing and community renewal shall

publish the fair market rent and two hundred forty-five percent of the

fair market rent for each unit type for which such fair market rent is

published by the United States department of housing and urban

development for each county in New York state in the annual publication

required pursuant to subdivision seven of section two hundred eleven of

this article.

* NB Repealed June 15, 2034

* § 215. Necessity for good cause. No landlord shall, by action to

evict or to recover possession, by exclusion from possession, by failure

to renew any lease, or otherwise, remove any tenant from housing

accommodations covered by section two hundred fourteen of this article

except for good cause as defined in section two hundred sixteen of this

article.

* NB Repealed June 15, 2034

* § 216. Grounds for removal of tenants. 1. No landlord shall remove a

tenant from any housing accommodation covered by section two hundred

fourteen of this article, or attempt such removal or exclusion from

possession, notwithstanding that the tenant has no written lease or that

the lease or other rental agreement has expired or otherwise terminated,

except upon order of a court of competent jurisdiction entered in an

appropriate judicial action or proceeding in which the petitioner or

plaintiff has established one of the following grounds as good cause for

removal or eviction:

(a) (i) The tenant has failed to pay rent due and owing, provided

however that the rent due and owing, or any part thereof, did not result

from a rent increase which is unreasonable. In determining whether all

or part of the rent due and owing is the result of an unreasonable rent

increase, it shall be a rebuttable presumption that the rent for a

dwelling not protected by rent regulation is unreasonable if said rent

has been increased in any calendar year, after the effective date of

this article, or after the effective date of the local law in any

village, town, or city that enacts such local law to apply this article

to such village, town, or city pursuant to subdivision one of section

two hundred thirteen of this article, by an amount greater than the

local rent standard, provided further that no rent increase less than or

equal to the local rent standard shall be deemed unreasonable.

(ii) Whenever a court considers whether a rent increase is

unreasonable, the court may consider all relevant facts, including but

not limited to a landlord's costs for fuel and other utilities,

insurance, and maintenance; but in all cases, the court shall consider

the landlord's property tax expenses and any recent increases thereto;

such relevant facts also shall include whether the landlord, other than

in circumstances governed by paragraph (d) of this subdivision, seeks in

good faith to raise the rent upon a renewal lease to reflect completed

significant repairs to the housing accommodation, or to any other part

of the building or real property in which the housing accommodation is

located, provided that the landlord can establish that the repairs

constituted significant repairs and that such repairs did not result

from the landlord's failure to properly maintain the building or housing

accommodation, and provided further that for the purposes of this

subparagraph, "significantly repair" means the replacement or

substantial modification of any structural, electrical, plumbing, or

mechanical system that requires a permit from a governmental agency, or

abatement of hazardous materials, including lead-based paint, mold, or

asbestos in accordance with applicable federal, state, and local laws,

and provided further cosmetic improvements alone, including painting,

decorating, and minor repairs, do not qualify as significant repairs;

(b) The tenant is violating a substantial obligation of their tenancy

or breaching any of the landlord's rules and regulations governing said

premises, other than the obligation to surrender possession, and has

failed to cure such violation after written notice that the violation

cease within ten days of receipt of such written notice, provided

however, that the obligation of tenancy for which violation is claimed

was not imposed for the purpose of circumventing the intent of this

article and provided such rules or regulations are reasonable and have

been accepted in writing by the tenant or made a part of the lease at

the beginning of the lease term;

(c) The tenant is committing or permitting a nuisance in such housing

accommodation, or elsewhere in the building or on the real property in

which the housing accommodation is located, or is maliciously or by

reason of gross negligence substantially damaging the housing

accommodation, or causing substantial damage elsewhere in the building

or on the real property in which the housing accommodation is located;

or the tenant's conduct is such as to interfere with the comfort and

safety of the landlord or other tenants or occupants of the same or

another adjacent building or structure;

(d) Occupancy of the housing accommodation by the tenant is in

violation of or causes a violation of law and the landlord is subject to

civil or criminal penalties therefor; provided however that an agency of

the state or municipality having jurisdiction has issued an order

requiring the tenant to vacate the housing accommodation. No tenant

shall be removed from possession of a housing accommodation on such

ground unless the court finds that the cure of the violation of law

requires the removal of the tenant and that the landlord did not through

neglect or deliberate action or failure to act create the condition

necessitating the vacate order. In instances where the landlord does not

undertake to cure conditions of the housing accommodation causing such

violation of the law, the tenant shall have the right to pay or secure

payment in a manner satisfactory to the court, to cure such violation

provided that any tenant expenditures shall be applied against rent to

which the landlord is entitled. In instances where removal of a tenant

is absolutely essential to such tenant's health and safety, the removal

of the tenant shall be without prejudice to any leasehold interest or

other right of occupancy the tenant may have and the tenant shall be

entitled to resume possession at such time as the dangerous conditions

have been removed. Nothing herein shall abrogate or otherwise limit the

right of a tenant to bring an action for monetary damages against the

landlord or to otherwise compel compliance by the landlord with all

applicable state or municipal housing codes;

(e) The tenant is using or permitting the housing accommodation, or

elsewhere in the building or on the real property in which the housing

accommodation is located, to be used for an illegal purpose;

(f) The tenant has unreasonably refused the landlord access to the

housing accommodation for the purpose of making necessary repairs or

improvements required by law or for the purpose of showing the housing

accommodation to a prospective purchaser, mortgagee or other person

having a legitimate interest therein;

(g) The landlord seeks in good faith to recover possession of a

housing accommodation for the landlord's own personal use and occupancy

as the landlord's principal residence, or the personal use and occupancy

as principal residence of the landlord's spouse, domestic partner,

child, stepchild, parent, step-parent, sibling, grandparent, grandchild,

parent-in-law or sibling-in-law, when no other suitable housing

accommodation in such building is available, provided that no judgment

in favor of the landlord may be granted pursuant to this paragraph

unless the landlord establishes good faith to recover possession of a

housing accommodation for the landlord's own personal use and occupancy

as the landlord's principal residence, or the personal use and occupancy

as a principal residence of the landlord's spouse, domestic partner,

child, stepchild, parent, step-parent, sibling, grandparent, grandchild,

parent-in-law or sibling-in-law, by clear and convincing evidence. This

paragraph shall not apply to a housing accommodation occupied by a

tenant who is sixty-five years of age or older or who is a disabled

person;

(h) The landlord in good faith seeks to demolish the housing

accommodation, provided that no judgment in favor of the landlord may be

granted pursuant to this paragraph unless the landlord establishes good

faith to demolish the housing accommodation by clear and convincing

evidence;

(i) The landlord seeks in good faith to withdraw a housing

accommodation from the housing rental market, provided that no judgment

in favor of the landlord may be granted pursuant to this paragraph

unless the landlord establishes good faith to withdraw the housing

accommodation from the housing rental market by clear and convincing

evidence; or

(j) The tenant fails to agree to reasonable changes to a lease at

renewal, including increases in rent that are not unreasonable as

defined in paragraph (a) of this subdivision, as long as written notice

of the changes to the lease were provided to the tenant at least thirty

days, but no more than ninety days, prior to the expiration of the

current lease.

2. A tenant required to surrender a housing accommodation by virtue of

the operation of paragraph (g), (h), or (i) of subdivision one of this

section shall have a cause of action in any court of competent

jurisdiction for damages, declaratory, and injunctive relief against a

landlord or purchaser of the premises who makes a fraudulent statement

regarding a proposed use, removal from the rental housing market, or

demolition of the housing accommodation. In any action or proceeding

brought pursuant to this subdivision a prevailing tenant shall be

entitled to recovery of actual damages, and reasonable attorneys' fees.

Except as provided in this subdivision, nothing in this article shall

create a civil claim or cause of action by a tenant against a landlord.

3. Nothing in this section shall abrogate or limit the tenant's right

pursuant to section seven hundred fifty-one of the real property actions

and proceedings law to permanently stay the issuance or execution of a

warrant or eviction in a summary proceeding, whether characterized as a

nonpayment, objectionable tenancy, or holdover proceeding, the

underlying basis of which is the nonpayment of rent, so long as the

tenant complies with the procedural requirements of section seven

hundred fifty-one of the real property actions and proceedings law where

applicable.

* NB Repealed June 15, 2034

* § 217. Preservation of existing requirements of law. No action shall

be maintainable and no judgment of possession shall be entered for

housing accommodations pursuant to section two hundred sixteen of this

article, unless the landlord has complied with any and all applicable

laws governing such action or proceeding and has complied with any and

all applicable laws governing notice to tenants, including without

limitation the manner and the time of service of such notice and the

contents of such notice.

* NB Repealed June 15, 2034

* § 218. Waiver of rights void. Any agreement by a tenant heretofore

or hereinafter entered into in a written lease or other rental agreement

waiving or modifying their rights as set forth in this article shall be

void as contrary to public policy.

* NB Repealed June 15, 2034

Action for use and occupation. The landlord may recover a

reasonable compensation for the use and occupation of real property, by

any person, under an agreement, not made by deed; and a parol lease or

other agreement may be used as evidence of the amount to which he is

entitled.

Rent due on life leases recoverable. Rent due on a lease for

life or lives is recoverable by action, as well after as before the

death of the person on whose life the rent depends, and in the same

manner as rent due on a lease for years.

When rent is apportionable. Where a tenant for life, who shall

have demised the real property, dies before the first rent day, or

between two rent days, his executor or administrator may recover the

proportion of rent which accrued to him before his death.

Rights where property or lease is transferred. The grantee of

leased real property, or of a reversion thereof, or of any rent, the

devisee or assignee of the lessor of such a lease, or the heir or

personal representative of either of them, has the same remedies, by

entry, action or otherwise, for the nonperformance of any agreement

contained in the assigned lease for the recovery of rent, for the doing

of any waste, or for other cause of forfeiture as his grantor or lessor

had, or would have had, if the reversion had remained in him. A lessee

of real property, his assignee or personal representative, has the same

remedy against the lessor, his grantee or assignee, or the

representative of either, for the breach of an agreement contained in

the lease, that the lessee might have had against his immediate lessor,

except a covenant against incumbrances or relating to the title or

possession of the premises leased. This section applies as well to a

grant or lease in fee, reserving rent, as to a lease for life or for

years; but not to a deed of conveyance in fee, made before the ninth day

of April, eighteen hundred and five, or after the fourteenth day of

April, eighteen hundred and sixty.

Remedies of lessee when possession is not delivered. In the

absence of an express provision to the contrary, there shall be implied

in every lease of real property a condition that the lessor will deliver

possession at the beginning of the term. In the event of breach of such

implied condition the lessee shall have the right to rescind the lease

and to recover the consideration paid. Such right shall not be deemed

inconsistent with any right of action he may have to recover damages.

Retaliation by landlord against tenant. 1. No landlord of

premises or units to which this section is applicable shall serve a

notice to quit upon any tenant or commence any action to recover real

property or summary proceeding to recover possession of real property in

retaliation for:

a. A good faith complaint, by or in behalf of the tenant, to the

landlord, the landlord's agent or a governmental authority of the

landlord's alleged violation of any health or safety law, regulation,

code, or ordinance, the warranty of habitability under section two

hundred thirty-five-b of this article, the duty to repair under sections

seventy-eight, seventy-nine, and eighty of the multiple dwelling law or

section one hundred seventy-four of the multiple residence law, or any

law or regulation which has as its objective the regulation of premises

used for dwelling purposes or which pertains to the offense of rent

gouging in the third, second or first degree; or

b. Actions taken in good faith, by or in behalf of the tenant, to

secure or enforce any rights under the lease or rental agreement, the

warranty of habitability under section two hundred thirty-five-b of this

article, the duty to repair under sections seventy-eight, seventy-nine,

and eighty of the multiple dwelling law or section one hundred

seventy-four of the multiple residence law, or under any other law of

the state of New York, or of its governmental subdivisions, or of the

United States which has as its objective the regulation of premises used

for dwelling purposes or which pertains to the offense of rent gouging

in the third, second or first degree; or

c. The tenant's participation in the activities of a tenant's

organization.

2. No landlord of premises or units to which this section is

applicable or such landlord's agent shall substantially alter the terms

of the tenancy in retaliation for any actions set forth in paragraphs a,

b, and c of subdivision one of this section. Substantial alteration

shall include, but is not limited to, the refusal to continue a tenancy

of the tenant, upon expiration of the tenant's lease, to renew the lease

or offer a new lease, or offering a new lease with an unreasonable rent

increase; provided, however, that a landlord shall not be required under

this section to offer a new lease or a lease renewal for a term greater

than one year.

3. A landlord shall be subject to a civil action for damages,

attorney's fees and costs and other appropriate relief, including

injunctive and other equitable remedies, as may be determined by a court

of competent jurisdiction in any case in which the landlord has violated

the provisions of this section.

4. In any action to recover real property or summary proceeding to

recover possession of real property, judgment shall be entered for the

tenant if the court finds that the landlord is acting in retaliation for

any action set forth in paragraphs a, b, and c of subdivision one of

this section. Retaliation shall be asserted as an affirmative defense in

such action or proceeding. The tenant shall not be relieved of the

obligation to pay any rent for which he is otherwise liable.

5. In an action or proceeding instituted against a tenant of premises

or a unit to which this section is applicable, a rebuttable presumption

that the landlord is acting in retaliation shall be created if the

tenant establishes that the landlord served a notice to quit, or

instituted an action or proceeding to recover possession, or attempted

to substantially alter the terms of the tenancy, within one year after:

a. A good faith complaint was made, by or in behalf of the tenant, to

the landlord, the landlord's agent or a governmental authority of the

landlord's violation of any health or safety law, regulation, code, or

ordinance, the warranty of habitability under section two hundred

thirty-five-b of this article, the duty to repair under sections

seventy-eight, seventy-nine, and eighty of the multiple dwelling law or

section one hundred seventy-four of the multiple residence law, or any

law or regulation which has as its objective the regulation of premises

used for dwelling purposes or which pertains to the offense of rent

gouging in the third, second or first degree; or

b. The tenant in good faith took action to secure or enforce against

the landlord or his agents any rights under the lease or rental

agreement, the warranty of habitability under section two hundred

thirty-five-b of this article, the duty to repair under sections

seventy-eight, seventy-nine, and eighty of the multiple dwelling law or

section one hundred seventy-four of the multiple residence law, or under

any other law of the state of New York, or of its governmental

subdivisions, or of the United States which has as its objective the

regulation of premises used for dwelling purposes or which pertains to

the offense of rent gouging in the third, second or first degree.

c. Judgment under subdivision three or four of this section was

entered for the tenant in a previous action between the parties; or an

inspection was made, an order was entered, or other action was taken as

a result of a complaint or act described in paragraph a or b of this

subdivision.

The effect of the presumption shall be to require the landlord to

establish a non-retaliatory motive for his acts by a preponderance of

the evidence.

5-a. Any lease provision which seeks to assess a fee, penalty or

dollar charge, in addition to the stated rent, against a tenant because

such tenant files a bona fide complaint with the landlord, the

landlord's agent or a building code officer regarding the condition of

such tenant's leased premises shall be null and void as being against

public policy. A landlord or agent of the landlord who seeks to enforce

such a fee, penalty or charge shall be liable to the tenant for triple

the amount of such fee, penalty or charge.

6. This section shall apply to all rental residential premises except

owner-occupied dwellings with less than four units. However, its

provisions shall not be given effect in any case in which it is

established that the condition from which the complaint or action arose

was caused by the tenant, a member of the tenant's household, or a guest

of the tenant. Nor shall it apply in a case where a tenancy was

terminated pursuant to the terms of a lease as a result of a bona fide

transfer of ownership.

Attornment by tenant. The attornment of a tenant to a stranger

is absolutely void and does not in any way affect the possession of the

landlord unless made either:

1. With the consent of the landlord; or,

2. Pursuant to or in consequence of a judgment, order, or decree of a

court of competent jurisdiction; or

3. To a purchaser at foreclosure sale.

Notice of action adverse to possession of tenant. Where a

process or summons in an action to recover the real property occupied by

him, or the possession thereof, is served upon a tenant, he must

forthwith give notice thereof to his landlord; otherwise he forfeits the

value of three years' rent of such property, to the landlord or other

person of whom he holds.

Effect of renewal on sub-lease. The surrender of an under-lease

is not requisite to the validity of the surrender of the original lease,

where a new lease is given by the chief landlord. Such a surrender and

renewal do not impair any right or interest of the chief landlord, his

lessee or the holder of an under-lease, under the original lease;

including the chief landlord's remedy by entry, for the rent or duties

secured by the new lease, not exceeding the rent and duties reserved in

the original lease surrendered.

Effect of new lease on tenant's right to remove fixtures or

improvements. Unless otherwise expressly agreed, where a tenant has a

right to remove fixtures or improvements, such right shall not be lost

or impaired by reason of his acceptance of a new lease of the same

premises without any surrender of possession between terms.

Right to sublease or assign. 1. Unless a greater right to

assign is conferred by the lease, a tenant renting a residence may not

assign his lease without the written consent of the owner, which consent

may be unconditionally withheld without cause provided that the owner

shall release the tenant from the lease upon request of the tenant upon

thirty days notice if the owner unreasonably withholds consent which

release shall be the sole remedy of the tenant. If the owner reasonably

withholds consent, there shall be no assignment and the tenant shall not

be released from the lease.

2. (a) A tenant renting a residence pursuant to an existing lease in a

dwelling having four or more residential units shall have the right to

sublease his premises subject to the written consent of the landlord in

advance of the subletting. Such consent shall not be unreasonably

withheld.

(b) The tenant shall inform the landlord of his intent to sublease by

mailing a notice of such intent by certified mail, return receipt

requested. Such request shall be accompanied by the following

information: (i) the term of the sublease, (ii) the name of the proposed

sublessee, (iii) the business and permanent home address of the proposed

sublessee, (iv) the tenant's reason for subletting, (v) the tenant's

address for the term of the sublease, (vi) the written consent of any

cotenant or guarantor of the lease, and (vii) a copy of the proposed

sublease, to which a copy of the tenant's lease shall be attached if

available, acknowledged by the tenant and proposed subtenant as being a

true copy of such sublease.

(c) Within ten days after the mailing of such request, the landlord

may ask the tenant for additional information as will enable the

landlord to determine if rejection of such request shall be

unreasonable. Any such request for additional information shall not be

unduly burdensome. Within thirty days after the mailing of the request

for consent, or of the additional information reasonably asked for by

the landlord, whichever is later, the landlord shall send a notice to

the tenant of his consent or, if he does not consent, his reasons

therefor. Landlord's failure to send such a notice shall be deemed to be

a consent to the proposed subletting. If the landlord consents, the

premises may be sublet in accordance with the request, but the tenant

thereunder, shall nevertheless remain liable for the performance of

tenant's obligations under said lease. If the landlord reasonably

withholds consent, there shall be no subletting and the tenant shall not

be released from the lease. If the landlord unreasonably withholds

consent, the tenant may sublet in accordance with the request and may

recover the costs of the proceeding and attorneys fees if it is found

that the owner acted in bad faith by withholding consent.

3. The provisions of this section shall apply to leases entered into

or renewed before or after the effective date of this section, however

they shall not apply to public housing and other units for which there

are constitutional or statutory criteria covering admission thereto nor

to a proprietary lease, viz.: a lease to, or held by, a tenant entitled

thereto by reason of ownership of stock in a corporate owner of premises

which operates the same on a cooperative basis.

4. With respect to units covered by the emergency tenant protection

act of nineteen seventy-four or the rent stabilization law of nineteen

hundred sixty-nine the exercise of the rights granted by this section

shall be subject to the applicable provisions of such laws. Nothing

contained in this section two hundred twenty-six-b shall be deemed to

affect the rights, if any, of any tenant subject to title Y of chapter

51 of the administrative code of the city of New York or the emergency

housing rent control law.

5. Any sublet or assignment which does not comply with the provisions

of this section shall constitute a substantial breach of lease or

tenancy.

6. Any provision of a lease or rental agreement purporting to waive a

provision of this section is null and void.

7. The provisions of this section except for items in paragraph (b) of

subdivision two of this section not previously required, shall apply to

all actions and proceedings pending on the effective date of this

section.

8. Nothing contained in this section shall be deemed to prevent or

limit the right of a tenant to sell improvements to a unit pursuant to

article seven-C of the multiple dwelling law.

Notice of rent increase or non-renewal of residential

tenancy. 1. * (a) Whenever a landlord intends to offer to renew the

tenancy of an occupant in a residential dwelling unit with a rent

increase equal to or greater than five percent above the current rent,

or the landlord does not intend to renew the tenancy, the landlord shall

provide written notice as required in subdivision two of this section.

The notice shall append or contain the notice required pursuant to

section two hundred thirty-one-c of this article, which shall state the

following: (i) if the unit is or is not subject to article six-A of this

chapter, the "good cause eviction law", and if the unit is exempt, such

notice shall state why the unit is exempt from such law; (ii) if the

landlord is not renewing the lease for a unit subject to article six-A

of this chapter, the lawful basis for such non-renewal; and (iii) if the

landlord is increasing the rent upon an existing lease of a unit subject

to article six-A of this chapter above the applicable local rent

standard, as defined in subdivision eight of section two hundred eleven

of this chapter, the justification for such increase. If the landlord

fails to provide timely notice, the occupant's lawful tenancy shall

continue under the existing terms of the tenancy from the date on which

the landlord gave actual written notice until the notice period has

expired, notwithstanding any provision of a lease or other tenancy

agreement to the contrary.

* NB Effective August 18, 2024 until June 15, 2034

* (a) Whenever a landlord intends to offer to renew the tenancy of an

occupant in a residential dwelling unit with a rent increase equal to or

greater than five percent above the current rent, or the landlord does

not intend to renew the tenancy, the landlord shall provide written

notice as required in subdivision two of this section. If the landlord

fails to provide timely notice, the occupant's lawful tenancy shall

continue under the existing terms of the tenancy from the date on which

the landlord gave actual written notice until the notice period has

expired, notwithstanding any provision of a lease or other tenancy

agreement to the contrary.

* NB Effective June 15, 2034

(b) Notwithstanding paragraph (a) of this subdivision, notice shall

not be required under this section to be provided by a cooperative

housing corporation, other than a cooperative housing corporation

subject to the provisions of article two, article four, article five or

article eleven of the private housing finance law, to a tenant who is a

dwelling unit owner or shareholder of such corporation. Nothing in this

paragraph shall relieve such cooperative housing corporation of any

otherwise applicable obligation to provide notice to such tenant

pursuant to any other law or any agreement between the parties.

2. (a) For the purposes of this section, the required notice shall be

based on the cumulative amount of time the tenant has occupied the

residence or the length of the tenancy in each lease, whichever is

longer.

(b) If the tenant has occupied the unit for less than one year and

does not have a lease term of at least one year, the landlord shall

provide at least thirty days' notice.

(c) If the tenant has occupied the unit for more than one year but

less than two years, or has a lease term of at least one year but less

than two years, the landlord shall provide at least sixty days' notice.

(d) If the tenant has occupied the unit for more than two years or has

a lease term of at least two years, the landlord shall provide at least

ninety days' notice.

When tenant may surrender premises. Where any building, which

is leased or occupied, is destroyed or so injured by the elements, or

any other cause as to be untenantable, and unfit for occupancy, and no

express agreement to the contrary has been made in writing, the lessee

or occupant may, if the destruction or injury occurred without his or

her fault or neglect, quit and surrender possession of the leasehold

premises, and of the land so leased or occupied; and he or she is not

liable to pay to the lessor or owner, rent for the time subsequent to

the surrender. Any rent paid in advance or which may have accrued by the

terms of a lease or any other hiring shall be adjusted to the date of

such surrender.

Termination of residential lease by senior citizens or

individuals with a disability moving to a residence of a family member

or entering certain health care facilities, adult care facilities or

housing projects. 1. In any lease or rental agreement covering premises

occupied for dwelling purposes in which a lessee or tenant has (a)

attained the age of sixty-two years or older, or will attain such age

during the term of such lease or rental agreement or (b) is an

individual with a "disability", as defined in subdivision twenty-one of

section two hundred ninety-two of the executive law or a husband or wife

or dependent of such a person residing with him or her, there shall be

implied a covenant by the lessor or owner to permit such lessee or

tenant: (i) who is certified by a physician as no longer able, for

medical reasons, to live independently in such premises and requiring

assistance with instrumental activities of daily living or personal

activities of daily living, and who will move to a residence of a member

of his or her family, or (ii) who is notified of his or her opportunity

to commence occupancy in an adult care facility (as defined in

subdivision twenty-one of section two of the social services law) except

for a shelter for adults (as defined in subdivision twenty-three of

section two of such law), a residential health care facility (as defined

in section two thousand eight hundred one of the public health law), or

a housing unit which receives substantial assistance of grants, loans or

subsidies from any federal, state or local agency or instrumentality, or

any not-for-profit philanthropic organization one of whose primary

purposes is providing low or moderate income housing, or in less

expensive premises in a housing project or complex erected for the

specific purpose of housing senior citizens or persons with

disabilities, to terminate such lease or rental agreement and quit and

surrender possession of the leasehold premises, and of the land so

leased or occupied; and to release the lessee or tenant from any

liability to pay to the lessor or owner, rent or other payments in lieu

of rent for the time subsequent to the date of termination of such lease

in accordance with subdivision two of this section; and to adjust to the

date of surrender any rent or other payments made in advance or which

have accrued by the terms of such lease or rental agreement.

2. (a) Any lease or rental agreement covered by paragraph (a) of

subdivision one of this section may be terminated by notice in writing

delivered to the lessor or owner or to the lessor's or owner's agent by

a lessee or tenant. Such termination shall be effective no earlier than

thirty days after the date on which the next rental payment subsequent

to the date when such notice is delivered is due and payable. Such

notice shall be accompanied by a documentation of the physician's

certification, accompanied by a notarized statement from a family member

stating that the senior citizen is related, and will be moving into

their place of residence for a period of not less than six months or

admission or pending admission to a facility set forth in subdivision

one of this section. Such notice shall be deemed delivered five days

after mailing. Documentation of admission or pending admission shall

consist of a copy of an executed lease or contract between the lessee or

tenant and a facility set forth in subdivision one of this section.

(b) Any lease or rental agreement covered by paragraph (b) of

subdivision one of this section may be terminated by notice in writing

delivered to the lessor or owner or to the lessor's or owner's agent by

a lessee or tenant. Such termination shall be effective no earlier than

thirty days after the date on which the next rental payment subsequent

to the date when such notice is delivered is due and payable. Such

notice shall be accompanied by a documentation of the physician's

certification. Such notice shall be deemed delivered five days after

mailing. Documentation of admission or pending admission shall consist

of a copy of an executed lease or contract between the lessee or tenant

and a facility set forth in subdivision one of this section.

3. Any person who shall knowingly seize, hold, or detain the personal

effects, clothing, furniture or other property of any person who has

lawfully terminated a lease or rental agreement covered by this section

or the spouse or dependent of any such person, or in any manner

interferes with the removal of such property from the premises covered

by such lease or rental agreement, for the purpose of subjecting or

attempting to subject any of such property to a purported claim for rent

accruing subsequent to the date of termination of such lease or rental

agreement, or attempts so to do, shall be guilty of a misdemeanor and

shall be punished by imprisonment not to exceed one year or by fine not

to exceed one thousand dollars, or by both such fine and imprisonment.

3-a. Each owner or lessor of a facility or unit into which a lessee or

tenant is entitled to move after quitting and surrendering as provided

for herein shall in writing, upon an application, notify prospective

tenants of the provision of this section. Such notice shall include, in

plain and simple English, in conspicuous print of at least eighteen

point type, an explanation of a tenants right to terminate the existing

lease and all other applicable requirements and duties relating thereto.

Such notice shall read as follows:

NOTICE: RESIDENTIAL LEASE TERMINATION

SECTION 227-a OF THE REAL PROPERTY LAW OF THE STATE OF NEW YORK ALLOWS

FOR THE TERMINATION OF A RESIDENTIAL LEASE BY SENIOR CITIZENS OR

INDIVIDUALS WITH A DISABILITY MOVING TO A RESIDENCE OF A FAMILY MEMBER

OR ENTERING CERTAIN HEALTH CARE FACILITIES, ADULT CARE FACILITIES OR

HOUSING PROJECTS.

Who is eligible?

Any lessee or tenant who is age sixty-two years or older,

or who will attain such age during the term of the lease or rental

agreement,

or an individual with a "disability", as defined in subdivision

21 of section 292 of the executive law,

or a spouse or dependent of such person residing with him or her.

What kind of facilities does this law apply to?

This law will apply if the senior citizen or individual with a

disability is relocating to:

A. An adult care facility;

B. A residential health care facility;

C. Subsidized low income housing;

D. Senior citizen housing; or

E. A residence of a family member.

What are the responsibilities of the rental property owner?

When the tenant gives notice of his or her opportunity to move into

one of the above facilities the landlord must allow:

A. for the termination of the lease or rental agreement, and

B. the release of the tenant from any liability to pay rent or other

payments in lieu of rent from the termination of the lease in accordance

with section 227-a of the real property law, to the time of the original

termination date, and

C. to adjust any payments made in advance or payments which have

accrued by the terms of such lease or rental agreement.

How do you terminate the lease?

If the tenant can move into one of the specified facilities, he or she

must terminate the lease or agreement in writing no earlier than thirty

days after the date on which the next rental payment (after the notice

is delivered) is due and payable. The notice is deemed delivered five

days after being mailed. The written notice must include documentation

of admission or pending admission to one of the above mentioned

facilities.

For example: Mail the notice: May 5th

Notice received: May 10th

Next rental payment due: June 1st

Termination effective: July 1st

Will the landlord face penalties if he or she does not comply?

Yes, according to section 227-a of the real property law, if anyone

interferes with the removal of your property from the premises they will

be guilty of a misdemeanor and will be either imprisoned for up to one

year or fined up to $1000.00 or both.

4. Any agreement by a lessee or tenant of premises occupied for

dwelling purposes waiving or modifying his or her rights as set forth in

this section shall be void as contrary to public policy.

Termination of certain contracts by senior citizens. 1. In

any lease or contract for a senior citizen who has attained the age of

sixty-two or older to reside in those facilities set forth in

subdivision one of section two hundred twenty-seven-a of this article

except for residential health care facility (as defined in section

twenty-eight hundred one of the public health law) and any other

facilities operated for the specific purpose of housing senior citizens

which offer ancillary services to accommodate senior citizens, there

shall be implied a covenant by the lessor or owner of such facilities to

permit such senior citizen, or other person obligated by any part of

such lease or contract on behalf of such senior citizen, to cancel such

lease or contract until midnight of the third business day after which

such person has signed such lease or contract. Where any provision of

such lease or contract or any law or regulations affords a longer period

to cancel than the period provided in this subdivision, such longer

period shall govern.

2. Cancellation occurs when written notice of cancellation is given to

the owner or lessor.

3. Notice of cancellation, if given by mail, shall be deemed given on

the date of the postmark.

4. The form of notice of cancellation shall not be prescribed by such

lease or contract. Notice of cancellation shall be sufficient if it

indicates the intention of the senior citizen or other person obligated

for any part of the contract on behalf of such senior citizen to cancel

such lease or contract.

5. Where a person exercises their right to cancel a lease or contract

pursuant to this section, and such person has terminated a lease or

rental agreement under section two hundred twenty-seven-a of this

article, such person shall have the right to reinstate such original

lease or rental agreement until midnight of the fifth business day after

the notice of termination required under subdivision two of section two

hundred twenty-seven-a of this article has been delivered. Notice of

intent to reinstate a lease or rental agreement pursuant to this

subdivision shall be made in writing and delivered to the lessor or

owner or to the owner's or lessor's agent by the lessee or tenant. If

such notice is given by mail, it shall be deemed given on the date of

the postmark. Such original lease or rental agreement shall continue to

be in effect for the period stated in such agreement as if there had

been no interruption in the lease period.

6. Any lease or rental agreement entered into by a lessor or owner to

relet the premises being vacated by the senior citizen pursuant to a

notice served pursuant to section two hundred twenty-seven-a of this

article shall be subject to the provisions of this section. In the event

a senior citizen exercises his or her right of reinstatement pursuant to

this section such lease or rental agreement to relet the premises shall

be canceled. In such event the owner or lessor shall have no obligation

to (a) the prospective tenant other than refund of any rent or security

paid to such owner or lessor by the prospective tenant, or (b) any

broker, agent or other party in connection with such reletting.

7. Any broker's fee or commission paid in connection with the lease or

contract referred to in subdivision one of this section or reletting

referred to in subdivision six of this section shall be refunded to the

party who paid such fee or commission if such lease or contract referred

to in subdivision one of this section is canceled pursuant to this

section or if such lease or rental agreement referred to in subdivision

six of this section is canceled or terminated.

8. Notwithstanding any other provision of this section, any person who

enters senior citizen housing prior to midnight of the third business

day after the day on which such person has signed a lease or contract

for such housing and subsequently cancels such lease or contract shall

be financially responsible for room, board and services received while

such person was a resident in such housing in the same manner and to the

same extent had the lease or contract not been canceled pursuant to the

provisions of this section.

9. Such lease or contract referred to in subdivision one of this

section shall include a statement notifying the senior citizen of his or

her right to cancel such lease or contract pursuant to the provisions of

this section. Such statement shall include in conspicuous print, of at

least eighteen point type, an explanation of a senior citizen's right to

cancel a lease or contract referred to in subdivision one of this

section and all other applicable requirements and duties relating

thereto. Such notice shall read as follows:

NOTICE TO SENIOR CITIZENS:

A. CONTRACT OR LEASE CANCELLATION

SECTION 227-b OF THE REAL PROPERTY LAW OF THE STATE OF NEW YORK ALLOWS

FOR THE CANCELLATION OF A CONTRACT OR LEASE ENTERED INTO BY SENIOR

CITIZENS WITH CERTAIN HEALTH CARE FACILITIES, ADULT CARE FACILITIES OR

OTHER SENIOR CITIZEN HOUSING FACILITIES.

Who is eligible?

Any senior citizen who is age sixty-two years or older.

What kind of facilities does this law apply to?

This law will apply if the senior citizen is canceling a contract or

lease with:

a. An adult care facility;

b. Other senior citizen housing facilities.

How do you cancel the contract or lease?

The senior citizen is allowed to cancel a contract or lease entered

into with any of the above mentioned facilities until midnight of the

third business day after which the contract or lease was signed by the

senior citizen. Cancellation occurs when written notice of

cancellation is given to the owner of the facility. Notice of

cancellation, if given by mail, shall be deemed given on the date of

the postmark.

B. REINSTATEMENT OF A RESIDENTIAL LEASE

SECTION 227-B OF THE REAL PROPERTY LAW OF THE STATE OF NEW YORK ALLOWS

SENIOR CITIZENS TO REINSTATE A RESIDENTIAL LEASE UNDER CERTAIN

CONDITIONS.

Who is eligible?

Any senior citizen who has exercised his or her right to cancel a

lease or contract with an adult care facility or a senior citizen

housing facility and has terminated a residential lease under Section

227-a of the Real Property Law of the State of New York.

How do you reinstate a residential lease?

The senior citizen is allowed to reinstate a residential lease until

midnight of the fifth business day after the notice of termination

required under subdivision two of section 227-a of the real property

law has been delivered. Reinstatement occurs when written notice of

reinstatement is given to the landlord. Notice of reinstatement, if

given by mail, shall be deemed given on the date of the postmark.

10. Any agreement by a senior citizen waiving or modifying any of the

rights set forth in this section shall be void as contrary to public

policy.

Termination of residential lease by victims of domestic

violence. 1. Lease or rental agreement. In any lease or rental agreement

covering premises occupied for dwelling purposes, where a tenant or a

member of the tenant's household is a victim of domestic violence as

defined by section four hundred fifty-nine-a of the social services law

and reasonably fears remaining in the leasehold premises because of

potential further domestic violence, such tenant shall be permitted to

terminate such lease or rental agreement and quit and surrender

possession of the leasehold premises and the land so leased or occupied

pursuant to the provisions of this section and to be released from any

liability to pay to the lessor or owner, rent or other payments in lieu

of rent for the time subsequent to the date of termination of such lease

in accordance with subdivision two of this section.

2. Lease termination procedure. (a) A tenant who meets the

requirements in subdivision one of this section may terminate the

tenant's lease by notice in writing delivered to the lessor or owner of

the premises occupied by such person, or to the lessor's or owner's

agent, and to any co-tenants of such lessee or tenant other than the

perpetrator of domestic violence. The notice shall specify the

termination date which shall be no earlier than thirty days after such

notice is delivered. If the notice is mailed via first class mail, it

shall be deemed delivered five days after mailing. If the tenant asserts

that the lessor or owner is the perpetrator of domestic violence, a

person authorized by the tenant may deliver such notice on the tenant's

behalf.

(b) Such notice shall state that the tenant or a member of the

tenant's household has experienced domestic violence and reasonably

believes the tenant, or the member of the tenant's household, is unable

to safely remain in the leased premises as a result of the domestic

violence.

(c) Within twenty-five days of such notice, the tenant shall provide

documentation demonstrating that the tenant or a member of the tenant's

household has been a victim of domestic violence as described in

subdivision one of this section. This documentation may include any one

or more of the following:

(i) A temporary or final order of protection issued by a court of

competent jurisdiction;

(ii) A record, complaint, or report from a federal, state, or local

law enforcement agency of an act of domestic violence as described in

section four hundred fifty-nine-a of the social services law or a family

offense as described in section eight hundred twelve of the family court

act, or certifying that the tenant or a member of the tenant's household

has been subjected to domestic violence;

(iii) A record from a health care provider for treatment related to

domestic violence as described in section four hundred fifty-nine-a of

the social services law or a family offense as described in section

eight hundred twelve of the family court act;

(iv) A written verification from any other qualified third party to

whom the tenant, or a member of the tenant's household reported the

domestic violence.

(A) "Qualified third party" shall include: any law enforcement

officer; employee of a court of the state; attorney, physician,

psychiatrist, psychologist, social worker, registered nurse, therapist,

or clinical professional counselor licensed to practice in any state;

person employed by a government or non-profit agency or service that

advises or provides services to persons regarding domestic violence; or

any member of the clergy of a church or religious society or

denomination.

(B) Written verification as described herein shall be satisfied by any

sworn or notarized statement including the required information.

(d) The following sample forms shall satisfy the notice and

verification requirements but are not required. These sample forms shall

be posted to the New York state unified court system's website, and

shall be made available in the state's family, civil, housing, criminal,

and supreme courts:

Part I. Tenant/Legal Occupant Statement

I, (insert name of tenant), state as follows:

(Choose the next part (A, B, or C) that most accurately describes your

situation)

(A) I have been subject to domestic violence. Date(s) of recent

incident(s) happened on or about:

(B) A member of my household has been subject to domestic violence.

Date(s) of recent incident(s) happened on or about:

(C) Both I and at least one member of my household have been subject to

domestic violence. Date(s) of recent incident(s) happened on or about:

The person I have asserted has perpetrated domestic violence is my

co-tenant, and I cannot safely give notice of my termination to my

co-tenant. (YES/NO)

I reasonably fear that I cannot safely remain in my current apartment. I

hereby terminate my lease effective (date at least thirty days after

this notice is delivered).

_______________________ ___________

(signature of tenant) (date)

Acknowledgement

State of _____________________)

)ss.:

County of ____________________)

On the ______ day of __________ in the year _____, before me, the

undersigned notary public, personally appeared _______________________,

personally known to me or proved to me on the basis of satisfactory

evidence to be the individual(s) whose name(s) is (are) subscribed to

the within instrument and acknowledged to me that he/she/they executed

the same in his/her/their capacity(ies), and that by his/her/their

signature(s) on the instrument, the individual(s), or the person upon

behalf of which the individual(s) acted, executed the instrument.

_________________________

Notary Public

Part II. Qualified Third Party Statement

I, (insert name of qualified third party), state as follows:

My employer name/address/phone number/e-mail address are as follows:

I am:

____ A law enforcement officer employed by the (insert law enforcement

agency).

____ An employee of __________________________ court located in the

state of _______________.

____ An attorney licensed to practice in (insert name of state(s)).

____ A physician licensed to practice in (insert name of state(s)).

____ A psychiatrist licensed to practice in (insert name of state(s)).

____ A psychologist licensed to practice in (insert name of state(s)).

____ A social worker licensed to practice in (insert name of state(s)).

____ A nurse licensed to practice in (insert name of state(s)).

____ A therapist or clinical professional counselor licensed to practice

in (insert name of state(s));

____ Employed by a government or non-profit agency or service that

advises persons regarding domestic violence or refers them to

persons or agencies for services or advice.

____ A member of the clergy of a church or religious society or

denomination.

____ Other (describe):_________________________________________________

The person who signed the Tenant/Legal Occupant Statement above has

stated to me that he/she/they, or a member of his/her/their household,

has been subject to domestic violence.

This person further stated to me the incident(s) occurred on or about

the date(s) stated above.

I understand that the person who signed the Tenant/Legal Occupant

Statement may use this document as a basis for terminating a lease with

the person's lessor.

__________________________________________

(name of qualified third party)

__________________________________________

(signature of qualified third party)

______________

(date)

Acknowledgement

State of ______________________)

)ss.:

County of _____________________)

On the _______ day of ___________ in the year _____, before me, the

undersigned notary public, personally appeared

_________________________, personally known to me or proved to me on the

basis of satisfactory evidence to be the individual(s) whose name(s) is

(are) subscribed to the within instrument and acknowledged to me that

he/she/they executed the same in his/her/their capacity(ies), and that

by his/her/their signature(s) on the instrument, the individual(s), or

the person upon behalf of which the individual(s) acted, executed the

instrument.

____________________________________________

Notary Public

Part III. Statement of Interpretation/Translation

I am bilingual in English and ____________ and have translated or

interpreted this document to the best of my ability for the signer

above.

_________________________________________

(name of interpreter/translator)

_________________________________________

(signature of interpreter/translator)

___________________

(date)

Acknowledgement

State of ______________________)

)ss.:

County of _____________________)

On the _______ day of ___________ in the year _____, before me, the

undersigned notary public, personally appeared ________________,

personally known to me or proved to me on the basis of satisfactory

evidence to be the individual(s) whose name(s) is (are) subscribed to

the within instrument and acknowledged to me that he/she/they executed

the same in his/her/their capacity(ies), and that by his/her/their

signature(s) on the instrument, the individual(s), or the person upon

behalf of which the individual(s) acted, executed the instrument.

____________________________________________

Notary Public

3. Treatment of rent. (a) The tenant terminating the lease shall pay

rent, pro-rata, up to the lease termination date pursuant to this

section.

(b) The tenant terminating the lease shall be entitled to a refund for

any prepaid rent or other payments covering the period after the

effective date of the lease termination, as long as the tenant has

vacated the premises. Such refund shall be provided within ten days of

delivery of the written notice as outlined in subdivision two of this

section.

(c) A tenant who meets the requirements in subdivision one of this

section and submits proper notice pursuant to subdivision two of this

section shall have a defense in any action brought by a landlord against

such tenant to recover rent and/or damages for breach of lease and shall

not be liable for any rent after the effective termination date.

(d) The lessor or owner may withhold a security deposit in part or in

full to the extent allowed by the lease or statute, except for the early

termination granted by this section, and shall not withhold any part of

the security deposit due to the tenant's exercise of rights under this

section.

(e) Nothing in this section shall be construed to be a defense against

an action for rent for a period of time before the tenant vacated the

premises and gave notice as required in subdivision two of this section.

4. Co-tenants and other occupants. Upon termination:

(a) If the terminating tenant is the sole leaseholder, the premises

shall be delivered to the lessor or owner:

(i) free of all tenants and occupants, provided that the terminating

tenant shall not be responsible for ensuring that the abusive household

member is not present; and

(ii) in accordance with the terms of the lease relating to delivery of

the premises at the termination of the lease.

(b) If there are tenants on the lease other than the terminating

tenant:

(i) the landlord shall not, except upon consent of such additional

tenants, terminate or sever the co-tenancy. The landlord must provide

the remaining tenant at least thirty days from the termination date to

decide whether to consent to a termination or severance.

(ii) The remaining co-tenant or co-tenants hold the right to add an

additional occupant as defined by paragraph (b) of subdivision one of

section two hundred thirty-five-f of this article.

5. Confidentiality provisions. (a) Unless the terminating tenant

provides written authorization for the release of information or unless

required by law, court order, or statute, the information shall not be

released. Information that shall be kept confidential shall include

information obtained during the process of the tenant terminating his or

her lease in accordance with this section, such as: (i) the nature of

the termination, (ii) the status of the tenant or member of the tenant's

household as a victim of domestic violence, and (iii) any information

contained in documentation provided to demonstrate status as a victim of

domestic violence.

(b) Pursuant to this section, the landlord shall not divulge,

describe, or characterize the termination of the rental agreement as an

early termination by a current lessor to a prospective lessor or any

third party.

6. Violations. (a) Landlords who knowingly, or intentionally violate

any part of this section may be liable for liquidated damages, not to

exceed one thousand dollars, actual damages, costs and attorneys' fees.

(b) Any agreement by a lessee or tenant of premises occupied for

dwelling purposes waiving or modifying his or her rights as set forth in

this section shall be void as contrary to public policy.

Discrimination based on domestic violence status; prohibited.

1. Definitions. For the purposes of this section, a person is a

"domestic violence victim" and possesses "domestic violence victim

status" if such person is or has been, or is a parent accompanied by a

minor child or children who is or has been, in a situation in which such

person or child is a victim of an act that would constitute a violent

felony offense as enumerated in section 70.02 of the penal law, or a

family offense as enumerated in subdivision one of section eight hundred

twelve of the family court act, and such act is alleged to have been

committed by a member of the same family or household, as defined in

subdivision one of section eight hundred twelve of the family court act.

2. Discrimination based on domestic violence victim status prohibited.

(a) No person, firm or corporation owning or managing any building used

for dwelling purposes, or the agent of such person, firm or corporation,

shall, because of such person's or family member's domestic violence

victim status, (1) refuse to rent a residential unit to any person or

family, when, but for such status, rental would not have been refused,

(2) discriminate in the terms, conditions, or privileges of any such

rental, when, but for such status, such discrimination would not have

occurred, or (3) print or circulate, or cause to be printed or

circulated, any statement, advertisement or publication which expresses,

directly or indirectly, any limitation, specification, or

discrimination. A violation of this subdivision shall be a misdemeanor

and, on conviction thereof, shall be punished by a fine of not less than

one thousand dollars and not more than two thousand dollars for each

offense; provided, however, that it shall be a defense that such person,

firm, corporation or agent refused to rent a residential unit on any

other lawful ground.

(b) (1) Where discriminatory conduct prohibited by this subdivision

has occurred, such person or family shall have a cause of action in any

court of appropriate jurisdiction for compensatory and punitive damages,

with such punitive damages not exceeding two thousand dollars for each

offense, and declaratory and injunctive relief; and (2) in all actions

brought under this section, reasonable attorneys' fees as determined by

the court may be awarded to a prevailing party, provided, however, that

a prevailing defendant in order to recover such reasonable attorneys'

fees must make a motion requesting such fees and show that the action or

proceeding brought was frivolous. In order to find the action or

proceeding to be frivolous, the court must find one or more of the

following: (i) the action was commenced, used or continued in bad faith,

solely to delay or prolong the resolution of the litigation or to harass

or maliciously injure another; or (ii) the action was commenced or

continued in bad faith without any reasonable basis and could not be

supported by a good faith argument for an extension, modification or

reversal of existing law. If the action or proceeding was promptly

discontinued when the party or attorney learned or should have learned

that the action or proceeding lacked such a reasonable basis, the court

may find that the party or the attorney did not act in bad faith.

(c) Nothing in this section shall be construed as limiting the ability

of a person, firm or corporation owning or managing a building used for

dwelling purposes, or the agent of such person, firm or corporation,

from applying reasonable standards not based on or derived from domestic

violence victim status in determining the eligibility of a person or

family seeking to rent a residential unit.

(d) This section shall not apply to buildings used for dwelling

purposes that are owner occupied and have two or fewer residential

units.

3. A person, firm, or corporation owning or managing a building used

for dwelling purposes or agent of such person, firm or corporation shall

not be civilly liable to other tenants, guests, invitees, or licensees

arising from reasonable and good faith efforts to comply with this

section.

4. Nothing in this section shall be construed as prohibiting a person,

firm or corporation owning or managing a building used for dwelling

purposes, or the agent of such person, firm or corporation, from:

(a) providing or preserving a rental preference in any public or

private housing for victims of domestic violence;

(b) providing any other assistance to victims of domestic violence in

obtaining or retaining any public or private housing; or

(c) responding to an inquiry or request by an applicant, tenant, or

leaseholder who is a victim of domestic violence.

5. Nothing in this section shall be construed as prohibiting a

municipality from retaining or promulgating local laws or ordinances

imposing additional or enhanced protections prohibiting discrimination

against victims of domestic violence.

6. Nothing in this section shall be construed as limiting,

diminishing, or otherwise affecting any rights under existing law.

Landlord duty to mitigate damages. In any lease or rental

agreement, excluding any real estate purchase contract defined in

paragraphs (a), (c) and (d) of subdivision four of section four hundred

sixty-one of this chapter, covering premises occupied for dwelling

purposes, if a tenant vacates a premises in violation of the terms of

the lease, the landlord shall, in good faith and according to the

landlord's resources and abilities, take reasonable and customary

actions to rent the premises at fair market value or at the rate agreed

to during the term of the tenancy, whichever is lower. If the landlord

rents the premises at fair market value or at the rate agreed to during

the term of the tenancy, the new tenant's lease shall, once in effect,

terminate the previous tenant's lease and mitigate damages otherwise

recoverable against the previous tenant because of such tenant's

vacating the premises. The burden of proof shall be on the party seeking

to recover damages. Any provision in a lease that exempts a landlord's

duty to mitigate damages under this section shall be void as contrary to

public policy.

Denial on the basis of involvement in prior disputes

prohibited. 1. No landlord of a residential premises shall refuse to

rent or offer a lease to a potential tenant on the basis that the

potential tenant was involved in a past or pending landlord-tenant

action or summary proceeding under article seven of the real property

actions and proceedings law. There shall be a rebuttable presumption

that a person is in violation of this section if it is established that

the person requested information from a tenant screening bureau relating

to a potential tenant or otherwise inspected court records relating to a

potential tenant and the person subsequently refuses to rent or offer a

lease to the potential tenant.

2. Whenever the attorney general shall believe from evidence

satisfactory to him or her that any person, firm, corporation or

association or agent or employee thereof has violated subdivision one of

this section, he or she may bring an action or special proceeding in the

supreme court for a judgment enjoining the continuance of such violation

and for a civil penalty of not less than five hundred dollars, but not

more than one thousand dollars for each violation.

Termination of tenancies at will or by sufferance, by notice. A

tenancy at will or by sufferance, however created, may be terminated by

a written notice of not less than thirty days given in behalf of the

landlord, to the tenant, requiring him to remove from the premises;

which notice must be served, either by delivering to the tenant or to a

person of suitable age and discretion, residing upon the premises, or if

neither the tenant nor such a person can be found, by affixing it upon a

conspicuous part of the premises, where it may be conveniently read. At

the expiration of thirty days after the service of such notice, the

landlord may re-enter, maintain an action to recover possession, or

proceed, in the manner prescribed by law, to remove the tenant, without

further or other notice to quit.

Liability of tenant holding over after giving notice of

intention to quit. If a tenant gives notice of his intention to quit the

premises held by him, and does not accordingly deliver up the possession

thereof, at the time specified in such notice, he or his personal

representatives must, so long as he continue in possession, pay to the

landlord, his heirs or assigns, double the rent which he should

otherwise have paid, to be recovered at the same time, and in the same

manner, as the single rent.

Right of tenants to form, join or participate in tenants'

groups. 1. No landlord shall interfere with the right of a tenant to

form, join or participate in the lawful activities of any group,

committee or other organization formed to protect the rights of tenants;

nor shall any landlord harass, punish, penalize, diminish, or withhold

any right, benefit or privilege of a tenant under his tenancy for

exercising such right.

2. Tenants' groups, committees or other tenants' organizations shall

have the right to meet without being required to pay a fee in any

location on the premises including a community or social room where use

is normally subject to a fee which is devoted to the common use of all

tenants in a peaceful manner, at reasonable hours and without

obstructing access to the premises or facilities. No landlord shall deny

such right.

Lease, when void; liability of landlord where premises are

occupied for unlawful purpose. 1. Whenever the lessee or occupant other

than the owner of any building or premises, shall use or occupy the

same, or any part thereof, for any illegal trade, manufacture or other

business, the lease or agreement for the letting or occupancy of such

building or premises, or any part thereof shall thereupon become void,

and the landlord of such lessee or occupant may enter upon the premises

so let or occupied.

2. The owner of real property, knowingly leasing or giving possession

of the same to be used or occupied, wholly or partly, for any unlawful

trade, manufacture or business, or knowingly permitting the same to be

so used, is liable severally, and also jointly with one or more of the

tenants or occupants thereof, for any damage resulting from such

unlawful use, occupancy, trade, manufacture or business.

3. For the purposes of this section, two or more convictions of any

person or persons had, within a period of one year, for any of the

offenses described in section 230.00, 230.05, 230.06, 230.11, 230.12,

230.13, 230.20, 230.25, 230.30, 230.32 or 230.40 of the penal law

arising out of conduct engaged in at the same premises consisting of a

dwelling as that term is defined in subdivision four of section four of

the multiple dwelling law shall be presumptive evidence of unlawful use

of such premises and of the owners knowledge of the same.

4. Any lease or agreement hereafter executed for the letting or

occupancy of real property or any portion thereof, to be used by the

lessee as a residence, which contains therein a provision pledging

personal property exempt by law from levy and sale by virtue of an

execution, as security for the payment of rent due or to become due

thereunder, is void as to such provision.

* 5. The attorney general may commence an action or proceeding in the

supreme court to enjoin the continued unlawful trade, manufacture or

business in such premises.

* NB There are 2 sub 5's

* 5. For the purposes of this section, two or more convictions of any

person or persons had, within a period of one year, for any of the

offenses described in section 225.00, 225.05, 225.10, 225.15, 225.20,

225.30, 225.32, 225.35 or 225.40 of the penal law, arising out of

conduct engaged in at the same premises consisting of a dwelling as that

term is defined in subdivision four of section four of the multiple

dwelling law shall be presumptive evidence of unlawful use of such

premises and of the owner's knowledge of the same.

* NB There are 2 sub 5's

6. Any owner or tenant, including a tenant of one or more rooms of an

apartment house, tenement house or multiple dwelling of any premises

within two hundred feet of the demised real property, may commence an

action or proceeding in supreme court to enjoin the continued unlawful

trade, manufacture or other business in such premises.

Sprinkler system notice in residential leases. 1. Every

residential lease shall provide conspicuous notice in bold face type as

to the existence or non-existence of a maintained and operative

sprinkler system in the leased premises.

2. For purposes of this section, "sprinkler system" shall have the

same meaning as defined in section one hundred fifty-five-a of the

executive law.

3. If there is a maintained and operative sprinkler system in the

leased premises, the residential lease agreement shall provide further

notice as to the last date of maintenance and inspection.

Flood history and risk notice in residential leases. 1. Every

residential lease shall provide notice of the following information

related to the previous flood history and current flood risk of the

leased premises, as follows:

(a) whether any or all of the leased premises is located wholly or

partially in a Federal Emergency Management Agency ("FEMA") designated

floodplain;

(b) whether any or all of the leased premises is located wholly or

partially in the Special Flood Hazard Area ("SFHA"; "100-year

floodplain") according to FEMA's current Flood Insurance Rate Maps for

the leased premises' area;

(c) whether any or all of the leased premises is located wholly or

partially in a Moderate Risk Flood Hazard Area ("500-year floodplain")

according to FEMA's current Flood Insurance Rate Maps for the leased

premises' area; and

(d) any prior flood damage to the leased premises due to a natural

flood event, such as heavy rainfall, coastal storm surge, tidal

inundation, or river overflow, that the lessor knows or reasonably

should know has occurred to such premises and the nature of any such

damage.

2. Every residential lease shall also contain the following notice to

tenants: "Flood insurance is available to renters through the Federal

Emergency Management Agency's (FEMA's) National Flood Insurance Program

(NFIP) to cover your personal property and contents in the event of a

flood. A standard renter's insurance policy does not typically cover

flood damage. You are encouraged to examine your policy to determine

whether you are covered."

* § 231-c. Good cause eviction law notice. 1. A landlord as defined in

subdivision two of section two hundred eleven of this chapter shall

append to or incorporate into any initial lease, renewal lease, notice

required pursuant to paragraph (a) of subdivision one of section two

hundred twenty-six-c of this article, notice required pursuant to

subdivision two of section seven hundred eleven of the real property

actions and proceedings law, or petition pursuant to section seven

hundred forty one of the real property actions and proceedings law, the

following notice:

NOTICE TO TENANT OF APPLICABILITY OR INAPPLICABILITY OF THE NEW YORK

STATE GOOD CAUSE EVICTION LAW

This notice from your landlord serves to inform you of whether or not

your unit/apartment/home is covered by the New York State Good Cause

Eviction Law (Article 6-A of the Real Property Law) and, if applicable,

the reason permitted under the New York State Good Cause Eviction Law

that your landlord is not renewing your lease. Even if your apartment is

not protected by Article 6-A, known as the New York State Good Cause

Eviction Law, you may have other rights under other local, state, or

federal laws and regulations concerning rents and evictions. This

notice, which your landlord is required to fill out and give to you,

does not constitute legal advice. You may wish to consult a lawyer if

you have any questions about your rights under the New York State Good

Cause Eviction Law or about this notice.

NOTICE (THIS SHOULD BE FILLED OUT BY YOUR LANDLORD)

UNIT INFORMATION

STREET:

_______________________________________________________________________

UNIT OR APARTMENT NUMBER:

_______________________________________________________________________

CITY/TOWN/VILLAGE:

_______________________________________________________________________

STATE:

_______________________________________________________________________

ZIP CODE:

_______________________________________________________________________

1. IS THIS UNIT SUBJECT TO ARTICLE 6-A OF THE REAL PROPERTY LAW, KNOWN

AS THE NEW YORK STATE GOOD CAUSE EVICTION LAW? (PLEASE MARK APPLICABLE

ANSWER)

YES ___

NO ___

2. IF THE UNIT IS EXEMPT FROM ARTICLE 6-A OF THE REAL PROPERTY LAW,

KNOWN AS THE NEW YORK STATE GOOD CAUSE EVICTION LAW, WHY IS IT EXEMPT

FROM THAT LAW? (PLEASE MARK ALL APPLICABLE EXEMPTIONS)

A. Village/Town/City outside of New York City has not adopted good cause

eviction under section 213 of the Real Property Law ___;

B. Unit is owned by a "small landlord," as defined in subdivision 3 of

section 211 of the Real Property Law, who owns no more than 10 units for

small landlords located in New York City or the number of units

established as the maximum amount a "small landlord" can own in the

state by a local law of a village, town, or city, other than New York

City, adopting the provisions of Article 6-A of the Real Property Law,

known as the New York State Good Cause Eviction Law, or no more than 10

units, as applicable. In connection with any eviction proceeding in

which the landlord claims an exemption from the provisions of Article

6-A of the Real Property Law, known as the New York State Good Cause

Eviction Law, on the basis of being a small landlord, the landlord shall

provide to the tenant or tenants subject to the proceeding the name of

each natural person who owns or is a beneficial owner of, directly or

indirectly, in whole or in part, the housing accommodation at issue in

the proceeding, the number of units owned, jointly or separately, by

each such natural person owner, and the addresses of any such units,

excluding each natural person owner's principal residence. If the

landlord is an entity, organized under the laws of this state or of any

other jurisdiction, then such landlord shall provide to the tenant or

tenants subject to the proceeding the name of each natural person with a

direct or indirect ownership interest in such entity or any affiliated

entity, the number of units owned, jointly or separately, by each such

natural person owner, and the addresses of any such units, excluding

each natural person owner's principal residence (exemption under

subdivision 1 of section 214 of the Real Property Law) ___;

C. Unit is located in an owner-occupied housing accommodation with no

more than 10 units (exemption under subdivision 2 of section 214 of the

Real Property Law) ___;

D. Unit is subject to regulation of rents or evictions pursuant to

local, state, or federal law (exemption under subdivision 5 of section

214 of the Real Property Law)___;

E. Unit must be affordable to tenants at a specific income level

pursuant to statute, regulation, restrictive declaration, or pursuant to

a regulatory agreement with a local, state, or federal government entity

(exemption under subdivision 6 of section 214 of the Real Property Law)

___;

F. Unit is on or within a housing accommodation owned as a condominium

or cooperative, or unit is on or within a housing accommodation subject

to an offering plan submitted to the office of the attorney general

(exemption under subdivision 7 of section 214 of the Real Property Law)

___;

G. Unit is in a housing accommodation that was issued a temporary or

permanent certificate of occupancy within the past 30 years (only if

building received the certificate on or after January 1st, 2009)

(exemption under subdivision 8 of section 214 of the Real Property Law)

___;

H. Unit is a seasonal use dwelling unit under subdivisions 4 and 5 of

section 7-108 of the General Obligations Law (exemption under

subdivision 9 of section 214 of the Real Property Law) ___;

I. Unit is in a hospital as defined in subdivision 1 of section 2801 of

the Public Health Law, continuing care retirement community licensed

pursuant to Article 46 or 46-A of the Public Health Law, assisted living

residence licensed pursuant to Article 46-B of the Public Health Law,

adult care facility licensed pursuant to Article 7 of the Social

Services Law, senior residential community that has submitted an

offering plan to the attorney general, or not-for-profit independent

retirement community that offers personal emergency response,

housekeeping, transportation and meals to their residents (exemption

under subdivision 10 of section 214 of the Real Property Law) ___;

J. Unit is a manufactured home located on or in a manufactured home park

as defined in section 233 of the Real Property Law (exemption under

subdivision 11 of section 214 of the Real Property Law) ___;

K. Unit is a hotel room or other transient use covered by the definition

of a class B multiple dwelling under subdivision 9 of section 4 of the

Multiple Dwelling Law (exemption under subdivision 12 of section 214 of

the Real Property Law) ___;

L. Unit is a dormitory owned and operated by an institution of higher

education or a school (exemption under subdivision 13 of section 214 of

the Real Property Law) ___;

M. Unit is within and for use by a religious facility or institution

(exemption under subdivision 14 of section 214 of the Real Property Law)

___;

N. Unit has a monthly rent that is greater than the percent of fair

market rent established in a local law of a village, town, or city,

other than New York City, adopting the provisions of Article 6-A of the

Real Property Law, known as the New York Good Cause Eviction Law, or 245

percent of the fair market rent, as applicable. Fair market rent refers

to the figure published by the United States Department of Housing and

Urban Development, for the county in which the housing accommodation is

located, as shall be published by the Division of Housing and Community

Renewal no later than August 1st in any given year. The Division of

Housing and Community Renewal shall publish the fair market rent and 245

percent of the fair market rent for each unit type for which such fair

market rent is published by the United States Department of Housing and

Urban Development for each county in New York State in the annual

publication required pursuant to subdivision 7 of section 211 of the

Real Property Law (exemption under subdivision 15 of section 214 of the

Real Property Law) ___;

3. IF THIS UNIT IS SUBJECT TO ARTICLE 6-A OF THE REAL PROPERTY LAW,

KNOWN AS THE NEW YORK STATE GOOD CAUSE EVICTION LAW, AND THIS NOTICE

SERVES TO INFORM A TENANT THAT THE LANDLORD IS INCREASING THE RENT ABOVE

THE THRESHOLD FOR PRESUMPTIVELY UNREASONABLE RENT INCREASES, WHAT IS THE

LANDLORD'S JUSTIFICATION FOR INCREASING THE RENT ABOVE THE THRESHOLD FOR

PRESUMPTIVELY UNREASONABLE RENT INCREASES? (A rent increase is

presumptively unreasonable if the increase from the prior rent is

greater than the lower of: (a) 5 percent plus the annual percentage

change in the consumer price index for all urban consumers for all items

as published by the United States Bureau of Labor Statistics for the

region in which the housing accommodation is located, as published not

later than August 1st of each year by the Division of Housing and

Community Renewal; or (b) 10 percent.) (PLEASE MARK AND FILL OUT THE

APPLICABLE RESPONSE)

A. The rent is not being increased above the threshold for presumptively

unreasonable rent increases described above: ___;

B. The rent is being increased above the threshold for presumptively

unreasonable rent increases described above: ___;

B-1: If the rent is being increased above the threshold for

presumptively unreasonable rent increases described above, what is the

justification for the increase:

_________________________________________________________________________

_________________________________________________________________________

_________________________________________________________________________

_________________________________________________________________________

4. IF THIS UNIT IS SUBJECT TO ARTICLE 6-A OF THE REAL PROPERTY LAW,

KNOWN AS THE NEW YORK STATE GOOD CAUSE EVICTION LAW, AND THIS NOTICE

SERVES TO INFORM A TENANT THAT THE LANDLORD IS NOT RENEWING A LEASE,

WHAT IS THE GOOD CAUSE FOR NOT RENEWING THE LEASE? (PLEASE MARK ALL

APPLICABLE REASONS)

A. This unit is exempt from Article 6-A of the Real Property Law, known

as the New York State Good Cause Eviction Law, for the reasons stated in

response to question 2, above (IF THIS ANSWER IS CHECKED, NO OTHER

ANSWERS TO THIS QUESTION SHOULD BE CHECKED): ___;

B. The tenant is receiving this notice in connection with a first lease

or a renewal lease, so the landlord does not need to check any of the

lawful reasons listed below for not renewing a lease under Article 6-A

of the Real Property Law, known as the New York State Good Cause

Eviction Law (IF THIS ANSWER IS CHECKED, NO OTHER ANSWERS TO THIS

QUESTION SHOULD BE CHECKED) ___;

C. The landlord is not renewing the lease because the unit is sublet and

the sublessor seeks in good faith to recover possession of the unit for

their own personal use and occupancy (exemption under subdivision 3 of

section 214 of the Real Property Law): ___;

D. The landlord is not renewing the lease because the possession, use or

occupancy of the unit is solely incident to employment and the

employment is being or has been lawfully terminated (exemption under

subdivision 4 of section 214 of the Real Property Law): ___;

E. The landlord is not renewing the lease because the tenant has failed

to pay rent due and owing, and the rent due or owing, or any part

thereof, did not result from a rent increase which is unreasonable. A

rent increase is presumptively unreasonable if the increase from the

prior rent is greater than the lower of: (a) 5 percent plus the annual

percentage change in the consumer price index for all urban consumers

for all items as published by the United States Bureau of Labor

Statistics for the region in which the housing accommodation is located,

as published not later than August 1st of each year by the Division of

Housing and Community Renewal; or (b) 10 percent (good cause for

eviction under paragraph a of subdivision 1 of section 216 of the Real

Property Law): ___;

F. The landlord is not renewing the lease because the tenant is

violating a substantial obligation of their tenancy or breaching any of

the landlord's rules and regulations governing the premises, other than

the obligation to surrender possession of the premises, and the tenant

has failed to cure the violation after written notice that the violation

must cease within 10 days of receipt of the written notice. For this

good cause to apply, the obligation the tenant violated cannot be an

obligation that was imposed for the purpose of circumventing the intent

of Article 6-A of the Real Property Law, known as the New York State

Good Cause Eviction Law. The landlord's rules or regulations that the

tenant has violated also must be reasonable and have been accepted in

writing by the tenant or made a part of the lease at the beginning of

the lease term (good cause for eviction under paragraph b of subdivision

1 of section 216 of the Real Property Law): ___;

G. The landlord is not renewing the lease because the tenant is either

(a) committing or permitting a nuisance on the unit or the premises; (b)

maliciously or grossly negligently causing substantial damage to the

unit or the premises; (c) interfering with the landlord's, another

tenant's, or occupants of the same or an adjacent building or

structure's comfort and safety (good cause for eviction under paragraph

c of subdivision 1 of section 216 of the Real Property Law): ___;

H. The landlord is not renewing the lease because the tenant's occupancy

of the unit violates law and the landlord is subject to civil or

criminal penalties for continuing to let the tenant occupy the unit. For

this good cause to apply, a state or municipal agency having

jurisdiction must have issued an order requiring the tenant to vacate

the unit. No tenant shall be removed from possession of a unit on this

basis unless the court finds that the cure of the violation of law

requires the removal of the tenant and that the landlord did not,

through neglect or deliberate action or failure to act, create the

condition necessitating the vacate order. If the landlord does not try

to cure the conditions causing the violation of the law, the tenant has

the right to pay or secure payment, in a manner satisfactory to the

court, to cure the violation. Any tenant expenditures to cure the

violation shall be applied against rent owed to the landlord. Even if

removal of a tenant is absolutely essential to the tenant's health and

safety, the tenant shall be entitled to resume possession at such time

as the dangerous conditions have been removed. The tenant also retains

the right to bring an action for monetary damages against the landlord

or to otherwise compel the landlord to comply with all applicable state

or municipal housing codes (good cause for eviction under paragraph d of

subdivision 1 of section 216 of the Real Property Law): ___;

I. The landlord is not renewing the lease because the tenant is using or

permitting the unit or premises to be used for an illegal purpose (good

cause for eviction under paragraph e of subdivision 1 of section 216 of

the Real Property Law): ___;

J. The landlord is not renewing the lease because the tenant has

unreasonably refused the landlord access to the unit for the purposes of

making necessary repairs or improvements required by law or for the

purposes of showing the premises to a prospective purchaser, mortgagee,

or other person with a legitimate interest in the premises (good cause

for eviction under paragraph f of subdivision 1 of section 216 of the

Real Property Law): ___;

K. The landlord is not renewing the lease because the landlord seeks in

good faith to recover possession of the unit for the landlord's personal

use and occupancy as the landlord's principal residence, or for the

personal use and occupancy as a principal residence by the landlord's

spouse, domestic partner, child, stepchild, parent, step-parent,

sibling, grandparent, grandchild, parent-in-law, or sibling-in-law. The

landlord can only recover the unit for these purposes if there is no

other suitable housing accommodation in the building that is available.

Under no circumstances can the landlord recover the unit for these

purposes if the tenant is (a) 65 years old or older; or (b) a "disabled

person" as defined in subdivision 6 of section 211 of the Real Property

Law. To establish this good cause in an eviction proceeding, the

landlord must establish good faith to recover possession of a housing

accommodation for the uses described herein by clear and convincing

evidence (good cause for eviction under paragraph g of subdivision 1 of

section 216 of the Real Property Law): ___;

L. The landlord is not renewing the lease because the landlord in good

faith seeks to demolish the housing accommodation. To establish this

good cause in an eviction proceeding, the landlord must establish good

faith to demolish the housing accommodation by clear and convincing

evidence (good cause for eviction under paragraph h of subdivision 1 of

section 216 of the Real Property Law): ___;

M. The landlord is not renewing the lease because the landlord seeks in

good faith to withdraw the unit from the housing rental market. To

establish this good cause in an eviction proceeding, the landlord must

establish good faith to withdraw the unit from the rental housing market

by clear and convincing evidence (good cause for eviction under

paragraph i of subdivision 1 of section 216 of the Real Property Law):

___;

N. The landlord is not renewing the lease because the tenant has failed

to agree to reasonable changes at lease renewal, including reasonable

increases in rent, and the landlord gave written notice of the changes

to the lease to the tenant at least 30 days, but no more than 90 days,

before the current lease expired. A rent increase is presumptively

unreasonable if the increase from the prior rent is greater than the

lower of: (a) 5 percent plus the annual percentage change in the

consumer price index for all urban consumers for all items as published

by the United States Bureau of Labor Statistics for the region in which

the housing accommodation is located, as published by August 1st of each

year by the Division of Housing and Community Renewal; or (b) 10 percent

(good cause for eviction under paragraph j of subdivision 1 of section

216 of the Real Property Law):___.

*NB Repealed June 15, 2034

Duration of certain agreements in New York. An agreement for

the occupation of real estate in the city of New York, which shall not

particularly specify the duration of the occupation, shall be deemed to

continue until the first day of October next after the possession

commences under the agreement.

Notice to terminate monthly tenancy or tenancy from month to

month in the city of New York. No monthly tenant, or tenant from month

to month, shall hereafter be removed from any lands or buildings in the

city of New York on the grounds of holding over the tenant's term unless

pursuant to the notice period required by subdivision two of section two

hundred twenty-six-c of this article, or for a tenancy other than a

residential tenancy at least thirty days before the expiration of the

term, the landlord or the landlord's agent serve upon the tenant, in the

same manner in which a notice of petition in summary proceedings is now

allowed to be served by law, a notice in writing to the effect that the

landlord elects to terminate the tenancy and that unless the tenant

removes from such premises on the day designated in the notice, the

landlord will commence summary proceedings under the statute to remove

such tenant therefrom.

Notification to terminate monthly tenancy or tenancy from

month to month outside the city of New York. A monthly tenancy or

tenancy from month to month of any lands or buildings located outside of

the city of New York may be terminated by the tenant or for a tenancy

other than a residential tenancy the landlord, upon the tenant's or

non-residential landlord's notifying the landlord or non-residential

tenant at least one month before the expiration of the term of the

tenant's election to terminate; provided, however, that no notification

shall be necessary to terminate a tenancy for a definite term.

Holding over by a tenant after expiration of a term longer

than one month; effect of acceptance of rent. Where a tenant whose term

is longer than one month holds over after the expiration of such term,

such holding over shall not give to the landlord the option to hold the

tenant for a new term solely by virtue of the tenant's holding over. In

the case of such a holding over by the tenant, the landlord may proceed,

in any manner permitted by law, to remove the tenant, or, if the

landlord shall accept rent for any period subsequent to the expiration

of such term, then, unless an agreement either express or implied is

made providing otherwise, the tenancy created by the acceptance of such

rent shall be a tenancy from month to month commencing on the first day

after the expiration of such term.

Manufactured home parks; duties, responsibilities. a. Wherever

used in this section:

1. The term "manufactured home tenant" means one who rents space in a

manufactured home park from a manufactured home park owner or operator

for the purpose of parking his manufactured home or one who rents a

manufactured home in a manufactured home park from a manufactured home

park owner or operator.

2. The term "manufactured home owner" means one who holds title to a

manufactured home.

3. The term "manufactured home park" means a contiguous parcel of

privately owned land which is used for the accommodation of three or

more manufactured homes occupied for year-round living.

4. The term "manufactured home" means a structure, transportable in

one or more sections, which in the traveling mode, is eight body feet or

more in width or forty body feet or more in length, or, when erected on

site, is three hundred twenty or more square feet, and which is built on

a permanent chassis and designed to be used as a dwelling with or

without a permanent foundation when connected to the required utilities,

and includes the plumbing, heating, air-conditioning, and electrical

systems contained therein; except that such term shall include a "mobile

home" as defined in paragraph five, and shall include a structure which

meets all the requirements of this subdivision except the size

requirements and with respect to which the manufacturer voluntarily

files a certification required by the secretary of housing and urban

development.

5. The term "mobile home" means a moveable or portable unit,

manufactured prior to January first, nineteen hundred seventy-six,

designed and constructed to be towed on its own chassis, comprised of

frame and wheels, connected to utilities, and designed and constructed

without a permanent foundation for year-round living. A unit may contain

parts that may be folded, collapsed or telescoped when being towed and

expanded later to provide additional cubic capacity as well as two or

more separately towable components designed to be joined into one

integral unit capable of being again separated into the components for

repeated towing. "Mobile home" shall mean units designed to be used

exclusively for residential purposes, excluding travel trailers.

6. The term "rent-to-own contract" shall mean any agreement between a

manufactured home park owner or operator and a manufactured home renter

which provides that after a specified term or other contingency the

manufactured home renter will take ownership of the rented home.

7. The term "rent-to-own payment" shall mean any payment or payments

made by a manufactured home renter pursuant to a rent-to-own contract

which are in addition to rental payments for the rented site and the

rented home.

b. A manufactured home park owner or operator may not evict a

manufactured home tenant other than for the following reasons:

2. The manufactured home tenant has defaulted in the payment of rent,

pursuant to the agreement under which the premises are held, and a

demand of the rent with at least thirty days notice in writing has been

served upon him as prescribed in section seven hundred thirty-five of

the real property actions and proceedings law. Upon the acceptance of

such delinquent rent together with allowable costs, an action instituted

for nonpayment of rent shall be terminated. Any person succeeding to the

manufactured home park owner or operator's interest in the premises may

proceed under this subdivision for rent due his predecessor in interest

if he has a right thereto.

3. The premises, or any part thereof, are used or occupied as a

bawdy-house, or house or place of assignation for lewd purposes or for

purposes of prostitution, or for any illegal trade or business.

4. The manufactured home tenant is in violation of some federal, state

or local law or ordinance which may be deemed detrimental to the safety

and welfare of the other persons residing in the manufactured home park.

5. The manufactured home tenant or anyone occupying the manufactured

home is in violation of any lease term or rule or regulation established

by the manufactured home park owner or operator pursuant to this

section, and has continued in violation for more than ten days after the

manufactured home park owner or operator has given written notice of

such violation to the manufactured home tenant setting forth the lease

term or rule or regulation violated and directing that the manufactured

home tenant correct or cease violation of such lease term or rule or

regulation within ten days from the receipt of said notice. Upon the

expiration of such period should the violation continue or should the

manufactured home tenant or anyone occupying the manufactured home be

deemed a persistent violator of the lease term or rules and regulations,

the park owner or operator may serve written notice upon the

manufactured home tenant directing that he vacate the premises within

thirty days of the receipt of said notice.

6. (i) The manufactured home park owner or operator proposes a change

in the use of the land comprising the manufactured home park, or a

portion thereof, on which the manufactured home is located, from

manufactured home lot rentals to some other use, provided the

manufactured home owner is given written notice of the proposed change

of use and the manufactured home owner's need to secure other

accommodations. Whenever a manufactured home park owner or operator

gives a notice of proposed change of use to any manufactured home owner,

the manufactured home park owner or operator shall, at the same time,

give notice of the proposed change of use to all other manufactured home

owners or tenants in the manufactured home park who will be required to

secure other accommodations as a result of such proposed change of use.

Eviction proceedings based on a change in use shall not be commenced

prior to two years from the service of notice of proposed change in use.

Such notice shall be served in the manner prescribed in section seven

hundred thirty-five of the real property actions and proceedings law or

by certified mail, return receipt requested.

(ii) Where a purchaser of a manufactured home park certified that such

purchaser did not intend to change the use of the land pursuant to

paragraph (b) of subdivision two of section two hundred thirty-three-a

of this article, no eviction proceedings based on a change of use shall

be commenced until the expiration of sixty months from the date of the

closing on the sale of the park.

(iii) (A) The manufactured home park owner or operator shall provide

the manufactured home owner a stipend of up to fifteen thousand dollars

per manufactured home owner, pursuant to a court order. A warrant for

eviction cannot be executed until the stipend has been paid to the

manufactured home owner being evicted.

(B) The court shall calculate the stipend based upon consideration of

the following factors:

(1) The cost of relocation of the manufactured home;

(2) The number of manufactured homes in the same park that would be

receiving a stipend;

(3) The amount the real property is being purchased for;

(4) The value of the real property the manufactured home is located

on;

(5) The value of the development rights attached to real property

parcel the manufactured home is located on; and

(6) Any other factors the court determines are relevant in each case.

(C) In the event the manufactured home owner is not removed and the

eviction proceeding is terminated the manufactured home owner shall

return the stipend to the park owner. The weight to be afforded to each

of the various factors is within the discretion of the trial court.

c. If the manufactured home park owner or operator does not have one

of the above grounds available, the manufactured home tenant may raise

the same by affirmative defense to an action for eviction.

d. The proceedings to evict shall be governed by the procedures set

forth in article seven of the real property actions and proceedings law,

except for the provisions of subdivision two of section seven hundred

forty-nine of the real property actions and proceedings law which shall

be superseded by the provisions of this subdivision.

1. The officer to whom the warrant is directed and delivered shall

give at least ninety days notice, in writing and in the manner

prescribed in article seven of the real property actions and proceedings

law for the service of notice of petition, to the person or persons to

be evicted or dispossessed and shall execute the warrant between the

hours of sunrise and sunset.

2. The court may order that such warrant be directed and delivered

with only thirty days written notice to the person or persons to be

evicted or dispossessed if the conditions upon which the eviction is

founded pose an imminent threat to the health, safety, or welfare of the

other manufactured home tenants in the manufactured home park.

3. The court shall order that such warrant be directed and delivered

with thirty days written notice to the person or persons to be evicted

or dispossessed if the condition upon which the eviction is founded is

that such person is in default in the payment of rent.

4. Notwithstanding the provisions of paragraphs one and two of this

subdivision, nor of any other general, special or local law, rule or

regulation to the contrary, the officer to whom the warrant is directed

and delivered shall give seventy-two hours written notice to the person

or persons to be evicted or dispossessed, if such person or persons

rents a manufactured home in a manufactured home park from a

manufactured home park owner or operator and such officer shall execute

such warrant between the hours of sunrise and sunset.

e. Leases. 1. The manufactured home park owner or operator shall offer

every manufactured home tenant prior to occupancy, the opportunity to

sign a lease for a minimum of one year, which offer shall be made in

writing. All lease offers, including initial and renewal leases, shall

include a rider regarding tenant rights. Such rider shall be in a form

approved or promulgated by the commissioner of housing and community

renewal and which shall be made available to manufactured home park

owners and operators.

2. (i) On or before, as appropriate, (a) the first day of October of

each calendar year with respect to a manufactured home owner who is not

currently a party to a written lease with a manufactured home park owner

or operator or (b) the ninetieth day next preceding the expiration date

of any existing written lease between a manufactured home owner and a

manufactured home park owner or operator, the manufactured home park

owner or operator shall submit to each such manufactured home owner a

written offer to lease for a term of at least twelve months from the

commencement date thereof unless the manufactured home park owner or

operator has previously furnished the manufactured home owner with

written notification of a proposed change of use pursuant to paragraph

six of subdivision b of this section. Any such offer shall include a

copy of the proposed lease containing such terms and conditions,

including provisions for rent and other charges, as the manufactured

home park owner shall deem appropriate; provided such terms and

conditions are consistent with all rules and regulations promulgated by

the manufactured home park operator prior to the date of the offer and

are not otherwise prohibited or limited by applicable law. Such offer

shall also contain a statement advising the manufactured home owner that

if he or she fails to execute and return the lease to the manufactured

home park owner or operator within thirty days after submission of such

lease, the manufactured home owner shall be deemed to have declined the

offer of a lease and shall not have any right to a lease from the

manufactured home park owner or operator for the next succeeding twelve

months.

(ii) For purposes of this paragraph, the commencement date of any

lease offered by the manufactured home park owner to the manufactured

home owner shall be the ninetieth day after the date upon which the

manufactured home park owner shall have provided the offer required

pursuant to this paragraph; provided, however, that no such lease shall

be effective if, on such commencement date, the manufactured home owner

is in default of more than one month's rent. In the event the

manufactured home owner shall have failed to execute and return said

lease to the manufactured home park owner or operator within thirty days

after it is submitted to the manufactured home owner as required by

subparagraph (i) of this paragraph the manufactured home owner shall be

deemed to have declined to enter said lease.

3. No lease provision shall be inconsistent with any rule or

regulation in effect at the commencement of the lease.

4. If a manufactured home park owner or operator fails to offer a

tenant a lease as provided in this subdivision, the tenant shall have

all the rights of a leaseholder and may not be evicted for other than

the reasons specified in paragraph two, three, four, five or six of

subdivision (b) of this section.

5. All rent increases, including all fees, rents, charges, assessments

and utilities, shall be subject and pursuant to section two hundred

thirty-three-b of this article.

f. Rules and regulations. 1. A manufactured home park owner or

operator may promulgate rules and regulations governing the rental or

occupancy of a manufactured home lot provided such rules and regulations

shall not be unreasonable, arbitrary or capricious. A copy of all rules

and regulations shall be delivered by the manufactured home park owner

or operator to all manufactured home tenants at the same time such owner

or operator initially offers the written lease provided for in

subdivision e of this section. A copy of the rules and regulations shall

be posted in a conspicuous place upon the manufactured home park

grounds.

2. If a rule or regulation is not applied uniformly to all

manufactured home tenants of the manufactured home park there shall be a

rebuttable presumption that such rule or regulation is unreasonable,

arbitrary and capricious, provided, however, that an inconsistency

between a rule or regulation and a lease term contained in a lease

signed before the date the rule or regulation is effective shall not

raise a rebuttable presumption that such rule is unreasonable, arbitrary

or capricious.

3. Any rule or regulation which does not conform to the requirements

of this section or which has not been supplied or posted as required by

paragraph one of this subdivision shall be unenforceable and may be

raised by the manufactured home tenant as an affirmative defense in any

action to evict on the basis of a violation of such rule or regulation.

4. No rules or regulations may be changed by the manufactured home

park owner or operator without specifying the date of implementation of

said changed rules and regulations, which date shall be no fewer than

thirty days after written notice to all tenants.

5. A mobile home park owner or operator may not prohibit the placement

of a for sale sign on any mobile home. A rule or regulation may be

promulgated limiting the maximum size of such sign; provided, that it

does not prohibit signs the size of which do not exceed the smaller of

three feet by two feet or the maximum size allowed by law or

governmental regulation or ordinance, if any.

g. 1. No tenant shall be charged a fee for other than rent, utilities

and charges for facilities and services available to the tenant. All

fees, charges or assessments must be reasonably related to services

actually rendered.

2. A manufactured home park owner or operator shall be required to

fully disclose in writing all fees, charges, assessments, including

rental fees, rules and regulations prior to entering into a rental

agreement with a prospective tenant in the manufactured home park.

3. No fees, charges, assessments or rental fees may be increased by

manufactured home park owner or operator without specifying the date of

implementation of said fees, charges, assessments or rental fees which

date shall be no less than ninety days after written notice to all

manufactured home tenants. Failure on the part of the manufactured home

park owner or operator to fully disclose all fees, charges or

assessments shall prevent the manufactured home park owner or operator

from collecting said fees, charges or assessments, and refusal by the

manufactured home tenant to pay any undisclosed charges shall not be

used by the manufactured home park owner or operator as a cause for

eviction in any court of law. Rent, utilities and charges for facilities

and services available to the tenant may not be increased unless a lease

has been offered to the tenant as required by subdivision e of this

section.

4. (a) Whenever money shall be deposited or advanced on a contract or

license agreement for the use or rental of premises and the manufactured

home, if rented, in a manufactured home park as security for performance

of the contract or agreement or to be applied to payments upon such

contract or agreement when due, such money with interest accruing

thereon, if any, until repaid or so applied, shall continue to be the

money of the person making such deposit or advance and shall be a trust

fund in the possession of the person with whom such deposit or advance

shall be made and shall not be mingled with other funds or become an

asset of the park owner, operator or his agent.

(b) Whenever the person receiving money so deposited or advanced shall

deposit such money in a banking organization, such person shall

thereupon notify in writing each of the persons making such security

deposit or advance, giving the name and address of the banking

organization in which the deposit of security money is made, and the

amount of such deposit. Deposits in a banking organization pursuant to

the provisions of this subdivision shall be made in a banking

organization having a place of business within the state. If the person

depositing such security money in a banking organization shall deposit

same in an interest bearing account, he shall be entitled to receive, as

administration expenses, a sum equivalent to one percent per annum upon

the security money so deposited, which shall be in lieu of all other

administrative and custodial expenses. The balances of the interest paid

by the banking organization shall be the money of the person making the

deposit or advance and shall either be held in trust by the person with

whom such deposit or advance shall be made, until repaid or applied for

the use or rental of the leased premises, or annually paid to the person

making the deposit of security money.

(c) Whenever the money so deposited or advanced is for the rental of a

manufactured home park lot on property on which are located six or more

manufactured home park lots, the person receiving such money shall,

subject to the provisions of this section, deposit it in an interest

bearing account in a banking organization within the state which account

shall earn interest at a rate which shall be the prevailing rate earned

by other such deposits made with the banking organizations in such area.

(d) In the event that a lease terminates other than at the time that a

banking organization in such area regularly pays interest, the person

depositing such security money shall pay over to his manufactured home

tenant such interest as he is able to collect at the date of such lease

termination.

(e) Any provision of such a contract or agreement whereby a person who

so deposits or advances money waives any provision of this subdivision

is void.

h. No manufactured home park owner shall:

1. Require a manufactured home tenant therein to purchase from said

manufactured home park owner or operator skirting or equipment for tying

down manufactured homes, or any other equipment. However, the

manufactured home park owner or operator may determine by rule or

regulation the style or quality of such equipment to be purchased by the

manufactured home tenant from the vendor of the manufactured home

tenant's choosing, providing such equipment is readily available.

2. Charge any manufactured home tenant who chooses to install an

electric or gas appliance in his manufactured home an additional fee

solely on the basis of such installation unless such installation is

performed by the manufactured home park owner or operator at the request

of the manufactured home tenant, nor shall the manufactured home park

owner or operator restrict the installation, service or maintenance of

any such appliance, restrict the ingress or egress of repairers to enter

the manufactured home park for the purpose of installation, service or

maintenance of any such appliance, or restrict the making of any

interior improvement in such manufactured home, so long as such an

installation or improvement is in compliance with applicable building

codes and other provisions of law and further provided that adequate

utilities are available for such installation or improvement.

3. Require, by contract, rule, regulation or otherwise, a manufactured

home dweller to purchase from the manufactured home park owner or any

person acting directly or indirectly on behalf of the park owner,

commodities or services incidental to placement or rental within such

park; nor shall the park owner restrict access to the manufactured home

park to any person employed, retained or requested by the manufactured

home dweller to provide such commodity or service, unless the

manufactured home park owner establishes that such requirement or

restriction is necessary to protect the property of such park owner from

substantial harm or impairment.

4. Require a manufactured home owner or a prospective manufactured

home owner to purchase his or her manufactured home from the

manufactured home park owner or operator, or from any person or persons

designated by the manufactured home park owner or operator. Nothing

herein shall be construed to prevent a manufactured home park owner or

operator from requiring that any new manufactured home to be installed

in his or her manufactured home park comply with the rules and

regulations of said manufactured home park or conform to the physical

facilities then existing for installation of a manufactured home in said

manufactured home park.

i. 1. No manufactured home park owner or operator shall deny any

manufactured home tenant the right to sell his manufactured home within

the manufactured home park provided the manufactured home tenant shall

give to the manufactured home park owner or operator twenty days'

written notice of his intention to sell, provided that if the

manufactured home owner is deceased no such notice shall be required

from the administrator or executor of the home owner's estate, and

provided further that no manufactured home park owner or operator shall

restrict access to the manufactured home park to any potential purchaser

or representatives of any seller unless the manufactured home park owner

establishes that such restriction is necessary to protect the property

of such park owner or operator from substantial harm or impairment. No

manufactured home park owner or operator shall require the manufactured

home owner or subsequent purchaser to remove the manufactured home from

the manufactured home park solely on the basis of the sale thereof. The

manufactured home park owner or operator may reserve the right to

approve the purchaser of said manufactured home as a manufactured home

tenant for the remainder of the seller's or deceased tenant's term but

such permission may not be unreasonably withheld. If the manufactured

home park owner or operator unreasonably withholds his permission or

unreasonably restricts access to the manufactured home park, the

manufactured home tenant or the executor or administrator of a deceased

tenant's estate may recover the costs of the proceedings and attorneys'

fees if it is found that the manufactured home park owner or operator

acted in bad faith by withholding permission or restricting access.

2. The manufactured home park owner or operator shall not exact a

commission or fee with respect to the price realized by the seller

unless the manufactured home park owner or operator has acted as agent

for the manufactured home owner in the sale pursuant to a written

contract.

3. If the ownership or management rejects a purchaser as a prospective

tenant, the selling tenant must be informed in writing of the reasons

therefor.

j. The owner or operator of a manufactured home park may enter a

manufactured home owner's manufactured home without the prior consent of

the occupant only in case of emergency. The owner or operator of a

manufactured home park may enter a manufactured home tenant's

manufactured home during reasonable hours on reasonable notice.

k. The owner or operator shall provide reasonable notice where

practicable to all manufactured home tenants who would be affected by

any planned disruption of necessary services caused by the owner,

operator or his agent.

l. The park owner shall designate an agent on the premises or in close

proximity to the manufactured home park to insure the availability of

emergency response actions in matters affecting the health, safety,

well-being and welfare of manufactured home tenants in the park. The

designated agent's name, address and telephone number shall be posted in

a conspicuous location in the park, given in writing to each tenant and

registered with appropriate county law enforcement and health officials

and local fire officials.

m. Warranty of habitability, maintenance, disruption of services. In

every written or oral lease or rental agreement entered into by a

manufactured home tenant, the manufactured home park owner or operator

shall be deemed to covenant and warrant that the premises so leased or

rented and the manufactured home if rented, including rental through a

rent-to-own contract, and all areas used in connection therewith in

common with other manufactured home tenants or residents including all

roads within the manufactured home park are fit for human habitation and

for the uses reasonably intended by the parties and that the occupants

of such premises and such manufactured homes if rented shall not be

subjected to any conditions which would be dangerous, hazardous or

detrimental to their life, health or safety. When any such condition has

been caused by the misconduct of the manufactured home tenant or lessee

or persons under his direction or control, it shall not constitute a

breach of such covenants and warranties. The rights and obligations of

the manufactured home park owner or operator and the manufactured home

tenant shall be governed by the provisions of this subdivision and

subdivisions two and three of section two hundred thirty-five-b of this

article.

n. 1. No manufactured home park owner or operator shall serve a notice

to quit upon any manufactured home tenant or commence any action to

recover real property or summary proceeding to recover possession of

real property in retaliation for:

(a) A good faith complaint, by or in behalf of the tenant, to a

governmental authority of the manufactured home park owner's or

operator's alleged violation of any health or safety law, regulation,

code, or ordinance, or any law or regulation which has as its objective

the regulation of premises used for dwelling purposes; or

(b) Actions taken in good faith, by or in behalf of the manufactured

home tenant, to secure or enforce any rights under the lease or rental

agreement, under subdivision m of this section and subdivisions two and

three of section two hundred thirty-five-b of this article, or under any

other local law, law of the state of New York, or of its governmental

subdivisions, or of the United States which has as its objective the

regulation of premises used for dwelling purposes; or

(c) The manufactured home tenant's participation in the activities of

a tenant's organization.

2. No manufactured home park owner or operator shall substantially

alter the terms of the tenancy in retaliation for any actions set forth

in subparagraphs (a), (b), and (c) of paragraph one of this subdivision.

Substantial alteration shall include, but is not limited to, the refusal

to continue a tenancy of the manufactured home tenant or, upon

expiration of the manufactured home owner's lease, to renew the lease or

offer a new lease; provided, however, that a manufactured home park

owner or operator shall not be required under this subdivision to offer

a manufactured home owner a new lease or a lease renewal for a term

greater than one year.

3. This subdivision shall apply to all manufactured home parks with

four or more manufactured homes. However, its provisions shall not be

given effect in any case in which it is established that the condition

from which the complaint or action arose was caused by the manufactured

home tenant, a member of the manufactured home tenant's household, or a

guest of the manufactured home tenant. Nor shall it apply in a case

where a tenancy was terminated pursuant to the terms of a lease as a

result of a bona fide transfer of ownership. The rights and obligations

of the manufactured home park owner or operator and the manufactured

home tenant shall be governed by the provisions of this subdivision and

subdivisions three, four and five of section two hundred twenty-three-b

of this article.

o. Whenever a lease shall provide that in any action or summary

proceeding the manufactured home park owner or operator may recover

attorney's fees and/or expenses awarded by a court, there shall be

implied in such lease a covenant by the manufactured home park owner or

operator, to pay to the tenant the reasonable attorney's fees and/or

expenses incurred by the tenant to the same extent as is provided in

section two hundred thirty-four of this article which section shall

apply in its entirety. A manufactured home park owner or operator may

not demand that a tenant pays attorneys' fees unless such fees have been

awarded pursuant to a court order.

p. Any manufactured home park owner or operator who has agreed to

provide hot or cold water, heat, light, power, or any other service or

facility to any occupant of the manufactured home park who willfully or

intentionally without just cause fails to furnish such water, heat,

light, power, or other service or facility, or who interferes with the

quiet enjoyment of the leased premises, is guilty of a violation.

q. Upon receipt of rent, fees, charges or other assessments, in the

form of cash or any instrument other than the personal check of the

tenant, it shall be the duty of the manufactured home park owner or

operator to provide the payor with a written receipt containing the

following:

1. the date;

2. the amount;

3. the identity of the premises and the period for which paid;

4. the signature and title of the person receiving rent.

r. Limitation on late charges. A late charge on any rental payment by

a manufactured home owner which has become due and remains unpaid shall

not exceed and shall be enforced to the extent of three percent of such

delinquent payment; provided, however, that no charge shall be imposed

on any rental payment by a manufactured home owner received within ten

days after the due date. In the absence of a specific provision in the

lease or the manufactured home park's rules and regulations, no late

charge on any delinquent rental payment shall be assessed or collected.

Late charges may not be compounded and shall not be considered

additional rent.

s. It shall be a violation for a manufactured home park owner,

operator or his agent to restrict occupancy of a manufactured home or

manufactured home park lot intended for residential purposes by express

lease terms or otherwise, to a manufactured home tenant or tenants or to

such tenants and immediate family. Any such restriction in a lease or

rental agreement entered into or renewed before or after the effective

date of this subdivision shall be unenforceable as against public

policy. The rights and obligations of a manufactured home park owner or

operator and the manufactured home tenant shall be governed by the

provisions of this subdivision and subdivisions one, three, four, five,

six, seven, eight and nine of section two hundred thirty-five-f of this

article.

t. 1. Unless a greater right to assign is conferred by the lease, a

manufactured home tenant may not assign his lease without the written

consent of the manufactured home park owner or operator, which consent

may be unconditionally withheld without cause provided that the

manufactured home park owner or operator shall release the manufactured

home tenant from the lease upon request of the mobile home tenant upon

thirty days notice if the manufactured home park owner or operator

unreasonably withholds consent which release shall be the sole remedy of

the tenant. If the owner reasonably withholds consent, there shall be no

assignment and the manufactured home tenant shall not be released from

the lease.

2. (a) A manufactured home tenant renting space or a manufactured home

in a manufactured home park with four or more manufactured homes

pursuant to an existing lease shall have a right to sublease his

premises subject to the written consent of the park owner in advance of

the subletting. Such consent shall not be unreasonably withheld.

(b) The manufactured home tenant shall inform the manufactured home

park owner or operator of his intent to sublease by mailing a notice of

such intent by certified mail, return receipt requested. Such request

shall be accompanied by the following information: (i) the term of the

sublease, (ii) the name of the proposed sublessee, (iii) the business

and permanent home address of the proposed sublessee, (iv) the tenant's

reason for subletting, (v) the tenant's address for the term of the

sublease, (vi) the written consent of any co-tenant or guarantor of the

lease, and (vii) a copy of the proposed sublease, to which a copy of the

manufactured home tenant's lease shall be attached if available,

acknowledged by the manufactured home tenant and proposed subtenant as

being a true copy of such sublease.

(c) Within ten days after the mailing of such request, the

manufactured home park owner or operator may ask the manufactured home

tenant for additional information as will enable the manufactured home

park owner or operator to determine if rejection of such request shall

be unreasonable. Any such request for additional information shall not

be unduly burdensome. Within thirty days after the mailing of the

request for consent, or of the additional information reasonably asked

for by the manufactured home park owner or operator, whichever is later,

the manufactured home park owner or operator shall send a notice to the

manufactured home tenant of his consent or, if he does not consent, his

reasons therefor. Manufactured home park owner's or operator's failure

to send such a notice shall be deemed to be a consent to the proposed

subletting. If the manufactured home park owner or operator consents,

the premises may be sublet in accordance with the request, but the

manufactured home tenant thereunder, shall nevertheless remain liable

for the performance of manufactured home tenant's obligations under said

lease. If the manufactured home park owner or operator reasonably

withholds consent, there shall be no subletting and the manufactured

home tenant shall not be released from the lease. If the manufactured

home park owner or operator unreasonably withholds consent, the

manufactured home tenant may sublet in accordance with the request and

may recover the costs of the proceeding and attorneys fees if it is

found that the manufactured home park owner or operator acted in bad

faith by withholding consent. The rights and obligations of the

manufactured home park owner or operator and the manufactured home

tenant shall be governed by the provisions of this subdivision and

subdivisions three, five, six, seven and eight of section two hundred

twenty-six-b of this article.

u. In the event of a breach by a manufactured home park owner or

operator of any of the requirements of this section, the manufactured

home tenant may commence an action for damages actually incurred as a

result of such breach, or in an action or summary proceeding commenced

by such manufactured home park owner or operator, may counterclaim for

damages occasioned by such breach.

v. 1. On and after April first, nineteen hundred eighty-nine, the

commissioner of housing and community renewal shall have the power and

duty to enforce and ensure compliance with the provisions of this

section. However, the commissioner shall not have the power or duty to

enforce manufactured home park rules and regulations established under

subdivision f of this section.

2. On or before January first, nineteen hundred eighty-nine, each

manufactured home park owner or operator shall file a registration

statement with the commissioner and shall thereafter file an annual

registration statement on or before January first of each succeeding

year. The commissioner, by regulation, shall provide that such

registration statement shall include only the names of all persons

owning an interest in the park, the names of all tenants of the park,

all services provided by the park owner to the tenants and a copy of all

current manufactured home park rules and regulations. The reporting of

such information to the commissioner of taxation and finance pursuant to

subparagraph (B) of paragraph six of subsection (eee) of section six

hundred six of the tax law shall be deemed to satisfy the requirements

of this paragraph. That the commissioner may not be the primary

recipient of such registration statement shall not be construed to

limit, alter or diminish the ability or responsibility of the division

of housing and community renewal in regards to enforcement of this

section or any other applicable laws. The commissioner may request

additional or corrected information to be filed by each manufactured

home park owner or operator as he or she deems necessary to carry out

proper oversight of such manufactured home parks. The commissioner shall

annually make publicly available on its website a report of the data

collected pursuant to this subdivision or subparagraph (B) of paragraph

six of subsection (eee) of section six hundred six of the tax law, not

including any personally identifiable information.

3. Whenever there shall be a violation of this section, an application

may be made by the commissioner of housing and community renewal in the

name of the people of the state of New York to a court or justice having

jurisdiction by a special proceeding to issue an injunction, and upon

notice to the defendant of not less than five days, to enjoin and

restrain the continuance of such violation; and if it shall appear to

the satisfaction of the court or justice that the defendant has, in

fact, violated this section, an injunction may be issued by such court

or justice, enjoining and restraining any further violation and with

respect to this subdivision, directing the filing of a registration

statement. In any such proceeding, the court may make allowances to the

commissioner of housing and community renewal of a sum not exceeding two

thousand dollars against each defendant, and direct restitution.

Whenever the court shall determine that a violation of this section has

occurred, the court may impose a civil penalty of not more than one

thousand five hundred dollars for each violation. Such penalty shall be

deposited in the manufactured home cooperative fund, created pursuant to

section fifty-nine-h of the private housing finance law. In connection

with any such proposed application, the commissioner of housing and

community renewal is authorized to take proof and make a determination

of the relevant facts and to issue subpoenas in accordance with the

civil practice law and rules. The provisions of this subdivision shall

not impair the rights granted under subdivision u of this section.

w. Real property tax payments. 1. A manufactured home park owner,

operator or the agent of such owner or operator shall reduce the annual

rent paid by a manufactured home tenant for use of the land upon which

such manufactured home sits in an amount equal to the total of the real

property taxes actually paid by such manufactured home tenant for such

manufactured home plus the amount by which the taxes on such

manufactured home were reduced as a result of the partial real property

tax exemption granted to the manufactured home tenant pursuant to

article four of the real property tax law, provided such manufactured

home tenant:

(a) owns a manufactured home which is separately assessed, subject to

the provisions of paragraph two of this subdivision;

(b) is entitled to and actually receives a partial real property tax

exemption pursuant to article four of the real property tax law; and

(c) pays the real property taxes due on such home.

3. A manufactured home park owner or operator providing a reduction in

rent as required by paragraph one of this subdivision may retain, in

consideration for record keeping expenses, two percent of the amount of

such reduction.

3-a. Any reduction required to be provided pursuant to paragraph one

of this subdivision shall be provided as follows:

(a) a reduction in monthly rent (prorating the reduction in twelve

parts) shall take effect upon the first monthly rental payment due sixty

days after the last date for the payment of real property taxes with no

penalty or interest for lateness and shall be extended to the next

eleven monthly payments thereafter; or

(b) with the consent of the manufactured home park owner, operator, or

agent of such owner or operator, a reduction in rent may be offset in

the entire amount of such reduction against the first monthly rental

payment due sixty days after the last date for the payment of real

property taxes with no penalty or interest for lateness, and the balance

thereof, if any, may be offset against the monthly rental payments for

succeeding months, until exhausted; or

(c) at the election of the manufactured home park owner, operator, or

agent of such owner or operator, the total amount of such reduction in

rent may be paid to the tenant no later than sixty days after the last

date for the payment of real property taxes with no penalty or interest

for lateness.

4. The failure of a manufactured home park owner or operator to comply

with the provisions of this subdivision shall be a violation punishable

by a fine not to exceed five hundred dollars for each violation.

x. 1. Rent and other fees, charges and assessments may not be

increased by a manufactured home park owner or operator more than once

in any year.

2. Notwithstanding the provisions of paragraph one of this

subdivision, if a fee, charge, or assessment in effect at the

commencement of a lease or tenancy is for goods or services provided by

a party unrelated to and not controlled by the manufactured home park

owner or operator, the manufactured home park owner or operator may,

upon the notice required in this section, provide for the pass-along to

the manufactured home tenant of any increases in such fee, charge or

assessment.

3. Any agreement modifying any of the rights set forth in this

subdivision shall be void as contrary to public policy.

y. 1. No manufactured home park owner or operator shall offer or

execute a rent-to-own contract unless the manufactured park owner or

operator possesses documentation of ownership of the manufactured home,

including a certificate of title to the home, if the home is a

manufactured home subject to being titled pursuant to article forty-six

of the vehicle and traffic law, or for mobile homes not subject to being

titled pursuant to such law, such other documentation, which may include

a bill of sale, or deed, sufficient to establish ownership.

2. Every rent-to-own contract shall be in writing and clearly state

all terms, including but not limited to: a description of the home to be

leased, including the name of the manufacturer, the serial number and

the year of manufacture; the site number upon which the home is located

in the manufactured home park; an itemized statement of any payments to

be made during the term of the contract, including the initial lot rent,

the rental amount for the home, and the amount of the rent-to-own

payments; the term of the agreement; the number of payments, itemized,

required to be made over the term of the agreement; any lien or security

interest encumbering the manufactured or mobile home, if applicable; and

the amount of any additional fees to be paid during the term. A

rent-to-own contract shall not require a manufactured home tenant to pay

any additional fees for transfer of ownership at the end of the lease

period. A rent-to-own contract shall provide that where the rent-to-own

tenant pays all rent-to-own payments and other fees established in the

contract during the lease term, title transferred at the end of the

lease term shall be free of superior interests, liens or encumbrances.

3. Valuations used to determine the fair market value of the

manufactured home at the time the rent-to-own contract is entered into,

shall be based on the information provided by an independent system,

entity, publication or publications that provide valuation information

for manufactured homes adjusted, as appropriate, by reasonable and

identifiable regional market data, such as location, park-specific

amenities, trends and comparable sales.

4. Every rent-to-own contract shall clearly state that the

manufactured home tenant is occupying a rented home, until ownership is

transferred, and that the manufactured home park owner and operator

shall be responsible for compliance with the warranty of habitability,

including but not limited to all major repairs and capital improvements.

5. With the execution of every rent-to-own contract, the manufactured

home park owner or operator shall offer the manufactured home tenant a

lease for the site on which the home is located as provided in

subdivision f of this section, and, if the term of the rent-to-own

contract is longer than the term of the initial site lease, shall offer

renewal leases on the same terms as provided to manufactured home

tenants within the park pursuant to subdivision e of this section,

provided that such renewal lease may not include a rent increase greater

than that imposed on similarly situated manufactured home tenants that

own their home within the park.

6. The manufactured home park owner or operator shall provide each

manufactured home tenant who is a party to a rent-to-own contract an

itemized accounting listing all payments made pursuant to the

rent-to-own contract. Such accounting shall be provided no less than

once each year, beginning one year from the execution of the rent-to-own

contract. Upon request by a manufactured home tenant, the manufactured

home park owner or operator shall provide such an accounting within ten

days of such request.

7. Any successor to ownership of the manufactured home park shall be

bound by the terms of a rent-to-own contract entered into after the

effective date of this subdivision.

8. If a manufactured home tenant's tenancy is terminated by the

manufactured home park owner or operator during the term of a

rent-to-own contract, all rent-to-own payments made during the term of

the contract shall be refunded to the manufactured home tenant; if a

manufactured home park owner or operator fails to refund such payments,

in an eviction proceeding, the court may award the manufactured home

renter damages in the amount of the rent-to-own payments which have not

been refunded.

9. It is a violation of this section for a manufactured home park

owner or operator to make any material misrepresentation, either written

or oral, regarding any of the terms of a rent-to-own contract, or to

obtain, or attempt to obtain, a waiver from any manufactured home renter

of any protection or right provided under this subdivision.

10. (i) If a manufactured home park owner or operator violates the

provisions of this subdivision or wrongfully evicts a manufactured home

tenant who is a party to a rent-to-own contract, a court may award

damages including treble the economic damages suffered by the

manufactured home tenant, which may include all rent-to-own payments.

The court may also provide for reasonable attorney fees and costs of

litigation, and other equitable relief.

(ii) Failure of the manufactured home park owner or operator to comply

with this section shall give the manufactured home renter the

unconditional right to cancel the rent-to-own contract and receive

immediate refund of all payments and deposits made on account of or in

contemplation of the lease with the rent-to-own contract.

11. The provisions of this section apply to rent-to-own contracts and

tenants with rent-to-own contracts.

Sale of manufactured home parks. 1. Whenever used in this

section:

(a) The term "notify" shall mean the placing of a notice in the United

States mail, addressed to the officers of the manufactured homeowners'

association or the manufactured home park owner by certified mail,

return receipt requested, or personal delivery upon the officers of the

manufactured homeowners' association, or if no manufactured homeowners'

association exists, upon all manufactured homeowners in the manufactured

home park or the manufactured home park owner. Each such notice shall be

deemed to have been given upon the deposit of the notice in the United

States mail or upon receipt of personal delivery.

(b) The term "manufactured homeowners' association", whether

incorporated or not, shall mean an association greater than fifty

percent of all manufactured homeowners within the manufactured home

park, who shall have given written consent to forming a manufactured

homeowners' association, and which association has notified the park

owner of its establishment and has provided to the park owner the names

and addresses of the officers of such association. The provisions of

section two hundred twenty-three-b of this article shall apply to the

formation of a manufactured homeowners' association.

2. If a manufactured home park owner takes any action to market or

offer the park for sale, or receives a bona fide offer to purchase a

manufactured home park that such manufactured home park owner intends to

accept or respond to with a counteroffer, a manufactured home park owner

shall include a notice stating that such acceptance or counteroffer

shall be subject to the right of the homeowners of the manufactured home

park to purchase the manufactured home park pursuant to this

subdivision. Notwithstanding any provision of law or agreement to the

contrary, every agreement to purchase a manufactured home park by a

prospective purchaser of a manufactured home park shall be subject to

the right of the homeowners of the manufactured home park to purchase

the manufactured home park pursuant to this subdivision.

3. (a) If a manufactured home park owner receives a bona fide offer to

purchase a manufactured home park that such manufactured home park owner

intends to accept or respond to with a counteroffer, such manufactured

home park owner shall notify:

(i) the officers of the manufactured homeowners' association within

such park of all the terms thereof; provided that the park owner has

been notified of the establishment of a manufactured homeowners'

association and been provided with the names and addresses of the

officers of such association; or

(ii) if no homeowners' association exists, all manufactured homeowners

in the manufactured home park; and

(iii) the commissioner of housing and community renewal.

(b) The manufactured home park owner's notification shall state:

(i) the price;

(ii) the material terms and conditions of sale upon which such

manufactured home park owner would sell the park;

(iii) that the manufactured homeowners have the right to organize a

manufactured homeowners' association or a manufactured homeowners'

cooperative for the park;

(iv) that purchase financing may be available through the New York

state homes and community renewal; and

(v) that the manufactured homeowners' association, a cooperative, or

manufactured home owners or tenants have one hundred forty days to

exercise their right to purchase the park in accordance with this

section.

(c) (i) If a manufactured homeowners' association exists at the time

of the offer, the association shall, within sixty days of receipt of

notice from the park owner, deliver to the park owner a notice of intent

to make an offer to purchase the park. If such notice is not delivered

within the sixty days, the park owner has no further obligation under

this section.

(ii) If the manufactured homeowners' association delivers such intent

to the park owner as required by subparagraph (i) of this paragraph, the

association shall have the right to purchase the park; provided that the

association shall have delivered to the manufactured home park owner an

executed offer to purchase which meets the identical price, terms, and

conditions of the offer or counteroffer provided in the notice of the

manufactured home park owner within one hundred forty days of receipt of

notice from the manufactured home park owner, unless otherwise agreed to

in writing. During this time period, the park owner shall not accept a

final unconditional offer to purchase the park.

(iii) If an offer to purchase by the association is not delivered

within such one hundred forty day period, then, unless the park owner

thereafter elects to offer to sell the park at a price lower than the

price specified in the notice to the homeowners' association or at terms

substantially different from those presented to the association, the

park owner has no further obligations under this section.

(iv) If the park owner, after such one hundred forty day period,

elects to offer to sell the park at a price lower than the price

specified in the notice given or at terms substantially different from

those previously presented to the association, then the association

shall be entitled to notice thereof and shall have an additional thirty

days after receipt of notice of the revised terms to deliver to the park

owner an executed offer to purchase which meets the revised price,

terms, and conditions as presented by the park owner.

(d) (i) If there is no existing homeowners' association at the time of

the offer, the homeowners shall, within sixty days of receipt of notice

from the park owner, deliver to the park owner a notice of intent to

make an offer to purchase the park. Such notice must be signed by

greater than fifty percent of all the manufactured home owners within

the manufactured home park. If such notice is not delivered within the

sixty days, the park owner has no further obligation under this section.

If such notice is properly provided within sixty days, the homeowners

shall have the right to purchase the park; provided the following

conditions are met:

(A) The manufactured homeowners shall have the right to form a

manufactured homeowners' association, whether incorporated or not.

(B) Such homeowners' association shall include greater than fifty

percent of all manufactured homeowners, who shall have given written

consent to forming a manufactured homeowners' association. The

provisions of section two hundred twenty-three-b of this article shall

apply to the formation of a manufactured homeowners' association.

(C) The association, acting through its officers, shall have given

notice to the park owner of its formation, the names and addresses of

its officers, and delivered an executed offer to purchase the park at

the identical price, terms, and conditions of the offer presented in the

notification given by the park owner within one hundred forty days of

receipt of notice from the park owner, unless otherwise agreed to in

writing. During this time period, the park owner shall not accept a

final unconditional offer to purchase the park;

(ii) If the homeowners fail to form a manufactured homeowners'

association, or if upon the formation of a manufactured homeowners'

association, the association does not deliver an executed offer to

purchase as set forth in paragraph (a) of this subdivision within the

one hundred forty day period, then, unless the park owner elects to

offer the park at a price lower than the price specified in the notice

previously presented to the homeowners, the park owner has no further

obligation under this section; and

(iii) If the park owner thereafter elects to sell the park at a price

lower than the price specified in the notice to the homeowners or at

terms substantially different from those previously presented, then the

association shall have an additional thirty days after receipt of notice

of the revised terms to deliver to the park owner an executed offer to

purchase which meets the revised price, terms, and conditions as

presented by the park owner.

4. This section does not apply to:

(a) Any conveyance of an interest in a manufactured home park

incidental to the financing of such manufactured home park.

(b) The purchase of a manufactured home park by a governmental entity

under its powers of eminent domain.

5. Nothing in this section shall be construed to compel the

manufactured home park owner to divide the land and sell it to

individual manufactured homeowners.

* § 233-b. Manufactured home parks; rent increases. 1. The provisions

of this section shall apply to all manufactured homes located in a

manufactured home park as defined in section two hundred thirty-three of

this article, however manufactured homes located in manufactured home

parks that are subject to a regulatory agreement with a governmental

entity to preserve affordable housing or that otherwise limits rent

increases are exempt from the provisions of this section.

2. Increases in rent shall not exceed a three percent increase above

the rent since the current rent became effective. In this section, rent

shall mean all costs, including all rent, fees, charges, assessments,

and utilities. Notwithstanding the above, a manufactured home park owner

is permitted to increase the rent in excess of three percent above the

rent since the current rent became effective, due to:

(a) Increases in the manufactured home park owner's operating

expenses.

(b) Increases in the manufactured home park owner's property taxes on

such park.

(c) Increases in costs which are directly related to capital

improvements in the park.

3. An increase above three percent may be challenged by an aggrieved

manufactured homeowner as unjustified. Multiple aggrieved manufactured

homeowners may join in the same action where there is a common question

of law and fact.

4. Within ninety days of the proposed increase, an aggrieved

manufactured homeowner may challenge such increase by filing an action

in the court of appropriate subject matter jurisdiction where the real

property is located seeking a declaratory judgment that the rent

increase is unjustifiable.

5. In any proceeding under this section there shall be an irrebuttable

presumption that a rent increase is justifiable when the amount of such

increase does not exceed the tenant's pro-rata share in operating costs

and property taxes for the manufactured home park in which the

manufactured home owner resides.

6. (a) In determining whether a rent increase is permissible, the

court shall consider the provisions of paragraphs (a), (b) and (c) of

subdivision two of this section. Notwithstanding the above, rent

increases shall not exceed six percent above the rent since the current

rent became effective, except upon the approval of a temporary hardship

application by the court. In addition to the provisions of this

paragraph and paragraphs (b) and (c) of this subdivision the court shall

take into account the following factors when determining whether to

grant a temporary hardship application:

(i) The amount of increase being sought by the park owners;

(ii) The ability of the manufactured home owner to pay such increase

including whether the increase would have an unreasonable adverse impact

on the manufactured home owner;

(iii) The amount of time and notice the manufactured home owner may

need in order to pay a temporary rent increase;

(iv) The duration the park owners intend for the temporary rent

increase to last;

(v) The cause of the hardship the rent increase is being requested to

alleviate, including whether the hardship was due to owner negligence

and malfeasance;

(vi) The ability of the park owners to utilize other means besides a

rent increase to alleviate said hardship;

(vii) The likelihood that the property the manufactured home park is

located on will go into foreclosure if a temporary rent increase above

six percent is not granted;

(viii) Any other factor that will jeopardize the ability of the park

to legally operate.

(b) A court order approving a temporary hardship application shall

state for each manufactured home owner:

(i) The amount of the rent increase;

(ii) The date the rent increase is to take effect;

(iii) The date the increase is to end;

(iv) The amount the rent will return to; and

(v) The court's findings as to the factors necessitating a temporary

increase.

(c) Upon a finding by the court that the manufactured home park should

be granted a hardship exemption, the amount of any rent increase shall

be the minimum amount to alleviate the hardship. An order granting a

temporary rent increase shall not exceed six months. The order must be

served on the manufactured home owners and all known legal tenants

pursuant to the rules of civil procedure within thirty days of the court

order, the cost of which shall be on the manufactured home park owner.

7. The court may condition its approval of any rent increase upon the

redress of conditions in the manufactured home park which threaten the

health and safety of the manufactured home tenant.

8. While a challenge to a rent increase pursuant to this section is

pending, manufactured home park tenants shall pay the amount of the rent

increase to the manufactured home park owner who shall hold such amounts

in escrow pending a mediated agreement between the parties or a final

decision from the courts, provided, however, that no manufactured home

park tenant shall be evicted for non-payment of the rent increase prior

to the final disposition of the matter by the court in the county where

the manufactured home park is located. Failure by the manufactured home

park owner to place such challenged rent increase in escrow shall be

punishable by a civil penalty of not more than five hundred dollars. If

the petitioners appeal, the manufactured home park owner may remove the

rent increase funds from escrow, mingle such funds with any other funds,

and commence a nonpayment proceeding in the court of appropriate

jurisdiction against a tenant who has not paid the increase of rent. If

the court enters a final judgment declaring the rent increases or any

part thereof unjustifiable and impermissible, the manufactured home park

owner shall refund the amount of the impermissible increase to each

tenant household.

* NB There are 2 § 233-b's

Residential ground lease cooperative apartment buildings. 1.

Wherever used in this section:

(a) The term "residential ground lease cooperative apartment building"

means any and all buildings, improvements or other structures located in

the state of New York occupied, owned or leased in whole or in part by a

ground lease residential cooperative, or any subsidiary or affiliate

thereof, pursuant to a subject residential cooperative ground lease.

(b) The term "ground lease residential cooperative" means any New York

corporation organized or operating as a housing development fund

corporation, New York cooperative corporation or cooperative housing

corporation, including any entity meeting the definition thereof for

federal income tax purposes, or any person or entity that is a tenant in

common, co-tenant or joint owner with any such corporation, or which is,

directly or indirectly through a subsidiary or affiliate thereof, a

party to a subject residential cooperative ground lease.

(c) The term "subject residential cooperative ground lease" means the

lease agreement, together with any amendments or other related

agreements including any forbearance, settlement, tenancy in common or

other similar agreements related thereto, pursuant to which a ground

lease residential cooperative leases, occupies or otherwise uses for

residential, commercial, or other ancillary purposes the ground lease

real property from one or more subject ground lease owners.

(d) The term "ground lease real property" means all real property,

including improvements thereon, all or any portion of which is leased,

rented, licensed or otherwise provided for use to a ground lease

residential cooperative pursuant to a subject residential cooperative

ground lease, including any portion thereof that may be subleased or

otherwise used for ancillary retail, parking, or commercial purposes.

(e) The term "subject ground lease owners" means any and all persons

or entities, whether natural persons, estates, trusts, corporations,

partnerships or other entities, other than any excepted ground lease

owner, that holds title to or is the owner, whether by the entirety, as

tenants in common or otherwise, of ground lease real property or is

otherwise the landlord under any subject residential cooperative ground

lease.

(f) The term "excepted ground lease owner" means (i) the United States

federal government, the state of New York, the city of New York, and any

agency, municipality or political subdivision of any of the foregoing

thereof, any entity owned or controlled by any of the foregoing,

including but not limited to, the Battery Park city authority, the

Roosevelt Island Operating Corporation, the Queens West Development

Corporation, the Brooklyn Bridge Park Development Corporation, the New

York City Educational Construction Fund, and the New York City Housing

Authority, (ii) any charity approved under section 501(c) of the

internal revenue code which acquired its interest as the owner or

landlord of a ground lease real property prior to January first, two

thousand twenty-four, and (iii) any Indian nation, tribe or band as such

lands are described under and protected by the Indian law or title

twenty-five of the United States Code, but shall exclude any private

foundation within the meaning of section five hundred nine of the

internal revenue code.

2. Notwithstanding any term of a subject residential cooperative

ground lease to the contrary, if a subject residential cooperative

ground lease authorizes the ground lease residential cooperative to

renew or extend its lease at the sole option of the ground lease

residential cooperative, then the ground lease residential cooperative

may exercise such right to renew or extend at any time prior to the

expiration of the subject residential cooperative ground lease in

accordance with all other terms thereof.

Right to recover attorneys' fees in actions or summary

proceedings arising out of leases of residential property. 1. Whenever a

lease of residential property shall provide that in any action or

summary proceeding the landlord may recover attorneys' fees and/or

expenses incurred as the result of the failure of the tenant to perform

any covenant or agreement contained in such lease, or that amounts paid

by the landlord therefor shall be paid by the tenant as additional rent,

there shall be implied in such lease a covenant by the landlord to pay

to the tenant the reasonable attorneys' fees and/or expenses incurred by

the tenant as the result of the failure of the landlord to perform any

covenant or agreement on its part to be performed under the lease or in

the successful defense of any action or summary proceeding commenced by

the landlord against the tenant arising out of the lease, and an

agreement that such fees and expenses may be recovered as provided by

law in an action commenced against the landlord or by way of

counterclaim in any action or summary proceeding commenced by the

landlord against the tenant. A landlord may not recover attorneys' fees

upon a default judgment. Any waiver of this section shall be void as

against public policy.

2. Notwithstanding the provisions of subdivision one of this section,

where a tenant is a dwelling unit owner or shareholder of a cooperative

housing corporation, other than a cooperative housing corporation

subject to the provisions of article two, article four, article five or

article eleven of the private housing finance law, attorney's fees may

be awarded to either party in the event of default judgment if recovery

of attorney's fees is provided for in the proprietary lease or occupancy

agreement.

Unauthorized legal fees. (a) An owner, lessor or agent

thereof shall be prohibited from assessing a lessee any fee, surcharge

or other charges for legal services in connection with the operation or

rental of a residential unit unless the owner, lessor or agent has the

legal authority to do so pursuant to a court order. The provisions of

this subdivision shall not apply to a shareholder of a cooperative

housing corporation, provided, however, that the provisions of this

subdivision shall apply with respect to any tenant or subtenant of such

a shareholder.

(b) Legal services include, but are not limited to, court fees, legal

representation, attorney fees, notary public charges, and administrative

fees incurred by the owner, lessor or agent in connection with

management of the building, including actions and proceedings in a court

of law.

(c) Any agreement or assessment contrary to this section shall be void

as contrary to public policy.

Wilful violations. 1. Any lessor, agent, manager,

superintendent or janitor of any building, or part thereof, the lease or

rental agreement whereof by its terms, expressed or implied, requires

the furnishing of hot or cold water, heat, light, power, elevator

service, telephone service or any other service or facility to any

occupant of said building, who wilfully or intentionally fails to

furnish such water, heat, light, power, elevator service, telephone

service or other service or facility at any time when the same are

necessary to the proper or customary use of such building, or part

thereof, or any lessor, agent, manager, superintendent or janitor who

wilfully and intentionally interferes with the quiet enjoyment of the

leased premises by such occupant, is guilty of a violation.

2. Any lessor, agent, manager, superintendent or janitor of any

building, or part therof, who wilfully or intentionally acts to prevent

or obstruct the delivery of fuel oil ordered in compliance with either

section three hundred two-c of the multiple dwelling law or section

three hunded five-c of the multiple residence law or the refiring of an

oil burner after such a delivery shall be guilty of a violation.

Tenant right to offset payments and entitlement to damages in

certain cases. 1. In any case in which a residential tenant shall

lawfully make a payment to a utility company pursuant to the provisions

of sections thirty-three, thirty-four and one hundred sixteen of the

public service law, or to a utility company as defined in subdivision

twenty-three of section two of the public service law, public authority,

water-works corporation, as defined in subdivision twenty-seven of

section two of the public service law, or municipal water system, as

prescribed in section eighty-nine-l of the public service law, for water

service which a landlord is responsible for but has failed or refused to

provide payment therefor, such payment shall be deductible from any

future payment of rent.

2. Any owner (as defined in the multiple dwelling law or multiple

residence law) of a multiple dwelling responsible for the payment of

charges for gas, electric, steam or water service who causes the

discontinuance of that service by failure or refusal to pay the charges

for past service shall be liable for compensatory and punitive damages

to any tenant whose utility service is so discontinued.

* 3. Nothing contained in this section and no payment made pursuant to

this section shall be deemed to discharge the liability of a renter with

an interest in real property pursuant to subdivision two of section

three hundred four of the real property tax law from taxes levied on

such interest.

* NB (Effective pending ruling by Commissioner of Internal Revenue)

Warranty of habitability. 1. In every written or oral lease

or rental agreement for residential premises the landlord or lessor

shall be deemed to covenant and warrant that the premises so leased or

rented and all areas used in connection therewith in common with other

tenants or residents are fit for human habitation and for the uses

reasonably intended by the parties and that the occupants of such

premises shall not be subjected to any conditions which would be

dangerous, hazardous or detrimental to their life, health or safety.

When any such condition has been caused by the misconduct of the tenant

or lessee or persons under his direction or control, it shall not

constitute a breach of such covenants and warranties.

2. Any agreement by a lessee or tenant of a dwelling waiving or

modifying his rights as set forth in this section shall be void as

contrary to public policy.

3. In determining the amount of damages sustained by a tenant as a

result of a breach of the warranty set forth in the section, the court;

(a) need not require any expert testimony; and

(b) shall, to the extent the warranty is breached or cannot be cured

by reason of a strike or other labor dispute which is not caused

primarily by the individual landlord or lessor and such damages are

attributable to such strike, exclude recovery to such extent, except to

the extent of the net savings, if any, to the landlord or lessor by

reason of such strike or labor dispute allocable to the tenant's

premises, provided, however, that the landlord or lesser has made a good

faith attempt, where practicable, to cure the breach.

(c) where the premises is subject to regulation pursuant to the local

emergency housing rent control law, the emergency tenant protection act

of nineteen seventy-four, the rent stabilization law of nineteen hundred

sixty-nine or the city rent and rehabilitation law, reduce the amount

awarded hereunder by the total amount of any rent reduction ordered by

the state division of housing and community renewal pursuant to such

laws or act, awarded to the tenant, from the effective date of such rent

reduction order, that relates to one or more matters for which relief is

awarded hereunder.

Certificates of occupancy; required disclosure to tenant. 1.

Prior to executing a residential lease or rental agreement with a

tenant, the owner of real property consisting of three or fewer rental

units shall provide conspicuous notice in bold face type as to whether a

certificate of occupancy, if such certificate is required by law, is

currently valid for the dwelling unit subject to the lease or rental

agreement. Owners who provide the tenant with an actual copy of the

valid certificate of occupancy shall be deemed to have complied with the

requirements of this subdivision.

2. Any agreement by a lessee or tenant of premises for dwelling

purposes waiving or modifying his or her rights as set forth in this

section shall be void as contrary to public policy.

Unconscionable lease or clause. 1. If the court as a matter

of law finds a lease or any clause of the lease to have been

unconscionable at the time it was made the court may refuse to enforce

the lease, or it may enforce the remainder of the lease without the

unconscionable clause, or it may so limit the application of any

unconscionable clause as to avoid any unconscionable result.

2. When it is claimed or appears to the court that a lease or any

clause thereof may be unconscionable the parties shall be afforded a

reasonable opportunity to present evidence as to its setting, purpose

and effect to aid the court in making the determination.

Harassment. 1. Notwithstanding any other provision of law,

within a city having a population of one million or more, it shall be

unlawful and shall constitute harassment for any landlord of a building

which at any time was occupied for manufacturing or warehouse purposes,

or other person acting on his behalf, to engage in any course of

conduct, including, but not limited to intentional interruption or

discontinuance or willful failure to restore services customarily

provided or required by written lease or other rental agreement, which

interferes with or disturbs the comfort, repose, peace or quiet of a

tenant in the tenant's use or occupancy of rental space if such conduct

is intended to cause the tenant (i) to vacate a building or part

thereof; or (ii) to surrender or waive any rights of such tenant under

the tenant's written lease or other rental agreement.

2. The lawful termination of a tenancy or lawful refusal to renew or

extend a written lease or other rental agreement shall not constitute

harassment for purposes of this section.

3. As used in this section the term "tenant" means only a person or

business occupying or residing at the premises pursuant to a written

lease or other rental agreement, if such premises are located in a

building which at any time was occupied for manufacturing or warehouse

purposes and a certificate of occupancy for residential use of such

building is not in effect at the time of the last alleged acts or

incidents upon which the harassment claim is based.

4. A tenant may apply to the supreme court for an order enjoining acts

or practices which constitute harassment under subdivision one of this

section; and upon sufficient showing, the supreme court may issue a

temporary or permanent injunction, restraining order or other order, all

of which may, as the court determines in the exercise of its sound

discretion, be granted without bond. In the event the court issues a

preliminary injunction it shall make provision for an expeditious trial

of the underlying action.

5. The powers and remedies set forth in this section shall be in

addition to all other powers and remedies in relation to harassment

including the award of damages. Nothing contained herein shall be

construed to amend, repeal, modify or affect any existing local law or

ordinance, or provision of the charter or administrative code of the

city of New York, or to limit or restrict the power of the city to amend

or modify any existing local law, ordinance or provision of the charter

or administrative code, or to restrict or limit any power otherwise

conferred by law with respect to harassment.

6. Any agreement by a tenant in a written lease or other rental

agreement waiving or modifying his rights as set forth in this section

shall be void as contrary to public policy.

Duty to provide a written receipt. (a) Upon the receipt of

the payment of rent for residential premises in the form of cash, or any

instrument other than the personal check of the lessee, it shall be the

duty of the lessor, or any agent of the lessor authorized to receive

rent, to provide the lessee with a written receipt containing the

following:

1. The date;

2. The amount;

3. The identity of the premises and period for which paid; and

4. The signature and title of the person receiving the rent.

(b) A lessee may request, in writing, that a lessor provide a receipt

for rent paid by personal check. If such request is made, the lessor, or

any agent of the lessor authorized to receive rent, shall provide the

lessee with the receipt described in subdivision (a) of this section.

Such request shall, unless otherwise specified by the lessee, remain in

effect for the duration of such lessee's tenancy. The lessor shall

maintain a record of all cash receipts for rent for at least three

years.

(c) If a payment of rent is personally transmitted to a lessor, or an

agent of a lessor authorized to receive rent, the receipt for such

payment shall be issued immediately to a lessee. If a payment of rent is

transmitted indirectly to a lessor, or an agent of a lessor authorized

to receive rent, a lessee shall be provided with a receipt within

fifteen days of such lessor or agent's receipt of a rent payment.

(d) If a lessor, or an agent of a lessor authorized to receive rent,

fails to receive payment for rent within five days of the date specified

in a lease agreement, such lessor or agent shall send the lessee, by

certified mail, a written notice stating the failure to receive such

rent payment. The failure of a lessor, or any agent of the lessor

authorized to receive rent, to provide a lessee with a written notice of

the non-payment of rent may be used as an affirmative defense by such

lessee in an eviction proceeding based on the non-payment of rent.

Notwithstanding the provisions of this subdivision, a lessor which is a

cooperative housing corporation, other than a cooperative housing

corporation subject to the provisions of article two, article four,

article five or article eleven of the private housing finance law, may

provide for a method of sending notice by mail other than by certified

mail, as long as such method of sending notice is provided for in the

proprietary lease or occupancy agreement, and the lessee is a dwelling

unit owner or shareholder of such cooperative housing corporation.

Unlawful restrictions on occupancy. 1. As used in this

section, the terms:

(a) "Tenant" means a person occupying or entitled to occupy a

residential rental premises who is either a party to the lease or rental

agreement for such premises or is a statutory tenant pursuant to the

emergency housing rent control law or the city rent and rehabilitation

law or article seven-c of the multiple dwelling law.

(b) "Occupant" means a person, other than a tenant or a member of a

tenant's immediate family, occupying a premises with the consent of the

tenant or tenants.

2. It shall be unlawful for a landlord to restrict occupancy of

residential premises, by express lease terms or otherwise, to a tenant

or tenants or to such tenants and immediate family. Any such restriction

in a lease or rental agreement entered into or renewed before or after

the effective date of this section shall be unenforceable as against

public policy.

3. Any lease or rental agreement for residential premises entered into

by one tenant shall be construed to permit occupancy by the tenant,

immediate family of the tenant, one additional occupant, and dependent

children of the occupant provided that the tenant or the tenant's spouse

occupies the premises as his primary residence.

4. Any lease or rental agreement for residential premises entered into

by two or more tenants shall be construed to permit occupancy by

tenants, immediate family of tenants, occupants and dependent children

of occupants; provided that the total number of tenants and occupants,

excluding occupants' dependent children, does not exceed the number of

tenants specified in the current lease or rental agreement, and that at

least one tenant or a tenants' spouse occupies the premises as his

primary residence.

5. The tenant shall inform the landlord of the name of any occupant

within thirty days following the commencement of occupancy by such

person or within thirty days following a request by the landlord.

6. No occupant nor occupant's dependent child shall, without express

written permission of the landlord, acquire any right to continued

occupancy in the event that the tenant vacates the premises or acquire

any other rights of tenancy; provided that nothing in this section shall

be construed to reduce or impair any right or remedy otherwise available

to any person residing in any housing accommodation on the effective

date of this section which accrued prior to such date.

7. Any provision of a lease or rental agreement purporting to waive a

provision of this section is null and void.

8. Nothing in this section shall be construed as invalidating or

impairing the operation of, or the right of a landlord to restrict

occupancy in order to comply with federal, state or local laws,

regulations, ordinances or codes.

9. Any person aggrieved by a violation of this section may maintain an

action in any court of competent jurisdiction for:

(a) an injunction to enjoin and restrain such unlawful practice;

(b) actual damages sustained as a result of such unlawful practice;

and

(c) court costs.

Electronic billing and/or payment of rent. 1. A landlord

shall not require a lessee or tenant to use an electronic billing and/or

payment system as the only method for the payment of rent. A landlord

shall not assess any fee or other charge for a lessee or tenant that

chooses not to use an electronic billing and/or payment system.

2. Any agreement by a lessee or tenant of a dwelling waiving or

modifying his or her rights as set forth in this section shall be void

as contrary to public policy.

Waiver of right to bring a declaratory judgment action. No

commercial lease shall contain any provision waiving or prohibiting the

right of any tenant to bring a declaratory judgment action with respect

to any provision, term or condition of such commercial lease. The

inclusion of any such waiver provision in a commercial lease shall be

null and void as against public policy.

Unreasonable tenant fees for reproductions of keys. A

landlord shall not charge a tenant a fee for the reproduction of keys to

a single dwelling greater than one hundred ten percent of the actual

cost of reproduction, provided such limitation shall not apply if a

tenant requires the reproduction of keys for a single dwelling more than

three times in a calendar year.

Duty to inform of bed bug infestation. 1. Upon having

knowledge of a bed bug infestation in a unit of a residential rental

premises, the landlord or lessor of a residential rental premises shall

provide written notice of such infestation to the landlord's tenants and

lessees who reside in units on the premises immediately above,

immediately below, and immediately adjacent to the infested unit. Such

written notice shall be provided to such tenants and lessees within

seventy-two hours of the landlord or lessor having knowledge of the bed

bug infestation.

2. Upon having knowledge of a bed bug infestation in a common area of

a residential rental premises, the landlord or lessor of the residential

rental premises shall place notice of such infestation in a conspicuous

location accessible to all tenants and lessees residing in the premises

within seventy-two hours of the landlord or lessor having knowledge of

the bed bug infestation.

3. Any notice required to be provided pursuant to subdivision one of

this section shall not identify the infested unit or contain any

personally identifying information of the tenant or tenants whose unit

experienced the bed bug infestation.

4. Subdivisions one and two of this section shall not apply to a

landlord or lessor that is subject to notice and remediation obligations

related to bed bug infestations pursuant to a judicial order, legal

settlement, or binding agreement with a federal, state, or local

regulatory entity while such judicial order, legal settlement, or

binding agreement is in effect.

Assignment of lease of a deceased tenant. Notwithstanding any

contrary provision contained in any lease hereafter made which affects

premises demised for residential use, or partly for residential and

partly for professional use, the executor, administrator or legal

representative of a deceased tenant under such a lease, may request the

landlord thereunder to consent to the assignment of such a lease, or to

the subletting of the premises demised thereby. Such request shall be

accompanied by the written consent thereto of any co-tenant or guarantor

of such lease and a statement of the name, business and home addresses

of the proposed assignee or sublessee. Within ten days after the mailing

of such request, the landlord may ask the sender thereof for additional

information as will enable the landlord to determine if rejection of

such request shall be unreasonable. Within thirty days after the mailing

of the request for consent, or of the additional information reasonably

asked for by the landlord, whichever is later, the landlord shall send a

notice to the sender thereof of his election to terminate said lease or

to grant or refuse his consent. Landlord's failure to send such a notice

shall be deemed to be a consent to the proposed assignment or

subletting. If the landlord consents, said lease may be assigned in

accordance with the request provided a written agreement by the assignee

assuming the performance of the tenant's obligations under the lease is

delivered to the landlord in form reasonably satisfactory to the

landlord, or the premises may be sublet in accordance with the request,

as the case may be, but the estate of the deceased tenant, and any other

tenant thereunder, shall nevertheless remain liable for the performance

of tenant's obligations under said lease. If the landlord terminates

said lease or unreasonably refuses his consent, said lease shall be

deemed terminated, and the estate of the deceased tenant and any other

tenant thereunder shall be discharged from further liability thereunder

as of the last day of the calendar month during which the landlord was

required hereunder to exercise his option. If the landlord reasonably

refuses his consent, said lease shall continue in full force and effect,

subject to the right to make further requests for consent hereunder. Any

request, notice or communication required or authorized to be given

hereunder shall be sent by registered or certified mail, return receipt

requested. This act shall not apply to a proprietary lease, viz.: a

lease to, or held by, a tenant entitled thereto by reason of ownership

of stock in a corporate owner of premises which operates the same on a

cooperative basis. Any waiver of any part of this section shall be void

as against public policy.

Termination of lease of a deceased tenant. Notwithstanding

any contrary provision contained in any lease hereafter made or renewed

which affects premises demised for residential use, or partly for

residential and partly for professional use, the executor, administrator

or legal representative of a deceased tenant under such a lease shall

have the option to terminate such a lease upon notice given to the

landlord. Such termination shall be effective as of the date on which

the tenant's estate notifies the landlord of its election to terminate

and surrenders possession of the premises. Such termination option shall

be accompanied by the written consent thereto of any co-tenant or

guarantor of such lease. Nothing in this section shall be construed to

relieve the tenant's estate of liability for rent money or any debt

incurred prior to the date of termination of the lease, including

damages to the premises and any expenses the landlord may incur as a

direct result of the tenant's death, except that the tenant's estate

shall not be liable for damages or any other penalty for breach of

inadequate notice as a result of terminating a lease under this section.

Any notice or communication required or authorized to be given hereunder

shall be sent by registered or certified mail, return receipt requested.

This section shall not apply to a proprietary lease, viz.: a lease to,

or held by, a tenant entitled thereto by reason of ownership of stock in

a corporate owner of premises which operates the same on a cooperative

basis. Any waiver of any part of this section shall be void as against

public policy.

Discrimination in leases with respect to bearing of children.

Any person, firm or corporation owning or having in charge any apartment

house, tenement house or other building or mobile home park used for

dwelling purposes who shall, in any lease of any or part of any such

building or mobile home park, have a clause therein providing that

during the term thereof the tenants shall remain childless or shall not

bear children, shall be guilty of a violation.

Discrimination against children in dwelling houses and

manufactured home parks. a. Any person, firm or corporation owning or

having in charge any apartment house, tenement house or other building

or manufactured home park used for dwelling purposes who shall refuse to

rent any or part of any such building or manufactured home park to any

person or family, or who discriminates in the terms, conditions, or

privileges of any such rental, solely on the ground that such person or

family has or have a child or children shall be guilty of a misdemeanor

and on conviction thereof shall be punished by a fine of not less than

fifty nor more than one hundred dollars for each offense; provided,

however, the prohibition against discrimination against children in

dwelling houses and manufactured home parks contained in this section

shall not apply to:

(1) housing units for senior citizens subsidized, insured, or

guaranteed by the federal government; or

(2) one or two family owner occupied dwelling houses or manufactured

homes; or

(3) manufactured home parks intended and operated for occupancy by

persons fifty-five years of age or older. In determining whether housing

is intended and operated for occupancy by persons fifty-five years of

age or older, Sec. 807(b)(2)(c)(42 U.S.C. 3607(b)(2)(c)) of the federal

Fair Housing Act of 1988, as amended, shall apply.

b. Civil liability:

(1) where discriminatory conduct prohibited by this section has

occurred, an aggrieved individual shall have a cause of action in any

court of appropriate jurisdiction for damages, declaratory and

injunctive relief;

(2) in all actions brought under this section, reasonable attorney's

fees as determined by the court may be awarded to a prevailing

plaintiff.

Agreements or contracts for privileges to deal with occupants

of tenements, apartment houses or bungalow colonies. 1. A contract,

agreement or arrangement entered into or executed by and between the

owner or prospective owner of an apartment house, tenement or what is

commonly known as a bungalow colony connected with common or joint means

of ingress and egress, whether such apartment house, tenement or

bungalow colony is in existence or in process of construction or to be

constructed in the future, or any person in possession or claiming

possession of such apartment house, tenement or bungalow colony, or any

part thereof, including the common or joint means of ingress or egress,

or any of the agents, employees or servants of such an owner or

possessors thereof and a dealer in or seller of fuel, ice or food, or

his agents, employees or representatives for the purpose of giving to

such dealer or seller the privilege of selling or delivering fuel, ice

or food, to the persons occupying or to occupy such apartment house,

tenement or bungalow colony, or any part thereof, is against public

policy and void.

2. Any person who shall, directly or indirectly, either as the owner

or prospective owner of such apartment house, tenement or bungalow

colony, or any part thereof, including the common or joint means of

ingress or egress, or as an agent, employee or servant of such an owner,

or any person in possession or claiming possession of such apartment

house, tenement or bungalow colony, or any part thereof, including the

common or joint means of ingress or egress, accept any money, property

or thing of value for permitting or giving to any person, or his agents,

employees or representatives, the privilege of selling or delivering

fuel, ice or food, to the persons occupying or to occupy such apartment

house, tenement or bungalow colony, or any part thereof, and any person

who shall, directly or indirectly, either as a seller of, or dealer in,

fuel, ice or food, as an agent, employee, or representative of such

seller or dealer, pay or give any money, property or thing of value, for

such privilege shall be guilty of a misdemeanor. If a corporation is

convicted of a violation of this section, it shall be punished by a fine

of not less than fifty nor more than one thousand dollars.

3. A person occupying an apartment house, tenement or bungalow colony,

or any part thereof, to whom fuel, ice or food, shall be sold or

delivered by a seller or dealer who has paid or given any money,

property or thing of value for the privilege of selling or delivering

fuel, ice or food, to the persons occupying or to occupy such apartment

house, tenement or bungalow colony, or any part thereof, may recover of

such seller or dealer for his benefit a penalty, in the sum of two

hundred and fifty dollars, in a civil action brought in a court of

competent jurisdiction.

Limitation on fees. In relation to a residential dwelling

unit:

1. (a) Except in instances where statutes or regulations provide for a

payment, fee or charge, no landlord, lessor, sub-lessor or grantor may

demand any payment, fee, or charge for the processing, review or

acceptance of an application, or demand any other payment, fee or charge

before or at the beginning of the tenancy, except background checks and

credit checks as provided by paragraph (b) of this subdivision, provided

that this subdivision shall not apply to entrance fees charged by

continuing care retirement communities licensed pursuant to article

forty-six or forty-six-A of the public health law, assisted living

providers licensed pursuant to article forty-six-B of the public health

law, adult care facilities licensed pursuant to article seven of the

social services law, senior residential communities that have submitted

an offering plan to the attorney general, or not-for-profit independent

retirement communities that offer personal emergency response,

housekeeping, transportation and meals to their residents. Nothing in

this paragraph shall prohibit a cooperative housing corporation, other

than a cooperative housing corporation subject to the provisions of

article two, article four, article five or article eleven of the private

housing finance law, from demanding from a prospective tenant any

payment, fee or charge which is necessary to compensate a managing agent

and/or transfer agent for the processing, review or acceptance of such

prospective tenant's application where such prospective tenant would

become a dwelling unit owner or shareholder of such cooperative housing

corporation.

(b) A landlord, lessor, sub-lessor or grantor may charge a fee or fees

to reimburse costs associated with conducting a background check and

credit check, provided the cumulative fee or fees for such checks is no

more than the actual cost of the background check and credit check or

twenty dollars, whichever is less, and the landlord, lessor, sub-lessor

or grantor shall waive the fee or fees if the potential tenant provides

a copy of a background check or credit check conducted within the past

thirty days. The landlord, lessor, sub-lessor or grantor may not collect

the fee or fees unless the landlord, lessor, sub-lessor or grantor

provides the potential tenant with a copy of the background check or

credit check and the receipt or invoice from the entity conducting the

background check or credit check. Notwithstanding the provisions of this

paragraph, a cooperative housing corporation shall be permitted to

charge a fee or fees to reimburse costs associated with conducting a

background check and credit check in excess of twenty dollars, where the

potential tenant would become a dwelling unit owner or shareholder of

such cooperative housing corporation, provided the cumulative fee or

fees for such checks is no more than the actual cost of such background

check and/or credit check. Further, with regard to a cooperative housing

corporation subject to the provisions of article two, article four,

article five or article eleven of the private housing finance law, all

such fees must be reasonable and approved by the agency supervising such

cooperative housing corporation.

2. No landlord, lessor, sub-lessor or grantor may demand any payment,

fee, or charge for the late payment of rent unless the payment of rent

has not been made within five days of the date it was due, and such

payment, fee, or charge shall not exceed fifty dollars or five percent

of the monthly rent, whichever is less; provided a cooperative housing

corporation, other than a cooperative housing corporation subject to the

provisions of article two, article four, article five or article eleven

of the private housing finance law, shall be permitted to charge a

tenant that is a dwelling unit owner or shareholder of such cooperative

housing corporation a fee of up to eight percent of the monthly

maintenance fee for the late payment of the monthly maintenance fee if

the proprietary lease or occupancy agreement provides for such fee.

2-a. (a) No landlord, lessor, sub-lessor or grantor shall demand any

payment, fee, or charge from a tenant for the delivery of a check, draft

or like instrument that was given in payment for rent and subsequently

dishonored by the tenant's financial institution for insufficient funds

except as provided in paragraph (b) of this subdivision.

(b) Notwithstanding any contrary provision herein, a landlord, lessor,

sub-lessor or grantor may demand any payment, fee, or charge from a

tenant for the delivery of a dishonored check only if such payment, fee,

or charge was provided for in the lease or contract between landlord,

lessor, sub-lessor or grantor and the tenant; provided, however, that:

(i) such payment, fee, or charge shall not exceed the actual costs,

charges or fees incurred by landlord, lessor, sub-lessor or grantor for

the return of such dishonored check or the amount set forth in

subdivision three of section 5-328 of the general obligations law,

whichever is greater; and

(ii) if the payment, fee or charge exceeds the amount set forth in

subdivision three of section 5-328 of the general obligations law, the

landlord, lessor, sub-lessor or grantor shall provide to the tenant upon

request evidence substantiating the equivalence between the payment, fee

or charge and the amount of actual costs, charges or fees incurred for

the return of the dishonored check.

(c) As used in this subdivision, "dishonored check" shall have the

same meaning as such term is defined in section 5-328 of the general

obligations law.

(d) The provisions of this subdivision shall not apply to a

shareholder of a cooperative housing corporation, provided, however,

that the provisions of this subdivision shall apply with respect to any

tenant or subtenant of such a shareholder.

3. Any provision of a lease or contract waiving or limiting the

provisions of this section shall be void as against public policy.

Legislative findings. The legislature recognizes that the

ever-increasing cost of home heating has resulted in widespread consumer

interest in the use of portable kerosene heaters. Because there is a

wide variety of kerosene heaters, including different designs and

intended purposes, the public interest requires that those heaters which

are used in residential structures meet certain safety standards

designed to insure that they are reasonably safe for that purpose.

Accordingly, it is the intent of this article to protect the public by

establishing standards which will permit the use of reasonably safe

heaters in residential structures.

Definitions. As used in this article the following terms

shall mean and include:

1. "Structure." Any building or completed construction of any kind

including but not limited to, private dwellings or to any structure used

for business, commercial or industrial purposes, but not including

multiple dwellings, buildings under construction, or buildings used

solely for agricultural purposes.

2. "Multiple dwelling." A multiple dwelling is a dwelling which is

either rented, leased, let or hired out to be occupied or is occupied as

the residence or home of three or more families living independently of

each other and shall include, dwelling portions of hospitals, nursing

homes, convents, monasteries, asylums and public institutions.

3. "Owner." The owner of the freehold of any real property (as defined

in section two of the real property law), or of a lesser estate therein,

a mortgagee or vendee in possession, assignee of rents, receiver,

executor, trustee, lessee, agent, or any other person, firm or

corporation, directly or indirectly in control of real property.

4. "Person." The term person shall include the owner, mortgagee or

vendee in possession, assignee of rents, receiver, executor, trustee,

lessee, agent or any other person, firm or corporation, directly or

indirectly in control of a structure or part thereof.

5. "Listed." Any portable kerosene heater which has been tested by an

independent, nationally recognized testing or inspection agency,

acceptable to the secretary of state and which has been determined to

meet a generally accepted standard for such heaters. Such determination

shall be evidenced by either the inclusion of the heater on a list

published by such agency or by the heater bearing the listing mark of

such agency.

6. "Portable kerosene heater." Any non-flue connected, self-contained,

self-supporting, kerosene-fueled heating appliance equipped with an

integral reservoir, designed to be carried from one location to another.

7. "Approved portable kerosene heater." Any listed portable kerosene

heater which:

(a) has a fuel capacity of not more than two gallons;

(b) emits no more than .04 percent carbon monoxide in an air free

sample of flue gases at maximum heat output and no more than .08 percent

at recommended low-fire setting;

(c) has a minimum tipping angle of no more than thirty-three degrees

from the vertical with a full fuel reservoir;

(d) has an automatic shutoff safety device or inherent design feature

which extinguishes the heating flame upon tipover in not more than ten

seconds;

(e) includes as standard equipment a pump or siphon for refueling;

(f) is packaged with instructions advising the purchaser of proper

maintenance and operation;

(g) bears labeling, in conspicuous letters, cautioning and informing

the purchaser as to:

(i) the need for an adequate source of ventilation when the heater is

in operation;

(ii) the use of only suitable fuel for the heater;

(iii) proper manner of refueling;

(iv) proper placement and handling of the heater when in operation;

and

(v) proper procedures for lighting, flame regulation and extinguishing

the heater;

(h) after April first, nineteen hundred eighty-two, meets such

additional standards, if any, as may be contained in reasonable rules

and regulations adopted by the secretary of state pursuant to section

two hundred thirty-nine-c of this article.

Only approved portable kerosene heaters permitted in

structures. Portable kerosene heaters which do not meet the requirements

of subdivision seven of section two hundred thirty-nine-a of this

article are prohibited in structures. It shall be unlawful for any

person (1) to use any portable kerosene heater except an approved

portable kerosene heater in any portion of a structure, or (2) being the

owner of such structure, to provide or place or cause to be provided or

placed in any portion of a structure, any portable kerosene heater

except an approved portable kerosene heater for use by any occupant of

such structure.

Approval by the secretary of state. After April first,

nineteen hundred eighty-two, no portable kerosene heater shall be

offered for sale in this state for use in a structure unless it has been

approved by the secretary of state or his designee. In determining

whether to approve a portable kerosene heater for sale, the secretary of

state shall consider whether the heater meets (1) the standards set

forth in subdivision seven of section two hundred thirty-nine-a of this

article, and (2) any additional standards which the secretary of state

reasonably believes are required to effectuate the purposes of this

article as set forth in section two hundred thirty-nine of this article.

The secretary of state may promulgate reasonable rules and regulations

setting forth the procedure by which portable kerosene heaters will be

reviewed for approval.

Sale of unapproved portable kerosene heaters. All unapproved

portable kerosene heaters offered for sale in this state shall have

printed thereon or attached thereto and on the package in which such

heater is sold the following statement: "This heater is not approved for

residential or commercial use." There shall also be printed thereon or

attached thereto and on the package in which such heater is sold such

other information as may be required by the secretary of state.

Portable kerosene heaters prohibited in multiple dwellings.

It shall be unlawful to use any portable kerosene heater in a multiple

dwelling.

Penalties for violation. Any person who shall violate any

provision of this article shall be guilty of a misdemeanor, punishable

for each offense by a fine not exceeding one hundred dollars or by

imprisonment for a period of not more than ninety days.

Application of article. 1. This article shall not be

applicable to any city having a population in excess of five hundred

thousand.

2. Nothing in this article shall be construed to permit the sale or

use of any portable kerosene heater in any municipality in which such

use or sale is restricted or prohibited by any general, special or local

law or rule or regulation.

Definitions and use of terms. 1. The term "heirs," or other

words of inheritance, are not requisite to create or convey an estate in

fee.

2. The term "conveyance," as used in this article, includes every

instrument, in writing, except a will, by which any estate or interest

in real property is created, transferred, assigned or surrendered.

3. Every instrument creating, transferring, assigning or surrendering

an estate or interest in real property must be construed according to

the intent of the parties, so far as such intent can be gathered from

the whole instrument, and is consistent with the rules of law.

4. The terms "estate" and "interest in real property" include every

such estate and interest, freehold or chattel, legal or equitable,

present or future, vested or contingent.

Certain conveyances authorized; effect thereof. 1. Any person

or persons owning real property or an interest in real property which he

or they have power to convey, may effectively convey such property or

interest by a conveyance naming himself or themselves and another person

or persons, or one or more of themselves and another person or other

persons, as grantees, and the conveyance has the same effect as to

whether it creates an estate in severalty, a joint tenancy, or a tenancy

by the entirety, or tenancy in common, as if it were a conveyance from a

stranger who owned the property or interest to the persons named as

grantees in the conveyance.

2. Any two or more persons owning real property or an interest in real

property which they have power to convey, may effectively convey such

property or interest by a conveyance naming one, or more than one, or

all such persons, as grantees, and the conveyance has the same effect,

as to whether it creates an estate in severalty, or a joint tenancy, or

a tenancy by the entirety, or tenancy in common, as if it were a

conveyance from a stranger who owned the property or interest to the

persons named as grantees in the conveyance.

3. As used in this section, "person" may be a married person and

"persons" may be persons married to each other.

Joint tenancy severance. 1. In addition to any other means by

which a joint tenancy with right of survivorship may be severed, a joint

tenant may unilaterally sever a joint tenancy in real property without

consent of any non-severing joint tenant or tenants by:

(a) Execution and delivery of a deed that conveys legal title to the

severing joint tenant's interest to a third person, whether or not

pursuant to an agreement requiring the third person to reconvey legal

title to the severing joint tenant; or

(b) Execution of a written instrument that evidences the intent to

sever the joint tenancy, including a deed that names the severing tenant

as the direct grantee of the severing tenant's interest.

2. No severance of a joint tenancy pursuant to subdivision one of this

section shall terminate the right of survivorship of any non-severing

joint tenant or tenants as to the severing tenant's interest unless the

deed or written instrument effecting the severance is recorded, prior to

the death of the severing tenant, in the county where the real property

is located.

3. Nothing in this section shall limit the manner or effect of:

(a) A severance of a joint tenancy pursuant to a written instrument

executed by all joint tenants, or pursuant to a written agreement of all

joint tenants.

(b) A severance of a joint tenancy effected by a deed from a joint

tenant to another joint tenant.

(c) A severance ordered by a court of competent jurisdiction.

Ancient conveyances abolished. The conveyance of real property

by feoffment, with livery of seizin, or by fines, or common recoveries,

is abolished.

Disclosure prior to the sale of real property. 1. (a) Any

person, firm, company, partnership or corporation offering to sell real

property to which no utility electric service is provided shall provide

written notice to the prospective purchaser or to the prospective

purchaser's agent, clearly indicating this fact. Such notice shall be

provided prior to accepting a purchase offer.

(b) Any prospective or actual purchaser who has suffered a loss due to

a violation of this section is entitled to recover any actual damages

incurred from the person offering to sell said real property.

(c) The provisions of this subdivision shall not apply in instances

where the real property being sold lies within the applicable free

footage allowance or service lateral specified by the public service

commission in rule, regulation or public utility tariff.

2. Disclosure prior to the sale of real property to which utility

surcharge payments attach. (a) Any person, firm, company, partnership or

corporation offering to sell real property against which an electric,

gas or water utility surcharge is assessed for the purpose of defraying

the costs associated with an electric, gas or water line extension, or

for the purpose of defraying the costs associated with related

facilities, shall provide written notice to the prospective purchaser or

the prospective purchaser's agent, stating as follows: "This property is

subject to an electric, gas and/or water utility surcharge". In

addition, such notice shall also state, the type and purpose of the

surcharge, the amount of the surcharge and whether such surcharge is

payable on a monthly, yearly or other basis. Such notice shall be

provided by the seller prior to accepting a purchase offer.

(b) Any prospective or actual purchaser who has suffered a loss due to

a violation of this subdivision is entitled to recover any actual

damages incurred from the person offering to sell or selling said real

property.

3. Any person, firm, company, partnership or corporation offering to

sell real property on which uncapped natural gas wells are situated, and

of which such person, firm, company, partnership or corporation has

actual knowledge, shall inform any purchaser of the existence of these

wells prior to entering into a contract for the sale/purchase of such

property.

4. Disclosure prior to the sale of real property to which a green

jobs-green New York on-bill recovery charge applies. (a) Any person,

firm, company, partnership or corporation offering to sell real property

which is subject to a green jobs-green New York on-bill recovery charge

pursuant to title nine-A of article eight of the public authorities law

shall provide written notice to the prospective purchaser or the

prospective purchaser's agent, stating as follows: "This property is

subject to a green jobs-green New York on-bill recovery charge". Such

notice shall also state the total amount of the original charge, the

payment schedule and the approximate remaining balance, a description of

the energy efficiency services performed, including improvements to the

property, and an explanation of the benefit of the green jobs-green New

York qualified energy efficiency services. Such notice shall be provided

by the seller prior to accepting a purchase offer.

(b) Any prospective or actual purchaser who has suffered a loss due to

a violation of this subdivision is entitled to recover any actual

damages incurred from the person offering to sell or selling said real

property.

Grant of fee or freehold. A grant in fee or of a freehold

estate, must be subscribed by the person from whom the estate or

interest conveyed is intended to pass, or by his lawful agent thereunto

authorized in writing. If not duly acknowledged before its delivery,

according to the provisions of this chapter, its execution and delivery

must be attested by at least one witness, or, if not so attested, it

does not take effect as against a subsequent purchaser or incumbrancer

until so acknowledged.

When grant takes effect. A grant takes effect, so as to vest

the estate or interest intended to be conveyed, only from its delivery;

and all the rules of law, now in force, in respect to the delivery of

deeds, apply to grants hereafter executed.

Estate which passes by grant or devise. A grant or devise of

real property passes all the estate or interest of the grantor or

testator unless the intent to pass a less estate or interest appears by

the express terms of such grant or devise or by necessary implication

therefrom. A greater estate or interest does not pass by any grant or

conveyance, than the grantor possessed or could lawfully convey, at the

time of the delivery of the deeds; except that every grant is conclusive

against the grantor and his heirs claiming from him by descent, and as

against a subsequent purchaser or incumbrancer from such grantor, or

from such heirs claiming as such, other than a subsequent purchaser or

incumbrancer in good faith and for a valuable consideration, who

acquires a superior title by a conveyance that has been first duly

recorded.

Certain deeds declared grants. Deeds of bargain and sale, and

of lease and release, may continue to be used; and are to be deemed

grants, subject to all the provisions of law in relation thereto.

Conveyance by tenant for life or years of greater estate than

possessed. A conveyance made by a tenant for life or years, of a

greater estate than he possesses, or can lawfully convey, does not work

a forfeiture of his estate, but passes to the grantee all the title,

estate or interest which such tenant can lawfully convey.

Effect of conveyance where property is leased. An attornment to

a grantee is not requisite to the validity of a conveyance of real

property occupied by a tenant, or of the rents or profits thereof, or

any other interest therein. But the payment of rent to a grantor, by his

tenant, before notice of the conveyance, binds the grantee; and the

tenant is not liable to such grantee, before such notice, for the breach

of any condition of the lease.

Covenants in mortgages. A mortgage of real property does not

imply a covenant for the payment of the sum intended to be secured; and

where such covenant is not expressed in the mortgage, or a bond or other

separate instrument to secure such payment has not been given, the

remedies of the mortgagee are confined to the property mentioned in the

mortgage.

Covenants not implied. A covenant is not implied in a

conveyance of real property, whether the conveyance contains any special

covenant or not.

Lineal and collateral warranties abolished. Lineal and

collateral warranties, with all their incidents, have been abolished;

but the heirs and devisees of a person, who has made a covenant or

agreement, are answerable thereon, to the extent of the real property

descended or devised to them, in the cases and in the manner prescribed

by law.

Construction of covenants in grants of freehold interests. In

grants of freehold interests in real property, the following or similar

covenants must be construed as follows:

1. Seizin.-- A covenant that the grantor "is seized of the said

premises (described) in fee simple, and has good right to convey the

same," must be construed as meaning that such grantor, at the time of

the execution and delivery of the conveyance, is lawfully seized of a

good, absolute and indefeasible estate of inheritance in fee simple, of

and in all and singular the premises thereby conveyed, with the

tenements, hereditaments and appurtenances thereto belonging, and has

good right, full power and lawful authority to grant and convey the same

by the said conveyance.

2. Quiet enjoyment.-- A covenant that the grantee "shall quietly enjoy

the said premises," must be construed as meaning that such grantee, his

heirs, successors and assigns, shall and may, at all times thereafter,

peaceably and quietly have, hold, use, occupy, possess and enjoy the

said premises, and every part and parcel thereof, with the

appurtenances, without any let, suit, trouble, molestation, eviction, or

disturbance of the grantor, his heirs, successors or assigns, or any

person or persons lawfully claiming or to claim the same.

3. Freedom from incumbrances.-- A covenant "that the said premises are

free from incumbrances," must be construed as meaning that such premises

are free, clear, discharged and unincumbered of and from all former and

other gifts, grants, titles, charges, estates, judgments, taxes,

assessments, liens and incumbrances, of what nature or kind soever.

4. Further assurance.-- A covenant that the grantor will "execute or

procure any further necessary assurance of the title to said premises,"

must be construed as meaning that the grantor and his heirs, or

successors, and all and every person or persons whomsoever lawfully or

equitably deriving any estate, right, title or interest of, in, or to

the premises conveyed by, from, under, or in trust for him or them,

shall and will at any time or times thereafter upon the reasonable

request, and at the proper costs and charges of the grantee, his heirs,

successors and assigns, make, do, and execute, or cause to be made, done

and executed, all and every such further and other lawful and reasonable

acts, conveyances and assurances in the law for the better and more

effectually vesting and confirming the premises thereby granted or so

intended to be, in and to the grantee, his heirs, successors or assigns

forever, as by the grantee, his heirs, successors or assigns, or his or

their counsel learned in the law, shall be reasonably advised or

required.

5. Warranty of title.-- A covenant that the grantor "will forever

warrant the title" to the said premises, must be construed as meaning

that the grantor and his heirs, or successors, the premises granted, and

every part and parcel thereof, with the appurtenances, unto the grantee,

his heirs, successors or assigns, against the grantor and his heirs or

successors, and against all and every person or persons whomsoever

lawfully claiming or to claim the same shall and will warrant and

forever defend.

6. Grantor has not incumbered.-- A covenant that the grantor "has not

done or suffered anything whereby the said premises have been

incumbered," must be construed as meaning that the grantor has not made,

done, committed, executed, or suffered any act or acts, thing or things

whatsoever, whereby or by means whereof, the above mentioned and

described premises, or any part or parcel thereof, now are, or at any

time hereafter shall or may be impeached, charged or incumbered in any

manner or way whatsoever.

Construction of clauses and covenants in mortgages and bonds or

notes. In mortgages of real property, and in bonds and notes secured

thereby or in assignments of mortgages and bonds and mortgages and

notes, or in agreements to extend or to modify the terms of mortgages

and bonds and mortgages and notes, the following or similar clauses and

covenants must be construed as follows:

1. Clauses of mortgage. The words "This mortgage, made the ..........

(A) ........ day of ........ (B) ........, nineteen hundred and ........

(C) ........, between ........ (D) ........, the mortgagor, and ........

(E) ........., residing at ......... (F) ........., the mortgagee,

Witnesseth, that to secure the payment of an indebtedness in the sum of

......... (G) ........ dollars, lawful money of the United States, to be

paid on the ........ (H) ........ day of ........ (I) ........, nineteen

hundred and ........ (J) ........, with interest thereon to be computed

from ......... (K) ........ at the rate of ........ (L) ........ per

centum per annum, and to be paid ........ (M) ........, according to a

certain bond, note or obligation bearing even date herewith, the

mortgagor hereby mortgages to the mortgagee (description)," must be

construed as equivalent in meaning to the words "This indenture, made

the ........ (A1) ...... day of ....... (B1) ........, in the year

nineteen hundred and ........ (C1) ........ between ....... (D1)

........., party of the first part, and ....... (E1) ........, of .......

(F1) ........, party of the second part.

"Whereas, the said ........ (D1) ........ is justly indebted to the

said party of the second part in the sum of ........ (G1) ........

dollars, lawful money of the United States, secured to be paid by his

certain bond, note or obligation, bearing even date herewith,

conditioned for the payment of the said sum of ......... (G1) ........

dollars, on the ........ (H1) ....... day of ....... (I1) .......

nineteen hundred and ........ (J1) ........ and the interest thereon, to

be computed from ........ (K1) ........, at the rate of ....... (L1)

........ per centum per annum, and to be paid ....... (M1) .........

"It being thereby expressly agreed that the whole of the said

principal sum shall become due after default in the payment of any

installment of principal, interest, taxes or assessments, as hereinafter

provided.

"Now this indenture witnesseth, that the said party of the first part,

for the better securing the payment of the said sum of money mentioned

in the condition of the said bond, note or obligation, with interest

thereon, and also for and in consideration of one dollar, paid by the

said party of the second part, the receipt whereof is hereby

acknowledged, doth hereby grant and release unto the said party of the

second part, and to his heirs (or successors) and assigns for ever

(description), together with the appurtenances, and all the estate and

rights of the party of the first part in and to said premises, together

with all fixtures and articles of personal property attached to, or used

in connection with, the premises. To have and to hold the above granted

premises unto the said party of the second part, his heirs and assigns

forever. Provided, always, that if the said party of the first part, his

heirs, executors or administrators, shall pay unto the said party of the

second part, his executors, administrators or assigns, the said sum of

money mentioned in the condition of the said bond, note or obligation,

and the interest thereon, at the time and in the manner mentioned in the

said condition, that then these presents, and the estate hereby granted,

shall cease, determine and be void."

(Explanation: Whatever words are inserted in the blank spaces above

marked (A), (B), (C), (D), (E), (F), (G), (H), (I), (J), (K), (L), and

(M) respectively, shall be construed as being inserted in the

corresponding blank spaces above marked (A1), (B1), (C1), (D1), (E1),

(F1), (G1), (H1), (I1), (J1), (K1), (L1) and (M1) respectively.)

2. Covenant that whole sum shall become due. A covenant "that the

whole of the said principal sum and interest shall become due at the

option of the mortgagee: after default in the payment of any installment

of principal or of interest for ....... days; or after default in the

payment of any tax, water rate or assessment for ....... days after

notice and demand; or after default after notice and demand either in

assigning and delivering the policies insuring the buildings against

loss by fire or in reimbursing the mortgagee for premiums paid on such

insurance, as hereinbefore provided; or after default upon request in

furnishing a statement of the amount due on the mortgage and whether any

offsets or defenses exist against the mortgage debt, as hereinafter

provided," must be construed as meaning that should any default be made

in the payment of any installment of principal or of any part thereof,

or in the payment of the said interest, or any part thereof, on any day

whereon the same is made payable, or should any tax, water rate or

assessment, and/or any installment of any assessment which has been

divided into annual installments pursuant to provision of law in such

cases made and provided which now is or may be hereafter imposed upon

the premises hereinafter described, become due or payable, and should

the said installment of principal or interest remain unpaid and in

arrear for the space of ....... days, or such tax, water rate or

assessment or annual installment remain unpaid and in arrear

for ....... days after written notice by the mortgagee or obligee, his

executors, administrators, successors or assigns, that such tax or

assessment and/or annual installment is unpaid, and demand for the

payment thereof, or should any default be made after notice and demand

either in assigning and delivering the policies insuring the buildings

against loss by fire or in reimbursing the mortgagee for premiums paid

on such insurance, as hereinafter provided, or upon failure to furnish

such statement of the amount due on the mortgage and whether any offsets

or defenses exist against the mortgage debt, as hereinafter provided,

after the expiration of ....... days in case the request is made

personally, or after the expiration of ....... days after the mailing of

such request in case the request is made by mail, then and from

thenceforth, that is to say, after the lapse of either one of said

periods, as the case may be, the aforesaid principal sum, with all

arrearage of interest thereon, shall, at the option of the said

mortgagee or obligee, his executors, administrators, successors or

assigns, become and be due and payable immediately thereafter, although

the period above limited for the payment thereof may not then have

expired, anything thereinbefore contained to the contrary thereof in any

wise notwithstanding.

3. Covenant to pay indebtedness. In default of payment, mortgagee to

have power to sell. A covenant "that the mortgagor will pay the

indebtedness, as hereinbefore provided," must be construed as meaning

that the mortgagor for himself, his heirs, executors and administrators

or successors, doth covenant and agree to pay to the mortgagee, his

executors, administrators, successors and assigns, the principal sum of

money secured by said mortgage, and also the interest thereon as

provided by said mortgage. And if default shall be made in the payment

of the principal sum or the interest that may grow due thereon, or of

any part thereof, or in case of any other default, that then and from

thenceforth it shall be lawful for the mortgagee, his executors,

administrators or successors to enter into and upon all and singular the

premises granted, or intended so to be, and to sell and dispose of the

same, and all benefit and equity of redemption of the said mortgagor,

his heirs, executors, administrators, successors or assigns therein, at

public auction, according to the act in such case made and provided, and

as the attorney of the mortgagor for that purpose duly authorized,

constituted and appointed, to make and deliver to the purchaser or

purchasers thereof a good and sufficient deed or deeds of conveyance for

the same in fee simple (or otherwise; as the case may be) and out of the

money arising from such sale, to retain the principal and interest which

shall then be due, together with the costs and charges of advertisement

and sale of the said premises, rendering the overplus of the

purchase-money, if any there shall be, unto the mortgagor, his heirs,

executors, administrators, successors or assigns, which sale so to be

made shall forever be a perpetual bar both in law and equity against the

mortgagor, his heirs, successors and assigns, and against all other

persons claiming or to claim the premises, or any part thereof by, from

or under him, them or any of them.

4. Mortgagor to keep buildings insured. (a) A covenant "that the

mortgagor will keep the buildings on the premises insured against loss

by fire for the benefit of the mortgagee; that he will assign and

deliver the policies to the mortgagee; and that he will reimburse the

mortgagee for any premiums paid for insurance made by the mortgagee on

the mortgagor's default in so insuring the buildings or in so assigning

and delivering the policies," shall be construed as meaning that the

mortgagor, his heirs, successors and assigns will, during all the time

until the money secured by the mortgage shall be fully paid and

satisfied, keep the buildings erected on the premises insured against

loss or damage by fire, to an amount to be approved by the mortgagee not

exceeding in the aggregate one hundred per centum of their full

insurable value and in a company or companies to be approved by the

mortgagee, and will assign and deliver the policy or policies of such

insurance to the mortgagee, his executors, administrators, successors or

assigns, which policy or policies shall have endorsed thereon the

standard New York mortgagee clause in the name of the mortgagee, so and

in such manner and form that he and they shall at all time and times,

until the full payment of said moneys, have and hold the said policy or

policies as a collateral and further security for the payment of said

moneys, and in default of so doing, that the mortgagee or his executors,

administrators, successors or assigns, may make such insurance from year

to year, in an amount in the aggregate not exceeding one hundred per

centum of the full insurable value of said buildings erected on the

mortgaged premises for the purposes aforesaid, and pay the premium or

premiums therefor, and that the mortgagor will pay to the mortgagee, his

executors, administrators, successors or assigns, such premium or

premiums so paid, with interest from the time of payment, on demand, and

that the same shall be deemed to be secured by the mortgage, and shall

be collectible thereupon and thereby in like manner as the principal

moneys, and that should the mortgagee by reason of such insurance

against loss by fire receive any sum or sums of money for damage by

fire, and should the mortgagee retain such insurance money instead of

paying it over to the mortgagor, the mortgagee's right to retain the

same and his duty to apply it in payment of or on account of the sum

secured by the mortgage and in satisfaction or reduction of the lien

thereof shall be limited and qualified as hereafter in this paragraph

provided. Said insurance money so received by the mortgagee shall be

held by him as trust funds until paid over or applied as hereinafter

provided. If the mortgagor shall notify the mortgagee in writing within

thirty days after the fire that the mortgaged premises have been damaged

thereby, and shall thereafter make good the damage by means of such

repairs, restoration or rebuilding as may be necessary to restore the

buildings to their condition prior to the damage, then upon presentation

to the mortgagee within three years after the fire of proof that the

damage has been fully made good (and if he so demands in writing within

thirty days after such presentation of proof, then upon presentation to

the mortgagee within thirty days after such demand of proof also of the

actual cost of such repairs, restoration and rebuilding and of the

reasonable value of any part of the work so performed by the mortgagor)

the mortgagee, unless he rejects the proof submitted to him as

insufficient, shall pay over to the mortgagor so much of said insurance

money theretofore received by the mortgagee as does not exceed the

lesser of (1) the reasonable cost of such repairs, restoration and

rebuilding or (2) the total amount actually paid therefor by the

mortgagor, together with the reasonable value of any part of the work

done by him. Such proof shall be deemed sufficient unless, within sixty

days after presentation of all such proof to the mortgagee as aforesaid,

he shall notify the mortgagor in writing that the proof is rejected. Any

excess of said insurance money over the amount so payable to the

mortgagor shall be applied in reduction of the principal of the

mortgage. Provided, however, that if and so long as there exists any

default by the mortgagor in the performance of any of the terms or

provisions of the mortgage on his part to be performed the mortgagee

shall not be obligated to pay over any of said insurance money received

by him. If the mortgagor shall fail to comply with any of the foregoing

provisions within the time or times hereinabove limited, or shall fail

within sixty days after rejection of the proof so submitted to commence

an action against the mortgagee to recover so much of said insurance

money as is payable to the mortgagor as hereinabove provided, or if the

entire principal of the mortgage shall have become payable by reason of

default or maturity, the mortgagee shall apply said insurance money in

satisfaction or reduction of the principal of the mortgage; and any

excess of said insurance money over the amount required to satisfy the

mortgage shall be paid to the mortgagor. Unless the court, in any such

action, shall determine that the mortgagee's rejection of the proof

submitted by the mortgagor prior to the commencement of the action was

unreasonable, the mortgagee may offset the reasonable amount, as

determined by the court, of his expense incident to the litigation, and

may reimburse himself out of the insurance money for the amount so

determined. The term "mortgage," as hereinabove used, shall be deemed to

include agreements extending or otherwise in any way modifying the terms

or provisions of an existing mortgage. The term "mortgagor," as

hereinabove used, shall mean the owner for the time being of the

mortgaged fee or the junior mortgagee actually in possession of the

mortgaged property, or the tenant for the time being in possession of

the property under a lease which has been mortgaged. The term

"mortgagee," as hereinabove used, shall be deemed to include the

successors in interest of the mortgagee. In the event that there be more

than one mortgage covering the same premises, such covenant must be

construed as hereinbefore prescribed in this paragraph, except that the

mortgagor, his heirs, successors and assigns, notwithstanding such

foregoing provisions, may not be required to provide such insurance, as

to all the mortgagees combined, in the preferential order of their

priority, for a total amount of more than one hundred per cent of the

insurable value of the buildings on the premises, and a second or

subordinate mortgagee shall be entitled to exercise the rights of a

mortgagee with respect to the procurement of such insurance and the

holding of the policy or policies thereof as hereinbefore prescribed in

this paragraph only when and to the extent that the mortgagor, his

heirs, successors or assigns, as the case may be, does or do not furnish

satisfactory proof of such maximum insurance for the benefit of such

second or subordinate mortgagee and one or more other mortgagees in the

preferential order of their priority in a company or companies duly

authorized to do business in this state.

The limitations and qualifications hereinabove imposed on the

mortgagee's right to retain proceeds of a fire insurance policy shall

apply only to mortgages or extensions or other modifications thereof

made after the effective date of this act.

(b) A covenant "that the mortgagor will keep the buildings on the

premises insured against loss by flood if the premises are located in an

area identified by the Secretary of Housing and Urban Development as an

area having special flood hazards and in which flood insurance has been

made available under the National Flood Insurance Act of nineteen

hundred sixty-eight; that he will assign and deliver the policies to the

mortgagee; and that he will reimburse the mortgagee for any premiums

paid for insurance made by the mortgagee on the mortgagor's default in

so insuring the buildings or in so assigning and delivering the

policies," shall be construed as meaning that the mortgagor, his heirs,

successors and assigns will, during all the time until the money secured

by the mortgage shall be fully paid and satisfied, keep the buildings

erected on the premises insured against loss or damage by flood provided

the premises are located in an area identified by the Secretary of

Housing and Urban Development of the United States as an area having

special flood hazards and in which flood insurance is available under

the National Flood Insurance Act of nineteen hundred sixty-eight, to an

amount at least equal to the outstanding principal balance of the money

secured by the mortgage or the maximum limit of coverage available with

respect to the buildings under said Act, whichever is less, and in a

company or companies to be approved by the mortgagee and will assign and

deliver the policy or policies of such insurance to the mortgagee, his

executors, administrators, successors or assigns, which policy or

policies shall have endorsed thereon the standard New York mortgagee

clause in the name of the mortgagee, so and in such manner and form that

he and they shall at all time and times, until the full payment of said

money, have and hold the said policy or policies as a collateral and

further security for the payment of said money, and in default of so

doing, that the mortgagee or his executors, administrators, successors

or assigns may make such insurance from year to year, in the amount as

aforesaid, and pay the premium or premiums therefor, and that the

mortgagor will pay to the mortgagee, his executors, administrators,

successors or assigns, such premium or premiums so paid, with interest

from the time of payment, on demand, and that the same shall be deemed

to be secured by the mortgage, and shall be collectible thereupon and

thereby in like manner as the principal moneys, and that should the

mortgagee by reason of such insurance receive any sum or sums of money

for damage by flood, the provisions for retention, holding application

and payment of said insurance money shall be as set forth in paragraph

(a) above with respect to loss by fire. The term "mortgage," as

hereinabove used, shall be deemed to include agreements extending or

otherwise in any way modifying the terms or provisions of an existing

mortgage. The term "mortgagor," as hereinabove used, shall mean the

owner for the time being of the mortgaged fee or the junior mortgagee

actually in possession of the mortgaged property, or the tenant for the

time being in possession of the property under a lease which has been

mortgaged. The term "mortgagee," as hereinabove used, shall be deemed to

include the successors in interest of the mortgagee. In the event that

there be more than one mortgage covering the same premises, such

covenant must be construed as hereinbefore prescribed in this paragraph

except that the mortgagor, his heirs, successors and assigns,

notwithstanding such foregoing provisions, may not be required to

provide such insurance, as to all the mortgagees combined, in the

preferential order of their priority, for a total amount greater than

the outstanding principal balance of the money secured by the mortgage

or the maximum limit of coverage available with respect to the premises,

whichever is less, and a second or subordinate mortgagee shall be

entitled to exercise the rights of a mortgagee with respect to the

procurement of such insurance and the holding of the policy or policies

thereof as hereinbefore prescribed in this paragraph only when and to

the extent that the mortgagor, his heirs, successors or assigns, as the

case may be, does or do not furnish satisfactory proof of such maximum

insurance for the benefit of such second or subordinate mortgagee and

one or more other mortgagees in the preferential order of their priority

in a company or companies duly authorized to do business in this state.

The limitations and qualifications hereinabove imposed on the

mortgagee's right to retain proceeds of a flood insurance policy shall

apply only to mortgages or extensions or other modifications thereof

made after the effective date of this act.

4-a. Mortgagor to maintain premises and all improvements thereon in

good condition or repair. (a) A covenant contained in a mortgage on real

property improved by a residence for four families or more that the

mortgagor will maintain the premises and all improvements thereon in

"good condition or repair" shall be construed as meaning that the

mortgagor, his heirs, successors and assigns will, during all the time

until the money secured by the mortgage shall be fully paid and

satisfied, keep the premises and the building or buildings erected

thereon in good condition and repair and free from violations of

applicable municipal or state laws, codes or regulations concerning the

state of such condition and/or repair. Upon a finding and certification

by any such government or its agency of a violation of any such law,

code or regulation involving a serious danger to the health and safety

of the occupants of such mortgaged premises and upon the service of one

copy thereof on the owner of record, or upon the appointment of an

administrator pursuant to article seven-A of the real property actions

and proceedings law, such mortgagee may declare the entire balance of

the principal sum secured by such mortgage, together with all accrued

interest, immediately due and payable upon the following conditions: the

mortgagee shall allow the mortgagor a reasonable opportunity to correct

the violation or, in the case of an administrator appointed pursuant to

article seven-A of the real property actions and proceedings law, to

have such administrator removed; the mortgagee may commence foreclosure

proceedings upon failure of the mortgagor to make such corrections

within the time period mandated by local law, rule or code enforcement

agency, provided, however, no such action shall be commenced within

thirty days of the expiration of the period, if any, specified by local

law, rule or code enforcement regulation, or, in the case of an

administrator appointed pursuant to article seven-A of the real property

actions and proceedings law, the mortgagee may commence foreclosure

proceedings no earlier than sixty days after the appointment of such

administrator.

(b) Should any such mortgagee commence a foreclosure proceeding based

upon such violation and not complete the same because such violation had

been cured, the mortgagee shall be entitled to recover all reasonable

attorney's fees and disbursements incurred in the bringing of such

proceeding.

(c) Notwithstanding the provisions of this section, the mortgagee and

the mortgagor shall retain all existing interest and rights.

5. Mortgagor to warrant title. A covenant "that the mortgagor warrants

the title to the premises," must be construed as meaning that the

mortgagor warrants that he has good title to said premises and has a

right to mortgage the same and that the mortgagor shall and will make,

execute, acknowledge and deliver in due form of law, all such further or

other deeds or assurances as may at any time hereafter be reasonably

desired or required for the more fully and effectually conveying the

premises by the mortgage described, and thereby granted or intended so

to be, unto the said mortgagee, his executors, administrators,

successors or assigns, for the purpose aforesaid, and unto all and every

person or persons, corporation or corporations, deriving any estate,

right, title or interest therein, under the said indenture of mortgage,

or the power of sale therein contained, and the said granted premises

against the said mortgagor, and all persons claiming through him will

warrant and defend.

6. Mortgagor to pay all taxes, assessments or water rates. A covenant

"that the mortgagor will pay all taxes, assessments or water rates and

in default thereof, the mortgagee may pay the same" must be construed as

meaning that until the amount hereby secured is paid, the mortgagor will

pay all taxes, assessments and water rates which may be assessed or

become liens on said premises, and in default thereof the holder of this

mortgage may pay the same, and the mortgagor will repay the same with

interest, and the same shall be liens on said premises and secured by

the mortgage.

7. Statement of amount due. A covenant "that the mortgagor

within ...... days upon request in person or within ...... days upon

request by mail will furnish a written statement duly acknowledged of

the amount due on this mortgage and whether any offsets or defenses

exist against the mortgage debt" must be construed as meaning that the

mortgagor, and any subsequent owner of the premises described herein

upon request, made either personally or by mail, shall certify, by a

writing duly acknowledged, to the mortgagee or to any proposed assignee

of this mortgage, the amount of principal and interest then owing on

this mortgage and whether any offsets or defenses exist against the

mortgage debt within ..... days in case the request is made personally,

or within ...... days after the mailing of such request in case the

request is made by mail.

8. Notice and demand. A covenant "that notice and demand or request

may be made in writing and may be served in person or by mail" must be

construed as meaning that every provision for notice and demand or

request shall be deemed fulfilled by written notice and demand or

request personally served on one or more of the persons who shall at the

time hold the record title to the premises, or on their heirs or

successors, or mailed by depositing it in any post-office station or

letter-box, enclosed in a post-paid envelope addressed to such person or

persons, or their heirs or successors, at his, their or its address to

the mortgagee last known.

9. Power of attorney to assignee. The word "assign" or other words of

assignment, when contained in an assignment of a mortgage and bond or

mortgage and note, must be construed as having included in their meaning

that the assignor does thereby make, constitute and appoint the assignee

the true and lawful attorney, irrevocable, of the assignor, in the name

of the assignor, or otherwise, but at the proper costs and charges of

the assignee, to have, use and take all lawful ways and means for the

recovery of the money and interest secured by the said mortgage and bond

or mortgage and note, and in case of payment to discharge the same as

fully as the assignor might or could do if the assignment were not made.

10. Mortgagee entitled to appointment of receiver. A covenant "that

the holder of this mortgage, in any action to foreclose it, shall be

entitled to the appointment of a receiver," must be construed as meaning

that the mortgagee, his heirs, successors or assigns, in any action to

foreclose the mortgage, shall be entitled, without notice and without

regard to adequacy of any security of the debt, to the appointment of a

receiver of the rents and profits of the premises covered by the

mortgage; and the rents and profits in the event of any default or

defaults in paying the principal, interest, taxes, water rents,

assessments or premiums of insurance, are assigned to the holder of the

mortgage as further security for the payment of the indebtedness.

Right of election of mortgagee in certain cases. If a bond or

note, or the mortgage on real property, improved by a one to six family

residence occupied by the owner, securing the payment of same, contains

(1) a provision whereby the mortgagee retains the right to accelerate

the due date for payment of the balance of principal upon a transfer or

sale of such real property or by alienation of title of such real

property due to an act or operation of law, and (2) a provision for

payment of any charge, however denominated, in the nature of a

prepayment fee and if a mortgagor sells or transfers his property or if

title to the mortgaged property is transferred by act or operation of

law and the purchaser requests permission to assume the mortgage or take

the mortgaged premises subject to the mortgage, but the mortgagee does

not consent to such request and thereby necessitates prepayment of the

mortgage, the mortgagee shall not levy a prepayment fee; provided,

however, that the provisions of this section shall not apply to the

extent such provisions are inconsistent with any federal law or

regulation.

Limitation on late charges. 1. If a bond or note, or the

mortgage on real property, heretofore or hereafter made, improved by a

one to six family residence occupied by the owner, securing the payment

of same, or a note representing a loan for the purpose of financing the

purchase of an ownership interest in, and proprietary lease from, a

corporation or partnership formed for the purpose of the cooperative

ownership of residential real estate, contains a provision whereby the

mortgagee or lender retains the right to collect a late charge on any

instalment which has become due and remains unpaid, such charge on any

such delinquent instalment, regardless of the period it remains in

default, shall not exceed and shall only be enforced to the extent of

two percent of such delinquent instalment; provided, however, that no

charge shall be imposed on any instalment paid within fifteen days after

the due date. No such late charge shall be deducted from any regular

instalment payment by the mortgagor or borrower, but shall be separately

charged and collected by the mortgagee or lender. In the absence of a

specific provision in a bond, note or mortgage no late charge on any

delinquent instalment shall be assessed or collected. The term

"instalment" shall include amounts representing interest, amortization

of principal and payments in respect of insurance premiums, taxes and

utility charges if the bond, note or mortgage provides for collection

thereof by the mortgagee.

2. The provisions in this section shall not apply to any loan or

forbearance insured by the federal housing commissioner or for which a

commitment to insure has been made by the federal housing commissioner

or to any loan or forbearance insured or guaranteed pursuant to the

provisions of an act of congress entitled "Servicemen's Readjustment Act

of 1944", or to the extent the provisions of this section are

inconsistent with any other federal law or regulation.

3. If any provision of this section, or the application of such

provision to any individual, company, corporation, or circumstance,

shall be held invalid, the remainder of this section, and the

application of such section to individuals, companies, corporations, or

circumstances other than those to which it is held invalid, shall not be

affected thereby.

Right to a copy of real property appraisals and consumer

reports in certain cases. 1. Any lender who requires an applicant for a

loan or forbearance, which is to be secured primarily by an interest in

real property, to bear the cost of either an appraisal of said property

or the cost of obtaining a consumer report subject to the provisions of

article twenty-five of the general business law as a condition to the

processing of the application or the granting of the loan or

forbearance, shall, upon the written request of such applicant, provide

to him a copy of said appraisal or consumer report as the case may be,

at no additional cost.

2. "Lender" as used in this section shall mean and include any bank,

trust company, national bank, savings bank, federal mutual savings bank,

savings and loan association, federal savings and loan association,

private banker, credit union, federal credit union, investment company,

insurance company, pension fund, mortgage banker or any other entity.

3. If any provision of this section, or the application of such

provision to any individual, company, corporation or circumstance, shall

be held invalid, the remainder of this section, and the application of

such section to individuals, companies, corporations, or circumstances

other than those to which it is held invalid, shall not be affected

thereby.

Fees by mortgagee for direct payment of real property taxes

by mortgagor prohibited. No mortgagor on a loan secured primarily by an

interest in real property shall be charged a fee by the mortgagee

because the parties have agreed that the mortgagor shall pay real

property taxes on such real property directly to the taxing authority or

authorities and not in escrow to the mortgagee or the mortgagee's agent.

Construction of grant of appurtenances and of all the rights

and estate of grantor. In any grant or mortgage of freehold interests

in real estate, the words, "together with the appurtenances and all the

estate and rights of the grantor in and to said premises," must be

construed as meaning, together with all and singular the tenements,

hereditaments and appurtenances thereunto belonging, or in anywise

appertaining, and the reversion and reversions, remainder and

remainders, rents, issues and profits thereof, and also all the estate,

right, title, interest, dower and right of dower, curtesy and right of

curtesy, property, possession, claim and demand whatsoever, both in law

and in equity, of the said grantor of, in and to the said granted

premises and every part and parcel thereof, with the appurtenances.

Construction of grant in executor's or trustee's deed of

appurtenances, and of the estate of testator and grantor. In any deed

by an executor of, or trustee under a will, the words "together with the

appurtenances and also all the estate which the said testator had at the

time of his decease in said premises, and also the estate therein which

said grantor has or has power to convey or dispose of, whether

individually or by virtue of said will or otherwise," must be construed

as meaning, together with all and singular the tenements, hereditaments

and appurtenances thereunto belonging, or in anywise appertaining, and

the reversion and reversions, remainder and remainders, rents, issues

and profits thereof; and also all the estate, right, title, interest,

property, possession, claim and demand whatsoever, both in law and

equity, which the said testator had in his lifetime, and at the time of

his decease, or which the said grantor has or has power to convey or

dispose of, whether individually or by virtue of the said last will and

testament or otherwise, of, in and to the said granted premises, and

every part and parcel thereof, with the appurtenances.

Covenants bind representatives of grantor and mortgagor and

inure to the benefit of whom. All covenants contained in any grant or

mortgage of real estate bind the heirs, executors, administrators,

successors and assigns, of the grantor or mortgagor, and inure to the

benefit of the heirs, executors, administrators, successors and assigns

of the grantee or mortgagee in the same manner and to the same extent,

and with like effect as if such heirs, executors, administrators,

successors and assigns were so named in such covenants, unless otherwise

in said grant or mortgage expressly provided.

Short forms of deeds and mortgages. The use of the following

forms of instruments for the conveyance and mortgage of real property is

lawful, but this section does not prevent or invalidate the use of other

forms:

SCHEDULE A.

DEED WITH FULL COVENANTS.

Statutory Form A. (Individual)

This indenture, made the ...... day of ........ nineteen hundred and

......., between ............. (insert residence) party of the first

part, and .............. (insert residence) party of the second part,

Witnesseth, that the party of the first part, in consideration of

............. dollars, lawful money of the United States, paid by the

party of the second part, does hereby grant and release unto the party

of the second part, ........... and assigns forever, all .........

(description), together with the appurtenances and all the estate and

rights of the party of the first part in and to said premises,

To have and to hold the premises herein granted unto the party of the

second part, ............ and assigns forever. And said ............

covenants as follows:

First. That said ............ is seized of said premises in fee

simple, and has good right to convey the same;

Second. That the party of the second part shall quietly enjoy the said

premises;

Third. That the said premises are free from incumbrances;

Fourth. That the party of the first part will execute or procure any

further necessary assurance of the title to said premises;

Fifth. That said ............ will forever warrant the title to said

premises.

In witness whereof, the party of the first part has hereunto set his

hand and seal the day and year first above written.

In presence of:

SCHEDULE B.

DEED WITH FULL COVENANTS.

Statutory Form AA. (Corporation)

This indenture, made the ...... day of ..........., nineteen hundred

and ............., between ............, a corporation organized under

the laws of ........, party of the first part, and ................

(insert residence), party of the second part:

Witnesseth, that the party of the first part, in consideration of

........... dollars, lawful money of the United States, paid by the party

of the second part, does hereby grant and release unto the party of the

second part, ............ and assigns forever, all ............

(description), together with the appurtenances and all the estate and

rights of the party of the first part in and to said premises,

To have and to hold the premises herein granted unto the party of the

second part, ............ and assigns forever. And the party of the

first part covenants as follows:

First. That the party of the first part is seized of the said premises

in fee simple, and has good right to convey the same;

Second. That the party of the second part shall quietly enjoy the said

premises;

Third. That the said premises are free from incumbrances;

Fourth. That the party of the first part will execute or procure any

further necessary assurance of the title to said premises;

Fifth. That the party of the first part will forever warrant the title

to said premises.

In witness whereof, the party of the first part has caused its

corporate seal to be hereunto affixed, and these presents to be signed

by its duly authorized officer the day and year first above written.

SCHEDULE C.

BARGAIN AND SALE DEED.

Statutory Form B. Without Covenant against Grantor.

(Individual)

This indenture, made the ....... day of .........., nineteen hundred

and ..........., between .........., (insert residence) party of the

first part, and ..........., (insert residence) party of the second

part:

Witnesseth, that the party of the first part, in consideration of

........ dollars, lawful money of the United States, paid by the party of

the second part, does hereby grant and release unto the party of the

second part, ......... and assigns forever, all ..........

(description), together with the appurtenances and all the estate and

rights of the party of the first part in and to said premises,

To have and to hold the above granted premises unto the party of the

second part, .......... and assigns forever.

In witness whereof, the party of the first part has hereunto set his

hand and seal the day and year first above written.

In presence of:

SCHEDULE D.

BARGAIN AND SALE DEED.

Statutory Form BB. Without Covenant against Grantor.

(Corporation)

This indenture, made the ......... day of ........, nineteen hundred

and ........., between .........., a corporation organized under the

laws of ........., party of the first part, and .......... (insert

residence), party of the second part:

Witnesseth, that the party of the first part, in consideration of

........ dollars, lawful money of the United States, paid by the party of

the second part, does hereby grant and release unto the party of the

second part, ......... and assigns forever, all ..........

(description), together with the appurtenances and all the estate and

rights of the party of the first part in and to said premises,

To have and to hold the premises herein granted unto the party of the

second part, ......... and assigns forever.

In witness whereof, the party of the first part has caused its

corporate seal to be hereunto affixed, and these presents to be signed

by its duly authorized officer the day and year first above written.

SCHEDULE E.

BARGAIN AND SALE DEED.

Statutory Form C. With Covenant against Grantor.

(Individual)

This indenture, made the ......... day of ............, nineteen

hundred and .........., between ..........., (insert residence), party

of the first part, and ..........., (insert residence), party of the

second part:

Witnesseth, that the party of the first part, in consideration of

........ dollars, lawful money of the United States, paid by the party of

the second part, does hereby grant and release unto the party of the

second part, his heirs and assigns forever, all ..........

(description), together with the appurtenances and all the estate and

rights of the party of the first part in and to said premises.

To have and to hold the premises herein granted unto the party of the

second part, his heirs and assigns forever. And the party of the first

part covenants that he has not done or suffered anything whereby the

said premises have been incumbered in any way whatever.

In witness whereof, the party of the first part has hereunto set his

hand and seal the day and year first above written.

In presence of:

SCHEDULE F.

BARGAIN AND SALE DEED.

Statutory Form CC. With Covenant against Grantor.

(Corporation)

This indenture, made the ....... day of .........., nineteen hundred

and ..........., between ............, a corporation organized under the

laws of ........, party of the first part, and ................, (insert

residence), party of the second part:

Witnesseth, that the party of the first part, in consideration of

......... dollars, lawful money of the United States, paid by the party

of the second part, does hereby grant and release unto the party of the

second part, ................... and assigns forever, all

................... (description), together with the appurtenances and

all the estate and rights of the party of the first part in and to said

premises.

To have and to hold the premises herein granted unto the party of the

second part, ................ and assigns forever. And the party of the

first part covenants that it has not done or suffered anything whereby

the said premises have been incumbered in any way whatever.

In witness whereof, the party of the first part has caused its

corporate seal to be hereunto affixed and these presents to be signed by

its duly authorized officer the day and year first above written.

SCHEDULE G.

QUITCLAIM DEED.

Statutory Form D. (Individual)

This indenture, made the ....... day of ..........., nineteen hundred

and .........., between ..............., (insert residence), party of

the first part, and .............., (insert residence), party of the

second part:

Witnesseth, that the party of the first part, in consideration of

............ dollars, lawful money of the United States, paid by the

party of the second part, does hereby remise, release, and quitclaim

unto the party of the second part, ............... and assigns forever,

all (description), together with the appurtenances and all the estate

and rights of the party of the first part in and to said premises.

To have and to hold the premises herein granted unto the party of the

second part, ............ and assigns forever.

In witness whereof, the party of the first part has hereunto set his

hand and seal the day and year first above written.

In presence of:

SCHEDULE H.

QUITCLAIM DEED.

Statutory Form DD. (Corporation)

This indenture, made the ....... day of ..........., nineteen hundred

and .........., between ..............., a corporation organized under

the laws of .........., party of the first part, and

..................... (insert residence), party of the second part:

Witnesseth, that the party of the first part, in consideration of

........ dollars, lawful money of the United States, paid by the party of

the second part, does hereby remise, release and quitclaim unto the

party of the second part, his heirs and assigns forever, all

............. (description), together with the appurtenances and all the

estate and rights of the party of the first part in and to said

premises.

To have and to hold the premises herein granted unto the party of the

second part, his heirs and assigns forever.

In witness whereof, the party of the first part has caused its

corporate seal to be hereunto affixed and these presents to be signed by

its duly authorized officer the day and year first above written.

SCHEDULE I.

EXECUTOR'S DEED.

Statutory Form E.

This indenture, made the ........ day of .............., nineteen

hundred and ..........., between ............. as executor of

............ the last will and testament of ............, late of

..........., deceased, party of the first part, and ..........., (insert

residence) party of the second part:

Witnesseth, that the party of the first part, by virtue of the power

and authority to him given in and by the said last will and testament,

and in consideration of ........... dollars, lawful money of the United

States, paid by the party of the second part, does hereby grant and

release unto the party of the second part, ............ his heirs and

assigns forever, all ........... (description), together with the

appurtenances, and also all the estate which the said testator had at

the time of his decease in said premises, and also the estate therein,

which the party of the first part has or has power to convey or dispose

of, whether individually, or by virtue of said will or otherwise.

To have and to hold the premises herein granted unto the party of the

second part, ........... and assigns forever.

And the party of the first part covenants that he has not done or

suffered anything whereby the said premises have been incumbered in any

way whatever.

In witness whereof, the party of the first part has hereunto set his

hand and seal the day and year first above written.

In presence of:

SCHEDULE J.

REFEREE'S DEED IN FORECLOSURE.

Statutory Form F.

This deed, made the ........ day of ............., nineteen hundred

and .........., between ..........., referee duly appointed in the

action hereinafter mentioned, grantor, and ............. (insert

residence), grantee:

Witnesseth, that the grantor, the referee appointed in an action

between ..........., plaintiffs, and .........., defendants, foreclosing

a mortgage recorded on the ....... day of ........., in the office of

the ........... of the county of ..........., in liber ....... of

mortgages, at page ........, in pursuance of a judgment entered at a

special term of the ........., on the ......... day of .........., and

in consideration of ......... dollars paid by the grantee, being the

highest sum bid at the sale under said judgment, does hereby grant and

convey unto the grantee, all (description),

To have and to hold the premises herein granted unto the grantee,

............ and assigns forever.

In witness whereof, the grantor has hereunto set his hand and seal.

In presence of:

SCHEDULE K.

REFEREE'S DEED IN PARTITION.

Statutory Form G.

This deed, made the ......... day of ..........., nineteen hundred and

..........., between ..........., referee duly appointed in the action

hereinafter mentioned, grantor, and ............, (insert residence),

grantee:

Witnesseth, that the grantor, the referee appointed in an action in

partition between .........., plaintiffs, and .........., defendants, in

pursuance of a judgment entered at a special term of the .........., on

the ....... day of ........., and in consideration of .......... dollars

paid by the grantee, being the highest sum bid at the sale under said

judgment, does hereby grant and convey unto the grantee all

(description),

To have and to hold the premises herein granted unto the grantee,

........... and assigns forever.

In witness whereof, the grantor has hereunto set his hand and seal.

In presence of:

SCHEDULE L.

ASSIGNMENT OF LEASE.

Statutory Form H.

Know that .........., assignor, in consideration of ..........

dollars, paid by .........., assignee, hereby assigns unto the assignee,

a certain lease made by .........., to .........., dated the .........

day of ........, and recorded on the ....... day of .........., in the

office of the .......... of the county of .........., in liber .......

of conveyances, at page ........, covering premises .........., together

with the premises therein described, and the buildings thereon, with the

appurtenances,

To have and to hold the same unto the assignee, ......... and assigns,

from the ........ day of .........., nineteen hundred and ..........,

for all the rest of ......... years mentioned in the said lease, subject

to the rents, covenants, conditions and provisos therein also mentioned.

And the assignor hereby covenants that the said assigned premises are

free from incumbrances.

In witness whereof, the assignor has hereunto set his hand and seal

this ....... day of .........., nineteen hundred and .........

In presence of:

SCHEDULE M

MORTGAGE

Statutory Form M.

This mortgage, made the ........ day of ..........., nineteen hundred

and ............, between ..............., (insert residence) the

mortgagor, and .............. (insert residence), the mortgagee.

Witnesseth, that to secure the payment of an indebtedness in the sum

of ......... dollars, lawful money of the United States, to be paid on

the ........ day of ..........., nineteen hundred and ..........., with

interest thereon to be computed from .........., at the rate of

.......... per centum per annum, and to be paid ..........., according

to a certain bond or obligation bearing even date herewith, the

mortgagor hereby mortgages to the mortgagee (description).

And the mortgagor covenants with the mortgagee as follows:

1. That the mortgagor will pay the indebtedness as hereinbefore

provided.

2. That the mortgagor will keep the buildings on the premises insured

against loss by fire for the benefit of the mortgagee; that he will

assign and deliver the policies to the mortgagee; and that he will

reimburse the mortgagee for any premiums paid for insurance made by the

mortgagee on the mortgagor's default in so insuring the buildings or in

so assigning and delivering the policies.

3. That no building on the premises shall be removed or demolished

without the consent of the mortgagee.

4. That the whole of said principal sum and interest shall become due

at the option of the mortgagee: after default in the payment of any

installment of principal or of interest for .......... days; or after

default in the payment of any tax, water rate or assessment for

.......... days after notice and demand; or after default after notice

and demand either in assigning and delivering the policies insuring the

buildings against loss by fire or in reimbursing the mortgagee for

premiums paid on such insurance, as hereinbefore provided; or after

default upon request in furnishing a statement of the amount due on the

mortgage and whether any offsets or defenses exist against the mortgage

debt, as hereinafter provided.

5. That the holder of this mortgage, in any action to foreclose it,

shall be entitled to the appointment of a receiver.

6. That the mortgagor will pay all taxes, assessments or water rates,

and in default thereof, the mortgagee may pay the same.

7. That the mortgagor within ......... days upon request in person or

within ......... days upon request by mail will furnish a written

statement duly acknowledged of the amount due on this mortgage and

whether any offsets or defenses exist against the mortgage debt.

8. That notice and demand or request may be in writing and may be

served in person or by mail.

9. That the mortgagor warrants the title to the premises.

In witness whereof this mortgage has been duly executed by the

mortgagor.

In presence of:

SCHEDULE N

BOND AND MORTGAGE

Statutory Form MN.

This bond and mortgage, made the ........ day of ................... ,

nineteen hundred and ............, between .......................... ,

(insert residence)

herein referred to as the mortgagor, and ............................ ,

(insert residence)

herein referred to as the mortgagee.

Witnesseth, that the mortgagor, do hereby acknowledge ................

to be indebted to the mortgagee in the sum of ................ dollars,

lawful money of the United States, which the mortgagor do hereby agree

and bind ................ to pay to the mortgagee .................. on

the ...... day of ..............., nineteen hundred and ...............,

with interest thereon to be computed from .......................,

at the rate of ........... per centum per annum, and to be paid

.........................................................................

(insert terms of payment of interest and/or principal)

and to secure the payment of which the mortgagor hereby mortgages to

the mortgagee .........................................................

(description)

And the mortgagor covenants with the mortgagee as follows:

1. That the mortgagor will pay the indebtedness as hereinbefore

provided.

2. That the mortgagor will keep the buildings on the premises insured

against loss by fire for the benefit of the mortgagee; that he will

assign and deliver the policies to the mortgagee; and that he will

reimburse the mortgagee for any premiums paid for insurance made by the

mortgagee on the mortgagor's default in so insuring the buildings or in

so assigning and delivering the policies.

3. That no building on the premises shall be removed or demolished

without the consent of the mortgagee.

4. That the whole of said principal sum and interest shall become due

at the option of the mortgagee: after default in the payment of any

installment of principal or of interest for .......... days; or after

default in the payment of any tax, water rate or assessment for

.......... days after notice and demand; or after default after notice

and demand either in assigning and delivering the policies insuring the

buildings against loss by fire or in reimbursing the mortgagee for

premiums paid on such insurance, as hereinbefore provided; or after

default upon request in furnishing a statement of the amount due on the

bond and mortgage and whether any offsets or defenses exist against the

mortgage debt, as hereinafter provided.

5. That the holder of this bond and mortgage, in any action to

foreclose the mortgage, shall be entitled to the appointment of a

receiver.

6. That the mortgagor will pay all taxes, assessments or water rates,

and in default thereof, the mortgagee may pay the same.

7. That the mortgagor within ......... days upon request in person or

within ......... days upon request by mail will furnish a written

statement duly acknowledged of the amount due on this bond and mortgage

and whether any offsets or defenses exist against the mortgage debt.

8. That notice and demand or request may be in writing and may be

served in person or by mail.

9. That the mortgagor warrants the title to the premises.

In witness whereof this bond and mortgage has been duly signed and

sealed by the mortgagor.

In the presence of:

SCHEDULE O.

ASSIGNMENT OF MORTGAGE.

Statutory Form I. Without Covenant.

Know that .........., assignor, in consideration of ....... dollars,

paid by ............, assignee, hereby assigns unto the assignee, a

certain mortgage made by ..........., given to secure payment of the sum

of ........ dollars and interest, dated the ........ day of ...........,

recorded on the ........ day of ..........., in the office of the

........... of the county of ........., in liber ....... of mortgages, at

page ........, covering premises ....... , together with the bond or

obligation described in said mortgage, and the moneys due and to grow

due thereon with the interest,

To have and to hold the same unto the assignee, and to the successors,

legal representatives and assigns of the assignee forever.

In witness whereof, the assignor has hereunto set his hand and seal

this ........ day of ..........., nineteen hundred and ...........

In presence of:

SCHEDULE P

ASSIGNMENT OF MORTGAGE

Statutory form J. With covenant

Know that ..........., assignor, in consideration of ........ dollars,

paid by .........., assignee, hereby assigns unto the assignee, a

certain mortgage made by ............, given to secure payment of the

sum of ......... dollars and interest, dated the ....... day of

............, recorded on the .......... day of .............., in the

office of the .............. of the county of ..........., in liber

........ of mortgages, at page ......., covering premises ...........,

together with the bond or obligation described in said mortgage, and the

moneys due and to grow due thereon with the interest,

To have and to hold the same unto the assignee, and to the successors,

legal representatives and assigns of the assignee forever.

And the assignor covenants that there is now owing upon said mortgage,

without offset or defense of any kind, the principal sum of

.............. dollars, with interest thereon at ....... per centum per

annum from the ....... day of ........., nineteen hundred and

............

In witness whereof, the assignor has hereunto set his hand and seal

this ....... day of ........, nineteen hundred and ............

In presence of:

SCHEDULE Q

RELEASE OF PART OF MORTGAGED PREMISES

Statutory form K.

This indenture, made the ....... day of ........, nineteen hundred and

.........., between .........., party of the first part, and ........,

party of the second part,

Whereas, ............. by indenture of mortgage, bearing date the

........ day of ........., nineteen hundred and .........., recorded in

the office of the .......... of the county of ............., in liber

........ of mortgages, of section ........, page ........, on the

......... day of .........., nineteen hundred and ............, for the

consideration therein mentioned, and to secure the payment of the money

therein specified, did mortgage certain lands and tenements of which the

lands hereinafter described are part, unto ............,

And whereas, the party of the first part, at the request of the party

of the second part, has agreed to give up and surrender the lands

hereinafter described unto the party of the second part, and to hold and

retain the residue of the mortgaged lands as security for the money

remaining due on said mortgage,

Now this indenture witnesseth, that the party of the first part, in

pursuance of said agreement, and in consideration of ....... dollars,

lawful money of the United States, ............. paid by the party of

the second part, does grant, release and quitclaim unto the party of the

second part, all that part of said mortgaged lands described as follows:

............................................ (description),

Together with the hereditaments and appurtenances thereunto belonging,

and all the right, title and interest of the party of the first part,

of, in and to the same, to the intent that the lands hereby released may

be discharged from said mortgage, and that the rest of the land in said

mortgage specified may remain mortgaged to the party of the first part

as heretofore,

To have and to hold the lands and premises hereby released and

quitclaimed to the party of the second part, ............ and assigns,

to .......... and their own proper use, benefit and behoof forever,

free, clear and discharged of and from all lien and claim under and by

virtue of the indenture of mortgage aforesaid.

In witness whereof, the party of the first part has signed and sealed

these presents the day and year first above written.

In presence of:

SCHEDULE R.

SATISFACTION OF MORTGAGE.

Statutory Form L.

Know all men by these presents, that ....... do hereby certify that a

certain indenture of mortgage, bearing date the ....... day of ........,

nineteen hundred and ..........., made and executed by ..........., to

secure payment of the principal sum of .......... dollars and interest,

and duly recorded in the office of the ............ of the county of

.............., in liber ....... of mortgages, of section ........, page

......., on the ....... day of ..........., nineteen hundred and

............, is paid, and do hereby consent that the same be discharged

of record.

Dated the ....... day of ........, nineteen hundred and ..........

In presence of:

Provision in lease of real property for waiver of trial by

jury in actions for personal injury or property damage. Any provision in

a lease, executed after the effective date of this act, that a trial by

jury is waived in any action, proceeding or counterclaim brought by

either of the parties thereto against the other in any action for

personal injury or property damage, is null and void.

Lands adversely held may be conveyed or mortgaged. No grant,

conveyance or mortgage of real property or interest therein shall be

void for the reason that at the time of the delivery thereof such real

property is in the actual possession of a person claiming under a title

adverse to that of the grantor.

Maintenance of telegraph or other electric wires raises no

presumption of grant. Whenever any wire or cable used for any telegraph,

telephone, electric light or other electric purpose, or for the purpose

of communication otherwise than by the aid of electricity, is or shall

be attached to, or does or shall extend upon or over any building or

land, no lapse of time whatever shall raise a presumption of any grant

of, or justify a prescription of any perpetual right to, such attachment

or extension.

Fraudulent intent, question of fact. The question of fraudulent

intent in a case arising under this article, shall be deemed a question

of fact and not of law; and a conveyance or charge shall not be adjudged

fraudulent as against creditors, purchasers or incumbrancers, solely on

the ground that it was not founded on a valuable consideration.

Home equity theft prevention. 1. (a) The legislature finds

and declares that homeowners who are in default on their mortgages or in

foreclosure may be vulnerable to fraud, deception, and unfair dealing by

home equity purchasers. The recent rapid escalation of home values

throughout urban and rural areas has resulted in a significant increase

in home equity, which constitutes the greatest financial asset held by

many homeowners of this state. During the time period between the

default on the mortgage and the scheduled foreclosure sale date,

homeowners in financial distress, especially poor, elderly, and

financially unsophisticated homeowners, are vulnerable to aggressive

"equity purchasers" who induce homeowners to sell their homes for a

small fraction of their fair market values, or in some cases even sign

away their homes, through the use of schemes which often involve oral

and written misrepresentations, deceit, intimidation, and other

unreasonable commercial practices.

(b) The legislature declares that it is the express policy of the

state to preserve and guard the precious asset of home equity, and the

social as well as the economic value of homeownership.

(c) The legislature further finds that equity purchasers may have a

significant impact upon the economy and well-being of this state and its

local communities, and therefore the provisions of this section are

necessary to promote the public welfare.

(d) The intent and purposes of this section are to provide a homeowner

with information necessary to make an informed and intelligent decision

regarding the sale or transfer of his or her home to an equity

purchaser; to require that the sales agreement be expressed in writing;

to safeguard equity sellers against deceit and financial hardship; to

ensure, foster and encourage fair dealing in the sale and purchase of

homes in foreclosure or default; to prohibit representations that tend

to mislead; to prohibit or restrict unfair contract terms; to provide a

cooling off period for equity sellers who enter into covered contracts;

to afford equity sellers a reasonable and meaningful opportunity to

rescind sales to equity purchasers; and to preserve and protect home

equity for the homeowners of this state.

2. The following definitions shall apply to this section:

(a) "Bona fide purchaser or encumbrancer for value" means anyone

acting in good faith who purchases the residential real property from

the equity purchaser for valuable consideration or provides the equity

purchaser with a mortgage or provides a subsequent bona fide purchaser

with a mortgage, provided that he or she had no notice of the equity

seller's continuing right to, or equity in, the property prior to the

acquisition of title or encumbrance, or of any violation of this section

by the equity purchaser as related to the subject property.

(b) "Business day" means any calendar day except Sunday or the public

holidays as set forth in section twenty-four of the general construction

law.

(c) "Covered contract" means any contract, agreement, or arrangement,

or any term thereof, between an equity purchaser and equity seller

which:

(i) is incident to the sale of a residence in foreclosure; or

(ii) is incident to the sale of a residence in foreclosure or default

where such contract, agreement or arrangement includes a reconveyance

arrangement; or

(iii) is incident to the sale of a residence that is the collateral

for a "distressed home loan" as defined in paragraph (d) of subdivision

one of section two hundred sixty-five-b of this article.

For purposes of this section, any reference to the "sale" of a

residence by an equity seller to an equity purchaser shall include a

transaction where an equity seller receives consideration from the

equity purchaser, and a transaction involving a transfer of title to the

equity purchaser where no consideration is provided to the equity

seller.

(d) "Default" means that the equity seller is two months or more

behind in his or her mortgage payments.

(e) "Equity purchaser" means any person who or entity which acquires

title to any residence in foreclosure or, where applicable, default, or

the representative of such person or entity as defined in this

subdivision, except a person who acquires such title as follows:

(i) to use, and who uses, such property as his or her primary

residence;

(ii) by a deed from a referee in a foreclosure sale conducted pursuant

to article thirteen of the real property actions and proceedings law;

(iii) at any sale of property authorized by statute;

(iv) by order or judgment of any court;

(v) from a spouse, or from a parent, grandparent, child, grandchild or

sibling of such person or such person's spouse;

(vi) as a not-for-profit housing organization or as a public housing

agency; or

(vii) a bona fide purchaser or encumbrancer for value.

(f) "Equity seller" means a natural person who is a property owner or

homeowner at the time of the equity sale.

(g) "Foreclosure" means that there is an active notice of pendency

filed in court pursuant to article thirteen of the real property actions

and proceedings law, or a foreclosure action pursuant to article eleven

or thirteen of the real property actions and proceedings law has been

commenced against the subject property, or an action to enforce a

mortgage note has been commenced against the borrower whose property is

secured by a mortgage loan, or the subject property is on an active

property tax or utility lien sale list.

(h) "Property owner" or "homeowner" means any or all record title

owners of the residential real property in foreclosure or, where

applicable, default at the time of the equity sale.

(i) "Reconveyance arrangement" means:

(i) the transfer of title to residential real property by an equity

seller who is in default or foreclosure, either by transfer of interest

from an equity seller to an equity purchaser or by creation of a

mortgage or other lien or encumbrance during the time of default or

foreclosure that allows the equity purchaser to obtain legal or

equitable title to all or part of the property, and

(ii) the subsequent conveyance, or promise of a subsequent conveyance,

of an interest back to the equity seller by the equity purchaser that

allows the equity seller to regain possession of the property, which

interest shall include but not be limited to a purchase agreement,

option to purchase, or lease.

(j) "Representative" means a person who in any manner solicits,

induces, arranges, or causes any equity seller to transfer title or

solicits any member of the equity seller's family or household to induce

or cause any equity seller to transfer title to the residence in

foreclosure or, where applicable, default to the equity purchaser.

(k) "Residence" and "residential real property" means residential real

property consisting of one- to four-family dwelling units, one of which

the equity seller occupies or occupied at a time immediately prior to

the equity sale as his or her primary residence.

3. Every covered contract and notice of cancellation attached thereto

shall be written in letters of a size equal to at least twelve-point

bold type, in English or in both English and Spanish if Spanish is the

primary language of the equity seller, and shall be fully completed and

signed and dated by the equity seller and equity purchaser. Any

instrument of conveyance shall become effective no sooner than midnight

of the fifth business day after the date on which the covered contract

is executed.

4. All covered contracts shall contain the entire agreement of the

parties and shall include, but not be limited to, the following terms:

(a) The name, business address, and the telephone number of the equity

purchaser;

(b) The address of the residence in foreclosure or, where applicable,

default;

(c) The total consideration to be given by the equity purchaser in

connection with or incident to the sale;

(d) A complete description of the terms of payment or other

consideration including, but not limited to, any services of any nature

which the equity purchaser represents he or she will perform for the

equity seller before or after the sale;

(e) The time, if any, at which physical possession of the residence is

to be transferred to the equity purchaser and the residence vacated by

the equity seller;

(f) The terms of any rental or lease agreement;

(g) The terms of any reconveyance arrangement;

(h) A notice of cancellation as provided in paragraph (a) of

subdivision six of this section; and

(i) The following notice shall appear on the contract in immediate

proximity to the space reserved for the equity seller's signature and

shall be in at least fourteen-point bold type if the covered contract is

printed or in capital letters if the covered contract is typed. The

notice must contain the name of the equity purchaser and the date and

time by which the covered contract must be cancelled. The notice shall

be completed by the equity purchaser:

"NOTICE REQUIRED BY NEW YORK LAW

You may cancel this contract at any time before midnight of

________________________________________.

(Date)

________________________________________________________________________

(Name of Equity Purchaser)

or anyone working for ____________________________ CANNOT ask you to

(Name of Equity Purchaser)

sign or have you sign any deed or any other document until your right to

cancel this contract has ended. See attached notice of cancellation

form for an explanation of this right. You should always consult an

attorney or community organization before signing any legal documents

concerning your home. It is advisable that you find your own attorney,

and not consult with an attorney who has been provided to you by the

purchaser. The law requires that this contract contain the entire

agreement. You should not rely upon any other written or oral agreement

or promise."

The equity purchaser shall accurately enter the date on which the

right to cancel ends. The covered contract required by this section

shall survive delivery of any instrument of conveyance of the residence

in foreclosure or, where applicable, default, and shall have no effect

on persons other than the parties to the covered contract.

5. (a) In addition to the right of rescission described in subdivision

eight of this section, the equity seller has the right to cancel any

covered contract with an equity purchaser until midnight of the

fourteenth business day following the day on which the equity seller and

equity purchaser sign a covered contract that complies with this

section.

(b) Cancellation occurs when the equity seller, or a representative of

the equity seller, personally delivers written notice of cancellation to

the address specified in the covered contract or sends a letter via

facsimile or other means of written communication, United States mail,

or through an established commercial letter delivery service, indicating

cancellation to the business address of the equity purchaser listed on

the covered contract. Proof of facsimile delivery or proof of mailing

creates a presumption that the notice of cancellation has been

delivered.

(c) A notice of cancellation given by the equity seller pursuant to

paragraph (a) of this subdivision need not take the particular form as

provided with the covered contract and, however expressed, is effective

if it indicates the intention of the equity seller not to be bound by

the covered contract.

(d) Within ten days following receipt of a notice of cancellation

given in accordance with this subdivision, the equity purchaser shall

return without condition any original covered contract and any other

documents signed by the equity seller as well as any fee or other

consideration received by the equity purchaser from the equity seller.

Cancellation of the contract shall release the equity seller of all

obligations to pay fees to the equity purchaser.

6. (a) The covered contract shall be accompanied by a form completed

by the equity purchaser in duplicate, captioned "notice of cancellation"

in at least twelve-point bold type if the covered contract is printed or

in capital letters if the covered contract is typed. This form shall be

attached to the covered contract, shall be easily detachable, and shall

contain in type of at least twelve-point if the covered contract is

printed or in capital letters if the covered contract is typed, the

following statement written in the same language as used in the covered

contract:

"NOTICE OF CANCELLATION

This contract was entered into on ____________________________________

(Enter date covered contract signed)

You may cancel this contract for the sale of your house, without any

penalty or obligation, at any time before midnight of

___________________________. (Enter date)

To cancel this transaction, personally deliver a signed and dated copy

of this cancellation notice, or send it by facsimile, United States

mail, or an established commercial letter delivery service, indicating

cancellation to ____________________________________________________, at

(Name of purchaser) ___________________________________

(Street address of purchaser's place of business and facsimile number if

any) NOT LATER THAN midnight of _______________________________________.

(Enter date)

If you wish to cancel this contract, sign and date both copies and

return one copy immediately to the purchaser.

I hereby cancel this transaction.

__________________________________/_______________________________"

(Seller's signature) (Date)

(b) The equity purchaser shall provide each equity seller with two

copies of the covered contract and attached notice of cancellation. The

equity purchaser shall accurately enter the date on which the right to

cancel ends.

7. (a) Before midnight of the fourteenth business day after the date

on which the covered contract is executed, the equity purchaser shall

not do any of the following:

(i) accept from any equity seller an execution of, or induce any

equity seller to execute, any instrument of conveyance of any interest

in the residence in foreclosure or, where applicable, default;

(ii) record with the county clerk any document, including, but not

limited to, any instrument of conveyance, signed by the equity seller;

(iii) transfer or encumber or purport to transfer or encumber any

interest in the residence in foreclosure or, where applicable, default

to any third party;

(iv) pay the equity seller any consideration; or

(v) suggest, encourage, or provide any form which allows the equity

seller to waive his or her right to cancel or rescind under this

section.

(b) An equity purchaser shall make no false or misleading statement

regarding the value of the residence in foreclosure or, where

applicable, default; the amount of proceeds the equity seller will

receive after a foreclosure sale; the timing of the judicial foreclosure

process; any contract term; the equity seller's rights or obligations

incident to or arising out of the sale transaction; the nature of any

document which the equity purchaser induces the equity seller to sign;

or any other false or misleading statement concerning the sale of the

residence in foreclosure or, where applicable, default, or concerning

the reconveyance arrangement.

(c) An equity purchaser is prohibited from representing, directly or

indirectly, that:

(i) the equity purchaser is acting as an advisor or a consultant, or

in any other manner represents that the equity purchaser is acting on

behalf of the equity seller;

(ii) the equity purchaser has certification or licensure that the

equity purchaser does not have, or that the equity purchaser is not a

member of a licensed profession if he or she is actually such a member;

(iii) the equity purchaser is assisting the equity seller to save the

house unless the equity purchaser has a good faith basis for the

representation; or

(iv) the equity purchaser is assisting the equity seller in preventing

a completed foreclosure unless the equity purchaser has a good faith

basis for the representation.

(d) It is unlawful for any equity purchaser to initiate, enter into,

negotiate, or consummate any covered contract involving residential real

property in foreclosure or, where applicable, default if such equity

purchaser, by the terms of such covered contract, takes undue advantage

of the equity seller.

8. (a) Any transaction involving residential real property in

foreclosure or, where applicable, default which is in material violation

of subdivision three, four, six, seven or eleven of this section is

voidable and the transaction may be rescinded by the equity seller

within two years of the date of the recording of the conveyance of the

residential real property in foreclosure or, where applicable, default.

(b) Such rescission shall be effected by giving written notice to the

equity purchaser and his or her successor in interest, if the successor

is not a bona fide purchaser or encumbrancer for value as set forth in

paragraph (c) of this subdivision, and by recording such notice with the

county clerk of the county in which the property is located, within two

years of the date of the recording of the conveyance to the equity

purchaser. The notice of rescission shall contain the name of the equity

seller and the name of the equity purchaser in addition to any successor

in interest holding record title to the residential real property and

shall particularly describe such residential real property. The equity

purchaser and his or her successor in interest if the successor is not a

bona fide purchaser or encumbrancer for value as set forth in paragraph

(c) of this subdivision, shall have twenty days after the delivery of

the notice in which to reconvey title to the property free and clear of

encumbrances created subsequent to the rescinded transaction and which

are due to the actions of the equity purchaser. As a condition of the

reconveyance of title, the equity seller shall return to the equity

purchaser any consideration received from the equity purchaser as part

of the original transaction. Upon failure to reconvey title within such

time, the equity seller may bring an action to enforce the rescission

and for cancellation of the covered contract and deed.

(c) The provisions of this subdivision shall not affect the interest

of a bona fide purchaser or encumbrancer for value if such purchase or

encumbrance occurred prior to the recording of the notice of rescission

pursuant to paragraph (b) of this subdivision. Knowledge that the

property was residential real property in foreclosure or, where

applicable, default shall not impair the status of such persons or

entities as bona fide purchasers or encumbrancers for value. This

subdivision shall not be deemed to abrogate any duty of inquiry which

exists as to rights or interests of persons in possession of the

residential real property in foreclosure or, where applicable, default.

(d) In any action brought to enforce a rescission pursuant to this

section, a court may award to a prevailing equity seller costs and

reasonable attorneys' fees.

9. An equity seller may bring an action for the recovery of damages or

equitable relief against an equity purchaser for a violation of

subdivision three, four, six, seven or eleven of this section. A court

may award to a prevailing equity seller actual damages plus reasonable

attorneys' fees and costs. In addition, the court may award equitable

relief, or increase the award in an amount not to exceed three times the

equity seller's actual damages, or both, if the court deems such award

proper. Any action brought pursuant to this section shall be commenced

within six years after the date of the alleged violation.

10. (a)(i) Any equity purchaser who, with intent to defraud, violates

subdivision seven of this section or engages in any practice which would

operate as a criminal fraud or deceit upon an equity seller shall, upon

conviction, be guilty of a class E felony and subject to a fine of not

more than twenty-five thousand dollars, imprisonment in accordance with

the penal law, or both.

(ii) Any equity purchaser who knowingly violates subdivision seven of

this section shall, upon conviction, be guilty of a class A misdemeanor

and subject to a fine of not more than twenty-five thousand dollars,

imprisonment in accordance with the penal law, or both. A second offense

within five years shall be a class E felony and subject to a fine of not

more than twenty-five thousand dollars, imprisonment in accordance with

the penal law, or both.

(b) An equity purchaser who, when acting in good faith, violates

subdivision seven of this section, shall not be deemed to have violated

such subdivision if the equity purchaser:

(i) establishes by a preponderance of the evidence that the compliance

failure was not intentional and resulted from a bona fide error

notwithstanding the maintenance of procedures reasonably adapted to

avoid such errors;

(ii) notifies the equity seller within ninety days of the contract

date of the compliance failure; and

(iii) makes appropriate restitution to the equity seller and

appropriate adjustments to the transaction within ninety days of the

contract date. Examples of bona fide errors include, but are not

limited to, clerical, calculation, computer malfunction and programming,

and printing errors. An error of legal judgment with respect to a

person's obligations under this section is not a bona fide error, nor is

a failure to provide notices or other material information required by

this section.

11. (a) In any transaction in which an equity seller purports to grant

a residence in foreclosure or default to an equity purchaser by any

instrument which appears to be an absolute conveyance and reserves to

himself or herself or is given by the equity purchaser an option to

repurchase, such transaction shall create a presumption that the

transaction is a loan transaction, which may be overcome by clear and

convincing evidence to the contrary, and that the purported absolute

conveyance is a mortgage.

(b) An equity purchaser shall not enter into a reconveyance

arrangement unless:

(i) The equity purchaser verifies by appropriate documentation that

the equity seller has or is likely to have a reasonable ability to pay

for the subsequent conveyance of an interest back to the equity seller.

In the case of a lease with an option to purchase, payment ability also

includes the reasonable ability to purchase the property within the term

of the option to purchase. There is a rebuttable presumption that the

equity purchaser has not verified reasonable payment ability if the

equity purchaser has not obtained documents other than a statement by

the equity seller of assets, liabilities and income. The standard for

determining a reasonable ability to pay shall be the same standard as

set forth in paragraph (k) of subdivision two of section six-l of the

banking law;

(ii) the equity purchaser and the equity seller complete a closing for

any reconveyance arrangement in which the equity purchaser obtains a

deed or mortgage from an equity seller. For purposes of this section,

"closing" means an in-person meeting to complete final documents

incident to the sale of the real property or creation of a mortgage on

the real property conducted by an attorney who is not employed by or an

affiliate of the equity purchaser;

(iii) the equity purchaser obtains the written consent from the equity

seller before the equity purchaser grants any interest in the property

to anyone else during such time as the equity seller maintains an

interest in the property, including an option to repurchase; and

(iv) the equity purchaser notifies all existing mortgage lien holders

of his or her intent to accept conveyance of an interest in the property

from the equity seller, and fully complies with all terms and conditions

contained in the mortgage lien documents, including but not limited to

due-on-sale provisions or meeting all qualification requirements for

assuming the repayment of the mortgage.

(c) An equity purchaser shall not enter into repurchase or lease terms

as part of the reconveyance arrangement that are unfair or commercially

unreasonable, and is prohibited from engaging in any other unfair or

unconscionable conduct.

(d) As part of a reconveyance arrangement, an equity purchaser shall

either:

(i) ensure that title to the residence is reconveyed to the equity

seller; or

(ii) make a payment to the equity seller such that the equity seller

has received consideration in an amount of at least eighty-two percent

of the fair market value of the property within one hundred twenty days

of either the eviction or voluntary relinquishment of possession of the

residence by the equity seller. The equity purchaser shall make a

detailed accounting of the basis for the payment amount, or a detailed

accounting of the reasons for failure to make a payment, including

providing written documentation of expenses, within such one hundred

twenty-day period. The accounting shall be on a form prescribed by the

department of financial services. For purposes of this subparagraph, the

following applies:

(A) there is a rebuttable presumption that an appraisal by a person

licensed or certified by an agency of the federal government or this

state to appraise real estate establishes the fair market value of the

property;

(B) the time for determining the fair market value amount shall be

determined in the reconveyance arrangement as either at the time of the

execution of the reconveyance arrangement or at resale to a bona fide

purchaser. If the covered contract states that the fair market value

shall be determined at the time of resale, the fair market value shall

be the resale price if it is sold within one hundred twenty days of the

eviction or voluntary relinquishment of the property by the equity

seller. If the covered contract states that the fair market value shall

be determined at the time of resale, and the resale is not completed

within one hundred twenty days of the eviction or voluntary

relinquishment of the property by the equity seller, the fair market

value shall be determined by an appraisal conducted within ten days

after the end of such one hundred twenty-day period and payment, if

required, shall be made to the equity seller. If payment is not made to

the equity seller at such time, the fair market value shall be

recalculated as the resale price on resale and payment shall be made to

the equity seller within fifteen days of resale. A detailed accounting

of the basis for the payment amount shall be made within fifteen days of

resale, including providing written documentation of expenses. The

accounting shall be on a form prescribed by the department of financial

services;

(C) "consideration" shall mean any payment or thing of value provided

to the equity seller, including unpaid lease payments owed by the equity

seller prior to the date of eviction or voluntary relinquishment of the

property, reasonable costs paid to third parties necessary to complete

the reconveyance transaction, payment of money to satisfy a debt or

legal obligation of the equity seller or the reasonable cost of repairs

for damage to the dwelling caused by the equity seller beyond ordinary

wear and tear; but shall not include amounts imputed as any fee paid

directly or indirectly to the equity purchaser, or his or her

representative, incident to a reconveyance arrangement, except for

reasonable costs paid to third parties necessary to complete the

reconveyance.

(D) "resale" means a bona fide market sale of the property subject to

the reconveyance arrangement by the equity purchaser to an unaffiliated

third party.

(E) "resale price" means the purchase price of the property on resale.

(e) This subdivision shall not be deemed to abrogate any duty of

inquiry which exists as to rights or interests of persons in possession

of the residential real property in foreclosure or default.

(f) All deeds or conveyances subject to a reconveyance arrangement

shall state explicitly on the face of the document that the conveyance

is subject to a reconveyance arrangement, and shall state the terms of

the reconveyance arrangement. Moreover, all reconveyance arrangements

must be simultaneously recorded by the equity purchaser with the subject

deed in the county clerk's office where the property is located.

12. Any provision of a covered contract which attempts or purports to

limit the liability of the equity purchaser under this section shall be

null and void. Inclusion of such provision shall at the option of the

equity seller render the covered contract void. The equity purchaser

shall be liable to the equity seller for all damages proximately caused

by such provision. Any provision in a covered contract which attempts or

purports to require arbitration of any dispute arising under this

section shall be void at the option of the equity seller.

13. In addition to the other remedies provided, whenever there shall

be a violation of this section, application may be made by the attorney

general in the name of the people of the state of New York to a court or

justice having jurisdiction by a special proceeding to issue an

injunction, and upon notice to the defendant of not less than five days,

to enjoin and restrain the continuance of such violations; and if it

shall appear to the satisfaction of the court or justice that the

defendant has, in fact, violated this section, an injunction may be

issued by such court or justice, enjoining and restraining any further

violation, without requiring proof that any person has, in fact, been

injured or damaged thereby. In any such proceeding, the court may make

allowances to the attorney general as provided in paragraph six of

subdivision (a) of section eighty-three hundred three of the civil

practice law and rules, and direct restitution. Whenever the court shall

determine that a violation of this section has occurred, the court may

impose a civil penalty of not more than twenty-five thousand dollars for

each violation. In connection with any such proposed application, the

attorney general is authorized to take proof and make a determination of

the relevant facts and to issue subpoenas in accordance with the civil

practice law and rules.

14. This section shall not apply to a prior lien holder where the lien

was properly recorded prior to the execution of any covered contract by

both the equity seller and the equity purchaser nor shall any provision

of this section be deemed to impair any equity or other available rights

of any such prior lien holder.

15. The provisions of this section shall be liberally construed to

effectuate the intent and to achieve the purposes set forth in

subdivision one of this section.

16. The provisions of this section are not exclusive and are in

addition to any other requirements, rights, remedies, and penalties

provided by law.

17. Any waiver of the provisions of this section shall be void and

unenforceable as contrary to the public policy.

18. If any provision of this section, or if any application thereof to

any person or circumstances is held unconstitutional, the remainder of

this section and the application of its provisions to other persons and

circumstances shall not be affected thereby.

Distressed property consulting contracts. 1. Definitions. The

following definitions shall apply to this section:

(a) "Homeowner" means a natural person who is the mortgagor with

respect to a distressed home loan or who is in danger of losing a home

for nonpayment of taxes.

(b) "Consulting contract" or "contract" means an agreement between a

homeowner and a distressed property consultant under which the

consultant agrees to provide consulting services.

(c) "Consulting services" means services provided by a distressed

property consultant to a homeowner that the consultant represents will

help to achieve any of the following:

(i) stop, enjoin, delay, void, set aside, annul, stay or postpone a

foreclosure filing, a foreclosure sale or the loss of a home for

nonpayment of taxes;

(ii) obtain forbearance from any servicer, beneficiary or mortgagee or

relief with respect to the potential loss of the home for nonpayment of

taxes;

(iii) assist the homeowner to exercise a right of reinstatement or

similar right provided in the mortgage documents or any law or to

refinance a distressed home loan;

(iv) obtain any extension of the period within which the homeowner may

reinstate or otherwise restore his or her rights with respect to the

property;

(v) obtain a waiver of an acceleration clause contained in any

promissory note or contract secured by a mortgage on a property in

foreclosure;

(vi) assist the homeowner to obtain a loan or advance of funds;

(vii) assist the homeowner in answering or responding to a summons and

complaint, or otherwise providing information regarding the foreclosure

complaint and process;

(viii) avoid or ameliorate the impairment of the homeowner's credit

resulting from the commencement of a foreclosure proceeding or tax sale;

or

(ix) save the homeowner's property from foreclosure or loss for

non-payment of taxes.

(d) "Distressed home loan" means a home loan for which an installment

payment is more than sixty days past due, or a home loan where the

lender has commenced a foreclosure action. For purposes of this

paragraph, a "home loan" is a loan in which the debt is incurred by the

homeowner primarily for personal, family or household purposes, and the

loan is secured by a mortgage or deed of trust on property upon which

there is located or there is to be located a structure or structures

intended principally for occupancy of from one to four families which is

or will be occupied by the homeowner as the homeowner's principal

dwelling.

(e) "Distressed property consultant" or "consultant" means an

individual or a corporation, partnership, limited liability company or

other business entity that, directly or indirectly, solicits or

undertakes employment to provide consulting services to a homeowner for

compensation or promise of compensation with respect to a distressed

home loan or a potential loss of the home for nonpayment of taxes. A

distressed property consultant does not include the following:

(i) an attorney admitted to practice in the state of New York when the

attorney is directly providing legal representation to a homeowner

pursuant to a retainer agreement, and has entered an appearance on

behalf of a homeowner, in the course of his or her regular legal

practice. This exception shall not apply to non-attorney individuals

engaged in activities covered by subdivision two of this section who are

employed by, associated with, or consultants for law firms when such law

firms are not providing legal representation to a homeowner in a

foreclosure action pursuant to a retainer agreement;

(ii) a person or entity who holds or is owed an obligation secured by

a lien on any property in foreclosure while the person or entity

performs services in connection with the obligation or lien;

(iii) a bank, trust company, private banker, bank holding company,

savings bank, savings and loan association, thrift holding company,

credit union or insurance company organized under the laws of this

state, another state or the United States, or a subsidiary or affiliate

of such entity or a foreign banking corporation licensed by the

superintendent of financial services or the comptroller of the currency;

(iv) a federal Department of Housing and Urban Development approved

mortgagee and any subsidiary or affiliate of such mortgagee, and any

agent or employee of these persons while engaged in the business of such

mortgagee;

(v) a judgment creditor of the homeowner, if the judgment creditor's

claim accrued before the written notice of foreclosure sale is sent;

(vi) a title insurer authorized to do business in this state, while

performing title insurance and settlement services;

(vii) a person licensed as a mortgage banker or registered as a

mortgage broker or registered as a mortgage loan servicer as defined in

article twelve-D of the banking law, provided that no such person shall

take any upfront fee in conjunction with activities constituting the

business of a distressed property consultant;

(viii) a bona fide not-for-profit organization that offers counseling

or advice to homeowners in foreclosure or loan default; or

(ix) a person licensed or registered in the state to engage in the

practice of other professions that the superintendent of financial

services has determined should not be subject to this section.

(f) "Property" shall mean real property located in this state improved

by a one-to-four family dwelling used or occupied, or intended to be

used or occupied, wholly or partly, as the home or residence of one or

more persons, but shall not refer to unimproved real property upon which

such dwellings are to be constructed.

(g) "Business day" shall mean any calendar day except Sunday or the

public holidays as set forth in section twenty-four of the general

construction law.

2. Prohibitions. A distressed property consultant is prohibited from

doing the following:

(a) performing consulting services without a written, fully executed

consulting contract with a homeowner;

(b) charging for or accepting any payment for consulting services

before the full completion of all such services, including a payment to

be placed in escrow pending the completion of such services;

(c) taking a power of attorney from a homeowner;

(d) retaining any original loan document or other original document

related to the distressed home loan, the property or the potential loss

of the home for nonpayment of taxes;

(e) inducing or attempting to induce a homeowner to enter a consulting

contract that does not fully comply with the provisions of this article;

(f) inducing the transfer of a deed to any person or entity, including

to the distressed property consultant;

(g) accepting or taking ownership of a deed from a homeowner for any

period of time whatsoever;

(h) simulating in any manner a law enforcement officer, or a

representative of any governmental agency;

(i) disclosing or threatening to disclose information affecting the

homeowner's reputation for credit worthiness with knowledge or reason to

know that the information is false;

(j) communicating with the homeowner or any member of his family or

household with such frequency or at such unusual hours or in such a

manner as can reasonably be expected to abuse or harass the homeowner;

(k) claiming, attempting, or threatening to enforce a right with

knowledge or reason to know that the right does not exist;

(l) using a communication which simulates in any manner legal or

judicial process or which gives the appearance of being authorized,

issued or approved by a government, governmental agency, or attorney at

law when it is not; or

(m) encumbering the property with a lien without any contractual or

legal basis.

If any provision of this subdivision or the application thereof to any

person or circumstances is held invalid, the invalidity thereof shall

not affect other provisions or applications of this subdivision which

can be given effect without the invalid provision or application, and to

this end the provisions of this subdivision are severable.

3. Distressed property consulting contracts. (a) A distressed

property consulting contract shall:

(i) contain the entire agreement of the parties;

(ii) be provided in writing to the homeowner for review before

signing;

(iii) be printed in at least twelve point type and written in the same

language that is used by the homeowner and was used in discussions

between the consultant and the homeowner to describe the consultant's

services or to negotiate the contract;

(iv) fully disclose the exact nature of the distressed property

consulting services to be provided by the distressed property consultant

or anyone working in association with the distressed property

consultant;

(v) fully disclose the total amount and terms of compensation for such

consulting services;

(vi) contain the name, business address and telephone number of the

consultant and the street address (if different) and facsimile number or

email address of the distressed property consultant where communications

from the homeowner may be delivered;

(vii) be dated and personally signed by the homeowner and the

distressed property consultant and be witnessed and acknowledged by a

New York notary public; and

(viii) contain the following notice, which shall be printed in at

least fourteen point boldface type, completed with the name of the

distressed property consultant, and located in immediate proximity to

the space reserved for the homeowner's signature:

"NOTICE REQUIRED BY NEW YORK LAW

You may cancel this contract, without any penalty or obligation, at

any time before midnight of (fifth business day after

execution).

(Name of Distressed Property Consultant) (the "Consultant") or

anyone working for the Consultant may not take any money from you or ask

you for money until the Consultant has completely finished doing

everything this Contract says the Consultant will do.

You should consider consulting an attorney or a government-approved

housing counselor before signing any legal document concerning your

home. It is advisable that you find your own attorney, and not consult

with an attorney recommended or provided to you by the Consultant. A

list of housing counselors may be found on the website of the New York

State Department of Financial Services, (enter web address) or by

calling the Department of Financial Services toll-free at (enter

number). The law requires that this contract contain the entire

agreement between you and the Consultant. You should not rely upon any

other written or oral agreement or promise."

The distressed property consultant shall accurately enter the date on

which the right to cancel ends.

(b)(i) The homeowner has the right to cancel, without any penalty or

obligation, any contract with a distressed property consultant until

midnight of the fifth business day following the day on which the

distressed property consultant and the homeowner sign a consulting

contract. Cancellation occurs when the homeowner, or a representative of

the homeowner, either delivers written notice of cancellation in person

to the address specified in the consulting contract or sends a written

communication by facsimile, by United States mail or by an established

commercial letter delivery service. A dated proof of facsimile delivery

or proof of mailing creates a presumption that the notice of

cancellation has been delivered on the date the facsimile is sent or the

notice is deposited in the mail or with the delivery service.

Cancellation of the contract shall release the homeowner of all

obligations to pay fees or any other compensation to the distressed

property consultant.

(ii) The consulting contract shall be accompanied by two copies of a

form, captioned "notice of cancellation" in at least twelve-point bold

type. This form shall be attached to the contract, shall be easily

detachable, and shall contain the following statement written in the

same language as used in the contract, and the contractor shall insert

accurate information as to the date on which the right to cancel ends

and the contractor's contact information:

"NOTICE OF CANCELLATION

Note: You may cancel this contract, without any penalty or obligation,

at any time before midnight of ______. (Enter date)

To cancel this contract, sign and date both copies of this cancellation

notice and personally deliver one copy or send it by facsimile, United

States mail, or an established commercial letter delivery service,

indicating cancellation to the Distressed Property Consultant at one of

the following:

Name of Contractor_________________________

Street Address_____________________________

City, State, Zip___________________________

Facsimile:_________________________________

I hereby cancel this transaction.

Name of Homeowner:_________________________

Signature of Homeowner:____________________

Date:______________________________________"

(iii) Within ten days following receipt of a notice of cancellation

given in accordance with this subdivision, the distressed property

consultant shall return any original contract and any other documents

signed by or provided by the homeowner. Cancellation shall release the

homeowner of all obligations to pay any fees or compensation to the

distressed property consultant.

3-a. Distressed property consultant advertisements. (a) All

advertisements disseminated by a distressed property consultant must

prominently include the following statement: "In New York State, Housing

Counselors, who are approved by the U.S. Department of Housing & Urban

Development or the New York State Department of Financial Services, may

provide the same or similar services as a distressed property consultant

for free. A list of approved Housing Counselors can be found on the New

York State Department of Financial Services website at (enter web

address) or by contacting the New York State Department of Financial

Services toll-free at (enter number). You should consider consulting an

attorney or a government-approved housing counselor before signing any

legal document concerning a distressed property consultant." Such

statement, if disseminated by print media or the internet, shall be

clearly and legibly printed or displayed in not less than twelve-point

bold type, or, if the advertisement is printed to be displayed in print

that is smaller than twelve point, in bold type print that is no smaller

than the print in which the text of the advertisement is printed or

displayed.

(b) For the purposes of this subdivision, the term "advertisement"

shall include, but is not limited to, all forms of marketing,

solicitation, or dissemination of information related, directly or

indirectly, to securing or obtaining a consulting contract or services.

Further, it shall include any and all commonly recognized forms of media

marketing via television, radio, print media, all forms of electronic

communication via the internet, and all prepared sales presentations

given in person or over the internet to the general public.

(c) The advertising provisions of this subdivision shall apply to all

distressed property consultants who disseminate advertisements in the

state of New York or who intend to directly or indirectly contact a

homeowner who has property located in New York state. Distressed

property consultants shall establish and at all times maintain control

over the content, form and method of dissemination of all advertisements

of its services. Further, all advertisements shall be sufficiently

complete and clear to avoid the possibility of deception or the ability

to mislead or deceive.

4. Penalties and other provisions. (a) If a court finds that a

distressed property consultant has violated any provision of this

section, the court may make null and void any agreement between the

distressed homeowner and the distressed property consultant.

(b) If the distressed property consultant violates any provision of

this section and the homeowner suffers damage because of the violation,

the homeowner may recover actual and consequential damages and costs

from the distressed property consultant in an action based on this

section. If the distressed property consultant intentionally or

recklessly violates any provision of this section, the court may award

the homeowner treble damages, attorneys' fees and costs.

(c) Any provision of a consulting contract that attempts or purports

to limit the liability of the distressed property consultant under this

section shall be null and void. Inclusion of such provision shall at the

option of the homeowner render the consulting contract void. Any

provision in a contract which attempts or purports to require

arbitration of any dispute arising under this section shall be void at

the option of the homeowner. Any waiver of the provisions of this

section shall be void and unenforceable as contrary to public policy.

(d) In addition to the other remedies provided, whenever there shall

be a violation of this section, application may be made by the attorney

general in the name of the people of the state of New York to a court or

justice having jurisdiction by a special proceeding to issue an

injunction, and upon notice to the defendant of not less than five days,

to enjoin and restrain the continuance of such violations; and if it

shall appear to the satisfaction of the court or justice that the

defendant has, in fact, violated this section, an injunction may be

issued by such court or justice, enjoining and restraining any further

violation, without requiring proof that any person has, in fact, been

injured or damaged thereby. In any such proceeding, the court may make

allowances to the attorney general as provided in paragraph six of

subdivision (a) of section eighty-three hundred three of the civil

practice law and rules, and direct restitution. Whenever the court shall

determine that a violation of this section has occurred, the court may

impose a civil penalty of not more than ten thousand dollars for each

violation. In connection with any such proposed application, the

attorney general is authorized to take proof and make a determination of

the relevant facts and to issue subpoenas in accordance with the civil

practice law and rules.

(e) The provisions of this section are not exclusive and are in

addition to any other requirements, rights, remedies, and penalties

provided by law.

5. The department of financial services shall prescribe the telephone

number and web address to be included in the notice.

Rights of purchaser or incumbrancer for valuable consideration

protected. This article does not in any manner affect or impair the

title of a purchaser or incumbrancer for a valuable consideration,

unless it appears that such purchaser or incumbrancer had previous

notice, whether actual or constructive, of the fraudulent intent of his

immediate grantor, or of the fraud rendering void the title of such

grantor. There shall be a rebuttable presumption that a purchaser or

incumbrancer had notice of fraud or fraudulent intent in the case of a

transfer of mortgaged real property, between a purchaser and seller who

are not associated parties, that is not accompanied by the recording

with the clerk of the county or with the commissioner of deeds in which

the property is located, of a statement, executed by the mortgagee, and

duly acknowledged, stating, substantially, that (a) a party is assuming

the seller's indebtedness secured by the mortgage; or (b) that the

indebtedness secured by the mortgage has been satisfied.

For the purposes of this section, "associated parties" means spouses,

ex-spouses, parents and children, siblings, a homeowner and that

homeowner's family trust, or a homeowner and that homeowner's

wholly-owned limited liability company.

Conveyances with power to revoke, determine or alter. A

conveyance of, or charge on, an estate or interest in real property,

containing a provision for the revocation, determination or alteration

of the estate or interest, or any part thereof, at the will of the

grantor, is void, as against subsequent purchasers and incumbrancers,

from the grantor, for a valuable consideration, of any estate or

interest so liable to be revoked or determined, although the same be not

expressly revoked, determined or altered by the grantor, by virtue of

the power reserved or expressed in the prior conveyance or charge. Where

a power to revoke a conveyance of real property or the rents and profits

thereof, and to reconvey the same, is given to any person, other than

the grantor in such conveyance, and such person thereafter conveys the

same real property, rents or profits to a purchaser or incumbrancer for

a valuable consideration, such subsequent conveyance is valid, in the

same manner and to the same extent as if the power of revocation were

recited therein, and the intent to revoke the former conveyance

expressly declared. If a conveyance to a purchaser or incumbrancer,

under this section, be made before the person making it is entitled to

execute his power of revocation, it is nevertheless valid, from the time

the power of revocation actually vests in such person, in the same

manner, and to the same extent, as if then made.

Disaffirmance of fraudulent act by executor and others. An

executor, administrator, receiver, assignee or other trustee, may, for

the benefit of creditors, or of others interested in real property held

in trust, disaffirm, treat as void and resist any act done or transfer

or agreement made in fraud of the rights of any creditor, including

himself, interested in such estate or property; and a person who

fraudulently receives, takes, or in any manner interferes with the real

property of a deceased person, or an insolvent corporation, association,

partnership, or individual, is liable to such executor, administrator,

receiver or other trustee for the same, or the value thereof, and for

all damages caused by such act to the trust estate. A creditor of a

deceased insolvent debtor, having a claim or demand exceeding one

hundred dollars against such deceased, may, for the benefit of creditors

or others interested in the real property of such deceased, disaffirm,

treat as void, and resist any act done or conveyance, transfer or

agreement made by such deceased in fraud of the rights of any creditor,

including himself, and may maintain an action to set aside such act,

conveyance, transfer or agreement, without having first obtained a

judgment on such claim or demand; but the same, if disputed, may be

established on the trial. The judgment in such action may provide for

the sale of the premises or property involved, when a conveyance or

transfer thereof is set aside, and that the proceeds thereof be brought

into court or paid into the proper surrogate's court to be administered

according to law.

When remainderman may pay interest owed by life tenant.

Whenever real property held by any person for life is incumbered by

mortgage or other lien, the interest on which should be paid by the life

tenant, and such life tenant neglects or refuses to pay such interest,

the remainderman may pay such interest, and recover the amount thereof,

together with interest thereon from the time of such payment, of the

life tenant.

Powers of courts of equity not abridged. Nothing contained in

this article abridges the powers of courts of equity to compel the

specific performance of agreements in cases of part performance.

Construction of covenants in mortgages on leases of real

property and bonds or notes. In mortgages on leases of real property and

in bonds or notes secured thereby, the following or similar covenants or

agreements must be construed as follows:

1. In default of payment, mortgagee to have power to sell.--- A

covenant that the mortgagor "will pay the indebtedness, as provided in

the mortgage, and if default be made in the payment of any part thereof,

the mortgagee or obligee shall have power to sell the premises therein

described, according to law," must be construed as meaning that the

mortgagor or obligor shall well and truly pay unto the mortgagee or

obligee the said sum of money mentioned in the condition of the said

bond, note or obligation, and the interest thereon, according to the

condition of the said bond, note or obligation. And if default shall be

made in the payment of the said sum of money therein mentioned, or in

the interest which shall accrue thereon, or of any part of either, that

then and from thenceforth it shall be lawful for the said mortgagee or

obligee, his legal representative or assigns, to sell, transfer and set

over, all the rest, residue and remainder of the said term of years then

yet to come, and all other, the right, title and interest of the said

mortgagor or obligor of, in and to the same, at public auction,

according to the act in such case made and provided. And as the attorney

of the said mortgagor or obligor for that purpose by these presents duly

authorized, constituted and appointed, to make, seal, execute and

deliver to the purchaser or purchasers thereof, a good and sufficient

assignment, transfer or other conveyance in the law, for the said

premises, with the appurtenances; and out of the money arising from such

sale, to retain the principal and interest which shall then be due on

the said bond, note or obligation, together with the costs and charges

of advertisement and sale of the said premises, rendering the overplus

of the purchase-money (if any there shall be) unto the said mortgagor or

obligor, his legal representatives or assigns; which sale, so to be

made, shall forever be a perpetual bar, both in law and equity, against

the said mortgagor or obligor, and against all persons claiming or to

claim the premises or any part thereof, by, from or under him or them,

or any of them.

2. Mortgagor to keep buildings insured.--- A covenant "that the

mortgagor will keep the buildings on the said premises insured against

loss by fire, for the benefit of the mortgagee," must be construed as

meaning that the said mortgagor or obligor shall and will keep the

buildings erected and to be erected upon the lands above conveyed,

insured against loss and damage by fire, by insurance, and in an amount

approved by the said mortgagee or obligee and his assigns, and either

assign the policy and certificates thereof or have such insurance made

payable to the said mortgagee or obligee or his assigns, and in default

thereof it shall be lawful for the said mortgagee or obligee and his

assigns to effect such insurance, and the premium and premiums paid for

effecting the same shall be a lien on the said mortgaged premises, added

to the amount of the said bond, note or obligation, and secured by these

presents, and payable on demand, with legal interest.

3. Mortgagor to pay rent and charges on premises.--- A covenant that

the mortgagor "will pay the rent and other charges mentioned in and made

payable by said indenture of lease within ....... days after said rent

or charges are payable," must be construed as meaning that the said

mortgagor or obligor and his legal representatives and assigns, will pay

or cause to be paid, and discharge all rent and rents mentioned in and

made payable by the indenture of lease aforesaid, and also all taxes,

assessments or other charges that now are a lien, or hereafter shall or

may be levied, assessed or imposed and become a lien upon the premises

above described or any part thereof; and in default thereof, for the

space of ....... after such taxes or assessments or ....... after the

said rent or rents, or any of them shall have become due and payable by

the terms of said lease or by law, then and in each and every such case

the said mortgagee or obligee, his legal representatives or assigns may,

at option, and without notice, pay such rent or rents, taxes,

assessments or other charges and expenses, and the amount so paid, and

interest thereon, from the time of such payment, shall forthwith be due

and payable from the said mortgagor or obligor, his legal

representatives or assigns, to the said mortgagee or obligee, his legal

representatives or assigns, and shall be deemed to be secured by these

presents, and shall be collectable in the same manner, and at the same

time, and upon the same conditions as the interest then next maturing

upon the principal sum hereinbefore mentioned.

4. Agreement that whole sum shall become due.--- The words "And it is

hereby expressly agreed that the whole of the said principal sum shall

become due at the option of said mortgagee or obligee after default in

the payment of any instalment of principal or after default in the

payment of interest for ....... days, or after default in the payment of

any rent or other charge made payable by said indenture of lease for

......... days, or after default in the payment of any tax or assessment

for ....... days after notice and demand," must be construed as meaning

that should any default be made in the payment of any instalment of

principal or any part thereof, or of said interest or any part thereof,

or of any rent or other charge made payable by said indenture or lease,

on any day whereon the same is made payable, or should any tax or

assessment, which now is or may be hereafter imposed upon the premises

hereinafter described, become due and payable, and should the said

interest, rent or other charge aforesaid, remain unpaid and in arrear

for the space of ....... days, or such tax or assessment remain unpaid

and in arrear for ....... days after written notice by the mortgagee or

obligee, his executors, administrators or assigns, that such tax or

assessment is unpaid, and demand for the payment thereof, then and from

thenceforth, that is to say, after the lapse of either one of said

periods, as the case may be, the aforesaid principal sum, with all

arrearage of interest thereon, rent and other charges paid by the

mortgagee or obligee, shall, at the option of the said mortgagee or

obligee, his executors, administrators or assigns, become and be due and

payable immediately thereafter, although the period above limited for

the payment thereof may not then have expired, anything thereinbefore

contained to the contrary thereof in anywise notwithstanding.

Construction of grant of appurtenances, and all of the rights

and estate of the mortgagor. In any mortgage on a lease of real property

the words "together with the appurtenances and all the estate and rights

of the part ...... of the first part of, in and to said premises under

and by virtue of the aforesaid indenture of lease," must be construed as

meaning, together with all and singular the edifices, buildings, rights,

members, privileges and appurtenances thereunto belonging or in anywise

appertaining; and also all the estate, right, title, interest, term of

years yet to come and unexpired, property, possession, claim and demand

whatsoever, as well in law as in equity, of the said mortgagor or

obligor, of, in and to the said demised premises, and every part and

parcel thereof, with the appurtenances; and also the said indenture of

lease, and the renewal therein provided for, and every clause, article

and condition therein expressed and contained.

What form of mortgage on lease of real property. The use of the

following form of instrument for mortgages on leases of real property is

lawful, but this section does not prevent or invalidate the use of other

forms.

SCHEDULE D.

MORTGAGE ON LEASE OF REAL PROPERTY.

This indenture, made the ....... day of ........, in the year one

thousand ....... hundred and .........., between ............. of

(insert residence) of the first part and ........... of (insert

residence) of the second part; whereas ........... did, by a certain

indenture of lease, bearing date the ....... day of ........, in the

year one thousand nine hundred and .........., demise, lease and to farm

let unto ............ and to ............ executors, administrators and

assigns, all and singular the premises hereinafter mentioned and

described, together with their appurtenances; to have and to hold the

same unto the said ........... and to ........... executors,

administrators and assigns, for and during and until the full end and

term of ....... years, from the ....... day of ........, one thousand

nine hundred and ........, fully to be complete and ended, yielding and

paying therefor unto the said ....... and to ....... or assigns, the

yearly rent or sum of ............... .

And whereas, the said part ....... of the first part justly indebted

to the said part ....... of the second part, in the sum of .......

lawful money of the United States of America, secured to be paid by

........ certain bond or obligation, bearing even date herewith,

conditioned for the payment of the said sum of ....... on the .......

day of ........, nineteen hundred and ....... and the interest thereon

to be computed from ....... at the rate of ....... per centum per annum

and to be paid ...... .

It being thereby expressly agreed that the whole of the said principal

sum shall become due at the option of the mortgagee or obligee after

default in the payment of interest, taxes or assessments or rents as

hereinafter provided.

Now this indenture witnesseth that the said part ....... of the first

part, for the better securing the payment of the said sum of money

mentioned in the condition of the said bond or obligation, with interest

thereon, and also for and in consideration of the sum of one dollar,

paid by the said part ....... of the second part, the receipt whereof is

hereby acknowledged, doth grant and release, assign, transfer and set

over unto said part ....... of the second part, and to his heirs (or

successors) and assigns forever.

(Description.)

Together with the appurtenances and all the estate and rights of the

part ........ of the first part of, in and to said premises under and by

virtue of the aforesaid indenture of lease.

To have and hold the said indenture of lease and renewal, and the

above granted premises, unto the said part ....... of the second part,

his heirs and assigns, for and during all the rest, residue and

remainder of the said term of years yet to come and unexpired, in said

indenture of lease and in the renewals therein provided for; subject,

nevertheless, to the rents, covenants, conditions and provisions in the

said indenture of lease mentioned.

Provided always that if the said part ....... of the first part shall

pay unto the said part ....... of the second part, the said sum of money

mentioned in the condition of the said bond or obligation, and the

interest thereon, at the time and in the manner mentioned in the said

condition, that then these presents and the estate hereby granted, shall

cease, determine and be void.

And the said part ....... of the first part covenant ....... with the

said part ....... of the second part as follows:

First. That the part ....... of the first part will pay the

indebtedness as hereinbefore provided.

And if default shall be made in the payment of any part thereof the

said part ....... of the second part shall have power to sell the

premises therein described according to law.

Second. That the said premises now are free and clear of all

incumbrances whatsoever, and that ....... ha ....... good right and

lawful authority to convey the same in manner and form hereby conveyed.

Third. That the part ....... of the first part will keep the buildings

on the said premises insured against loss by fire, for the benefit of

the mortgagee.

Fourth. That the part ....... of the first part will pay the rents and

other charges mentioned in and made payable by said indenture of lease

within ....... days after said rent or charges are payable.

Fifth. And it is hereby expressly agreed that the whole of the said

principal sum shall become due at the option of the said mortgagee or

obligee after default in the payment of any instalment of principal, or

after default in the payment of interest for ....... days, or after

default in the payment of any rent or other charge made payable by said

indenture of lease for ....... days, or after default in the payment of

any tax or assessment for ....... days after notice and demand.

In witness whereof, the said part ....... of the first part to these

presents ha ....... hereunto set ....... hand ....... and seal .......

the day and year first above written.

Sealed and delivered }

in the presence of }

Transfers and mortgages of interest in decedents' estates.

Every conveyance, assignment, or other transfer of, and every mortgage

or other charge upon the interest, or any part thereof, of any person in

the estate of a decedent which is situated within this state, shall be

in writing, and shall be acknowledged or proved in the manner required

to entitle conveyances of real property to be recorded. Any such

instrument may also be recorded as hereinafter provided; and if not so

recorded, it is void against any subsequent purchaser or mortgagee of

the same interest or any part thereof, in good faith and for a valuable

consideration, whose conveyance or mortgage is first duly recorded. If

such interest is entirely in the real property of a decedent, the

conveyance or mortgage shall be recorded in the office of the recording

officer where such real property is situated. If such interest is in

both the personal and the real property of a decedent the conveyance or

mortgage shall be recorded in the office of the surrogate issuing

letters testamentary or letters of administration upon the said

decedent's estate, or if no such letters have been issued, then in the

office of the surrogate having jurisdiction to issue the same, and also

in the office of the said recording officer. Such a conveyance or

mortgage when so recorded, shall be indexed under the name of the

decedent, in a book to be kept for the purpose by each recording

officer. The person presenting any such instrument for record shall pay

to the clerk of the surrogate's court a fee of ten cents for each folio.

Such filing or recording shall not be deemed notice of such conveyance,

assignment or other transfer of, or mortgage or other lien or charge

upon the interest, or any part thereof of any person in the estate of a

decedent which is situated within the state, so as to charge the legal

representative of the estate with liability for payment to a legatee or

other beneficiary of an estate unless and until he shall have received

actual notice of such conveyance, assignment or other transfer.

Certificate of principal amount unpaid on mortgages of real

property. 1. The holder of a mortgage upon real property shall execute

and deliver to the owner of the real property upon which such mortgage

is a lien a written instrument setting forth the amount of the principal

of said mortgage remaining unpaid, the date to which interest has been

paid, and the amounts, if any, claimed to be unpaid upon said mortgage

for principal and interest, itemizing the same, provided, however, that

prior written demand by registered or certified mail has been made upon

the holder of such mortgage by such owner of the real property and that

such owner of the real property shall have executed and delivered to

another a written contract to convey, or shall have received a written

commitment to make a mortgage loan upon, the real property or an

interest therein. The written instrument hereinbefore required of the

holder of the mortgage shall be a certificate duly executed and

acknowledged in the same manner as required by law to entitle a

conveyance of real property to be recorded, except that a bank, savings

bank, private banker, trust company, savings and loan association or any

other banking organization, as defined in the banking law, a national

bank or trust company or any other federally-chartered or

federally-regulated savings and loan association or other banking

institution and an insurance company duly organized or licensed to do

business in this state under the insurance law of this state and the

state of New York, or an agency thereof and a political subdivision of

the state of New York or an agency thereof may, in lieu of the said

certificate, furnish a letter signed by a duly authorized officer, or

employee or agent, containing the information required to be set forth

in such certificate. An owner of real property who shall have complied

with the foregoing requirements and who shall not have received the

written instrument from the holder of the mortgage thereon within twenty

days after such compliance shall be entitled to petition a court of

competent jurisdiction for an order requiring such holder of the

mortgage to comply with this section.

2. (a) The mortgagee of an owner-occupied, one-to-six family

residential structure or residential condominium unit, shall deliver

within thirty days, any mortgage related documents to an authorized

individual making a bona fide written demand for such documents. The

mortgagee shall not charge for providing the mortgage-related documents,

provided, however, the mortgagee may charge not more than twenty

dollars, or such amount as may be fixed by the superintendent of

financial services, for each subsequent payoff statement provided under

this subdivision. If the mortgagee fails to deliver the mortgage-related

documents, the mortgagee shall be liable for the actual damages to the

mortgagor by reason of such failure. In computing actual damages the

court may consider the actual rate of interest on the mortgage debt and

current prevailing rate or rates of interest on comparable debts.

However, actual damages do not include pain and suffering, mental or

emotional distress or the like. The replacement costs of a lost

abstract of title required to be delivered hereunder, may be deducted

from the amount required to satisfy the mortgage.

(b) When used in this section:

(i) "Authorized individual" means the mortgagor, the mortgagor's

attorney, or the attorney representing a banking organization which has

agreed to make a loan secured by the same real property securing the

mortgage for which the mortgage related documents have been requested.

(ii) "Mortgagee" means (1) the current holder of the mortgage of

record or the current holder of the mortgage, (2) any person to whom

payments are required to be made and (3) their personal representatives,

successors and assigns.

(iii) "Bona fide written demand" means a written demand made by an

authorized individual in connection with a sale or refinancing of the

mortgaged property or some other event where the mortgage is reasonably

expected to be paid off or assigned. Such demand shall either be

delivered personally, or by registered or certified mail, postage

prepaid, return receipt requested. The demand shall include the names of

the mortgagor and mortgagee, the address of the mortgaged property, loan

number, the date of the mortgage or the date it was recorded, the

mortgage related documents demanded and the proposed payoff date or date

of assignment of the mortgage, if applicable. If the demand includes a

request for the abstract of title, the demand shall include the

agreement by the mortgagor to pay for a replacement abstract of title,

the cost of which may not exceed the actual replacement cost of such

abstract of title, in the event that the mortgage is not paid off or the

abstract of title is not returned within thirty days of the proposed

payoff date. Such demand shall include the following in capital letters:

"THIS DEMAND IS MADE UNDER SECTION 274-a OF THE REAL PROPERTY LAW.

FAILURE TO COMPLY WITH THIS DEMAND MAY RESULT IN SEVERE PENALTIES."

(iv) "Mortgage-related documents" means:

(1) the abstract of title for the real property securing the mortgage

if such document is in the possession and control of the mortgagee. In

the event that the mortgage is not paid off, the authorized individual

receiving the abstract of title shall within thirty days of the proposed

payoff date return the abstract of title to the mortgagee or other

person so designated by the mortgagee; upon a failure to so return the

abstract of title, the mortgagee may obtain a replacement abstract of

title, the cost of which may not exceed the actual replacement cost of

such abstract of title and which shall be paid by the mortgagor;

(2) a payoff statement setting forth the balance of the mortgage,

including principal, interest and other charges assessed pursuant to the

loan documents, together with a per diem rate for interest accruing

after the date to which the balance has been calculated. The payoff

statement may, in the event that the statement reflects payments which

may have not yet cleared, require the authorized individual to obtain

from the mortgagee a day of payoff verification of the payoff statement.

A payoff statement requiring day of payoff verification shall include,

in addition to the address of the mortgagee, the telephone number of the

mortgagee and, if a banking organization or corporation, the name or

department, and its telephone number and facsimile phone number. Unless

the payoff statement requires a day of payoff verification, a mortgagee

furnishing a payoff statement shall be obligated to make its best effort

to furnish a satisfaction of mortgage upon receipt of the amount set

forth in such statement unless such person subsequently notifies the

authorized individual of an error in the payoff statement. The payoff

statement furnished by a mortgagee shall include a name or department in

addition to the address of the banking organization or corporation for

use in connection with preparation of an affidavit under subdivision

five of section nineteen hundred twenty-one of the real property actions

and proceedings law;

(3) if requested and if the title insurance policy is in the

possession and control of the mortgagee, a copy of such policy or a

statement setting forth the name of the insurer and the number of such

policy.

(v) "Banking organization" shall have the same meaning as provided in

subdivision eleven of section two of the banking law and shall include

any institution chartered or licensed by the United States or any state.

Certificate of discharge of mortgage required. 1. Whenever a

mortgage upon real property is due and payable, and the full amount of

principal and interest due on the mortgage is paid, a certificate of

discharge of mortgage shall be given to the mortgagor or person

designated by him or her, signed by the person or persons specified in

section three hundred twenty-one of this chapter. The person signing the

certificate shall, within thirty days thereafter, arrange to have the

certificate presented for recording to the recording officer of the

county where the mortgage is recorded. Failure by a mortgagee to present

a certificate of discharge for recording shall result in the mortgagee

being liable to the mortgagor in the amount of five hundred dollars if

he or she fails to present such certificate within thirty days, shall

result in the mortgagee being liable to the mortgagor in the amount of

one thousand dollars if he or she fails to present a certificate of

discharge for recording within sixty days and shall result in the

mortgagee being liable to the mortgagor in the amount of one thousand

five hundred dollars if he or she fails to present a certificate of

discharge for recording within ninety days. For the purposes of such

liability under this subdivision, the term "mortgagee" shall not include

a person, partnership, association, corporation or other entity which

makes less than five mortgage loans in any calendar year. The provisions

of this section shall not apply to any mortgage granted to or made by

the state of New York, or any agency or instrumentality thereof or any

political subdivision of the state or any agency or instrumentality

thereof.

2. (a) For purposes of this section, the full amount of principal and

interest due on a mortgage shall not be considered to be paid whenever

such mortgage continues to secure a bona fide debt and an enforceable

lien continues to exist, such as may occur in the following situations:

(i) the commercial practice of lenders trading or selling mortgages on

the secondary market;

(ii) the replacement of a construction loan with permanent financing;

(iii) the refinancing of an existing loan with a new lender, such as

where the original lender assigns a note and the mortgage securing its

payment to another lender in return for consideration and such mortgage

is consolidated with another mortgage which secures any funds advanced

by the new lender to the mortgagor;

(iv) the modification of the terms of a loan by a mortgagor and

mortgagee in order to avoid foreclosure; and

(v) a refinancing that occurs in conjunction with the sale of property

such that the seller conveys property to the purchaser subject to the

lien of the mortgage and the original lender assigns its note and

mortgage on the property to the purchaser's lender.

(b) No mortgagee shall return, destroy, or otherwise refuse to accept

a payment made pursuant to the terms of a payoff letter, including but

not limited to terms regarding the location and the manner of payment

specified by the mortgagee, even if such payment does not cover the full

amount of principal, interest, and any other amounts due and owing under

the mortgage, provided, however, if there is a defect with the payment

that prevents the mortgagee from identifying with reasonable diligence

the mortgage for which such payment is made, the mortgagee may refuse to

accept such payment and return the payment to the remitter. The

mortgagee shall apply such payment to the unpaid principal, interest or

any other amounts due under the mortgage, provided that a payment made

pursuant to a payoff statement shall not result in the issuance of a

certificate of discharge of mortgage pursuant to subdivision one of this

section or in the execution of a satisfaction of mortgage pursuant to

subdivision one of section nineteen hundred twenty-one of the real

property actions and proceedings law unless the payment covers the full

amount of principal, interest, and any other amounts due and owing under

the mortgage.

3. Except with respect to the assignment of a mortgage in connection

with a transaction described in subparagraph (i) of paragraph (a) of

subdivision two of this section, in order to record an assignment of a

mortgage there must be set forth in the assignment document or attached

thereto and recorded as part thereof a statement under oath signed by

the mortgagor or any other party to the transaction having knowledge of

the facts (provided such other party asserts such knowledge), that the

assignee is not acting as a nominee of the mortgagor and that the

mortgage continues to secure a bona fide obligation. With respect to the

assignment of a mortgage in connection with a transaction described in

subparagraph (i) of paragraph (a) of subdivision two of this section,

such assignment shall contain the following statement: "This assignment

is not subject to the requirements of section two hundred seventy-five

of the Real Property Law because it is an assignment within the

secondary mortgage market."

Effect of certain easements on the right to invest in

mortgages. The existence of an easement in real property acquired or

reserved by a municipal corporation, a railroad corporation or other

transportation corporation, shall not be deemed an encumbrance upon such

real property under any law relating to investments in mortgages upon

real property by corporations, trustees, executors, administrators,

guardians or other persons holding trust funds, but the effect of such

an easement upon the real property which it affects, shall be taken into

consideration in determining the value thereof.

Modification and extension of mortgage investment. 1.

Corporations, trustees, executors, administrators, guardians,

committees, conservators and other persons holding trust funds, savings

banks and other corporations that shall have made or shall own or hold

an investment, with the specified ratio of real property security, in a

bond and mortgage or share or part thereof or series or group of bonds

and mortgages or in any instrument evidencing any collateral or other

interest in such a bond and mortgage or share or part thereof or such

series or group of bonds and mortgages, or in any participation or other

certificate secured by the deposit of, or evidencing any share, part or

interest in the principal sum of any such bond and mortgage or share or

part thereof or series or group of bonds and mortgages, whether any of

such investments, instruments or certificates be guaranteed or not, may,

prior to April first, nineteen hundred sixty-nine waive or modify, or

agree to waive or modify, either with or without consideration and prior

or subsequent to maturity, any terms and conditions thereof, including

the rate of interest, due or to become due and extend or re-extend or

agree to extend or re-extend such bond and mortgage or share or part

thereof, or such series or group or such evidencing instrument or

participation or other certificate for a period of not more than five

years from the time of such extension, by agreement with the owner of

the real property subject to the lien of such bond and mortgage or bonds

and mortgages or by agreement with the issuer or guarantor of any such

evidencing instrument or participation or other certificate,

notwithstanding that, at the time of such waiver, modification,

extension or agreement, the value of such real property may be less than

that required by law for an original investment of such an amount

therein by such holder and, in case any such investment is guaranteed,

any such holder thereof may also extend or re-extend or agree to extend

or re-extend the time of payment under the guaranty for a like period

from its due date, and may release or agree to release such guaranty or

from time to time waive or modify or agree to waive or modify any terms

or conditions thereof, including the rate of interest due or to become

due.

2. In addition to the provisions of subdivision one hereof, any

corporation, trustee, executor, administrator, guardian, committee,

conservator or other person, including any official of the state or any

political subdivision thereof, holding trust funds, or any savings bank

or other corporation that shall have made or shall own or hold such

investment, may prior to April first, nineteen hundred sixty-nine join

in promulgating, participate in, consent to or pay any assessment under

or incur any necessary expense in connection with participation in any

plan providing for the readjustment, modification or reorganization of

such investment, which plan is required by the terms thereof or the

provisions of law applicable thereto to be approved by a court of this

or any other state or of the United States, having competent

jurisdiction over proceedings for such readjustment, modification or

reorganization, and if such plan shall have been or shall hereafter be

duly approved by any such court, may execute such instruments and do

such acts as may be required thereby, and as may be necessary or

desirable for the consummation thereof, and may accept and hold, as

legal investments, any securities or obligations, secured or unsecured,