Bill Text: NY A08300 | 2011-2012 | General Assembly | Introduced

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Bill Title: Allows a mortgagor to receive an assignment of mortgage in lieu of a discharge of mortgage when the mortgagor is refinancing an existing loan.

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Introduced - Dead) 2012-01-04 - referred to judiciary [A08300 Detail]

Download: New_York-2011-A08300-Introduced.html

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                           S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________
                                         8300
                              2011-2012 Regular Sessions
                                 I N  A S S E M B L Y
                                     June 10, 2011
                                      ___________
       Introduced  by M. of A. MORELLE -- read once and referred to the Commit-
         tee on Judiciary
       AN ACT to amend the real  property  law,  in  relation  to  allowing  an
         assignment of mortgage in lieu of a certificate of discharge
         THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
       BLY, DO ENACT AS FOLLOWS:
    1    Section 1. Subdivision 2 of section 275 of the real  property  law  is
    2  amended by adding a new closing paragraph to read as follows:
    3    IN  THE  SITUATION  PROVIDED FOR IN PARAGRAPH (C) OF THIS SUBDIVISION,
    4  THE MORTGAGOR, AT HIS OR HER OPTION MAY  DEMAND  AN  ASSIGNMENT  OF  THE
    5  MORTGAGOR'S  NOTE  AND  MORTGAGE SECURING ITS PAYMENT TO ANOTHER LENDER.
    6  THE ORIGINAL LENDER SHALL  ASSIGN  THE  MORTGAGOR'S  NOTE  AND  MORTGAGE
    7  SECURING  ITS PAYMENT TO ANOTHER LENDER UPON SUCH DEMAND. THE DEMAND FOR
    8  THE ASSIGNMENT OF MORTGAGE SHALL BE MADE BY THE MORTGAGOR TO THE MORTGA-
    9  GEE IN WRITING WITHIN TWENTY DAYS OF  CLOSING  ON  THE  REFINANCING  AND
   10  SHALL  STATE  THAT  THE PURPOSE FOR SUCH ASSIGNMENT IS TO EFFECTUATE THE
   11  REFINANCING OF THE EXISTING LOAN WITH A NEW LENDER. THE  PERSON  SIGNING
   12  THE ASSIGNMENT SHALL DELIVER THE ASSIGNMENT AND ANY NECESSARY ACCOMPANY-
   13  ING PAPERS OR AFFIDAVITS AT LEAST TWO DAYS PRIOR TO SUCH CLOSING, TO THE
   14  ESCROW  AGENT  DESIGNATED BY THE MORTGAGOR AND THE MORTGAGEE OR ORIGINAL
   15  LENDER. UPON CLOSING, THE ESCROW AGENT SHALL TRANSMIT THE ASSIGNMENT AND
   16  ANY NECESSARY ACCOMPANYING PAPERS OR AFFIDAVITS TO  THE  NEW  LENDER  OR
   17  MORTGAGEE.  THE  PROVISIONS  OF  THIS PARAGRAPH SHALL NEITHER EXPAND NOR
   18  DIMINISH THE LIABILITY AGAINST A  MORTGAGEE  WHO,  AFTER  A  GOOD  FAITH
   19  EFFORT,  IS  UNABLE  TO DELIVER THE NOTE TO THE ESCROW AGENT BECAUSE THE
   20  NOTE WAS MISPLACED OR LOST.
   21    S 2. This act shall take effect on the thirtieth day  after  it  shall
   22  have become a law.
        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD03771-01-1