Bill Text: NY S03148 | 2015-2016 | General Assembly | Introduced

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Relates to ground leases.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2016-01-06 - REFERRED TO JUDICIARY [S03148 Detail]

Download: New_York-2015-S03148-Introduced.html

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                           S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________
                                         3148
                              2015-2016 Regular Sessions
                                   I N  S E N A T E
                                   February 2, 2015
                                      ___________
       Introduced  by Sen. STAVISKY -- read twice and ordered printed, and when
         printed to be committed to the Committee on Judiciary
       AN ACT to amend the real property law, in relation to ground leases
         THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
       BLY, DO ENACT AS FOLLOWS:
    1    Section  1.  The  real property law is amended by adding a new section
    2  220-a to read as follows:
    3    S 220-A. GROUND LEASES. 1.  DEFINITIONS.  FOR  THE  PURPOSES  OF  THIS
    4  SECTION  ONLY,  A  "GROUND LEASE" SHALL BE DEFINED AS A RENTAL AGREEMENT
    5  THAT:
    6    (A) HAS A TERM OF AT LEAST TEN YEARS;
    7    (B) IS FOR THE USE OF REAL PROPERTY, WHICH MAY OR MAY NOT INCLUDE  ANY
    8  IMPROVEMENTS  OR  STRUCTURES, BUT SHALL NOT APPLY TO REAL PROPERTY OWNED
    9  AS THE COMMON PROPERTY OF ANY INDIAN NATION,  TRIBE,  OR  BAND  AS  SUCH
   10  LANDS ARE DESCRIBED UNDER AND PROTECTED BY INDIAN LAW AND/OR TITLE 25 OF
   11  THE UNITED STATES CODE; AND
   12    (C)  ALLOWS  A TENANT TO CONSTRUCT OR SUBSTANTIALLY IMPROVE, RENOVATE,
   13  OR REHABILITATE STRUCTURES OR IMPROVEMENTS UPON SUCH REAL PROPERTY.
   14    2. REFINANCING. (A) IF ANY  GROUND  LEASE  DOES  NOT  CONTAIN  EXPRESS
   15  PROVISIONS  PROHIBITING  A  LESSEE  FROM  ENCUMBERING  ITS INTEREST IN A
   16  GROUND LEASE, A LESSEE MAY ENCUMBER  UP  TO  AND  INCLUDING  ITS  ENTIRE
   17  INTEREST  IN SUCH GROUND LEASE. IF SUCH GROUND LEASE CONTAINS PROVISIONS
   18  RESTRICTING THE LESSEE'S ABILITY TO ENCUMBER ITS  INTEREST,  THE  LESSEE
   19  MUST OBTAIN THE LESSOR'S WRITTEN PERMISSION PRIOR TO SUCH ENCUMBRANCE.
   20    (B)  IF  THE  LESSEE  IS REQUIRED TO OBTAIN THE LESSOR'S PERMISSION TO
   21  ENCUMBER THE LESSEE'S INTEREST, THE LESSOR MAY ONLY REFUSE TO GRANT SUCH
   22  PERMISSION FOR REASONABLE CAUSE AND MUST PROVIDE THE LESSEE WITH A WRIT-
   23  TEN STATEMENT THAT SETS FORTH THE BASIS FOR THE REFUSAL  WITHIN  FIFTEEN
   24  DAYS OF A WRITTEN REQUEST FOR PERMISSION FROM THE LESSEE.
   25    (C)  ANY  GROUND LEASE PROVISION THAT LIMITS THE AMOUNT A LESSEE COULD
   26  ENCUMBER ITS INTEREST, UP TO AND INCLUDING ITS ENTIRE INTEREST  IN  SUCH
        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD05230-01-5
       S. 3148                             2
    1  GROUND LEASE, SHALL ALSO ADJUST SUCH AMOUNT ANNUALLY ON THE FIRST DAY OF
    2  OCTOBER  OF EACH YEAR BY THE CHANGE IN THE REGIONAL CONSUMER PRICE INDEX
    3  FOR ALL URBAN  CONSUMERS,  NEW  YORK-NORTHERN  NEW  JERSEY-LONG  ISLAND,
    4  NY-NJ-CT-PA, AS ESTABLISHED THE PRECEDING AUGUST.
    5    IF  A LESSEE HAS ENCUMBERED ITS INTEREST IN A GROUND LEASE, NO ADJUST-
    6  MENT PURSUANT TO THIS PARAGRAPH THAT  REDUCES  THE  AMOUNT  SUCH  LESSEE
    7  COULD  RECEIVE  SHALL  BE  CONSIDERED A BREACH OF THE GROUND LEASE.  ANY
    8  AGREEMENT BY A LESSEE WAIVING OR MODIFYING THE PROVISIONS AS  SET  FORTH
    9  IN THIS PARAGRAPH SHALL BE VOID AS CONTRARY TO PUBLIC POLICY.
   10    S 2. This act shall take effect immediately.