S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________
                                         4055
                              2013-2014 Regular Sessions
                                   I N  S E N A T E
                                     March 6, 2013
                                      ___________
       Introduced  by  Sen.  GIPSON -- read twice and ordered printed, and when
         printed to be committed to the Committee on Housing, Construction  and
         Community Development
       AN  ACT  to  amend  the  real  property  actions and proceedings law, in
         relation to requiring a plaintiff in a mortgage foreclosure action  to
         maintain the subject property in good faith
         THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
       BLY, DO ENACT AS FOLLOWS:
    1    Section 1. This act shall be known and  may  be  cited  as  "The  Good
    2  Neighbor Act".
    3    S  2.  Subdivision  1 of section 1307 of the real property actions and
    4  proceedings law, as added by chapter 507 of the laws of 2009, is amended
    5  to read as follows:
    6    1. A plaintiff [in] WHO COMMENCES a mortgage foreclosure  action  [who
    7  obtains],  INCLUDING  A LENDER, AN ASSIGNEE OR A MORTGAGE LOAN SERVICER,
    8  SEEKING a judgment of foreclosure and sale pursuant to section  thirteen
    9  hundred  fifty-one of this article, involving residential real property,
   10  as defined in section thirteen hundred five of  this  article,  that  is
   11  vacant,  or becomes vacant after COMMENCEMENT OF THE ACTION OR the issu-
   12  ance of such judgment, or is abandoned by the mortgagor but occupied  by
   13  a  tenant,  as defined under section thirteen hundred five of this arti-
   14  cle, shall IN GOOD FAITH maintain  such  property  until  such  time  as
   15  ownership  has been transferred through the closing of title in foreclo-
   16  sure, or other disposition, and the deed for such property has been duly
   17  recorded; provided, however, that  if  a  municipality  or  governmental
   18  entity  holds  a  mortgage  subordinate  to one or more mortgages on the
   19  residential real property, the municipality or governmental entity shall
   20  not be subject to the requirements of this section.   AS  USED  IN  THIS
   21  SECTION,  THE  TERM "GOOD FAITH" SHALL BE DEFINED AS HONESTY IN FACT AND
   22  THE OBSERVANCE OF REASONABLE STANDARDS OF FAIR DEALING.
   23    S 3. This act shall take effect immediately.
        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD01068-04-3