New York S 6363: Relates to discharge of a mortgage

Bill Text

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S06363 Summary:

BILL NOS06363 

&nbsp

SAME ASSAME AS A02739

&nbsp

SPONSORBAILEY

&nbsp

COSPNSR

&nbsp

MLTSPNSR

&nbsp

Amd §275, RP L; amd §1921, RPAP L

&nbsp

Requires a mortgagee to accept and apply payments.

Go to top S06363 Actions:

BILL NOS06363 

&nbsp

03/11/2025REFERRED TO JUDICIARY

06/09/2025COMMITTEE DISCHARGED AND COMMITTED TO RULES

06/09/2025ORDERED TO THIRD READING CAL.1697

06/09/2025SUBSTITUTED BY A2739

&nbspA02739 AMEND= Cruz

&nbsp01/22/2025referred to banks

&nbsp05/28/2025reported referred to rules

&nbsp05/29/2025reported 

&nbsp05/29/2025rules report cal.304

&nbsp05/29/2025ordered to third reading rules cal.304

&nbsp05/29/2025passed assembly

&nbsp05/29/2025delivered to senate

&nbsp05/29/2025REFERRED TO JUDICIARY

&nbsp06/09/2025SUBSTITUTED FOR S6363

&nbsp06/09/20253RD READING CAL.1697

&nbsp06/09/2025PASSED SENATE

&nbsp06/09/2025RETURNED TO ASSEMBLY

&nbsp12/08/2025delivered to governor

&nbsp12/12/2025signed chap.623

&nbsp12/12/2025approval memo.18

Go to topS06363 Committee&nbspVotes:

Go to topS06363 Floor&nbspVotes:

There are no Assembly votes for this bill in this legislative session.

Go to topS06363 Text:

 STATE OF NEW YORK
 ________________________________________________________________________

 6363

 2025-2026 Regular Sessions

 IN SENATE

 March 11, 2025
 ___________

 Introduced by Sen. BAILEY -- read twice and ordered printed, and when
 printed to be committed to the Committee on Judiciary

 AN ACT to amend the real property law and the real property actions and
 proceedings law, in relation to discharge of a mortgage

 The People of the State of New York, represented in Senate and Assem-
 bly, do enact as follows:

 1 Section 1. Subdivisions 2 and 3 of section 275 of the real property
 2 law, as added by chapter 748 of the laws of 1990, is amended to read as
 3 follows:
 4 2. (a) For purposes of this section, the full amount of principal and
 5 interest due on a mortgage shall not be considered to be paid whenever
 6 such mortgage continues to secure a bona fide debt and an enforceable
 7 lien continues to exist, such as may occur in the following situations:
 8 [(a)] (i) the commercial practice of lenders trading or selling mort-
 9 gages on the secondary market;
 10 [(b)] (ii) the replacement of a construction loan with permanent
 11 financing;
 12 [(c)] (iii) the refinancing of an existing loan with a new lender,
 13 such as where the original lender assigns a note and the mortgage secur-
 14 ing its payment to another lender in return for consideration and such
 15 mortgage is consolidated with another mortgage which secures any funds
 16 advanced by the new lender to the mortgagor;
 17 [(d)] (iv) the modification of the terms of a loan by a mortgagor and
 18 mortgagee in order to avoid foreclosure; and
 19 [(e)] (v) a refinancing that occurs in conjunction with the sale of
 20 property such that the seller conveys property to the purchaser subject
 21 to the lien of the mortgage and the original lender assigns its note and
 22 mortgage on the property to the purchaser's lender.
 23 (b) Notwithstanding any provision of this section to the contrary, if
 24 payment is received at the location and in the manner specified by the
 25 mortgagee, the mortgagee must accept and may not return or destroy any

 EXPLANATION--Matter in italics (underscored) is new; matter in brackets
 [ ] is old law to be omitted.
 LBD05468-01-5

 S. 6363 2

 1 payment received in reliance on a payoff statement and must promptly
 2 apply such payment to the unpaid principal, interest or any other
 3 amounts due under the mortgage.
 4 3. Except with respect to the assignment of a mortgage in connection
 5 with a transaction described in subparagraph (i) of paragraph (a) of
 6 subdivision two of this section, in order to record an assignment of a
 7 mortgage there must be set forth in the assignment document or attached
 8 thereto and recorded as part thereof a statement under oath signed by
 9 the mortgagor or any other party to the transaction having knowledge of
 10 the facts (provided such other party asserts such knowledge), that the
 11 assignee is not acting as a nominee of the mortgagor and that the mort-
 12 gage continues to secure a bona fide obligation. With respect to the