S 618: Prohibits lenders from blocking access to funds from a credit line mortgage.

  
  STATE OF NEW YORK ________________________________________________________________________ 618 2025-2026 Regular Sessions  IN SENATE (Prefiled) January 8, 2025 ___________ Introduced by Sen. COMRIE -- read twice and ordered printed, and when printed to be committed to the Committee on Banks AN ACT to amend the banking law and the real property law, in relation to credit line mortgages The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Section 380-g of the banking law, as added by chapter 625 2 of the laws of 1976, is amended to read as follows: 3 § 380-g. Power to engage in line of credit financing of residential 4 real estate. 1. A savings and loan association is authorized to invest 5 an amount, not exceeding the lesser of (a) ten per centum of the sum of 6 its surplus, undivided profits, and reserves or (b) one per centum of 7 its assets, in loans or in interests therein the principal purpose of 8 which is to provide financing with respect to what is or is expected to 9 become primarily residential real estate within this state, where (i) 10 the association relies substantially for repayment on the borrower's 11 general credit standing, with or without other security, or (ii) the 12 association relies on other assurances for repayment, including but not 13 limited to a guaranty or similar obligation of a third party, and, in 14 either case described in clause (i) or (ii), regardless of whether or 15 not the association takes security. 16 2. A savings and loan association shall not revoke, or otherwise 17 block, a borrower's access to credit financing of residential real 18 estate authorized pursuant to subdivision one of this section if such 19 borrower is current on repayment related to such credit financing of 20 residential real estate. 21 § 2. Section 281 of the real property law is amended by adding a new 22 subdivision 2-a to read as follows: 23 2-a. An authorized lender shall not revoke, or otherwise block, a 24 borrower's access to credit line mortgages authorized pursuant to this 25 section if such borrower is current on repayment related to such credit 26 line mortgage. 27 § 3. This act shall take effect immediately. EXPLANATION--Matter in italics (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD02478-01-5