Prohibits enforcement of personal liability provisions against individuals in the event of default on a commercial lease, where the commercial tenant was restricted from operating under certain executive orders relating to the COVID-19 pandemic.
STATE OF NEW YORK
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168
2023-2024 Regular Sessions
IN SENATE(Prefiled)
January 4, 2023
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Introduced by Sens. GIANARIS, BROUK, GOUNARDES, JACKSON, MYRIE -- 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 personal liability
provisions in certain commercial 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
2 235-j to read as follows:
3 § 235-j. Personal liability provisions in commercial leases. A
4 provision in a commercial lease or other rental agreement involving real
5 property located within New York state that provides for one or more
6 natural persons who are not the tenant under such agreement to become,
7 upon the occurrence of a default or other event, wholly or partially
8 personally liable for payment of rent, utility expenses, or taxes owed
9 by the tenant under such agreement, or any other fees, charges or
10 payments owed by the tenant under such agreement, shall not be enforcea-
11 ble against such natural persons at any point if:
12 (a) The tenant was:
13 (i) required to cease serving patrons food or beverage for on-premises
14 consumption or to cease operation under executive order number 202.3
15 issued by the governor on March sixteenth, two thousand twenty;
16 (ii) a non-essential business subject to in-person limitations under
17 guidance issued by the New York state department of economic development
18 pursuant to executive order number 202.6 issued by the governor on March
19 eighteenth, two thousand twenty; or
20 (iii) required to close to members of the public under executive order
21 number 202.7 issued by the governor on March nineteenth, two thousand
22 twenty; and
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD01876-01-3
S. 168 2
1 (b) The default or other event causing such natural persons to become
2 wholly or partially personally liable for such obligation occurred
3 between March seventh, two thousand twenty and August thirty-first, two
4 thousand twenty-one.
5 § 2. This act shall take effect immediately.