S00523 Summary:

BILL NOS00523
 
SAME ASNo same as
 
SPONSORSAMPSON
 
COSPNSR
 
MLTSPNSR
 
Add S1355-a, RPAP L
 
Relates to the failure of auction and requirements for sale of real estate owned property; defines terms; describes requirements for sale and penalties.
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S00523 Actions:

BILL NOS00523
 
01/09/2013REFERRED TO HOUSING, CONSTRUCTION AND COMMUNITY DEVELOPMENT
01/08/2014REFERRED TO HOUSING, CONSTRUCTION AND COMMUNITY DEVELOPMENT
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S00523 Floor Votes:

There are no votes for this bill in this legislative session.
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S00523 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                           523
 
                               2013-2014 Regular Sessions
 
                    IN SENATE
 
                                       (Prefiled)
 
                                     January 9, 2013
                                       ___________
 
        Introduced  by  Sen. SAMPSON -- 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 the failure of auction and requirements for sale  of  real
          estate owned property
 
          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:
 
     1    Section 1. The real property actions and proceedings law is amended by
     2  adding a new section 1355-a to read as follows:
     3    § 1355-a. Failure of auction: requirements for  sale  of  real  estate
     4  owned  property.  1. Definitions. (a) "Real estate owned property" shall
     5  mean a class of property owned by a lender, typically a bank or mortgage
     6  company, after an unsuccessful sale at a foreclosure auction; this class
     7  of property is categorized as an asset.
     8    (b) "Registered real estate owned  property  lawyer"  shall  mean  any

     9  attorney  who  has  registered  with  the secretary of state pursuant to
    10  subdivision two of this section to conduct a sale or  other  transaction
    11  of  real  estate  owned property; this section shall not be construed to
    12  mean any attorney on retainer by the bank to handle real  estate  trans-
    13  actions or anyone deemed in-house counsel.
    14    (c) "Registered real estate owned property agent or broker" shall mean
    15  any  individual involved in real estate brokerage activity as defined in
    16  section five hundred ninety-nine-b of the banking law who has registered
    17  with the secretary of state pursuant to subdivision two of this  section
    18  to  list for sale any real estate owned property; this section shall not

    19  be construed to mean any agent or broker on retainer by a bank to handle
    20  real estate sales or purchases or any agent or broker employed by a bank
    21  or mortgage company's subsidiary.
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD02184-01-3

        S. 523                              2
 
     1    (d) "Registered real estate owned property maintenance company"  shall
     2  mean  any individual or company who has registered with the secretary of
     3  state pursuant to subdivision two of this section to maintain foreclosed
     4  properties pursuant to section thirteen hundred seven of this article.

     5    2.  Registration.   (a) The secretary of state shall post and maintain
     6  on its website or otherwise make readily available a list of  registered
     7  real  estate  owned  property  lawyers, a list of registered real estate
     8  owned property agents or brokers and a list of  registered  real  estate
     9  owned  property  maintenance  companies along with comprehensive contact
    10  information, including, but not limited to, full name, name of any asso-
    11  ciated law firm,  legal  practice  or  parent  company,  address,  phone
    12  number, and any known affiliation with any state-chartered bank.
    13    (i) The secretary of state shall consult with the head of the division
    14  of  minority and women's business development to use reasonable measures

    15  to ensure that businesses certified under article fifteen-A of the exec-
    16  utive law, which  traditionally  have  been  women  and  minorities  are
    17  afforded  equal  opportunity  to  participate  in and be included on the
    18  lists allowed under this section.
    19    (ii) The secretary of state shall denote on  the  list  created  under
    20  this section that an attorney, broker or maintenance company is a minor-
    21  ity or women-owned business or enterprise, and shall ensure that, at all
    22  times,  five  to  ten  percent  of  the  list is made up of minority and
    23  women-owned businesses.
    24    (b) Any attorney, real estate broker or property  maintenance  company
    25  intending  to  be  part  of the list maintained pursuant to this section

    26  shall make application to the secretary of state.
    27    (c) Such application shall be in a form and manner prescribed  by  the
    28  secretary  of state and shall contain such information as, in the secre-
    29  tary of state's judgment, is reasonable and necessary to  determine  the
    30  qualifications for licensing of the applicant, except that the secretary
    31  of state shall automatically disqualify any individual or company affil-
    32  iated with or retained by any state-chartered bank.
    33    (d)  The application shall be subscribed by the applicant and affirmed
    34  under penalty of perjury.
    35    (e) There shall be no application fee associated with the  application
    36  described in this article.

    37    (f)  Each application shall be accompanied by satisfactory evidence of
    38  good standing and legitimate licensing with the New York State  Bar,  or
    39  by the secretary of state or department of state.
    40    (g)  Any  applicant for inclusion on this list may submit satisfactory
    41  evidence of licensure to practice an equivalent occupation issued by any
    42  other state, territory, protectorate or dependency of the United  States
    43  or  any  other country in lieu of the evidence required by this subdivi-
    44  sion, provided that such license was granted in compliance  with  stand-
    45  ards  which  were,  in the judgment of the secretary of state, not lower
    46  than those of this  state  and  provided  that  such  state,  territory,

    47  protectorate,  dependency, or country extends similar reciprocity to the
    48  licensees of this state or the applicant practiced an equivalent occupa-
    49  tion in such state, territory, protectorate, dependency or country for a
    50  minimum of five years.
    51    (h) In addition to the powers and duties elsewhere prescribed  in  New
    52  York state law, the secretary of state shall have the power to:
    53    (i)  appoint  a  sufficient number of assistants, inspectors and other
    54  employees as may be necessary to carry out the provisions of this  arti-
    55  cle, to prescribe their duties, and to fix their compensation within the
    56  amount appropriated therefor;

        S. 523                              3
 

     1    (ii)  examine  the qualifications and fitness of applicants for regis-
     2  tration;
     3    (iii)  keep records of all applicants approved or denied registration;
     4  and
     5    (iv) adopt such  rules  and  regulations  not  inconsistent  with  the
     6  provisions of this section, as may be necessary with respect to the form
     7  and content of applications for registration, the reception thereof, the
     8  investigation  and  examination of applicants and prospective applicants
     9  as needed, and other matters incidental or appropriate to the powers and
    10  duties of the secretary of state as prescribed by this section  and  for
    11  the  proper  administration  and  enforcement  of the provisions of this
    12  section.

    13    3. Requirements of sale. (a) Any state-chartered bank under the super-
    14  vision of the department of financial services  may  not  consult  with,
    15  contract  with,  or affiliate itself with any attorney, agent, broker or
    16  maintenance company in a transaction involving a real estate owned prop-
    17  erty unless such individual or business is on  the  list  prescribed  by
    18  paragraph (a) of subdivision two of this section.
    19    (b)  State-chartered  banks under the supervision of the department of
    20  financial services must select an attorney, agent, broker or maintenance
    21  company denoted as a minority or  women-owned  business  enterprise  and
    22  included  on  the list prescribed by paragraph (a) of subdivision two of

    23  this section whenever feasible in transactions involving a  real  estate
    24  owned property.
    25    4.  Penalties.  (a)  Each violation of this article by any state-char-
    26  tered bank under the supervision of the department of financial services
    27  shall be a violation subject to a fine of not  more  than  five  hundred
    28  dollars,  unless  such  violation shall be knowing and willful, in which
    29  event the fine imposed shall be one thousand dollars.
    30    (b) If a state-chartered bank under the supervision of the  department
    31  of  financial services has three or more previous convictions in a five-
    32  year period for violations of this section, such current violation shall
    33  be subject to a fine of not less than one thousand five hundred dollars.

    34    § 2. This act shall take effect on the ninetieth day  after  it  shall
    35  have become a law.
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