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
________________________________________________________________________
6539--B
2021-2022 Regular Sessions
IN ASSEMBLY
March 19, 2021
___________
Introduced by M. of A. KELLES, GALLAGHER, EPSTEIN, MITAYNES, DICKENS,
ENGLEBRIGHT, JACKSON, SILLITTI, COLTON, SIMON, J. RIVERA, GONZALEZ-RO-
JAS, OTIS -- read once and referred to the Committee on Judiciary --
committee discharged, bill amended, ordered reprinted as amended and
recommitted to said committee -- again reported from said committee
with amendments, ordered reprinted as amended and recommitted to said
committee
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-i to read as follows:
3 § 235-i. 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
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD09802-07-1
A. 6539--B 2
1 (iii) required to close to members of the public under executive order
2 number 202.7 issued by the governor on March nineteenth, two thousand
3 twenty; and
4 (b) The default or other event causing such natural persons to become
5 wholly or partially personally liable for such obligation occurred
6 between March seventh, two thousand twenty and August thirty-first, two
7 thousand twenty-one.
8 § 2. This act shall take effect immediately.
