STATE OF NEW YORK
________________________________________________________________________
2874
2021-2022 Regular Sessions
IN SENATE
January 26, 2021
___________
Introduced by Sen. KAVANAGH -- read twice and ordered printed, and when
printed to be committed to the Committee on Corporations, Authorities
and Commissions
AN ACT to amend the not-for-profit corporation law and the business
corporation law, in relation to cooperative purchase applications
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. The not-for-profit corporation law is amended by adding a
2 new section 519-b to read as follows:
3 § 519-b. Residential cooperative corporations; ownership interests.
4 (a) Any residential cooperative corporation incorporated pursuant to
5 this chapter, shall establish uniform processes for applying to and
6 considering applications for the purchase of certificates of stock, a
7 proprietary lease or other evidence of an ownership interest in such
8 residential cooperative corporation.
9 (b) Written notice of such processes shall be made available to any
10 prospective purchasers and prospective sellers, or their respective real
11 estate agents, promptly upon request.
12 (c) At a minimum, such processes shall require the cooperative corpo-
13 ration, upon receiving an application from a prospective purchaser, to
14 acknowledge receipt of such application within twenty-one days and to
15 include in such acknowledgement of receipt whether the application
16 submitted fully satisfies the requirements therefor, the way or ways the
17 submitted application is incomplete, and any additional materials neces-
18 sary to effectuate consideration of the application.
19 (d) The processes established pursuant to this section shall further
20 require that, following the submission of a completed application and
21 all additional materials requested in the acknowledgement of receipt,
22 the board of directors shall notify the prospective purchaser or their
23 agent that the application is complete. Such notice shall state by what
24 date review of the application will be complete and when the prospective
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD05016-01-1
S. 2874 2
1 purchaser or their agent will be notified whether consent to the sale is
2 granted or denied.
3 (e) Written notice that consent to the sale has been granted or denied
4 shall be provided to the prospective purchaser no more than ninety days
5 after the submission of a completed application. In the event a sale is
6 denied, such notice shall state the reason for the denial. If no written
7 notice is provided within ninety days, consent to the sale shall be
8 granted.
9 (f) Nothing in this section shall be construed to limit the rights or
10 remedies provided by any other provision of law.
11 § 2. The business corporation law is amended by adding a new section
12 728 to read as follows:
13 § 728. Residential cooperative corporations; ownership interests.
14 (a) Any residential cooperative corporation incorporated pursuant to
15 this chapter, shall establish uniform processes for applying to and
16 considering applications for the purchase of certificates of stock, a
17 proprietary lease or other evidence of an ownership interest in such
18 residential cooperative corporation.
19 (b) Written notice of such processes shall be made available to any
20 prospective purchasers and prospective sellers, or their respective real
21 estate agents, promptly upon request.
22 (c) At a minimum, such processes shall require the cooperative corpo-
23 ration upon receiving an application from a prospective purchaser, to
24 acknowledge receipt of such application and to include in such acknowl-
25 edgement of receipt whether the application submitted fully satisfies
26 the requirements therefor, the way or ways the submitted application is
27 incomplete, and any additional materials necessary to effectuate consid-
28 eration of the application.
29 (d) The processes established pursuant to this section shall further
30 require that, following the submission of a completed application and
31 all additional materials requested in the acknowledgement of receipt,
32 the board of directors shall notify the prospective purchaser or their
33 agent that the application is complete. Such notice shall state by what
34 date review of the application will be complete and when the prospective
35 purchaser or their agent will be notified whether consent to the sale is
36 granted or denied.
37 (e) Written notice that consent to the sale has been granted or denied
38 shall be provided to the prospective purchaser no more than ninety days
39 after the submission of a completed application. In the event a sale is
40 denied, such notice shall state the reason for the denial. If no written
41 notice is provided within ninety days, consent to the sale shall be
42 granted.
43 (f) Nothing in this section shall be construed to limit the rights or
44 remedies provided by any other provision of law.
45 § 3. This act shall take effect on the one hundred twentieth day after
46 it shall have become a law.
