NY Banking Law §590-a(2) contains provisions that require junior lien contracts, notes or instruments to include certain types of provisions. On particular provision in (2) states: “The contract, note or instrument must allow the borrower to prepay the loan in whole or in part without penalty and must contain the notice:
DEFAULT IN THE PAYMENT OF THIS LOAN AGREEMENT MAY RESULT IN THE LOSS OF THE PROPERTY SECURING THE LOAN. UNDER FEDERAL LAW, YOU MAY HAVE THE RIGHT TO CANCEL THIS AGREEMENT. IF YOU HAVE THIS RIGHT, THE CREDITOR IS REQUIRED TO PROVIDE YOU WITH A SEPARATE WRITTEN NOTICE SPECIFYING THE CIRCUMSTANCES AND TIMES UNDER WHICH YOU CAN EXERCISE THIS RIGHT.”
We have updated the document logic on Cx21652 to ensure that this notice is no longer limited to cooperative units and will now print for all NY junior liens.
These changes are available for testing on Stage & Stage 2 servers and will take effect on August 2, 2024. If you have any questions or concerns about these changes, please contact Client Support at 1.800.497.3584.
The preceding is for informational purposes only and is not and may not be construed as legal advice. No third-party entity may rely upon anything contained herein when making legal and/or other determinations regarding its practices, and such third party should consult with an attorney prior to embarking upon any specific course of action.
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