Provides that the judgment of sale in a mortgage foreclosure action shall direct that payment by the purchaser be made by means of a bank or credit union officer's check or certified check.

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S348-2013 Actions

• Jan 9, 2013: REFERRED TO HOUSING, CONSTRUCTION AND COMMUNITY DEVELOPMENT

S348-2013 Memo

BILL NUMBER:S348

TITLE OF BILL:
An act
to amend the real property actions and proceedings law, in relation to
the payment by bank check or certified check of the purchase price at a
mortgage foreclosure sale

PURPOSE:
To require the payment of the purchase price at a mortgage foreclosure
sale by bank or credit union check or certified check.

SUMMARY OF PROVISIONS:
This bill (the "Bill") amends subdivision 1 of section 1351 of the
Real Actions and Proceedings Law (the "RPAPL") to require the
purchaser of real property a foreclosure sale to make payment by
either bank check or certified check.

EXISTING LAW:
Currently, the RPAPL does not require the purchaser of real property
a foreclosure sale to make payment by either bank or credit union
check or certified check.

JUSTIFICATION:
Customarily, the terms of sale will dictate the form of payment for a
purchaser of real property a foreclosure sale. Often a bank or credit
union check or certified check is required by the terms This bill
would simply codify this existing practice

LEGISLATIVE HISTORY:
2011-12 S.3149; S.2009-10 S.1770; S.4851, 2007-08; S.1413, 2005-06;
S.1846, 2003-04; S.3961, 2001-02

FISCAL IMPLICATIONS:
None.

LOCAL FISCAL IMPLICATIONS:
None.

EFFECTIVE DATE:
This Act shall take effect on the 30th day after it shall have become
a law.

S348-2013 Text

                      S T A T E   O F   N E W   Y O R K
  ________________________________________________________________________

                                     348

                         2013-2014 Regular Sessions

                              I N  SENATE

                                 (PREFILED)

                               January 9, 2013
                                 ___________

  Introduced  by  Sen. LAVALLE -- 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 payment by  bank  check  or  certified  check  of  the
    purchase price at a mortgage foreclosure sale

    THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
  BLY, DO ENACT AS FOLLOWS:


    Section 1. Subdivision 1 of section 1351 of the real property  actions
  and  proceedings  law,  as  added by chapter 312 of the laws of 1962, is
  amended to read as follows:

    1. The judgment shall direct that the mortgaged premises, or  so  much
  thereof  as  may  be  sufficient  to  discharge  the  mortgage debt, the
  expenses of the sale and the costs of the action, and which may be  sold
  separately without material injury to the parties interested, be sold by
  or  under the direction of the sheriff of the county, or a referee.  THE
  JUDGMENT SHALL DIRECT THAT PAYMENT BY THE PURCHASER BE MADE BY MEANS  OF
  A BANK OR CREDIT UNION OFFICER'S CHECK OR CERTIFIED CHECK.
    S  2.  This  act shall take effect on the thirtieth day after it shall
  have become a law.




   EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                        [ ] is old law to be omitted.
                                                             LBD03802-01-3