New York A00088 prohibits pre-payment penalties for mortgages on cooperative properties with over 50% shareholder-occupied units.

New York A00088 amends the general obligations law to prohibit pre-payment penalties for mortgages secured by real property in a cooperative form of ownership where more than fifty percent of the units are occupied by shareholders. This means that if a borrower pays off their mortgage early, they will not be charged a penalty fee. The right to prepay must be stated in the loan contract, but the law does not apply if it conflicts with federal regulations. This change takes effect immediately upon enactment.

New York A00088 prohibits pre-payment penalties for mortgages on cooperative properties with over 50% shareholder-occupied units.

New York A00088 amends the general obligations law to prohibit pre-payment penalties for mortgages secured by real property in a cooperative form of ownership where more than fifty percent of the units are occupied by shareholders. This means that if a borrower pays off their mortgage early, they will not be charged a penalty fee. The right to prepay must be stated in the loan contract, but the law does not apply if it conflicts with federal regulations. This change takes effect immediately upon enactment.