New York S08768 mandates mortgagees to accept and apply payments, with exceptions for defective payments.

New York S08768 amends the real property law and the real property actions and proceedings law to require mortgagees to accept and apply payments made by borrowers. The mortgagee must apply the payment to the unpaid principal, interest, or any other amounts due under the mortgage. However, if there is a defect with the payment that prevents the mortgagee from identifying the mortgage with reasonable diligence, the mortgagee may refuse to accept the payment and return it to the remitter.

New York S08768 mandates mortgagees to accept and apply payments, with exceptions for defective payments.

New York S08768 amends the real property law and the real property actions and proceedings law to require mortgagees to accept and apply payments made by borrowers. The mortgagee must apply the payment to the unpaid principal, interest, or any other amounts due under the mortgage. However, if there is a defect with the payment that prevents the mortgagee from identifying the mortgage with reasonable diligence, the mortgagee may refuse to accept the payment and return it to the remitter.