Prohibits pre-payment penalties for mortgages secured by real property in cooperatives where over 50% of units are shareholder occupied.

This bill amends the general obligations law to prohibit pre-payment penalties for mortgages secured by real property owned in a cooperative form of ownership where over fifty percent of the units are shareholder occupied. The unpaid balance of the loan or forbearance may be prepaid at any time without penalty. The right of prepayment must be stated in the loan or forbearance instrument. This change does not apply if it conflicts with federal law or regulation. The act takes effect immediately.

Prohibits pre-payment penalties for mortgages secured by real property in cooperatives where over 50% of units are shareholder occupied.

This bill amends the general obligations law to prohibit pre-payment penalties for mortgages secured by real property owned in a cooperative form of ownership where over fifty percent of the units are shareholder occupied. The unpaid balance of the loan or forbearance may be prepaid at any time without penalty. The right of prepayment must be stated in the loan or forbearance instrument. This change does not apply if it conflicts with federal law or regulation. The act takes effect immediately.