N.Y. Banking Law Section 6-G
Override of certain provisions of United States Public Law 97-320

1.

The provisions of Title VIII of an act of congress entitled “Garn-St Germain Depository Institutions Act of 1982”, United States Public Law 97-320, and the preemption of state law provided in section 804 thereof, shall not apply with respect to residential real property and cooperative apartment unit alternative mortgage transactions subject to the laws of this state except as provided in this section.

2.

With respect to a real property loan secured by a lien on residential real property containing less than five dwelling units, including a lien on the stock allocated to a dwelling unit in a cooperative housing corporation or on a residential manufactured home, a lender may not exercise its option pursuant to a “due-on-sale” clause upon:

(a)

A transfer by devise, descent, or operation of law on the death of a joint tenant or tenant by the entirety;

(b)

The granting of a leasehold interest of three years or less not containing an option to purchase;

(c)

A transfer to a relative resulting from the death of a borrower;

(d)

A transfer where the spouse or children of the borrower become an owner of the property;

(e)

A transfer resulting from a decree of a dissolution of marriage, legal separation agreement, or from an incidental property settlement agreement, by which the spouse of the borrower becomes an owner of the property; or

(f)

A transfer into an inter-vivos trust in which the borrower is and remains a beneficiary and that does not relate to a transfer of rights of occupancy in the property.

Source: Section 6-G — Override of certain provisions of United States Public Law 97-320, https://www.­nysenate.­gov/legislation/laws/BNK/6-G (updated Sep. 22, 2014; accessed Dec. 21, 2024).

1
Short title 2
Definitions 2‑A
Limited liability investment company 2‑B
Limited liability trust companies 4
Information to be given to social services officials, state department of social services, state department of mental hygiene, the mental... 4‑A
Banks to display signs 4‑B
Advertising 4‑C
Exemptions from certain provisions of chapter 5
Loans pursuant to the "Servicemen’s Readjustment Act of 1944 6
Investment in obligations of housing corporations indirectly guaranteed pursuant to the “Servicemen’s Readjustment Act of 1944” 6‑A
Investment in obligations of certain persons sixty-five years of age or over incurred to satisfy real property tax indebtedness 6‑C
Application forms to be made available 6‑D
Requirement to state in writing reason for denial of mortgage loan 6‑E
Graduated payment mortgages authorized 6‑F
Alternative mortgage instruments made by banks, trust companies, savings banks, savings and loan associations and credit unions 6‑G
Override of certain provisions of United States Public Law 97-320 6‑H
Reverse mortgage loans authorized 6‑I
Mortgage loans 6‑J
Proof of insurance 6‑K
Real property insurance escrow accounts 6‑L
High-cost home loans 6‑M
Subprime home loans 6‑N
Responsibility of banks for mortgages being processed for modification 6‑O
Single point of contact for modifying delinquent home loans 6‑O*2
Reverse cooperative apartment unit loans for persons sixty-two years of age or older 6‑P
Loan counseling for mortgages guaranteed by the Servicemen’s Readjustment Act of 1944 7
Payment of dividends or interest upon unclaimed deposits or shares 8
Deposits by custodian designated by administrator of veterans’ affairs, or by person certified by social security administration 9
Checks drawn against corporate funds or payable to corporations 9‑A
Defense of ultra vires 9‑B
Actions or special proceedings by superintendent or attorney-general 9‑C
Superintendent’s or attorney-general’s action for judicial dissolution 9‑D
Enforcement of section two hundred ninety-six-a of the executive law 9‑F
Geographic discrimination in making mortgage loans prohibited 9‑G
Right of set off 9‑H
Imposition of service charges prohibited 9‑I
Close-out fees prohibited in certain cases 9‑I*2
Prohibition on depositor of early withdrawal penalty in certain cases 9‑J
Disposal of records 9‑K
Sale of education loans 9‑M
Return of checks 9‑N
Trust accounts 9‑O
Mortgage loans 9‑P
Acceptance of certain checks for deposit 9‑R
Geographic restrictions 9‑S
Preauthorized electronic fund transfers 9‑T
Unsolicited mail-loan checks 9‑U
ATM transactions by persons using foreign bank accounts 9‑V
Savings promotion prize giveaway 9‑W
Standard financial aid award letter 9‑X
Mortgage forbearance 9‑X*2
Fees based on inactivity 9‑Y
Order of payment of checks and other debits, insufficient funds charges and return deposit item charges 9‑Z
Cashing of certain checks
Green check means up to date. Up to date

Accessed:
Dec. 21, 2024

Last modified:
Sep. 22, 2014

§ 6-G’s source at nysenate​.gov

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