N.Y. General Business Law Section 352-L
Cooperative corporations


1.

For the purposes of this section, “non-occupying owner” shall mean the owner of shares in a cooperative corporation who does not occupy the dwelling units to which his or her shares are allocated.

2.

If a non-occupying owner rents any dwelling unit to a tenant and then fails to make payments due for maintenance, assessments or late fees for such unit within sixty days of the expiration of any grace period after they are due, upon notice in accordance with subdivision three of this section, all rental payments from the tenant shall be directly payable to the cooperative corporation.

3.

If the maintenance, assessments or late fees due for any unit have not been paid in full within sixty days after the expiration of any grace period of the earliest due date, the board of directors shall provide written notice to the rental tenant and the non-occupying owner providing that, commencing immediately and until such time as all payments for maintenance, assessments or late fees are made current, all rental payments due subsequent to the issuance of such notice are to be made payable to the cooperative corporation at the address listed on the notice. Where a majority of the board of directors has been elected by and from among the owners who are in occupancy, the board may elect not to require that rental payments be made payable to the cooperative corporation. At such time as payments for maintenance, assessments and late fees from the non-occupying owner are once again current, notice of such fact shall be given within three business days to the rental tenant and non-occupying owner. Thereafter all rental payments for such unit shall be made payable to the non-occupying owner or to a designated agent. A non-occupying owner who disputes the cooperative corporation’s claim to rental payments pursuant to this section shall be entitled to present facts supporting such owner’s position at the next scheduled meeting of the board of directors, which must be held within thirty days of the date that such board receives notice that such owner seeks to dispute such claim.

4.

Nothing in this section shall limit any rights of shareholders or of the board of directors existing under any other law or agreement.

5.

Payment by a rental tenant to the cooperative corporation made in connection with this section shall relieve that rental tenant from the obligation to pay such rent to the non-occupying owner and shall be an absolute defense in any non-payment proceeding commenced by such non-occupying owner against such tenant for such rent.

Source: Section 352-L — Cooperative corporations, https://www.­nysenate.­gov/legislation/laws/GBS/352-L (updated Sep. 22, 2014; accessed Jun. 22, 2024).

352
Investigation by attorney-general
352‑A
Foreign corporation to make designation
352‑B
Non-resident brokers, dealers, salesmen and investment advisors
352‑C
Prohibited acts constituting misdemeanor
352‑D
Effect of prosecution under previous section
352‑E
Real estate syndication offerings
352‑EE
Conversion of non-residential property to residential cooperative or condominium ownership
352‑EEE
Conversions to cooperative or condominium ownership in certain cities, towns and villages located in the counties of Nassau, Westchester ...
352‑EEEE
Conversions to cooperative or condominium ownership in the city of New York
352‑F
Description of realty bonds
352‑G
Exemptions
352‑H
Trust funds
352‑I
Injunctive relief
352‑J
Application of article
352‑K
Broker dealer minimum capital requirements
352‑L
Cooperative corporations
353
Action by attorney-general
353‑A
Receivers
354
Examination of witnesses and preliminary injunction
355
Procedure on hearing
356
Powers of referee
357
Application of provisions of civil practice law and rules
358
Criminal prosecution
359
Immunity
359‑A
Appointment of deputies
359‑B
Effect of unconstitutionality of part of article
359‑C
Publication of state notices
359‑E
Definitions
359‑EE
Report of existence
359‑EEE
Definitions
359‑F
Exemptions from certain provisions of section three hundred fifty-nine-e
359‑FF
Registration of intra-state offerings
359‑FFF
Chain distributor schemes prohibited
359‑G
Violations and penalties
359‑H
Destruction of certain records, books and other data by the attorney-general

Accessed:
Jun. 22, 2024

Last modified:
Sep. 22, 2014

§ 352-L’s source at nysenate​.gov

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