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Can you summarize NYCL BNK 6-A?
Short Title; Definitions; Miscellaneous Provisions > Investment in obligations of certain persons sixty-five years of age or over incurred to satisfy real property tax indebtedness
Short Summary
This legal document governs the investment in obligations of individuals aged sixty-five or older to pay off real property tax debts. It applies to banks, trust companies, savings banks, savings and loan associations, and life insurance companies authorized to do business in New York. The document allows these institutions to make loans to eligible individuals, with the loan amount not exceeding the total real property taxes, special ad valorem levies, and special assessments paid or owed by the borrower for their principal residence. The loan must be secured by a first or second mortgage on the property, and the interest charged should not exceed the allowable interest chargeable by the lender on a first mortgage lien. The loan is not payable until the sale or disposition of the property, but borrowers have the option to discharge the indebtedness at any time. The document also allows banking institutions to utilize the loan proceeds to directly pay real property taxes, levies, and assessments on the secured property. The institutions are required to provide the borrower with paid bills for such payments. However, this requirement does not apply to billings transmitted by computer tape by cities with a population of one million or more.
Whom does it apply to?
Banks, trust companies, savings banks, savings and loan associations, and life insurance companies authorized to do business in New York
What does it govern?
Investment in obligations of certain persons sixty-five years of age or over incurred to satisfy real property tax indebtedness
What are exemptions?
No exemptions are mentioned.
What are the Penalties?
No penalties are mentioned.
Jurisdiction
New York