| Old | New | Differences | |
|---|---|---|---|
| 1 | 1 | <STYLE><!--U {color: Green}S {color: RED} I {color: DARKBLUE; background-color:yellow} P.brk {page-break-before:always}--></STYLE> <BASEFONT SIZE=3> <PRE WIDTH="99"> <FONT SIZE=5><B> STATE OF NEW YORK</B></FONT> ________________________________________________________________________ 8030 2025-2026 Regular Sessions <FONT SIZE=5><B> IN ASSEMBLY</B></FONT> April 22, 2025 ___________ Introduced by M. of A. HUNTER -- read once and referred to the Committee on Judiciary AN ACT to amend the real property law, in relation to limits on amount of flood insurance required by a mortgagee <B><U>The People of the State of New York, represented in Senate and Assem-</U></B> <B><U>bly, do enact as follows:</U></B> 1 Section 1. Section 283 of the real property law, as amended by chapter 2 64 of the laws of 2025, is amended to read as follows: 3 § 283. Limits on amount of flood insurance required by mortgagee. <B><U>1.</U></B> 4 No mortgagee shall require a mortgagor to whom the mortgagee makes, 5 increases, extends, or renews any loan or line of credit secured by 6 improved residential real property to purchase or pay for flood insur- 7 ance on such residential real property: (1) at a coverage amount that 8 exceeds the lesser of the replacement value of the <B><U>improvement on the</U></B> 9 residential real property or the outstanding principal mortgage balance 10 as of the beginning of the year for which the policy shall be in effect; 11 or (2) that includes coverage for contents<B><U>. In the case of an open-end</U></B> 12 <B><U>line of credit, "principal" shall include the full line of credit amount</U></B> 13 <B><U>regardless of the amount that has been drawn on the line of credit</U></B>. In 14 each instance where a mortgagee requires a mortgagor to purchase or pay 15 for flood insurance on such residential real property, the mortgagee 16 shall provide notice to the mortgagor at the time the mortgagee is noti- 17 fied of the need to purchase or pay for flood insurance that states the 18 following in clear and conspicuous print: 'The flood insurance we are 19 requiring you to purchase may not be sufficient to pay for many needed 20 repairs after a flood and may not compensate you for your losses in the 21 property due to the flood. If you wish to protect your home or invest- 22 ment, you may wish to purchase more flood insurance than the amount we 23 are requiring you to buy.' 24 <B><U>2. Any entity subject to the requirements of subdivision one of this</U></B> 25 <B><U>section and subject to the National Flood Insurance Act (42 U.S.C. §</U></B> EXPLANATION--Matter in <B><U>italics</U></B> (underscored) is new; matter in brackets [<B><S> </S></B>] is old law to be omitted. LBD10859-01-5 </PRE><P CLASS="brk"><PRE WIDTH="99"> A. 8030 2 1 <B><U>4001 et. seq.) and implementing regulations issued by Board of Governors</U></B> 2 <B><U>of the Federal Reserve System, the Federal Deposit Insurance Corpo-</U></B> 3 <B><U>ration, the Office of the Comptroller of the Currency, the National</U></B> 4 <B><U>Credit Union Administration, or the Farm Credit Administration, as</U></B> 5 <B><U>applicable, shall not be in violation of subdivision one of this section</U></B> 6 <B><U>when it requires flood insurance in minimum required amount or for</U></B> 7 <B><U>contents under the National Flood Insurance Act and applicable regu-</U></B> 8 <B><U>lations.</U></B> 9 § 2. This act shall take effect on the same date and in the same 10 manner as section 1 of chapter 64 of the laws of 2025, takes effect. |