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Bill > S09309


NY S09309

NY S09309
Enacts the "deed protection act" in relation to prohibiting a financial institution from taking possession of a property based on the failure to repay a loan provided by such financial institution for such property if such loan was provided to a person who obtained title to such property by deed theft and such financial institution failed to conduct due diligence to determine whether any such deed theft had occurred.


summary

Introduced
02/27/2026
In Committee
02/27/2026
Crossed Over
Passed
Dead

Introduced Session

2025-2026 General Assembly

Bill Summary

AN ACT to amend the banking law, in relation to enacting the "deed protection act"

AI Summary

This bill, known as the "deed protection act," amends banking law to prevent financial institutions from seizing a property due to unpaid loans if the borrower acquired the property through "deed theft," which means fraudulently obtaining title to a property. Specifically, the bill prohibits a financial institution from taking possession of a property if the loan was given to someone who obtained the property title through deed theft, and the financial institution did not perform reasonable due diligence to check if deed theft had occurred before issuing the loan. This act takes effect immediately.

Committee Categories

Business and Industry

Sponsors (1)

Last Action

REFERRED TO BANKS (on 02/27/2026)

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