N.Y. Banking Law § 6-g: Override of certain provisions of United States Public Law 97-320

§ 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.