N.Y. General Business Law § 756-d: Exceptions for failure of lender to disburse funds

§ 756-d. Exceptions for failure of lender to disburse funds. The date

of payment required by the owner, the contractor and/or subcontractor

pursuant to section seven hundred fifty-six-a of this article, shall be

extended to the seventh day after the owner, contractor or

subcontractor, as the case may be, receives loan proceeds necessary to

make such payment in the event that:

1. the owner, contractor or subcontractor, as the case may be, has

obtained a loan intended to pay for all or part of the construction

contract;

2. the owner, contractor or subcontractor, as the case may be, has

timely requested disbursement of proceeds from that loan; and

3. the lender is legally obligated to disburse such proceeds to the

owner, contractor or subcontractor, as the case may be, but has failed

to do so in a timely manner.