N.Y. General Obligations Law § 5-334: Option or right to acquire interest in property

§ 5-334. Option or right to acquire interest in property. 1. An option

or right to acquire an equity or other ownership interest in property or

in a partnership, corporation, trust or other entity that owns property

shall not be unenforceable because the owner of such interest grants

such option or right to the holder of a mortgage which is a lien on such

property or to the holder of a security interest in such property,

simultaneously with or in connection with any loan or forbearance of

money secured by such mortgage or security interest, if (a) the power to

exercise such option or right is not dependent upon the occurrence of a

default with respect to such loan, forbearance, mortgage or security

interest, and (b) such loan or forbearance is for the principal sum of

two million five hundred thousand dollars or more when the option or

right is granted. Loans or forbearances aggregating two million five

hundred thousand dollars or more which are to be made or advanced to any

one borrower in one or more installments pursuant to a written agreement

by one or more lenders shall be deemed a single loan or forbearance for

the total amount which the lender or lenders have agreed to make or

advance pursuant to such agreement.

2. This section shall not be construed to limit, impair or otherwise

affect the power of the holder of any option or right to acquire an

equity or other ownership interest in property or in a partnership,

corporation, trust or other entity that owns property, if such option or

right is or would be enforceable without reference to this section.

3. This section shall apply to all options or rights which are

exercised on or after the effective date of this section,

notwithstanding the date when such options or rights were granted.