N.Y. Real Property Law § 274-a: Certificate of principal amount unpaid on mortgages of real property

§ 274-a. Certificate of principal amount unpaid on mortgages of real

property. 1. The holder of a mortgage upon real property shall execute

and deliver to the owner of the real property upon which such mortgage

is a lien a written instrument setting forth the amount of the principal

of said mortgage remaining unpaid, the date to which interest has been

paid, and the amounts, if any, claimed to be unpaid upon said mortgage

for principal and interest, itemizing the same, provided, however, that

prior written demand by registered or certified mail has been made upon

the holder of such mortgage by such owner of the real property and that

such owner of the real property shall have executed and delivered to

another a written contract to convey, or shall have received a written

commitment to make a mortgage loan upon, the real property or an

interest therein. The written instrument hereinbefore required of the

holder of the mortgage shall be a certificate duly executed and

acknowledged in the same manner as required by law to entitle a

conveyance of real property to be recorded, except that a bank, savings

bank, private banker, trust company, savings and loan association or any

other banking organization, as defined in the banking law, a national

bank or trust company or any other federally-chartered or

federally-regulated savings and loan association or other banking

institution and an insurance company duly organized or licensed to do

business in this state under the insurance law of this state and the

state of New York, or an agency thereof and a political subdivision of

the state of New York or an agency thereof may, in lieu of the said

certificate, furnish a letter signed by a duly authorized officer, or

employee or agent, containing the information required to be set forth

in such certificate. An owner of real property who shall have complied

with the foregoing requirements and who shall not have received the

written instrument from the holder of the mortgage thereon within twenty

days after such compliance shall be entitled to petition a court of

competent jurisdiction for an order requiring such holder of the

mortgage to comply with this section.

2. (a) The mortgagee of an owner-occupied, one-to-six family

residential structure or residential condominium unit, shall deliver

within thirty days, any mortgage related documents to an authorized

individual making a bona fide written demand for such documents. The

mortgagee shall not charge for providing the mortgage-related documents,

provided, however, the mortgagee may charge not more than twenty

dollars, or such amount as may be fixed by the superintendent of

financial services, for each subsequent payoff statement provided under

this subdivision. If the mortgagee fails to deliver the mortgage-related

documents, the mortgagee shall be liable for the actual damages to the

mortgagor by reason of such failure. In computing actual damages the

court may consider the actual rate of interest on the mortgage debt and

current prevailing rate or rates of interest on comparable debts.

However, actual damages do not include pain and suffering, mental or

emotional distress or the like. The replacement costs of a lost

abstract of title required to be delivered hereunder, may be deducted

from the amount required to satisfy the mortgage.

(b) When used in this section:

(i) "Authorized individual" means the mortgagor, the mortgagor's

attorney, or the attorney representing a banking organization which has

agreed to make a loan secured by the same real property securing the

mortgage for which the mortgage related documents have been requested.

(ii) "Mortgagee" means (1) the current holder of the mortgage of

record or the current holder of the mortgage, (2) any person to whom

payments are required to be made and (3) their personal representatives,

successors and assigns.

(iii) "Bona fide written demand" means a written demand made by an

authorized individual in connection with a sale or refinancing of the

mortgaged property or some other event where the mortgage is reasonably

expected to be paid off or assigned. Such demand shall either be

delivered personally, or by registered or certified mail, postage

prepaid, return receipt requested. The demand shall include the names of

the mortgagor and mortgagee, the address of the mortgaged property, loan

number, the date of the mortgage or the date it was recorded, the

mortgage related documents demanded and the proposed payoff date or date

of assignment of the mortgage, if applicable. If the demand includes a

request for the abstract of title, the demand shall include the

agreement by the mortgagor to pay for a replacement abstract of title,

the cost of which may not exceed the actual replacement cost of such

abstract of title, in the event that the mortgage is not paid off or the

abstract of title is not returned within thirty days of the proposed

payoff date. Such demand shall include the following in capital letters:

"THIS DEMAND IS MADE UNDER SECTION 274-a OF THE REAL PROPERTY LAW.

FAILURE TO COMPLY WITH THIS DEMAND MAY RESULT IN SEVERE PENALTIES."

(iv) "Mortgage-related documents" means:

(1) the abstract of title for the real property securing the mortgage

if such document is in the possession and control of the mortgagee. In

the event that the mortgage is not paid off, the authorized individual

receiving the abstract of title shall within thirty days of the proposed

payoff date return the abstract of title to the mortgagee or other

person so designated by the mortgagee; upon a failure to so return the

abstract of title, the mortgagee may obtain a replacement abstract of

title, the cost of which may not exceed the actual replacement cost of

such abstract of title and which shall be paid by the mortgagor;

(2) a payoff statement setting forth the balance of the mortgage,

including principal, interest and other charges assessed pursuant to the

loan documents, together with a per diem rate for interest accruing

after the date to which the balance has been calculated. The payoff

statement may, in the event that the statement reflects payments which

may have not yet cleared, require the authorized individual to obtain

from the mortgagee a day of payoff verification of the payoff statement.

A payoff statement requiring day of payoff verification shall include,

in addition to the address of the mortgagee, the telephone number of the

mortgagee and, if a banking organization or corporation, the name or

department, and its telephone number and facsimile phone number. Unless

the payoff statement requires a day of payoff verification, a mortgagee

furnishing a payoff statement shall be obligated to make its best effort

to furnish a satisfaction of mortgage upon receipt of the amount set

forth in such statement unless such person subsequently notifies the

authorized individual of an error in the payoff statement. The payoff

statement furnished by a mortgagee shall include a name or department in

addition to the address of the banking organization or corporation for

use in connection with preparation of an affidavit under subdivision

five of section nineteen hundred twenty-one of the real property actions

and proceedings law;

(3) if requested and if the title insurance policy is in the

possession and control of the mortgagee, a copy of such policy or a

statement setting forth the name of the insurer and the number of such

policy.

(v) "Banking organization" shall have the same meaning as provided in

subdivision eleven of section two of the banking law and shall include

any institution chartered or licensed by the United States or any state.