NYS Offers Forbearance to Borrowers, NYC Allows Penalty WaiversMarch 25, 2020 | William Cornachio | Richard A. Frankel | Stuart I. Gordon | Michael J. Heller | Matthew V. Spero | Jeannine M. Farino |
On March 21, 2020, Governor Cuomo issued Executive Order 202.9, which is in effect through April 20, 2020. The order provides financial relief to consumers and businesses with outstanding bank loans.
The order modifies subdivision two of Section 29 of the Banking Law to provide that it is an “unsafe and unsound” business practice if any banking institution does not grant a forbearance for a period of 90 days to any person or business who has a financial hardship as a result of the COVID-19 pandemic.
The Governor has also charged the Superintendent of the Department of Financial Services with ensuring, under reasonable and prudent circumstances, that financial institutions provide the opportunity for forbearance on mortgage payments for any person or entity in New York State financially harmed by the COVID-19 pandemic. In addition, the Superintendent of the Department of Financial Services will require that the forbearance application to be made widely available to consumers and that the application should be granted in all reasonable and prudent circumstances during the emergency period.
Also, the New York City Department of Finance has allowed for a waiver of all penalties on all New York City Real Property Transfer tax returns due between March 15, 2020, and April 25, 2020. A taxpayer may request a waiver on a late filed return or may submit a separate request. Any return or tax payment made in accordance with this modification will not be subject to any late filing, late payment or underpayment penalties. However, interest must be paid on all tax payments received after the original due date, calculated from the original due date to the date of payment.
Rivkin Radler’s attorneys are available to provide additional guidance to any lender or borrower seeking assistance with interpreting and navigating the new executive orders.
- William Cornachio
- Richard A. Frankel
- Stuart I. Gordon
- Michael J. Heller
- Matthew V. Spero
- Jeannine M. Farino