2006 New York Code - Limitation On Late Charges.

 
    §  254-b.  Limitation  on  late  charges. 1. If a bond or note, or the
  mortgage on real property, heretofore or hereafter made, improved  by  a
  one  to six family residence occupied by the owner, securing the payment
  of same, or a note representing a loan for the purpose of financing  the
  purchase  of  an  ownership  interest  in, and proprietary lease from, a
  corporation or partnership formed for the  purpose  of  the  cooperative
  ownership  of  residential real estate, contains a provision whereby the
  mortgagee or lender retains the right to collect a late  charge  on  any
  instalment  which  has become due and remains unpaid, such charge on any
  such delinquent instalment, regardless  of  the  period  it  remains  in
  default,  shall  not  exceed and shall only be enforced to the extent of
  two percent of such delinquent instalment; provided,  however,  that  no
  charge shall be imposed on any instalment paid within fifteen days after
  the  due  date.  No  such late charge shall be deducted from any regular
  instalment payment by the mortgagor or borrower, but shall be separately
  charged and collected by the mortgagee or lender. In the  absence  of  a
  specific  provision  in  a  bond, note or mortgage no late charge on any
  delinquent  instalment  shall  be  assessed  or  collected.   The   term
  "instalment"  shall  include amounts representing interest, amortization
  of principal and payments in respect of insurance  premiums,  taxes  and
  utility  charges  if  the bond, note or mortgage provides for collection
  thereof by the mortgagee.
    2. The provisions in this section shall  not  apply  to  any  loan  or
  forbearance  insured  by the federal housing commissioner or for which a
  commitment to insure has been made by the federal  housing  commissioner
  or  to  any  loan  or  forbearance insured or guaranteed pursuant to the
  provisions of an act of congress entitled "Servicemen's Readjustment Act
  of  1944",  or  to  the  extent  the  provisions  of  this  section  are
  inconsistent with any other federal law or regulation.
    3.  If  any  provision  of  this  section,  or the application of such
  provision to any  individual,  company,  corporation,  or  circumstance,
  shall   be  held  invalid,  the  remainder  of  this  section,  and  the
  application of such section to individuals, companies, corporations,  or
  circumstances other than those to which it is held invalid, shall not be
  affected thereby.