2006 New York Code - 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.

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