2015 New York Laws
BNK - Banking
Article 1 - (Banking) SHORT TITLE; DEFINITIONS; MISCELLANEOUS PROVISIONS.
6-G - Override of certain provisions of United States Public Law 97-320.

 6-g.  Override  of  certain  provisions  of United States Public Law
  97-320. 1. The provisions of Title VIII of an act of  congress  entitled
  "Garn-St  Germain  Depository  Institutions  Act of 1982", United States
  Public Law 97-320, and the preemption of state law provided  in  section
  804  thereof,  shall not apply with respect to residential real property
  and cooperative apartment unit alternative mortgage transactions subject
  to the laws of this state except as provided in this section.
2. With respect  to  a  real  property  loan  secured  by  a  lien  on
  residential  real  property  containing  less  than five dwelling units,
  including a lien on  the  stock  allocated  to  a  dwelling  unit  in  a
  cooperative housing corporation or on a residential manufactured home, a
  lender  may  not  exercise its option pursuant to a "due-on-sale" clause
  upon:
(a) A transfer by devise, descent, or operation of law on the death of
  a joint tenant or tenant by the entirety;
(b) The granting of a leasehold interest of three years  or  less  not
  containing an option to purchase;
(c) A transfer to a relative resulting from the death of a borrower;
(d)  A transfer where the spouse or children of the borrower become an
  owner of the property;
(e) A transfer resulting from a decree of a dissolution  of  marriage,
  legal  separation  agreement,  or from an incidental property settlement
  agreement, by which the spouse of the borrower becomes an owner  of  the
  property; or
(f)  A transfer into an inter-vivos trust in which the borrower is and
  remains a beneficiary and that does not relate to a transfer  of  rights
  of occupancy in the property.