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History
- Referred to corporations, authorities and commissions
- Referred to rules
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Creates the New York title guaranty authority
In Assembly Committee · Corporations, Authorities And Commissions · Sponsor Richard Brodsky
Full text
The text isn't available here yet. Check nysenate.gov.
Sponsor's memo
Title of bill
An act to amend the public authorities law, in relation to creating the New York title guaranty authority
Purpose or general idea of bill
It creates the New York Title Guaranty Authority.
Summary of specific provisions
Section 1: Article 10-D of the public authorities law is amended by adding a new title 4.
Read the full memo (817 words)
§3975, Section 2: The authority may issue bonds only to finance costs, including the funding of bonds issued by the authority to finance costs, and fund reserves to secure such bonds.
§3975, Section 3: The authority and its corporate existence shall continue until terminated by law, but not so long as the authority shall have bonds or other outstanding obligations in less adequate provisions for repayment have been made.
§3976, Section 1: The authority shall be administered by seven directors appointed by the governor, of whom two members shall be recommended by the president of the senate, and two members shall be recommended by the speak of the assembly.
§3976, Section 2: The members of the authority board shall receive no compensation for their services.
§3976, Section 3: Outlines conflicts that would prevent an individual from becoming a director, officer, or employee of the authority.
§3976, Section 4: Four directors shall constitute a quorum for the transaction of business or the exercise of any power of the authority.
§3976, Section 5: The authority shall appoint a treasurer and may appoint other offices.
§3977. Sections 1-11: The authority shall have the powers to do the following, in addition to those conferred elsewhere in the title, subject only to agreement with bondholders:
1.) to sue and be sued; to make and alter by-laws; 2.) to have a seal and alter it; 3.) to make and execute contracts and other agreements; 4.) to act to protects any right conferred to it by law or contract; 5.) to borrow money and issue bonds; 7.) to pledge all or any of its revenues or assets for the payment of principal and interest on bonds; 8.) to accept gifts, grants, loans and aid from the county state or federal government; 9.) to invest any funds held in reserves or sinking funds, or those not required for immediate use in approved financial instruments; 10.) to appoint officers and employees as required, and determine duties, qualifications, and compensation; 11.) to do all things necessary to carry out its purposes, but the authority may not hold legal title, or have any interest in real property.
§3978: The authority shall offer guaranties of real property titles in New York State and shall fix a price for that guarantee.
§3979, Section 1: A title guaranty fund shall be created.
§3979, Section 2: A title guaranty is an obligation of the authority only and payable solely out of the authorities funds. The state cannot be liable for such obligations.
§3979, Section 3: The authority shall consult with the insurance department in developing guaranty contracts.
§3980, Section 1: Participating attorneys may be required to pay an annual fee set by the authority.
§3980, Section 2: The participation of abstractors and attorneys shall be in accordance with rules set by the board. Participants shall maintain liability insurance, and shall own or lease an up to date abstract title plant. The authority may waive these requirements upon a showing of hardship.
§3980, Section 3: Prior to the issuance of a title guaranty, the authority shall require evidence that an abstract of title to the property in question is up to date.
§3980, Section 4: The attorney rendering the title opinion shall be authorized to issue a title guaranty certificate subject to the rules of the authority.
Justification
Title insurance guarantees homebuyers against claims of prior liens against property they intend to purchase. Like other forms of insurance, it is regulated by New York State. Currently, title insurance is available only through private entities and costs citizens an average of $1.2 billion, in order to guarantee payments of $50 million, according to 2007 statistics. Because title insurance is a requirement of home purchase, citizens must accept the prices set by private industry, but that require the approval of the New York State Insurance Department. New York State should take a greater interest in protecting citizens from the overpricing of something the state requires of home buyers. For example, the State of Iowa has prohibited the private sale of title insurance, allowing the government to set rates and ensure that its citizens are offered standard price. Reform of the current New York State system, and the establishment of a public authority to continuously research, administer, and oversee title insurance issuance and rates, could preserve the legal and social benefits of guaranteed title while saving New Yorkers hundreds of millions of dollars annually.
Prior legislative history
New Bill.
Fiscal implications
None.
Effective date
This act shall take effect immediately.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.