dliu1/legal-llama-raw-text huggingface dataset:
notwithstanding the maintenance  of  procedures  reasonably  adapted  to
avoid such errors;
(ii)  notifies  the  equity  seller within ninety days of the contract
date of the compliance failure; and
(iii)  makes  appropriate  restitution  to  the  equity   seller   and
appropriate  adjustments  to  the  transaction within ninety days of the
contract date.   Examples of bona  fide  errors  include,  but  are  not
limited to, clerical, calculation, computer malfunction and programming,
and  printing  errors.    An  error  of legal judgment with respect to a
person's obligations under this section is not a bona fide error, nor is
a failure to provide notices or other material information  required  by
11. (a) In any transaction in which an equity seller purports to grant
a  residence  in  foreclosure  or  default to an equity purchaser by any
instrument which appears to be an absolute conveyance  and  reserves  to
himself  or  herself  or  is  given by the equity purchaser an option to
repurchase,  such  transaction  shall  create  a  presumption  that  the
transaction  is  a  loan transaction, which may be overcome by clear and
convincing evidence to the contrary, and  that  the  purported  absolute
conveyance is a mortgage.
(b)   An   equity  purchaser  shall  not  enter  into  a  reconveyance
arrangement unless:
(i) The equity purchaser verifies by  appropriate  documentation  that
the  equity  seller has or is likely to have a reasonable ability to pay
for the subsequent conveyance of an interest back to the equity  seller.
In  the case of a lease with an option to purchase, payment ability also
includes the reasonable ability to purchase the property within the term
of the option to purchase. There is a rebuttable  presumption  that  the
equity  purchaser  has  not  verified  reasonable payment ability if the
equity purchaser has not obtained documents other than  a  statement  by
the  equity  seller  of assets, liabilities and income. The standard for
determining a reasonable ability to pay shall be the  same  standard  as
set  forth  in  paragraph (k) of subdivision two of section six-l of the
banking law;
(ii) the equity purchaser and the equity seller complete a closing for
any reconveyance arrangement in which the  equity  purchaser  obtains  a
deed  or  mortgage  from an equity seller. For purposes of this section,
closing  means  an  in-person  meeting  to  complete  final  documents
incident  to  the sale of the real property or creation of a mortgage on
the real property conducted by an attorney who is not employed by or  an
affiliate of the equity purchaser;
(iii) the equity purchaser obtains the written consent from the equity
seller  before  the equity purchaser grants any interest in the property
to anyone else during such  time  as  the  equity  seller  maintains  an
interest in the property, including an option to repurchase; and
(iv)  the equity purchaser notifies all existing mortgage lien holders
of his or her intent to accept conveyance of an interest in the property
from the equity seller, and fully complies with all terms and conditions
contained in the mortgage lien documents, including but not  limited  to
due-on-sale  provisions  or  meeting  all qualification requirements for
assuming the repayment of the mortgage.
(c) An equity purchaser shall not enter into repurchase or lease terms
as part of the reconveyance arrangement that are unfair or  commercially
unreasonable,  and  is  prohibited  from engaging in any other unfair or
unconscionable conduct.
(d) As part of a reconveyance arrangement, an equity  purchaser  shall
either:
(i)  ensure  that  title  to the residence is reconveyed to the equity
seller; or
(ii)  make  a payment to the equity seller such that the equity seller
has received consideration in an amount of at least  eighty-two  percent
of  the fair market value of the property within one hundred twenty days
of either the eviction or voluntary relinquishment of possession of  the
residence  by  the  equity  seller.  The  equity  purchaser shall make a
detailed accounting of the basis for the payment amount, or  a  detailed
accounting  of  the  reasons  for  failure  to make a payment, including
providing written documentation of expenses,  within  such  one  hundred
twenty-day  period.  The accounting shall be on a form prescribed by the
department of financial services. For purposes of this subparagraph, the
following applies:
(A) there is a rebuttable presumption that an appraisal  by  a  person
licensed  or  certified  by  an agency of the federal government or this
state to appraise real estate establishes the fair market value  of  the
property;
(B)  the  time  for  determining the fair market value amount shall be
determined in the reconveyance arrangement as either at the time of  the
execution  of  the  reconveyance arrangement or at resale to a bona fide
purchaser. If the covered contract states that  the  fair  market  value
shall  be  determined at the time of resale, the fair market value shall
be the resale price if it is sold within one hundred twenty days of  the
eviction  or  voluntary  relinquishment  of  the  property by the equity
seller. If the covered contract states that the fair market value  shall
be  determined  at  the  time of resale, and the resale is not completed
within  one  hundred  twenty  days  of   the   eviction   or   voluntary
relinquishment  of  the  property  by the equity seller, the fair market
value shall be determined by an  appraisal  conducted  within  ten  days
after  the  end  of  such  one hundred twenty-day period and payment, if
required, shall be made to the equity seller. If payment is not made  to
the  equity  seller  at  such  time,  the  fair  market  value  shall be
recalculated as the resale price on resale and payment shall be made  to
the  equity  seller within fifteen days of resale. A detailed accounting
of the basis for the payment amount shall be made within fifteen days of
resale, including  providing  written  documentation  of  expenses.  The
accounting  shall be on a form prescribed by the department of financial
services;
(C) consideration shall mean any payment or thing of value  provided
to the equity seller, including unpaid lease payments owed by the equity
seller  prior to the date of eviction or voluntary relinquishment of the
property, reasonable costs paid to third parties necessary  to  complete
the  reconveyance  transaction,  payment  of  money to satisfy a debt or
legal obligation of the equity seller or the reasonable cost of  repairs
for  damage  to the dwelling caused by the equity seller beyond ordinary
wear and tear; but shall not include amounts imputed  as  any  fee  paid
directly   or  indirectly  to  the  equity  purchaser,  or  his  or  her
representative, incident  to  a  reconveyance  arrangement,  except  for
reasonable  costs  paid  to  third  parties  necessary  to  complete the
reconveyance.
(D) resale means a bona fide market sale of the property subject  to
the  reconveyance arrangement by the equity purchaser to an unaffiliated
(E) resale price means the purchase price of the property on resale.
(e) This subdivision shall not be  deemed  to  abrogate  any  duty  of
inquiry  which exists as to rights or interests of persons in possession
of the residential real property in foreclosure or default.
(f) All deeds or conveyances subject  to  a  reconveyance  arrangement
shall  state  explicitly on the face of the document that the conveyance
is subject to a reconveyance arrangement, and shall state the  terms  of
the  reconveyance  arrangement.  Moreover, all reconveyance arrangements
must be simultaneously recorded by the equity purchaser with the subject
deed in the county clerk's office where the property is located.
12.  Any provision of a covered contract which attempts or purports to
limit the liability of the equity purchaser under this section shall  be
null  and  void.  Inclusion of such provision shall at the option of the
equity seller render the covered contract  void.  The  equity  purchaser
shall  be liable to the equity seller for all damages proximately caused
by such provision. Any provision in a covered contract which attempts or
purports to require  arbitration  of  any  dispute  arising  under  this
section shall be void at the option of the equity seller.
13.  In  addition to the other remedies provided, whenever there shall
be a violation of this section, application may be made by the  attorney
general in the name of the people of the state of New York to a court or
justice  having  jurisdiction  by  a  special  proceeding  to  issue  an
injunction, and upon notice to the defendant of not less than five days,
to enjoin and restrain the continuance of such  violations;  and  if  it
shall  appear  to  the  satisfaction  of  the  court or justice that the
defendant has, in fact, violated this  section,  an  injunction  may  be
issued  by  such court or justice, enjoining and restraining any further
violation, without requiring proof that any person has,  in  fact,  been
injured  or  damaged thereby. In any such proceeding, the court may make
allowances to the attorney general  as  provided  in  paragraph  six  of
subdivision  (a)  of  section  eighty-three  hundred  three of the civil
practice law and rules, and direct restitution. Whenever the court shall
determine that a violation of this section has occurred, the  court  may
impose a civil penalty of not more than twenty-five thousand dollars for
each  violation.  In  connection with any such proposed application, the
attorney general is authorized to take proof and make a determination of
the relevant facts and to issue subpoenas in accordance with  the  civil
practice law and rules.
14. This section shall not apply to a prior lien holder where the lien
was  properly recorded prior to the execution of any covered contract by
both the equity seller and the equity purchaser nor shall any  provision
of this section be deemed to impair any equity or other available rights
of any such prior lien holder.
15.  The  provisions  of  this section shall be liberally construed to
effectuate  the  intent  and  to  achieve  the  purposes  set  forth  in
subdivision one of this section.
16.  The  provisions  of  this  section  are  not exclusive and are in
addition to any other  requirements,  rights,  remedies,  and  penalties
provided by law.
17.  Any  waiver  of  the provisions of this section shall be void and
unenforceable as contrary to the public policy.
18. If any provision of this section, or if any application thereof to
any person or circumstances is held unconstitutional, the  remainder  of
this  section and the application of its provisions to other persons and
circumstances shall not be affected thereby.
§ 265-b. Distressed property consulting contracts. 1. Definitions. The
following definitions shall apply to this section:
(a)  Homeowner  means  a  natural  person  who is the mortgagor with
respect to a distressed home loan or who is in danger of losing  a  home
for nonpayment of taxes.
(b)  Consulting  contract or contract means an agreement between a
homeowner  and  a  distressed  property  consultant  under   which   the
consultant agrees to provide consulting services.
(c)  Consulting  services  means  services  provided by a distressed
property consultant to a homeowner that the consultant  represents  will
help to achieve any of the following:
(i)  stop,  enjoin,  delay, void, set aside, annul, stay or postpone a
foreclosure filing, a foreclosure  sale  or  the  loss  of  a  home  for
nonpayment of taxes;
(ii) obtain forbearance from any servicer, beneficiary or mortgagee or
relief  with respect to the potential loss of the home for nonpayment of
taxes;
(iii) assist the homeowner to exercise a  right  of  reinstatement  or
similar  right  provided  in  the  mortgage  documents  or any law or to
refinance a distressed home loan;
(iv) obtain any extension of the period within which the homeowner may
reinstate or otherwise restore his or her rights  with  respect  to  the
(v)  obtain  a  waiver  of  an  acceleration  clause  contained in any
promissory note or contract secured by  a  mortgage  on  a  property  in
foreclosure;
(vi) assist the homeowner to obtain a loan or advance of funds;
(vii) assist the homeowner in answering or responding to a summons and
complaint,  or otherwise providing information regarding the foreclosure
complaint and process;
(viii) avoid or ameliorate the impairment of  the  homeowner's  credit
resulting from the commencement of a foreclosure proceeding or tax sale;
(ix)  save  the  homeowner's  property  from  foreclosure  or loss for
non-payment of taxes.
* (d) Distressed home loan means a home loan that is  in  danger  of
being  foreclosed  because  the homeowner has one or more defaults under
the mortgage that entitle the lender to accelerate full payment  of  the
mortgage and repossess the property, or a home loan where the lender has
commenced  a foreclosure action. For purposes of this paragraph, a home
loan is a loan in which the debt is incurred by the homeowner primarily
for personal, family or household purposes, and the loan is secured by a
mortgage or deed of trust on property upon which  there  is  located  or
there  is  to  be located a structure or structures intended principally
for occupancy of from one to four families which is or will be  occupied
by the homeowner as the homeowner's principal dwelling.
* (d)   Distressed  home  loan  means  a  home  loan  for  which  an
installment payment is more than sixty days past due,  or  a  home  loan
where  the  lender  has  commenced a foreclosure action. For purposes of
this paragraph, a home loan is a loan in which the debt is incurred by
the homeowner primarily for personal, family or household purposes,  and
the  loan  is  secured  by  a mortgage or deed of trust on property upon
which there is located  or  there  is  to  be  located  a  structure  or
structures  intended  principally  for  occupancy  of  from  one to four
families  which  is  or  will  be  occupied  by  the  homeowner  as  the
homeowner's principal dwelling.
(e)   Distressed   property  consultant  or  consultant  means  an
individual or a corporation, partnership, limited liability  company  or
other   business  entity  that,  directly  or  indirectly,  solicits  or
undertakes employment to provide consulting services to a homeowner  for
compensation  or  promise  of  compensation with respect to a distressed
home loan or a potential loss of the home for  nonpayment  of  taxes.  A
distressed property consultant does not include the following:
(i) an attorney admitted to practice in the state of New York when the
attorney  is  directly  providing  legal  representation  to a homeowner
pursuant to a retainer agreement,  and  has  entered  an  appearance  on
behalf  of  a  homeowner,  in  the  course  of  his or her regular legal
practice. This exception shall not  apply  to  non-attorney  individuals
engaged in activities covered by subdivision two of this section who are
employed by, associated with, or consultants for law firms when such law
firms  are  not  providing  legal  representation  to  a  homeowner in a
foreclosure action pursuant to a retainer agreement;
(ii) a person or entity who holds or is owed an obligation secured  by
a  lien  on  any  property  in  foreclosure  while  the person or entity
performs services in connection with the obligation or lien;
(iii) a bank, trust company, private  banker,  bank  holding  company,
savings  bank,  savings  and  loan  association, thrift holding company,
credit union or insurance company  organized  under  the  laws  of  this
state,  another state or the United States, or a subsidiary or affiliate
of such  entity  or  a  foreign  banking  corporation  licensed  by  the
superintendent of financial services or the comptroller of the currency;
(iv)  a  federal  Department of Housing and Urban Development approved
mortgagee and any subsidiary or affiliate of  such  mortgagee,  and  any
agent or employee of these persons while engaged in the business of such
mortgagee;
(v)  a  judgment creditor of the homeowner, if the judgment creditor's
claim accrued before the written notice of foreclosure sale is sent;
(vi) a title insurer authorized to do business in  this  state,  while
performing title insurance and settlement services;
(vii)  a  person  licensed  as  a  mortgage  banker or registered as a
mortgage broker or registered as a mortgage loan servicer as defined  in
article  twelve-D of the banking law, provided that no such person shall
take any upfront fee in conjunction  with  activities  constituting  the
business of a distressed property consultant;
(viii)  a bona fide not-for-profit organization that offers counseling
or advice to homeowners in foreclosure or loan default; or
(ix) a person licensed or registered in the state  to  engage  in  the
practice  of  other  professions  that  the  superintendent of financial
services has determined should not be subject to this section.
(f) Property shall mean real property located in this state improved
by a one-to-four family dwelling used or occupied,  or  intended  to  be
used  or  occupied, wholly or partly, as the home or residence of one or
more persons, but shall not refer to unimproved real property upon which
such dwellings are to be constructed.
(g) Business day shall mean any calendar day except  Sunday  or  the
public  holidays  as  set  forth  in  section twenty-four of the general
construction law.
2. Prohibitions. A distressed property consultant is  prohibited  from
doing the following:
(a)  performing  consulting services without a written, fully executed
consulting contract with a homeowner;
(b) charging for or accepting  any  payment  for  consulting  services
before  the full completion of all such services, including a payment to
be placed in escrow pending the completion of such services;
(c) taking a power of attorney from a homeowner;
(d)  retaining  any  original loan document or other original document
related to the distressed home loan, the property or the potential  loss
of the home for nonpayment of taxes;
(e) inducing or attempting to induce a homeowner to enter a consulting
contract that does not fully comply with the provisions of this article;
(f) inducing the transfer of a deed to any person or entity, including
to the distressed property consultant;
(g)  accepting  or taking ownership of a deed from a homeowner for any
period of time whatsoever;
(h)  simulating  in  any  manner  a  law  enforcement  officer,  or  a
representative of any governmental agency;
(i)  disclosing  or  threatening to disclose information affecting the
homeowner's reputation for credit worthiness with knowledge or reason to
know that the information is false;
(j) communicating with the homeowner or any member of  his  family  or
household  with  such  frequency  or  at such unusual hours or in such a
manner as can reasonably be expected to abuse or harass the homeowner;
(k) claiming, attempting, or  threatening  to  enforce  a  right  with
knowledge or reason to know that the right does not exist;
(l)  using  a  communication  which  simulates  in any manner legal or
judicial process or which gives  the  appearance  of  being  authorized,
issued  or approved by a government, governmental agency, or attorney at
law when it is not; or
(m) encumbering the property with a lien without  any  contractual  or
legal basis.
If any provision of this subdivision or the application thereof to any
person  or  circumstances  is held invalid, the invalidity thereof shall
not affect other provisions or applications of  this  subdivision  which
can be given effect without the invalid provision or application, and to
this end the provisions of this subdivision are severable.
3.  Distressed  property  consulting  contracts.    (a)  A  distressed
property consulting contract shall:
(i) contain the entire agreement of the parties;
(ii) be provided  in  writing  to  the  homeowner  for  review  before
signing;
(iii) be printed in at least twelve point type and written in the same
language  that  is  used  by  the  homeowner and was used in discussions
between the consultant and the homeowner to  describe  the  consultant's
services or to negotiate the contract;
(iv)  fully  disclose  the  exact  nature  of  the distressed property
consulting services to be provided by the distressed property consultant
or  anyone  working  in  association  with   the   distressed   property
consultant;
(v) fully disclose the total amount and terms of compensation for such
consulting services;
(vi)  contain  the  name, business address and telephone number of the
consultant and the street address (if different) and facsimile number or
email address of the distressed property consultant where communications
from the homeowner may be delivered;
(vii) be  dated  and  personally  signed  by  the  homeowner  and  the
distressed  property  consultant  and be witnessed and acknowledged by a
New York notary public; and
(viii) contain the following notice, which  shall  be  printed  in  at
least  fourteen  point  boldface  type,  completed  with the name of the
distressed property consultant, and located in  immediate  proximity  to
the space reserved for the homeowner's signature:
You  may  cancel  this contract, without any penalty or obligation, at
any  time  before  midnight  of          (fifth   business   day   after
execution).
(Name of Distressed Property Consultant) (the Consultant) or
anyone working for the Consultant may not take any money from you or ask
you  for  money  until  the  Consultant  has  completely  finished doing
everything this Contract says the Consultant will do.
You should consider consulting  an  attorney  or  a  government-approved
housing  counselor  before  signing  any  legal document concerning your
home. It is advisable that you find your own attorney, and  not  consult
with  an  attorney  recommended  or provided to you by the Consultant. A
list of housing counselors may be found on the website of the  New  York
State  Department  of  Financial  Services,  (enter  web  address) or by
calling  the  Department  of  Financial  Services  toll-free  at  (enter
number).  The  law  requires  that  this  contract  contain  the  entire
agreement between you and the Consultant. You should not rely  upon  any
other written or oral agreement or promise.
The  distressed  property  consultant shall accurately enter the date on
which the right to cancel ends.
(b)(i) The homeowner has the right to cancel, without any  penalty  or
obligation,  any  contract  with  a distressed property consultant until
midnight of the fifth business  day  following  the  day  on  which  the
distressed  property  consultant  and  the  homeowner  sign a consulting
contract. Cancellation occurs when the homeowner, or a representative of
the homeowner, either delivers written notice of cancellation in  person
to  the  address specified in the consulting contract or sends a written
communication by facsimile, by United States mail or by  an  established
commercial  letter delivery service. A dated proof of facsimile delivery
or  proof  of  mailing  creates  a  presumption  that  the   notice   of
cancellation has been delivered on the date the facsimile is sent or the
notice   is  deposited  in  the  mail  or  with  the  delivery  service.
Cancellation  of  the  contract  shall  release  the  homeowner  of  all
obligations  to  pay  fees  or  any other compensation to the distressed
property consultant.
(ii) The consulting contract shall be accompanied by two copies  of  a
form,  captioned  notice of cancellation in at least twelve-point bold
type. This form shall be attached  to  the  contract,  shall  be  easily
detachable,  and  shall  contain  the following statement written in the
same language as used in the contract, and the contractor  shall  insert
accurate  information  as  to the date on which the right to cancel ends
and the contractor's contact information:
Note: You may cancel this contract, without any penalty  or  obligation,
at any time before midnight of ______. (Enter date)
To  cancel this contract, sign and date both copies of this cancellation
notice and personally deliver one copy or send it by  facsimile,  United