New York Codes, Rules and Regulations › Title 13 - DEPARTMENT OF LAW › Chapter II - SECURITIES TRANSACTIONS AND PERSONNEL › Subchapter B - REAL ESTATE SYNDICATES › Part 18 - OCCUPIED COOPERATIVES › Section 18.3 - Format and content

Current through Register Vol. 46, No. 28, July 10, 2024
Plans subject to this Part must comply with the format and minimal disclosure requirements set forth in subdivisions (a) through (hh) of this section, in addition to the requirements of article 23-A of the G.B.L.
(a)
Cover.
The outside front cover of the offering plan shall contain the following information in the following order:
(1) If any non-purchasing residential tenant may be evicted by application of the provisions of G.B.L., section 352-eee, 352-eeee, rent regulatory laws, or after expiration of a lease term, the cover shall contain the following statement in boldface roman type at least as large as eight-point modern type and at least two points leaded:
THIS IS AN EVICTION PLAN. SEE PAGE__.
If G.B.L. section 352-eee, 352-eeee or 352-e(2-a) is applicable, also state:
NON-PURCHASING TENANTS OTHER THAN ELIGIBLE SENIOR CITIZENS AND ELIGIBLE DISABLED PERSONS WILL BE EVICTED.
(2) If the plan is a non-eviction plan, the cover shall contain the following statement in boldface roman type at least as large as eight-point modern type and at least two points leaded:
THIS IS A NON-EVICTION PLAN. NO NON-PURCHASING TENANT WILL BE EVICTED BY REASON OF CONVERSION TO COOPERATIVE OWNERSHIP.
(3) The title in boldface type: COOPERATIVE OFFERING PLAN followed by the address of the property.
(4) The cash amount of the offering, which shall be based on the maximum aggregate price at which the shares are initially offered. State the number of shares and the number of units being offered. The minimum aggregate price at which the shares are initially offered to tenant purchasers also may be included.
(5) Amount of the mortgage(s) which shall be based on the projected unpaid balance of all mortgages encumbering the property at the time of acquisition by the apartment corporation.
(6) The total of the maximum cash amount of the offering and of the mortgage(s).
The total of the minimum cash amount and of the mortgage(s) may also be included.
(7) The amount of the working capital fund and/or reserve fund to be retained by the apartment corporation.
The amount of reserve fund shall be in compliance with the applicable local law. If there is a working capital fund and this fund may be diminished or depleted for closing adjustments, so indicate. If there is not a working capital fund or reserve fund, indicate -0-.
(8) The name and principal business address of the sponsor, the selling agent, and the apartment corporation.
Telephone numbers may also be included. The address of the sponsor must not be in care of sponsor's attorney.
(9) The statement: "Approximate date of first offering," which shall not be earlier than the date the Department of Law files the plan.
The term of the initial offer is 12 months commencing on the date indicated in the letter from the Department of Law stating that the plan is filed. The term may be extended by an amendment to the offering plan. The date of the plan should be left blank at submission to the Department of Law and completed when the plan is filed.
(10) If the plan contains a special risk section, the statement: "SEE PAGE __ FOR SPECIAL RISKS TO PURCHASERS" must be printed apart from other print and be in capital letters, in boldface modern type at least eight-point modern type and at least two points leaded.
(11) The front cover of a proposed offering plan first submitted to the Department of Law shall contain the following statement in capital letters printed in red in boldface roman type of at least eight-point modern type and at least two points leaded. The following statement shall not appear on the front cover of offering plans filed with the Department of Law:
THIS IS A PROPOSED OFFERING PLAN ("RED HERRING") TO CONVERT THIS BUILDING TO A COOPERATIVE. IT HAS BEEN SUBMITTED TO THE NEW YORK STATE DEPARTMENT OF LAW, REAL ESTATE FINANCE BUREAU. APARTMENTS MAY NOT BE SOLD OR OFFERED FOR SALE UNTIL THE OFFERING PLAN IS FILED WITH THE DEPARTMENT OF LAW.
(12) The following statement in capital letters printed in boldface roman type at least as large as eight-point modern type and at least two points leaded must be included on the cover of all plans filed with the Department of Law:
THIS OFFERING PLAN IS THE ENTIRE OFFER TO SELL THESE COOPERATIVE APARTMENTS. NEW YORK LAW REQUIRES THE SPONSOR TO DISCLOSE ALL MATERIAL INFORMATION IN THIS PLAN AND TO FILE THIS PLAN WITH THE NEW YORK STATE DEPARTMENT OF LAW PRIOR TO SELLING OR OFFERING TO SELL ANY APARTMENTS. FILING WITH THE DEPARTMENT OF LAW DOES NOT MEAN THAT THE DEPARTMENT OR ANY OTHER GOVERNMENT AGENCY HAS APPROVED THIS OFFERING.