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 18.5 - Amendments

Current through Register Vol. 46, No. 28, July 10, 2024
(a)
General.
Documents to supplement or amend an offering plan
					 (collectively, "amendments") shall be deemed part of the offering plan and
					 shall meet the following requirements:
(1) If the offering plan does not comply with
				  G.B.L. section 352-e(1)(b) or section
				  18.1(b)  of this
				  Part due to change of circumstances, the passage of time or any other reason,
				  the offering plan must be amended promptly.
(2) An amendment must include a
				  representation that all material changes of facts or circumstances affecting
				  the property or the offering are included, unless the changes were described in
				  prior amendment(s) submitted to but not yet filed with the Department of
				  Law.
(3) Except as provided in
				  subdivision (d) of this section, an amendment to an offering plan shall be
				  filed on the date indicated in the letter issued by the Department of Law
				  stating that the amendment has been filed, and not sooner.
(4) Amendments that have been filed with the
				  Department of Law must be attached to the inside front cover of the offering
				  plan before the amended plan is distributed to the public. The cover of the
				  offering plan must be stamped: "This plan has been amended. See inside cover."
				  Any revisions, additions or deletions of specific language in the offering plan
				  should reprint a sufficient portion of the paragraph from the offering plan as
				  revised, so that the revised portion of the offering plan may be understood
				  easily. An offering plan that has been amended extensively may be rewritten to
				  incorporate the amendments into the body of the plan, and must be rewritten if
				  required by the Department of Law.
(5) If there is a substantial amendment to
				  the offering plan that adversely affects the purchasers, sponsor must grant
				  subscribers a right of rescission and a reasonable period of time, that is not
				  less than 15 days after the date of presentation to exercise the right. Sponsor
				  must return any deposit or downpayment promptly to subscribers who rescind.
				  This section shall not limit sponsor's obligation to comply with provisions in
				  applicable laws or regulations that grant tenants broader rights.
(6) If an offering plan is substantially
				  amended prior to the initial closing of title to shares to tenants, the
				  exclusive right to purchase time periods shall be extended, as follows:
(i) If the presentation of the substantial
				  amendment occurs during the initial exclusive right to purchase period, such
				  period shall terminate at the later of 30 days after presentation of the
				  substantial amendment or the expiration of the original exclusive right to
				  purchase period.
(ii) If the
				  presentation of the substantial amendment occurs after the expiration of the
				  initial exclusive right to purchase period, the substantial amendment must
				  grant to all tenants who had the right to purchase during the initial period a
				  new exclusive right to purchase on the terms offered in the amendment for a
				  period of not less than 30 days from the date of presentation.
(7) For the purposes of this
				  section, substantial amendment shall include, but not be limited to: an
				  increase or decrease in the mortgage amount or cash purchase price, an increase
				  or decrease in the working capital or reserve fund, agreement by the sponsor to
				  make additional repairs or improvements, or to repurchase apartments, or the
				  offer of new or better terms for financing the purchase price of an
				  apartment.
(8) Amendments must be
				  served on offerees in accordance with section
				  18.1(d)  of this
				  Part, unless the Department of Law consents to service on a specified class or
				  classes of offerees.