N.Y. General Obligations Law Section 5-334
Option or right to acquire interest in property


1.

An option or right to acquire an equity or other ownership interest in property or in a partnership, corporation, trust or other entity that owns property shall not be unenforceable because the owner of such interest grants such option or right to the holder of a mortgage which is a lien on such property or to the holder of a security interest in such property, simultaneously with or in connection with any loan or forbearance of money secured by such mortgage or security interest, if (a) the power to exercise such option or right is not dependent upon the occurrence of a default with respect to such loan, forbearance, mortgage or security interest, and

(b)

such loan or forbearance is for the principal sum of two million five hundred thousand dollars or more when the option or right is granted. Loans or forbearances aggregating two million five hundred thousand dollars or more which are to be made or advanced to any one borrower in one or more installments pursuant to a written agreement by one or more lenders shall be deemed a single loan or forbearance for the total amount which the lender or lenders have agreed to make or advance pursuant to such agreement.

2.

This section shall not be construed to limit, impair or otherwise affect the power of the holder of any option or right to acquire an equity or other ownership interest in property or in a partnership, corporation, trust or other entity that owns property, if such option or right is or would be enforceable without reference to this section.

3.

This section shall apply to all options or rights which are exercised on or after the effective date of this section, notwithstanding the date when such options or rights were granted.

Source: Section 5-334 — Option or right to acquire interest in property, https://www.­nysenate.­gov/legislation/laws/GOB/5-334 (updated Sep. 22, 2014; accessed Mar. 23, 2024).

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Consumers’ right to recover attorney’s fees in actions arising out of consumer contracts
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Processing fee by holder of dishonored check
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Certain covenants and restrictions in conveyances and other agreements affecting real property void as against public policy
5–332
Unsolicited and voluntarily sent merchandise deemed unconditional gift
5–333
Validity of oil, gas or mineral land leases
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Option or right to acquire interest in property
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Limitation of reimbursement and subrogation claims in personal injury and wrongful death actions
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Nondisclosure agreements
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Agreements requiring contractees to waive their rights in relation to expressing certain opinions about contractors void and unenforceable

Accessed:
Mar. 23, 2024

Last modified:
Sep. 22, 2014

§ 5-334’s source at nysenate​.gov

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