Governor Cuomo issues Executive Order Regarding COVID-19 and bank forbearance
DATE: March 25, 2020
TO: Kane Kessler, P.C. Clients
FROM: Kane Kessler, P.C. Corporate Department
RE: Governor Cuomo Requires NY Regulated Banks To Grant 90 Day Forbearances Relating to COVID -19 Crisis
We wanted to alert you to an Executive Order issued by Governor Cuomo on March 21, 2020 that remains effective until April 20, 2020, deeming it an unsafe business practice for any New York regulated bank not to grant a 90-day forbearance to any individual or business that is experiencing a financial hardship as a result of the COVID – 19 crisis. While there are many aspects of the Executive Order that are unclear, it appears to apply to New York State licensed banks as well as New York branches of other states’ banks or non-U.S. banks licensed by New York State. Forbearance refers to the non-exercise of certain rights or remedies a bank might otherwise have the right to exercise, and may include the declaration of an event of default or requiring additional collateral to be posted. This action represents a dramatic step which provides relief to individuals and companies from mortgage and other payments. The are many interpretive questions regarding the scope of this Executive Order so we encourage you to consult with us before taking any action in reliance on the Executive Order.
For additional information, please feel free to reach out to Robert Lawrence (at 212 519 5103, firstname.lastname@example.org), Steven Cohen (at 212 519 5115, email@example.com), Michael Wu (at 212 519 5165, firstname.lastname@example.org) or any partner in our Corporate Department.