With respect to ongoing construction projects in New York, it is likely that current conditions will cause borrowers to modify their existing construction credit contracts. However, Section 22 of the New York Link Act requires that any change to a construction credit contract within 10 days of the amendment being implemented, as well as an update to Section 22 affidavit.i If the amendment is not submitted within that 10-day period, Although Section 22 provides that changes to the construction credit must be submitted, it should be noted that the New York courts have recognized an exception for „non-material“ changes to the construction credit.iii „An amendment to a construction loan contract is `essential`, if it exists:  According to the N.Y. Link-Gesetz, No. 2.2, 2(4) and 2 (13) is a „construction loan“ defined as a loan granted for explicit construction financing purposes. , Renovation and/or demolition of an improved property. i N.Y. Link Gesetz nr. 22.ii Id.; Parties to a construction loan agreement and those considering an amendment should, together with their lawyer and legal firm, be complicit in the effect of submitting a loan notification or modification of that contract amendment, in accordance with New York Law 73.iii Link MLF3 Airitan LLC v. 2338 Second Ave. Mazal LLC, 55 Misc.3d 241. 247, 45 N.Y.S.3d 759, 766 (N.Y.
Sup. 2016).iv Id.v See id.vi Id. at 768.vii Id. (under Yankee Bank`s distinction for Fin. and Sav., FSB v. Task Assoc, Inc., 731 F.Supp. 64 [N.D.N.Y.1990]); See also Howard Sav. Bank v.
Lefcon Partnership, 209 A.D.2d 473, 475, 618 N.Y.S.2d 910 (2d Dept.1994). Some examples of „intangible“ construction credit changes are the simple extension of the term, the extension of the project completion date, and a lender`s decision to impose or not to apply construction credit agreements that do not affect the amounts available for improvements.v For example, in MLF3 Airitan LLC v. 2338 Second Ave. Mazal LLC told the New York Supreme Court that a lender`s inability to impose certain credit alliances is not considered a major change if „the construction credit contract explicitly states: That third parties cannot have claims against the lender or borrower. „vi In this case, the Court distinguishes the facts from another case in which the construction loan contract explicitly conferred rights on third parties and thus infringed the rights of third parties.vii While certain exceptions in the case law may be interpreted by court, certain exceptions may offer some comfort in the jurisprudence that lenders would need to accept a modification of the construction loan as a result of COVID-19. In any event, parties to a construction loan agreement in New York should consult carefully with their advisors and title companies to discuss the possibility of an amendment. Except that this section does not apply to mortgages, the capital company created by the owner`s lending company as part of a convention deed, known as the „owner`s loan deed of nineteen hundred and thirty-three“ 1 and „the loan deed of the owners of thirty-three in its amended version“, 1 and this mortgage premium on all the pawn rights deposited after the date of registration of the mortgage, that the money and/or obligations for which this mortgage was taken as collateral were advanced at the time of the execution of this mortgage or its subsequent amount, and there is no need to execute and deposit a construction credit contract or other contract. , in accordance with this section or part of it.