New York Laws
Article 23-A - Fraudulent Practices in Respect to Stocks, Bonds and Other Securities
352-L - Coopertive Corporations.

§ 352-l. Cooperative corporations. 1. For the purposes of this
section, "non-occupying owner" shall mean the owner of shares in a
cooperative corporation who does not occupy the dwelling units to which
his or her shares are allocated.

2. If a non-occupying owner rents any dwelling unit to a tenant and
then fails to make payments due for maintenance, assessments or late
fees for such unit within sixty days of the expiration of any grace
period after they are due, upon notice in accordance with subdivision
three of this section, all rental payments from the tenant shall be
directly payable to the cooperative corporation.

3. If the maintenance, assessments or late fees due for any unit have
not been paid in full within sixty days after the expiration of any
grace period of the earliest due date, the board of directors shall
provide written notice to the rental tenant and the non-occupying owner
providing that, commencing immediately and until such time as all
payments for maintenance, assessments or late fees are made current, all
rental payments due subsequent to the issuance of such notice are to be
made payable to the cooperative corporation at the address listed on the
notice. Where a majority of the board of directors has been elected by
and from among the owners who are in occupancy, the board may elect not
to require that rental payments be made payable to the cooperative
corporation. At such time as payments for maintenance, assessments and
late fees from the non-occupying owner are once again current, notice of
such fact shall be given within three business days to the rental tenant
and non-occupying owner. Thereafter all rental payments for such unit
shall be made payable to the non-occupying owner or to a designated
agent. A non-occupying owner who disputes the cooperative corporation's
claim to rental payments pursuant to this section shall be entitled to
present facts supporting such owner's position at the next scheduled
meeting of the board of directors, which must be held within thirty days
of the date that such board receives notice that such owner seeks to
dispute such claim.

4. Nothing in this section shall limit any rights of shareholders or
of the board of directors existing under any other law or agreement.

5. Payment by a rental tenant to the cooperative corporation made in
connection with this section shall relieve that rental tenant from the
obligation to pay such rent to the non-occupying owner and shall be an
absolute defense in any non-payment proceeding commenced by such
non-occupying owner against such tenant for such rent.