New York Laws
Title 3 - Certain Prohibited Contracts and Provisions of Contracts
5-334 - Option or Right to Acquire Interest in Property.

§ 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.