N.Y. BNK Law § 6-G

§ 6-g. Override of certain provisions of United States Public Law\n97-320. 1. The provisions of Title VIII of an act of congress entitled\n"Garn-St Germain Depository Institutions Act of 1982", United States\nPublic Law 97-320, and the preemption of state law provided in section\n804 thereof, shall not apply with respect to residential real property\nand cooperative apartment unit alternative mortgage transactions subject\nto the laws of this state except as provided in this section.\n 2. With respect to a real property loan secured by a lien on\nresidential real property containing less than five dwelling units,\nincluding a lien on the stock allocated to a dwelling unit in a\ncooperative housing corporation or on a residential manufactured home, a\nlender may not exercise its option pursuant to a "due-on-sale" clause\nupon:\n (a) A transfer by devise, descent, or operation of law on the death of\na joint tenant or tenant by the entirety;\n (b) The granting of a leasehold interest of three years or less not\ncontaining an option to purchase;\n (c) A transfer to a relative resulting from the death of a borrower;\n (d) A transfer where the spouse or children of the borrower become an\nowner of the property;\n (e) A transfer resulting from a decree of a dissolution of marriage,\nlegal separation agreement, or from an incidental property settlement\nagreement, by which the spouse of the borrower becomes an owner of the\nproperty; or\n (f) A transfer into an inter-vivos trust in which the borrower is and\nremains a beneficiary and that does not relate to a transfer of rights\nof occupancy in the property.\n