N.Y. GBS Law § 352-L

§ 352-l. Cooperative corporations. 1. For the purposes of this\nsection, "non-occupying owner" shall mean the owner of shares in a\ncooperative corporation who does not occupy the dwelling units to which\nhis or her shares are allocated.\n 2. If a non-occupying owner rents any dwelling unit to a tenant and\nthen fails to make payments due for maintenance, assessments or late\nfees for such unit within sixty days of the expiration of any grace\nperiod after they are due, upon notice in accordance with subdivision\nthree of this section, all rental payments from the tenant shall be\ndirectly payable to the cooperative corporation.\n 3. If the maintenance, assessments or late fees due for any unit have\nnot been paid in full within sixty days after the expiration of any\ngrace period of the earliest due date, the board of directors shall\nprovide written notice to the rental tenant and the non-occupying owner\nproviding that, commencing immediately and until such time as all\npayments for maintenance, assessments or late fees are made current, all\nrental payments due subsequent to the issuance of such notice are to be\nmade payable to the cooperative corporation at the address listed on the\nnotice. Where a majority of the board of directors has been elected by\nand from among the owners who are in occupancy, the board may elect not\nto require that rental payments be made payable to the cooperative\ncorporation. At such time as payments for maintenance, assessments and\nlate fees from the non-occupying owner are once again current, notice of\nsuch fact shall be given within three business days to the rental tenant\nand non-occupying owner. Thereafter all rental payments for such unit\nshall be made payable to the non-occupying owner or to a designated\nagent. A non-occupying owner who disputes the cooperative corporation's\nclaim to rental payments pursuant to this section shall be entitled to\npresent facts supporting such owner's position at the next scheduled\nmeeting of the board of directors, which must be held within thirty days\nof the date that such board receives notice that such owner seeks to\ndispute such claim.\n 4. Nothing in this section shall limit any rights of shareholders or\nof the board of directors existing under any other law or agreement.\n 5. Payment by a rental tenant to the cooperative corporation made in\nconnection with this section shall relieve that rental tenant from the\nobligation to pay such rent to the non-occupying owner and shall be an\nabsolute defense in any non-payment proceeding commenced by such\nnon-occupying owner against such tenant for such rent.\n