N.Y. RPP Law § 254-B

§ 254-b. Limitation on late charges. 1. If a bond or note, or the\nmortgage on real property, heretofore or hereafter made, improved by a\none to six family residence occupied by the owner, securing the payment\nof same, or a note representing a loan for the purpose of financing the\npurchase of an ownership interest in, and proprietary lease from, a\ncorporation or partnership formed for the purpose of the cooperative\nownership of residential real estate, contains a provision whereby the\nmortgagee or lender retains the right to collect a late charge on any\ninstalment which has become due and remains unpaid, such charge on any\nsuch delinquent instalment, regardless of the period it remains in\ndefault, shall not exceed and shall only be enforced to the extent of\ntwo percent of such delinquent instalment; provided, however, that no\ncharge shall be imposed on any instalment paid within fifteen days after\nthe due date. No such late charge shall be deducted from any regular\ninstalment payment by the mortgagor or borrower, but shall be separately\ncharged and collected by the mortgagee or lender. In the absence of a\nspecific provision in a bond, note or mortgage no late charge on any\ndelinquent instalment shall be assessed or collected. The term\n"instalment" shall include amounts representing interest, amortization\nof principal and payments in respect of insurance premiums, taxes and\nutility charges if the bond, note or mortgage provides for collection\nthereof by the mortgagee.\n 2. The provisions in this section shall not apply to any loan or\nforbearance insured by the federal housing commissioner or for which a\ncommitment to insure has been made by the federal housing commissioner\nor to any loan or forbearance insured or guaranteed pursuant to the\nprovisions of an act of congress entitled "Servicemen's Readjustment Act\nof 1944", or to the extent the provisions of this section are\ninconsistent with any other federal law or regulation.\n 3. If any provision of this section, or the application of such\nprovision to any individual, company, corporation, or circumstance,\nshall be held invalid, the remainder of this section, and the\napplication of such section to individuals, companies, corporations, or\ncircumstances other than those to which it is held invalid, shall not be\naffected thereby.\n