A New York liquidated damages award in 2026 is calculated on the fees paid by the borrower. Which payments must be excluded from the liquidated-damages calculation?
Correct Answer
A) Amounts paid after the security instrument was executed are excluded
The award is twice the amount of any fees or other charges paid by the applicant or mortgagor in connection with the contract or agreement, exclusive of any amounts paid or payable after the mortgage or other security instrument is executed. Other choices: the exclusion is drawn at execution of the security instrument rather than at application, and the measure is not limited to what the lender kept. Source: N.Y. Banking Law § 598(3)
Why This Is the Correct Answer
The award is twice the amount of any fees or other charges paid by the applicant or mortgagor in connection with the contract or agreement, exclusive of any amounts paid or payable after the mortgage or other security instrument is executed. Other choices: the exclusion is drawn at execution of the security instrument rather than at application, and the measure is not limited to what the lender kept. Source: N.Y. Banking Law § 598(3)
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