ASSEMBLY, No. 2934

STATE OF NEW JERSEY

213th LEGISLATURE

 

INTRODUCED JUNE 12, 2008

 


 

Sponsored by:

Assemblyman JACK CONNERS

District 7 (Burlington and Camden)

Assemblyman HERB CONAWAY, JR.

District 7 (Burlington and Camden)

 

Co-Sponsored by:

Assemblywoman Wagner

 

 

 

 

SYNOPSIS

     Allows persons affected by certain plant closings, transfers and mass layoffs to receive temporary suspension of payment of interest on mortgage loan.

 

CURRENT VERSION OF TEXT

     As introduced.

  


An Act concerning the mortgage interest liability of persons affected by certain plant closings, transfers and mass layoffs and supplementing P.L.2007, c.212 (C.34:21-1 et seq.)

 

     Be It Enacted by the Senate and General Assembly of the State of New Jersey:

 

     1.  a.  Notwithstanding the provisions of any other law to the contrary, a person who is domiciled in this State and who is an aggrieved employee, or former employee, of an employer who has violated the provisions of P.L.2007, c.212 (C.34:21-1 et seq.), may secure, if a request is made within 180 days of a court order of such a violation pursuant to section 6 of P.L.2007, c.212 (C.34:21-6), a suspension of the payment of interest on a mortgage loan that was secured by the person, or the person and another person jointly, before the date of the court order.

     b.  A person may make a request pursuant to subsection a. of this section by mailing a written request to the mortgagee which shall include: (1) a copy of the court order pursuant to section 6 of P.L. 2007, c.212 (C.34:21-6) finding a violation of P.L.2007, c.212 (C. 34:21-1 et seq.); and (2) an affidavit stating that the person is an aggrieved employee or former employee of the employer named in the order and further that the person is a mortgagor of the mortgage loan with respect to which the request is being made.  Upon receipt of the request with the required information, the mortgagee shall grant a suspension of the payment of interest, effective as of the date of the court order.  The suspension shall remain in effect for 180 days from the date of the order and interest that was incurred during that time shall be paid, after the expiration of the suspension, in equal installments over the remaining term of the mortgage loan.  c.  Nothing contained in this section shall affect the payment of loan principal, escrow, or other fees, as required by the mortgage loan agreement.

     d.  As used in this section:

     "Mortgagee" means the holder of a mortgage loan.

     "Mortgage loan" means a loan made to a natural person or persons to whom credit is offered or extended primarily for personal, family or household purposes which is secured by a mortgage constituting a lien upon real property located in this State on which there is erected or to be erected a structure, which is the primary residence of the natural person or persons, containing one to six dwelling units, a portion of which structure may be used for nonresidential purposes, in the making of which the mortgagee relies primarily upon the value of the mortgaged property.

 

2.      This act shall take effect immediately.


STATEMENT

 

     This bill will allow an aggrieved employee or former employee of an employer who has been found to be in violation of the “Millville Dallas Airmotive Plant Job Loss Notification Act,”P.L. 2007, c.212 (C.34:21-1 et seq.), also more commonly referred to as the “plant closing law,” or the “NJ WARN Act,” to request a suspension of the payment of interest on a mortgage loan that was secured by the person before entry of the court order finding a violation of that act.  The suspension would remain in effect for 180 days from the date of the order and interest that was incurred during that time shall be paid, after the expiration of the suspension, in equal installments over the remaining term of the mortgage loan. 

     The bill would only apply to a person who is domiciled in this State and to a mortgage securing a primary residence located in this State.

     To obtain the suspension, a person would submit to the mortgagee a written request which shall include: (1) a copy of the court order finding a violation of P.L.2007, c.212 (C.34:21-1 et seq.); and (2) an affidavit stating that the person is an aggrieved employee or former employee of the employer named in the order and further that the person is a mortgagor of the mortgage loan with respect to which the request is being made.