New York State Executive Order 202.9 Affecting Bank Loans
On Saturday, March 21, 2020, New York State Governor Andrew M. Cuomo issued Executive Order 202.9 (the “Order”) purporting to modify Section 39 of the New York State Banking Law (“Banking Law”) in response to the COVID-19 pandemic.
Among other things, the Order grants the Superintendent of the New York Department of Financial Services (“DFS”) authority to declare it an “unsound business practice” for “banks” to deny 90-day loan forbearances to persons and businesses affected by the COVID-19 pandemic.
Please note that this post has been updated.
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