§ 5-334 — Option or right to acquire interest in property

§ 5-334. Option or right to acquire interest in property. 1. An option\nor right to acquire an equity or other ownership interest in property or\nin a partnership, corporation, trust or other entity that owns property\nshall not be unenforceable because the owner of such interest grants\nsuch option or right to the holder of a mortgage which is a lien on such\nproperty or to the holder of a security interest in such property,\nsimultaneously with or in connection with any loan or forbearance of\nmoney secured by such mortgage or security interest, if (a) the power to\nexercise such option or right is not dependent upon the occurrence of a\ndefault with respect to such loan, forbearance, mortgage or security\ninterest, and (b) such loan or forbearance is for the principal sum of\ntwo million five hundred thousand dollars or more when the option or\nright is granted. Loans or forbearances aggregating two million five\nhundred thousand dollars or more which are to be made or advanced to any\none borrower in one or more installments pursuant to a written agreement\nby one or more lenders shall be deemed a single loan or forbearance for\nthe total amount which the lender or lenders have agreed to make or\nadvance pursuant to such agreement.\n 2. This section shall not be construed to limit, impair or otherwise\naffect the power of the holder of any option or right to acquire an\nequity or other ownership interest in property or in a partnership,\ncorporation, trust or other entity that owns property, if such option or\nright is or would be enforceable without reference to this section.\n 3. This section shall apply to all options or rights which are\nexercised on or after the effective date of this section,\nnotwithstanding the date when such options or rights were granted.\n