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TP-584.1 (11/09) Page 3
Instructions
Purpose of Form TP-584.1 an action to foreclose a mortgage or lien, enter the unpaid balance of the debt
secured by the mortgage or lien. The unpaid balance of the debt includes the
This form must be completed and filed with Form TP-584 for all conveyances principal, interest and other accruals secured by the mortgage or lien.
that are pursuant to or in lieu of foreclosure or any other action governed by
the Real Property Actions and Proceedings Law and for conveyances pursuant Line 7 — Enter the amount of any continuing liens. Do not include the amount of
to a secured party’s enforcement of a lien or other security interest, except any liens or encumbrances included on line 6.
for such conveyances where part of the debt is recourse and part of the debt Line 8 — Add lines 6 and 7. If debt is nonrecourse, skip line 9 and enter the
is nonrecourse (see Schedule E), for conveyances that consist in whole or in line 8 amount on line 10.
part of a mere change of identity or form of ownership or organization (see Line 9 — Where the debt is recourse, and the grantee is the mortgagee or
Schedule F), and for conveyances for which a credit will be claimed for tax lienor, its agent, nominee or an entity wholly owned by the mortgagee or lienor,
previously paid (see Schedule G). enter the fair market value of the real property.
Specific Instructions Line 10 — If debt is recourse, enter the amount from line 8 or line 9, whichever
is lower. If debt is nonrecourse, enter the amount from line 8.
Schedule E Line 11 — Enter any other amount paid by the grantee to the grantor for the real
For purposes of Schedule E, continuing liens are liens or encumbrances that property.
after the conveyance, remain either on the real property, the shares of stock in
the cooperative housing corporation and/or proprietary lease(s) or the ownership Line 12 — Add lines 10 and 11. This the amount of consideration to be entered
interest in the entity, depending on whether the conveyance is the type on Form TP-584, Schedule B, Part I, line 1.
described in Part I, II, III or IV of Schedule E. Part III
Pursuant to section 575.11(a)(2)(ii) of the real estate transfer tax regulations, Line 13 — Where the conveyance is to a secured party, or its agent, nominee or
a debt is recourse debt to the extent that, as of the date of conveyance, the an entity owned by the secured party, who is enforcing a lien, security interest or
grantor or a person related to the grantor, including any guarantor, bears the other rights on or in shares of stock in a cooperative housing corporation and/or
economic risk of loss for the debt beyond any loss attributable to the value of associated proprietary lease(s), enter the unpaid balance of the debt secured by
the property securing the debt. the pledge of the shares of stock in the cooperative housing corporation and/or
A grantee is related to the mortgagee or lienor to the extent that the associated proprietary lease(s). The unpaid balance of the debt includes the
mere change of identity or form of ownership exemption, as provided in principal, interest and other accruals secured by the pledge of the shares and/or
section 1405(b)(6) of the Tax Law, would apply to a conveyance by the associated proprietary lease(s).
mortgagee or lienor to the grantee. Line 14 — Enter the amount of any continuing liens, security interests or
Where the grantee is the mortgagee or lienor, as in the type of conveyances other obligations remaining on the shares of stock in the cooperative housing
described in Parts Iand IIor the secured party, as in the type of conveyances corporation and/or associated proprietary lease(s) after the conveyance. Do not
described in Parts IIIand IV, or its agent, nominee or an entity wholly owned include the amount of any liens, security interests or other obligations included
by such mortgagee, lienor or secured party, Schedule E may be used only if the on line 13.
debt, including continuing liens, is either all recourse or all nonrecourse. If the Line 15 — Add lines 13 and 14. If debt is nonrecourse, skip line 16 and enter
debt is not either all recourse or all nonrecourse, do not use Schedule E. Attach the line 15 amount on line 17.
a separate schedule setting forth the method of computation. Where the debt is recourse and the grantee is the secured party,
Line 16 —
Part I or its agent, nominee or an entity wholly owned by the secured party, who
Line 1 — If real property is being conveyed pursuant to a mortgage foreclosure is enforcing a lien, security interest or other rights on or in shares of stock
or any other action governed by the Real Property Actions and Proceedings Law in a cooperative housing corporation and/or associated proprietary lease(s),
and the grantee is the mortgagee or lienor, its agent, nominee or an entity wholly enter the fair market value of the shares of stock in the cooperative housing
owned by the mortgagee or lienor, enter the amount of judgment of foreclosure corporation and/or associated proprietary lease(s).
or the bid price, whichever is higher. The amount of judgment of foreclosure Line 17 — If debt is recourse, enter the amount from line 15 or line 16,
includes any interest accrued through the date of transfer. whichever is lower. If debt is nonrecourse, enter the amount from line 15.
If the grantee is a person unrelated to the mortgagee or lienor, regardless Line 18 — If the conveyance is the original conveyance of shares of stock in a
whether the debt is recourse or nonrecourse, enter the bid price. cooperative housing corporation by the cooperative corporation or cooperative
If the grantee is an entity partially owned by the mortgagee or lienor and partially plan sponsor, or the subsequent conveyance of stock in a cooperative housing
owned by a person unrelated to the mortgagee or lienor, enter the sum of corporation for a unit other than an individual residential unit, enter the pro
(1) the amount of judgment of foreclosure or the bid price, whichever is higher, rata portion of the total amount of any liens or encumbrances that remain on the
multiplied by the percentage that represents the mortgagee’s or lienor’s beneficial real property of the cooperative housing corporation after the conveyance. The
interest in the grantee and (2) the bid price multiplied by the percentage that pro rata portion is determined by multiplying the total unpaid principal of the
represents the unrelated person’s beneficial interest in the grantee. mortgage by a fraction, the numerator of which is the number of shares of stock
For this computation, the grantee is deemed to be the party who ultimately in the cooperative housing corporation being conveyed in connection with the
acquires the real property as a result of a mortgage foreclosure sale. transfer of the proprietary lease(s) and the denominator is the total number of
shares of stock in the cooperative housing corporation.
Example: X, a mortgagee, has the highest bid at a foreclosure sale. X assigns Line 19 — Enter any other amount paid by the grantee to the grantor for the
the bid to an unrelated third party, Z, who ultimately acquires the property. Z is conveyance.
the grantee. The consideration for the conveyance of the real property is the bid
price paid by Z to the referee. Line 20 — Add lines 17, 18 and 19. This is the amount of consideration to be
Line 2 — Enter the amount of any continuing liens. Do not include the amount of entered on Form TP-584, Schedule B, Part I, line 1.
any liens or encumbrances included on line 1. Part IV
Line 3 — Add lines 1 and 2. If debt is nonrecourse or if the grantee is a person Line 21 — If the conveyance is to a secured party, or its agent, nominee or an
unrelated to the mortgagee or lienor, skip line 4 and enter the line 3 amount on entity owned by the secured party, who is enforcing a lien, security interest or
line 5. other rights on or in shares of stock, partnership interests or other instruments
Line 4 — Where the debt is recourse debt and the grantee is the mortgagee or (i.e., the transfer or acquisition of a controlling interest in an entity with an
lienor, its agent, nominee or an entity wholly owned by the mortgagee or lienor, interest in real property), enter the unpaid balance of the debt secured by the
enter the fair market value of the real property. pledge of the ownership interest in the entity. The unpaid balance of the debt
includes the principal, interest and other accruals secured by the pledge of the
Where the grantee is an entity partially owned by the mortgagee or lienor ownership interest.
and partially owned by a person unrelated to the mortgagee or lienor, if the Line 22 — Enter the amount of any other liens, security interests or other
percentage that represents the mortgagee’s or lienor’s beneficial interest in obligations remaining on the ownership interest in the entity after the
the grantee multiplied by the sum of the higher of the judgment of foreclosure conveyance. Do not include the amount of any liens, security interests or other
or bid price and any continuing liens, exceeds the fair market value of the real obligations included on line 21.
property multiplied by such mortgagee’s or lienor’s percentage, enter the sum
of (1) the fair market value of the real property multiplied by the percentage Line 23 — Enter the amount of any liens or encumbrances remaining on the real
that represents the mortgagee’s or lienor’s beneficial interest in the grantee, property of the entity multiplied by the percentage in the entity being transferred
and (2) the bid price plus continuing liens multiplied by the percentage that or acquired.
represents the unrelated person’s ownership interest in the grantee. Line 24 — Enter the amount of any other debt or obligation of the entity
Line 5 — If debt is recourse, enter line 3 or line 4, whichever is lower. If debt is multiplied by the percentage in the entity being transferred or acquired. Do not
nonrecourse or if the grantee is a person unrelated to the mortgagee or lienor, include the amount of any other debt or obligation of the entity included on
enter the amount from line 3. This is the amount of consideration to be entered line 23.
on Form TP-584, Schedule B, Part I, line 1. Line 25 — Enter any other amount paid by the grantee to the grantor for the
Attach a copy of the referee’s report of sale, if available. conveyance.
Part II Line 27 — Enter the apportionment of line 26 to the interest in real property
Line 6 — If real property is being conveyed to a mortgagee or lienor, or its owned by the entity. The apportionment is determined by multiplying line 26 by
agent, nominee or an entity wholly owned by the mortgagee or lienor, in lieu of a fraction, the numerator of which is the fair market value of the real property
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