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Future Legislation May Affect the Recovery

In addition to legislation already enacted in response to the pandemic, we can expect additional legislation in the future. The State Legislature is considering bills to suspend residential and commercial rent and mortgage obligations during the period of the COVID-19 emergency, as well as bills providing for commercial rent control. In the New York City Council, one bill would suspend the enforceability of personal guarantees on commercial leases, where the default or other event triggering the guarantee occurred during the state of emergency and the lessor was adversely impacted by the pandemic. Another recently introduced bill would suspend the enforcement of any judgments issued by the courts in civil cases, including money judgments and evictions until April 2021 where the debtor has been adversely affected by COVID-19. The prospects of all these proposals is uncertain, and if enacted, they are certain to be challenged in court on constitutional grounds.