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NEW YORK STATE
REAL PROPERTY ACTIONS AND PROCEEDINGS LAW
(RPAPL)

ARTICLE 4

VALUING INTERESTS IN REAL PROPERTY

Section   401.      When interests are valued under this article.

          402.      Interest rate.

          403.      Mortality and other tables.

          404.      Evidence as to ancestry, health and habits of
                    individual.

          405.      Interest defeasible by remarriage.

          406.      Computation by superintendent of insurance.

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Sec. 401. WHEN INTERESTS ARE VALUED UNDER THIS ARTICLE.

The following interests shall be valued in the manner provided by
this article:

(a)  an interest in real property dependent as to value upon the
     duration of one or more lives in being, whether such
     interest is present or future; and

(b)  a future interest preceded only by one or more interests
     described in clause (a); whenever

     1.   the owner of such interest is entitled to receive a sum
          in gross in satisfaction of, or in compensation for
          impairment of, his interest in real property which has
          been transformed into a fund by judicial action or
          proceeding; or

     2.   ownership of real property is divided into successive
          legal interests, including one or more interests
          dependent as to value upon the duration of one or more
          lives of persons in being, and the fraction of complete
          ownership belonging to each partial owner must be
          ascertained so as to permit an adjudication of the
          fraction of some new capital expenditure required
          either for the payment of a mortgage, special
          assessment or other lien upon such property, or for the
          satisfaction of an obligation imposed by law as an
          incident of ownership; or

     3.   such valuation is necessary for the final determination
          of some action or proceeding, other than an action or
          proceeding for which the insurance law, the workmen's
          compensation law or the tax law prescribes methods of
          valuation.


Sec. 402. INTEREST RATE.

In all valuations made under this article, the interest rate of
four per centum, compounded annually, shall be employed for all
purposes.


Sec. 403. MORTALITY AND OTHER TABLES.

In all valuations made under this article where such valuation
depends upon the continuance of, or upon the termination of a
life or lives in being, the table of mortality prescribed by
section four thousand two hundred seventeen of the insurance law
for new, ordinary life policies shall be employed in the manner
required by accepted actuarial practice. If, in any case, such
table fails to provide required data, other tables accepted by
actuarial practice may be employed.


Sec. 404. EVIDENCE AS TO ANCESTRY, HEALTH AND HABITS OF
          INDIVIDUAL.

In all valuations made under this article, no significance shall
be given to the ancestry, health or habits of the person whose
life is involved. Each valuation shall be based exclusively on
the actuarial data.


Sec. 405. INTEREST DEFEASIBLE BY REMARRIAGE.

Whenever an interest is defeasible on the remarriage of a person
whose life is involved, this fact of defeasibility may be taken
into account in the valuation of any such interest or of any
interest subject thereto, if justice requires. For this purpose,
the Casualty Actuarial Society's Table on Remarriage or other
tables accepted by actuarial practice shall be employed.


Sec. 406. COMPUTATION BY SUPERINTENDENT OF INSURANCE.

Any court, judge, referee or other judicial or administrative
officer by whom any valuation under this article must be made is
authorized to transmit to the superintendent of insurance such
statement of facts as is necessary to permit the required
computation, and such superintendent shall thereupon make the
computation and, without charge, certify the same to the court or
other officer submitting such statement. Any such certificate
shall be conclusive evidence that the method of computation
adopted therein is correct.




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