Bulletin: NY000142

Dear Associates:

Pursuant to Local Law 47, signed by Mayor Guiliani last week, the annual vault charge affecting vault spaces under or abutting properties located within the City of New York, will not be imposed on or after June 1, 1998. The charge was apparently viewed by the present Administration as being a "nuisance" tax, and as such an impediment to the promotion of the City of New York as a "business friendly" environment. A copy of the Local Law is available through the New York City Office.

Please note, however, that presently outstanding vault charges for prior years as well as those entered on June 1, 1997 for the 1997 tax year, continue to be effective and enforceable against properties on which they have been assessed and will remain effective until they are paid, canceled or otherwise discharged.

Notwithstanding the caution that should be exercised regarding present and past due vault charges, the repeal of the "vault tax" is, in our opinion, a positive development. It removes one more impediment to the real estate closing process in New York City, and conveys the message that the City of New York is a great place to do business.

Should you have any questions, please contact Company Counsel.