Loss of equity

A loss of value of equity does not count as damage to or loss of property for the purposes of the article.

Rule: Equity-value loss ≠ property damage

The section

Section 1423 is a short interpretive rule. It clarifies that 'the loss of value of equity shall not count as damage to or loss of property for the purposes of this article.' In other words, when the catastrophic-risk threshold turns on more than one billion dollars in property damage or loss, a drop in share or equity value is not the kind of loss that counts — the harm must be to property itself.

Defined terms

Catastrophic risk

Read the full signed bill (S.8828)

Source: New York General Business Law § 1423, Article 44-B (the RAISE Act), as revised by the S8828 chapter amendment. The titles and summaries here are drawn from the enacted text of the RAISE Act (S.8828). Provided for orientation, not legal advice.

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