Section 352-L. Cooperative corporations

1.  For  the  purposes  of this
  section, "non-occupying owner" shall mean  the  owner  of  shares  in  a
  cooperative  corporation who does not occupy the dwelling units to which
  his or her shares are allocated.
    2. If a non-occupying owner rents any dwelling unit to  a  tenant  and
  then  fails  to  make  payments due for maintenance, assessments or late
  fees for such unit within sixty days of  the  expiration  of  any  grace
  period  after  they  are due, upon notice in accordance with subdivision
  three of this section, all rental payments  from  the  tenant  shall  be
  directly payable to the cooperative corporation.
    3.  If the maintenance, assessments or late fees due for any unit have
  not been paid in full within sixty days  after  the  expiration  of  any
  grace  period  of  the  earliest  due date, the board of directors shall
  provide written notice to the rental tenant and the non-occupying  owner
  providing  that,  commencing  immediately  and  until  such  time as all
  payments for maintenance, assessments or late fees are made current, all
  rental payments due subsequent to the issuance of such notice are to  be
  made payable to the cooperative corporation at the address listed on the
  notice.  Where  a majority of the board of directors has been elected by
  and from among the owners who are in occupancy, the board may elect  not
  to  require  that  rental  payments  be  made payable to the cooperative
  corporation. At such time as payments for maintenance,  assessments  and
  late fees from the non-occupying owner are once again current, notice of
  such fact shall be given within three business days to the rental tenant
  and  non-occupying  owner.  Thereafter all rental payments for such unit
  shall be made payable to the non-occupying  owner  or  to  a  designated
  agent.  A non-occupying owner who disputes the cooperative corporation's
  claim to rental payments pursuant to this section shall be  entitled  to
  present  facts  supporting  such  owner's position at the next scheduled
  meeting of the board of directors, which must be held within thirty days
  of the date that such board receives notice that  such  owner  seeks  to
  dispute such claim.
    4.  Nothing  in this section shall limit any rights of shareholders or
  of the board of directors existing under any other law or agreement.
    5. Payment by a rental tenant to the cooperative corporation  made  in
  connection  with  this section shall relieve that rental tenant from the
  obligation to pay such rent to the non-occupying owner and shall  be  an
  absolute  defense  in  any  non-payment  proceeding  commenced  by  such
  non-occupying owner against such tenant for such rent.