* § 6-o. Reverse cooperative apartment unit loans for persons\nsixty-two years of age or older. 1. For purposes of this section, the\nfollowing terms shall have the following meanings:\n (a) Reverse cooperative apartment unit loan. A loan which is secured\nby shares or membership in a cooperative apartment that is or intended\nto be the primary residence of the borrower or borrowers the proceeds of\nwhich are advanced to the borrower or borrowers during the term of the\nloan in equal installments, or in advances through a line of credit or\notherwise, in a lump sum, or through a combination thereof. Interest and\nfees will accrue during the life of the loan and will be added to the\nprincipal balance of the loan, but will not become due and payable until\nthe borrower(s) dies, permanently vacates the apartment or defaults on\nthe terms of the loan, and will continue to accrue until the loan is\npaid in full.\n (b) Loan payout options:\n (i) Term payment option. Under the term payment option, equal monthly\npayments are made by the lender to the borrower for a fixed term of\nmonths chosen by the borrower.\n (ii) Tenure payment option. Under the tenure payment option, equal\nmonthly payments are made by the lender to the borrower, until the loan\nis prepaid in full or becomes due and payable.\n (iii) Line of credit payment option. Under the line of credit payment\noption, payments are made by the lender to the borrower at times and in\namounts determined by the borrower as long as the amounts do not exceed\nthe maximum amount of loan proceeds.\n (iv) Single lump sum payment option. Under the single lump sum payment\noption, the borrower receives an amount from the lender that does not\nexceed the maximum amount of loan proceeds. Set asides required for\ndisbursements such as loan closing costs or for monthly maintenance\nfees, will be deducted from the amount of proceeds available to the\nborrower.\n (c) Authorized lender. Any bank, trust company, national banking\nassociation, savings bank, savings and loan association, federal savings\nbank, federal savings and loan association, credit union, or federal\ncredit union or any licensed mortgage banker approved for the making of\nreverse mortgage loans by the superintendent or any entity exempted from\nlicensing pursuant to section five hundred ninety of this chapter and\napproved for the making of reverse mortgage loans by the superintendent.\n (d) Borrower. A tenant in severalty who is sixty-two years of age or\nolder, or if the cooperative apartment unit is held by tenants by the\nentirety or by joint tenancy, the youngest of which is sixty-two years\nage or older.\n (e) Superintendent. The superintendent of financial services of this\nstate.\n (f) Department. The department of financial services of this state.\n (g) Third-party contact. The lender must ask the borrower if they want\nto designate a third-party contact, such as a family member, trusted\nfriend, advisor or other party whom the borrower would like to be\ncontacted. It shall be the borrower's discretion to choose if the\nthird-party contact is to be contacted if (i) the borrower has not\nreturned the occupancy form, and/or (ii) the loan is in default for any\nreason and the lender plans to proceed on collecting on the loan, i.e.,\ninitiating eviction or foreclosure and/or (iii) the borrower cannot be\nreached.\n 2. A cooperative apartment unit loan pursuant to this section shall be\nsubject to the following:\n (a) the borrower shall be granted lifetime possession of the subject\npremises of the cooperative apartment unit for which the shares or\nmembership are the security for the reverse cooperative apartment unit\nloan, as long as such apartment unit remains the borrowers' primary\nresidence and the borrower is not in default under the reverse\ncooperative apartment unit loan. The borrower or borrowers must certify\nannually on each anniversary of the loan, that they reside in the unit\nand that it i
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