§ 6501. Definitions. In this article:\n (a) "Mortgage guaranty insurance" means insurance against financial\nloss by reason of nonpayment of any sum required to be paid under the\nterms of any instrument of indebtedness secured by a lien on real\nestate.\n (b) "Mortgage insurer" means a person licensed to transact the\nbusiness of mortgage guaranty insurance in this state.\n (c) "Authorized real estate security" means:\n (1) an amortized instrument of indebtedness evidencing a loan secured\nby a first lien on real estate which at the time the loan is made is not\nless than eighty percent but not more than one hundred three percent of\nthe fair market value of the real estate with any percentage in excess\nof one hundred percent being used to finance the fees and closing costs\non such indebtedness, except, however, for reverse mortgage loans made\npursuant to sections two hundred eighty and two hundred eighty-a of the\nreal property law; provided that:\n (A) the loan is one which a regulated mortgage investor is authorized\nto make;\n (B) the improvement is a residential building or buildings designed\nfor occupancy by not more than four families or is a condominium unit;\n (C) the lien may be subordinate to:\n (i) the lien of any public bond, assessment, or tax, when no\ninstallment, call or payment of or under such bond, assessment or tax is\ndelinquent; and\n (ii) outstanding mineral, oil or timber rights, easements or other\nrestrictions on use, or leases under which rents or profits are\nreserved;\n (2) an amortized instrument of indebtedness evidencing a loan secured\nby a junior lien on real estate which, when combined with all existing\nmortgage loan amounts at the time the loan is made, is not more than one\nhundred percent of the fair market value of the real estate; provided\nthat:\n (A) in determining the foregoing one hundred percent limitation, if\nthe loan securing the junior lien is an equity line of credit loan, the\nfull amount of the line of credit to be secured by the junior lien shall\nbe considered the amount of the loan;\n (B) the loan is one which a regulated mortgage investor is authorized\nto make;\n (C) the improvement is a residential building or buildings designed\nfor occupancy by not more than four families or is a condominium unit;\n (D) in addition to any senior liens securing any amortized instruments\nof indebtedness on real estate, qualifying under paragraph one of this\nsubsection, the junior lien may be subordinate to:\n (i) the lien of any public bond, assessment, or tax, when no\ninstallment, call or payment of or under such bond, assessment or tax is\ndelinquent; and\n (ii) outstanding mineral, oil or timber rights, easements or other\nrestrictions on use, or leases under which rents or profits are\nreserved;\n (3) an amortized instrument of indebtedness evidencing a loan secured\nby an ownership interest in, and a proprietary lease from, a corporation\nor partnership formed for the purpose of the cooperative ownership of\nreal estate in this state and which at the time the loan is made is not\nless than eighty percent nor more than one hundred percent of the\npurchase price of the ownership interest and the proprietary lease, if\nthe loan is one which a regulated mortgage investor is authorized to\nmake. In this article unless the context clearly requires otherwise, any\nreference to a mortgagor shall include an owner of such an ownership\ninterest as described in this paragraph and any reference to a lien or\nmortgage shall include the security interest held by a lender in such an\nownership interest;\n (4) an amortized instrument of indebtedness, evidencing a loan which\notherwise conforms to the requirements of paragraph one or three of this\nsubsection, and which has been amortized to less than eighty percent of\nthe fair market value of the real estate at the time said loan was made;\nprovided the borrower is not obligated directly or indirectly to pay any\npremi
‹ Prev All New York sections Next ›
Lexace provides legal information, not legal advice, and no attorney–client relationship is created. Statute text is provided for general information and may not reflect the most recent amendments; verify against the official state code.