§ 280. Reverse mortgage loans for persons sixty years of age or older.\n1. For purposes of this section the following terms shall have the\nfollowing meanings:\n (a) Reverse mortgage loans. A loan which is secured by a first\nmortgage on real property improved by a one- to four-family residence or\ncondominium that is the residence of the mortgagor(s) the proceeds of\nwhich are advanced to the mortgagor(s) during the term of the loan in\nequal installments, in advances through a line of credit or otherwise,\nin lump sums, or through a combination thereof.\n (b) Term reverse mortgage loan. Any reverse mortgage loan that has a\nfixed term to maturity.\n (c) Tenure reverse mortgage loan. Any reverse mortgage loan that does\nnot have a fixed term to maturity, but rather matures solely upon\ncontingent events, such as events including but not limited to death or\nthe real property securing the loan no longer being the mortgagors'\nprincipal residence.\n (d) 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 of financial services or\nany entity exempted from licensing pursuant to section five hundred\nninety of the banking law and approved for the making of reverse\nmortgage loans by the superintendent of financial services.\n (e) Mortgagor. A tenant in severalty who is sixty years of age or\nolder, or if the real property is held by tenants by the entirety or by\njoint tenancy, the youngest of which is sixty years of age or older.\n (f) Superintendent of financial services. The superintendent\nestablished pursuant to section two hundred two of the financial\nservices law.\n 2. A reverse mortgage loan pursuant to this section shall be subject\nto the following:\n (a) the loan to value ratio shall be determined by the superintendent\nof financial services; and\n (b) subject to such rules or regulations as the superintendent of\nfinancial services shall adopt, any authorized lender or any successor\nor assign of such authorized lender which suspends, ceases or makes late\npayments to a mortgagor under a reverse mortgage loan shall be subject\nto forfeiture (as liquidated damages to such mortgagor and not as a\npenalty) of twice the interest which would otherwise have been earned\nduring the period in which payments were suspended, ceased or made late,\nprovided that said authorized lender or any successor or assign of such\nauthorized lender shall have the right to make payments pursuant to said\nloan agreement within fifteen days of each payment date, without\npenalty; and\n (c) the outstanding balance may be prepaid in full by the mortgagor\nwithout penalty at any time during the term and/or tenure of the loan;\nand\n (d) an authorized lender is prohibited from using or attaching any\nproperty or asset of the mortgagor except the real property securing the\nreverse mortgage loan in settlement of a reverse mortgage obligation;\nand\n (e) the authorized lender must deliver to an applicant such\ndisclosures as may be required by the superintendent of financial\nservices which shall describe the relevant portions of the reverse\nmortgage being offered, and shall include but not be limited to the\nfollowing items:\n (i) except for a tenure reverse mortgage loan, a schedule of payments\nto and from the mortgagor and the total payments in dollars over the\nterm of the reverse mortgage loan for both the mortgagor and mortgagee\ndepending on the type of reverse mortgage loan being offered;\n (ii) a statement prominently displayed advising applicants to consult\nwith appropriate authorities regarding tax and estate planning\nconsequences of a reverse mortgage;\n (iii) where applicable a description of prepayment and refinancing\nfeatures;\n (iv) the interest
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