§ 280-a. Reverse mortgage loans for persons seventy years of age or\nolder. 1. For purposes of this section, the following terms shall have\nthe following meanings:\n (a) Reverse mortgage loan. A loan which is secured by a first mortgage\non 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, or in advances through a line of credit or\notherwise, in lump sums, or through a combination thereof.\n (b) Term reverse mortgage loan. As used in this section, any reverse\nmortgage loan that has a fixed term for payments to the mortgagor(s).\n (c) Tenure reverse mortgage loan. As used in this section, any reverse\nmortgage loan that does not have a fixed term for payments to the\nmortgagor(s).\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 seventy 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 seventy years of age or older\nand whose income does not exceed eighty percent of the median income of\nthe county in which he or she resides.\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 mortgagor shall be granted lifetime possession of the subject\npremises of the real property which is the security for the reverse\nmortgage loan, as long as such real property remains the mortgagors'\nprincipal residence and subject to a limited waiver of the right of\nforeclosure as determined by the superintendent of financial services;\nand\n (b) the term of the reverse mortgage, except for a tenure reverse\nmortgage loan, shall be for a period of ten years or less; and\n (c) the loan to value ratio shall be determined by the superintendent\nof financial services; and\n (d) subject to such rules or regulations as the superintendent of\nfinancial services shall adopt, for that period of time commencing at\nthe end of the loan term or ten years after the reverse mortgage loan\ncommences, whichever occurs first, and ending at such time as the\nreverse mortgage loan is paid in full, the authorized lender, at its\noption, may receive no more than twenty percent of the future\nappreciation of the property securing the reverse mortgage loan as full\nor partial consideration for the making of a reverse mortgage loan;\nprovided, however, that such future appreciation shall be limited by\nsuch rules and regulations as the superintendent of financial services\nmay adopt or the authorized lender may charge a fixed rate of interest\non the outstanding balance of monies advanced under the reverse mortgage\nagreement or any combination thereof. Said reverse mortgage loan shall\nnot come due and shall be extended until the voluntary relinquishment by\nthe mortgagors of possessory interest in such real property, the real\nproperty no longer being the mortgagors' principal residence, the death\nof the mortgagors, or such other events as may be determined by the\nsuperintendent of financial services. Any such appreciation shall not be\nconsidered interest for the purposes of any law regulating the maximum\nrate of interest which may be charged, taken or received including\nsections
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