N.Y. LIE Law § 22 — New York Code / Act LIE / Article 2 / Section 22
Building loan contract
Status: in_force

§ 22. Building loan contract. A building loan contract either with or\nwithout the sale of land, and any modification thereof, must be in\nwriting and duly acknowledged, and must contain a true statement under\noath, verified by the borrower, showing the consideration paid, or to be\npaid, for the loan described therein, and showing all other expenses, if\nany, incurred, or to be incurred in connection therewith, and the net\nsum available to the borrower for the improvement, and, on or before the\ndate of recording the building loan mortgage made pursuant thereto, to\nbe filed in the office of the clerk of the county in which any part of\nthe land is situated, except that any subsequent modification of any\nsuch building loan contract so filed must be filed within ten days after\nthe execution of any such modification. No such building loan contract\nor any modification thereof shall be filed in the register's office of\nany county. If not so filed the interest of each party to such contract\nin the real property affected thereby, is subject to the lien and claim\nof a person who shall thereafter file a notice of lien under this\nchapter. A modification of such contract shall not affect or impair the\nright or interest of a person, who, previous to the filing of such\nmodification had furnished or contracted to furnish materials, or had\nperformed or contracted to perform labor for the improvement of real\nproperty, but such right or interest shall be determined by the original\ncontract. The county clerk is entitled to a fee of twenty-five dollars,\nexcept in counties within the city of New York where the fee shall be\nfifty dollars, for filing such a contract or modification. Except where\nthe county clerk maintains a block index, such contracts and\nmodifications thereof shall be indexed in a book provided for that\npurpose, in the alphabetical order of the names of the persons to whom\nsuch loans shall be made. No assignment of the moneys due or to become\ndue under a building loan contract, under the provisions of section\ntwenty-six of this article, nor any payment to the holder of such\nassignment, shall be or be construed to be a modification of a building\nloan contract within the meaning of this section, and the execution and\ndelivery of a bond and mortgage, under the provisions of section\ntwenty-six of this article, or payments thereunder, shall not be or be\nconstrued to be the making of a building loan contract within the\nmeaning of this section.\n  Except that this section shall not apply to any mortgage taken by the\nhome owners' loan corporation, a corporation created under an act of\ncongress, known as the "home owners' loan act of nineteen hundred\nthirty-three" and the "home owners' loan act of nineteen hundred\nthirty-three as amended," and said mortgage shall have priority over any\nand all liens filed subsequent to the date of the recording of said\nmortgage whether or not the cash and/or bonds for which said mortgage\nhas been taken as security, shall have been advanced at the time of the\nexecution of such mortgage or subsequent thereto, and it shall not be\nnecessary to execute and file any building loan contract or any other\ncontract, in compliance with this section or any part thereof.\n  Where the county clerk indexes liens in a block index, every building\nloan contract presented to the clerk for filing, in order to entitle the\nsame to be filed, shall contain in the body thereof, or shall have\nendorsed thereon, a designation of the number of every block, on the\nland map of the county, which is affected by the building loan contract.\nThe county clerk shall cause such building loan contract to be entered\nin the block index, under the block number of every block so designated.\nIn cases where a building loan contract shall have been filed without\nsuch designation or with an erroneous designation, the county clerk, on\npresentation of proper proof thereof, shall enter such instrument in the\nproper index, under the proper block number of every block in which the\nland affected is situated, and shall, at the same time, make a note of\nsuch entry and of the date thereof in every place in which such\ninstrument may have been erroneously indexed, opposite the entry\nthereof, and also upon the instrument itself, if the same be in his\npossession or produced to him for the purpose, and the filing of such\ninstrument shall be constructive notice as to property in the block not\nduly designated at the time of such filing only from the time when the\nsame shall be properly indexed.\n  A county clerk may adopt a new indexing system utilizing\nelectro-mechanical, electronic or any other method he deems suitable for\nmaintaining the indexes.\n