NY Tax L § 253-B (2021)
2021 New York Laws TAX - Tax Article 11 - Tax on Mortgages 253-B - Credit Line Mortgage.

§  253-b. Credit line mortgage.  1. In the case of a mortgage which is   a credit line mortgage, as defined in subdivision two of  this  section,   of  real property principally improved or to be improved by a one to six   family owner-occupied residence  or  dwelling,  the  principal  debt  or   obligation  which is or under any contingency may be secured at the date   of execution of such mortgage or  at  any  time  thereafter  within  the   meaning  of  this  article  shall  mean  the  maximum  principal  amount   specified in such mortgage. If the tax imposed by and  pursuant  to  the   authority  of  this article is paid on such maximum principal amount, no   further tax shall be payable on advances or  readvances  by  the  lender   pursuant  to  the  recorded  primary mortgage, provided such advances or   readvances are made to the original obligor or obligors  named  in  such   recorded primary mortgage.  In the event the maximum principal amount of   a  credit  line  mortgage  is increased, a tax is imposed as provided in   section two hundred fifty-three and pursuant to the authority of section   two hundred fifty-three-a  of  this  article  on  such  new  or  further   indebtedness  or  obligation when the instrument evidencing such further   indebtedness is recorded. In order to better enforce the  provisions  of   this  subdivision  and  for  the  privilege  of  recording an instrument   evidencing a sale or transfer of real property on which the  lien  of  a   credit  line  mortgage  remains  outstanding, in the event that a credit   line mortgage remains outstanding after the sale or transfer of the real   property securing the credit line mortgage to a person or persons who is   or are not related  to  the  original  obligor  or  obligors  by  blood,   marriage  or  adoption,  or where such credit line mortgage that remains   outstanding after such sale or transfer is a  credit  line  mortgage  of   property other than real property principally improved or to be improved   by  a  one to six family owner-occupied residence or dwelling, taxes are   imposed at the rates applicable under section  two  hundred  fifty-three   and  pursuant  to  the authority of section two hundred fifty-three-a on   the principal debt or obligation which is or under any  contingency  may   be  secured  at  the  date  when  the  instrument evidencing the sale or   transfer is recorded and no such instrument shall be recorded until  the   taxes imposed in this section are paid.1-a.  In  the  case  of a mortgage which is a credit line mortgage, as   defined in subdivision two of this section, of property other than  real   property  principally  improved or to be improved by a one to six family   owner-occupied residence or dwelling, and where such mortgage is  of  an   amount  less than three million dollars, the tax imposed by and pursuant   to the authority of this article shall be imposed and paid  pursuant  to   the provisions of subdivision one of this section.2.  For  the  purposes of this section, a "credit line mortgage" shall   mean any mortgage or deed of trust, other than a  mortgage  or  deed  of   trust   made  pursuant  to  a  building  loan  contract  as  defined  in   subdivision thirteen of section two of the lien law, which  states  that   it  secures  indebtedness  under  a  note,  credit  agreement  or  other   financing agreement that reflects the fact that the  parties  reasonably   contemplate  entering  into  a series of advances, or advances, payments   and readvances, and  that  limits  the  aggregate  amount  at  any  time   outstanding  to  a  maximum amount specified in such mortgage or deed of   trust. For the purpose of this section, "credit line mortgage" shall not   include a reverse mortgage as defined in sections two hundred eighty and   two hundred eighty-a of the real property law.3. The commissioner shall promulgate regulations to  provide  for  the   enforcement  and  administration  of the taxes imposed by or pursuant to   subdivisions one and one-a of this section.