NY Banking L § 6-A (2021)
2021 New York Laws BNK - Banking Article 1 - Short Title; Definitions; Miscellaneous Provisions. 6-A - Investment in Obligations of Certain Persons Sixty-Five Years of Age or Over Incurred to Satisfy Real Property Tax Indebtedness.

§ 6-a.  Investment  in obligations of certain persons sixty-five years of age or over incurred to satisfy real property  tax  indebtedness.  1. Subject  to  such  regulations and restrictions as the superintendent of financial services finds to be necessary and proper and  notwithstanding any  inconsistent  provision  of this chapter to the contrary, any bank, trust company, savings bank,  savings  and  loan  association,  or  life insurance company authorized to do business in this state may make loans described in subdivision two of this section.   2.  Banking  institutions  described in subdivision one may make loans under this section to natural persons aged sixty-five or  older  subject to the following conditions:  (a)  the  principal  amount of the loan shall not exceed the aggregate amount of all real  property  taxes,  special  ad  valorem  levies,  and special  assessments  paid  or  owing by the borrower for the current or prior years or both with respect to real property owned individually  or jointly  by  such  borrower which constitutes the principal residence of such borrower; provided, however, that the loan  agreement  may  provide for  such  principal  amount  to  be  modified  to include the amount of additional real property taxes, special ad valorem levies,  and  special assessments pertaining to such property as they are incurred; and  (b)  such  loan  shall be secured by a first or second mortgage on the property which mortgage expressly states in like or similar terms  "this mortgage  is  given  to secure a loan made pursuant to the provisions of section six-a of the banking law"; and  (c) the annual interest chargeable on such loan shall not  exceed  the allowable  interest  chargeable  by such lender to any other person, not including a corporation, on an obligation secured by  a  first  mortgage lien; and  (d)  a  loan which is undertaken pursuant to this section shall not be payable until the sale or other disposition of such  property,  provided however  that  any  borrower  may  discharge  any  indebtedness  he  has undertaken pursuant to the  provisions  of  this  section  at  any  time without payment of any charges other than principal and interest.   3. Subject to regulations of the superintendent of financial services, banking  institutions described in subdivision one of this section which make loans pursuant to this section may, pursuant to the loan agreement, utilize part or all of the proceeds of such loan to make direct  payment of   real  property  taxes,  special  ad  valorem  levies,  and  special assessments  on  the  property  which  secures  such  loan.   Any   such institution  which  retains part or all of the proceeds of such loan for the purpose of making  direct  payment  of  such  real  property  taxes, special  ad  valorem  levies, and special assessments shall be liable to such borrower, upon failure to pay such taxes, levies,  and  assessments for the amount of such taxes, levies, and assessments plus penalties and interest imposed thereon.   4.  Every  banking  institution  which  makes  direct  payment of real property taxes, special  ad  valorem  levies,  and  special  assessments pursuant  to  subdivision  three  shall at least annually provide to the borrower any paid bill it has received for the payment  of  such  taxes, levies,  and  assessments.  Such bill shall be contained in a succeeding loan statement as may be sent to such borrower. This section  shall  not apply  to  billings  for real property taxes, special ad valorem levies, and special assessments transmitted by computer tape by a  city  with  a population of one million or more persons.