NY Pub Auth L § 2402 (2021)
2021 New York Laws PBA - Public Authorities Article 8 - Miscellaneous Authorities Title 17 - State of New York Mortgage Agency Act Part 1 2402 - Definitions.

§  2402.  Definitions.  As used in this title, the following words and terms shall  have  the  following  meanings  unless  the  context  shall indicate another or different meaning or intent:  (1)  "Agency".  The  state  of New York mortgage agency, the corporate governmental agency created by section two thousand four  hundred  three of this title.   * (2)  "Bank".  Any  bank  or trust company, savings bank, savings and loan  association,  industrial  bank,  credit  union,  national  banking association,  federal savings and loan association, federal savings bank or federal credit union which is located in the state. The  term  "bank" shall  also  include  a  New  York  state licensed mortgage banker, or a domestic  not-for-profit  corporation  whose  public  purposes   include combatting  community  deterioration and which is an exempt organization as defined in paragraph (e) of subdivision one of section  five  hundred ninety of the banking law, or an entity exempt from licensing provisions in  accordance  with  paragraph  (a) of subdivision two of such section, which in any such case is approved as a mortgage lender by  the  Federal National  Mortgage  Association  or  by  the  Federal Home Loan Mortgage Corporation, or domestic not-for-profit corporations that are  certified by  the  United  States  department of treasury as community development financial institutions or licensed by the New York state  department  of financial services.   * NB Effective until July 23, 2023   * (2)  "Bank".  Any  bank  or trust company, savings bank, savings and loan  association,  industrial  bank,  credit  union,  national  banking association,  federal  savings  and  loan  association or federal credit union which is located in the state.   * NB Effective July 23, 2023  (3) "Bonds" and "Notes". The bonds and notes  respectively  issued  by the agency pursuant to this title.  (4) "Comptroller". The comptroller of the state.   * (5)  "Mortgage".  A loan owed to a bank secured by a first lien on a fee simple or leasehold estate in real property located in the state and improved by a residential structure or, on which a residential structure for use as single-family modular or manufactured housing  purchased  and sited  on  land  shall  be  constructed using the proceeds of such loan, whether or not insured or guaranteed by the United States of America  or any  agency  thereof. The term "mortgage" shall also include a loan owed to a bank secured by a second lien on a fee simple or  leasehold  estate in  real  property  located  in  the state and improved by a residential structure or on which a residential structure for use  as  single-family modular  or  manufactured  housing  purchased and sited on land shall be constructed  using  the  proceeds  of  the  related  loan  described  in paragraph  (a)  or  (b)  of  this subdivision, whether or not insured or guaranteed by the United  States  of  America  or  any  agency  thereof, provided,  however,  that such second lien: (a) secures a loan purchased by the agency, and (b) is made at the same time as a first lien securing a loan purchased by  the  agency  pursuant  to  its  programs  or  by  a government  sponsored  enterprise  or  is made at the same time as a new housing loan purchased by the agency  pursuant  to  section  twenty-four hundred  five-c  of  this  part.  The term "mortgage" shall also include loans made by the agency and secured by a second lien on a fee simple or leasehold estate in real property located in the state and improved by a residential structure or on which a residential  structure  for  use  as single-family  modular  or  manufactured  housing purchased and sited on land shall be constructed using the proceeds of such  loan,  whether  or not  insured or guaranteed by the United States of America or any agency thereof, provided however, that the loan made by the agency and  secured  by  such second lien is made at the same time as a first lien securing a mortgage loan purchased by the agency pursuant to its programs or  by  a government  sponsored  enterprise.  In  the  case  of  any  second  lien purchased  or  made  hereunder,  the  mortgagor  shall  be  obligated to contribute from his or her own verifiable funds an amount not less  than such  percentage  as  the  agency  shall  determine, of the lower of the purchase price or appraised value of the property subject to  the  first lien.  "Real  property"  as  used  in this subdivision shall include air rights.   For the purposes of this title and of section one hundred eighty-seven of the tax law, "mortgage" shall include housing loans as defined below. Except for the purposes of  subdivision  seven  of  section  twenty-four hundred  five and subdivision eight of section two thousand four hundred five-b of this part, "mortgage" shall also include a loan owed to a bank by an individual borrower incurred for  the  purpose  of  financing  the purchase  of  certificates of stock or other evidence of ownership of an interest in,  and  a  proprietary  lease  from,  a  cooperative  housing corporation  formed  for  the  purpose  of  the cooperative ownership of residential real estate in  the  state,  secured  by  an  assignment  or transfer  of  the benefits of such cooperative ownership, and containing such terms and conditions as the agency may approve.   * NB Effective until July 23, 2023   * (5) "Mortgage". A loan owed to a bank secured by a first lien  on  a fee simple or leasehold estate in real property located in the state and improved   by  a  residential  structure,  whether  or  not  insured  or guaranteed by the United States of America or any  agency  thereof.  The term  "mortgage"  shall  also include a loan owed to a bank secured by a second lien on a fee simple or leasehold estate in real property located in the state and improved by a residential  structure,  whether  or  not insured  or  guaranteed  by  the  United States of America or any agency thereof, provided, however, that such second lien: (a)  secures  a  loan purchased  by  the  agency,  and (b) is made at the same time as a first lien securing a loan purchased by the agency pursuant to its programs or by a government sponsored enterprise or is made at the same  time  as  a new housing loan purchased by the agency pursuant to section twenty-four hundred  five-c  of  this  part.  The term "mortgage" shall also include loans made by the agency and secured by a second lien on a fee simple or leasehold estate in real property located in the state and improved by a residential structure, whether or  not  insured  or  guaranteed  by  the United  States  of America or any agency thereof, provided however, that the loan made by the agency and secured by such second lien is  made  at the  same time as a first lien securing a mortgage loan purchased by the agency pursuant to its programs or by a government sponsored enterprise. In the case  of  any  second  lien  purchased  or  made  hereunder,  the mortgagor  shall  be  obligated  to  contribute  from  his  or  her  own verifiable funds an amount not less than such percentage as  the  agency shall  determine,  of the lower of the purchase price or appraised value of the property subject to the first lien. "Real property"  as  used  in this subdivision shall include air rights.   Except  for  the purposes of subdivision seven of section two thousand four hundred five of this part, "mortgage" shall  also  include  a  loan owed  to  a  bank  by an individual borrower incurred for the purpose of financing the purchase of certificates of stock  or  other  evidence  of ownership of an interest in, and a proprietary lease from, a cooperative housing  corporation formed for the purpose of the cooperative ownership of residential real estate in the state, secured  by  an  assignment  or transfer  of  the benefits of such cooperative ownership, and containing such terms and conditions as the agency may approve.    * NB Effective July 23, 2023 until July 23, 2023   * (5)  "Mortgage".  A loan owed to a bank secured by a first lien on a fee simple or leasehold estate in real property located in the state and improved  by  a  residential  structure,  whether  or  not  insured   or guaranteed  by  the  United States of America or any agency thereof. The term "mortgage" shall also include a loan owed to a bank  secured  by  a second lien on a fee simple or leasehold estate in real property located in  the  state  and  improved by a residential structure, whether or not insured or guaranteed by the United States  of  America  or  any  agency thereof,  provided,  however,  that such second lien: (a) secures a loan purchased by the agency, and (b) is made at the same  time  as  a  first lien securing a loan purchased by the agency pursuant to its programs or is  made  at the same time as a new housing loan purchased by the agency pursuant to section twenty-four hundred five-c of this  part.  The  term "mortgage"  shall also include loans made by the agency and secured by a second lien on a fee simple or leasehold estate in real property located in the state and improved by a residential  structure,  whether  or  not insured  or  guaranteed  by  the  United States of America or any agency thereof, provided however, that the loan made by the agency and  secured by  such second lien is made at the same time as a first lien securing a mortgage loan purchased by the agency pursuant to its programs or  by  a government  sponsored  enterprise.  In  the case of any second lien, the mortgagor  shall  be  obligated  to  contribute  from  his  or  her  own verifiable  funds  an amount not less than such percentage as the agency shall determine, of the lower of the purchase price or  appraised  value of  the  property  subject to the first lien. "Real property" as used in this subdivision shall include air rights.   Except for the purposes of subdivision seven of section  two  thousand four  hundred  five  of  this part, "mortgage" shall also include a loan owed to a bank by an individual borrower incurred  for  the  purpose  of financing  the  purchase  of  certificates of stock or other evidence of ownership of an interest in, and a proprietary lease from, a cooperative housing corporation formed for the purpose of the cooperative  ownership of  residential  real  estate  in the state, secured by an assignment or transfer of the benefits of such cooperative ownership,  and  containing such terms and conditions as the agency may approve.   * NB Effective July 23, 2023  (6) "State". The state of New York.  (7) "State agency". Any office, department, board, commission, bureau, division, public corporation, agency or instrumentality of the state.  (8)  "College".  Any  institution  of  higher education recognized and approved as such by the regents of the university  of  the  state  which provides  a  course of study leading to the granting of a post-secondary degree or diploma.  (9) "Career  institution".  A  business,  trade,  technical  or  other occupational school approved as such by the regents of the university of the state or accredited by a nationally recognized accrediting agency or association  accepted  as  such  by the regents of the university of the state.  (10) "Loan". A loan which the New  York  higher  education  assistance corporation  has  guaranteed  or agreed to guarantee pursuant to article fourteen of the education law to a person who is attending or  plans  to attend,  on  a  full-time  or  part-time  basis,  a  college  or  career institution, for the purpose  of  assisting  such  person  to  meet  his expenses  of  higher or career education; provided, however, in no event shall the amount of any such loan for any school year exceed  the  total amount of (i) the borrower's tuition and educational fees payable to the college  or career institution he is attending or is planning to attend,  and (ii) sums actually expended or incurred for room  and  board  during such  period, reduced by the total amount of (i) all General and Special Purpose Awards (as provided in article thirteen of the  education  law), and  (ii)  all  other  forms  of  direct  financial  aid received by the borrower during such  period,  however  denominated  and  from  whatever source  (other  than  the  borrower's family), which by its terms is not repayable by the borrower.   * (11) "Existing mortgage". A mortgage for which funds  were  advanced prior  to  the date of the most recent invitation of the agency to banks to sell mortgages to the agency.   * NB Repealed July 23, 2023   * (12) "Forward  commitment  mortgage".  A  mortgage,  which  includes construction  loans  for  single-family  modular or manufactured housing purchased and sited on land, for which a commitment to advance funds  is made  not  earlier  than  the  date  the  agency issues an invitation to purchase mortgages or such later date as specified in the invitation.  A mortgage  made in satisfaction of the obligation of a bank under section twenty-four hundred five of  this  part  is  not  a  forward  commitment mortgage.   * NB Repealed July 23, 2023   * (13)  "Housing  loan".  A  loan  owed to a bank, secured in a manner satisfactory to the agency, to  improve,  rehabilitate,  reconstruct  or redevelop  one  to  four  unit residences located in the state. The loan shall be insured or guaranteed by the United States of  America  or  any agency  thereof,  or by a firm which is authorized by the superintendent of financial services of the state of New York to issue such policies in the state.   * NB Repealed July 23, 2023   * (14) "Persons and families of low or moderate income".  Persons  and families  within  the  state  who  are  determined by the agency to lack sufficient income to pay enough to cause an adequate supply of credit to be made available for new  residential  improvement  loans  at  carrying charges  within  the  financial  means  of such persons and families and whose incomes are below the income levels determined by the agency to be in need of the assistance made available  by  this  title,  taking  into consideration,  without  limitation,  such factors as the following: (i) the amount of the total income of such persons and  families,  (ii)  the size  of  the  family  unit,  (iii)  the  cost to improve, rehabilitate, reconstruct or redevelop residential family  dwelling  units,  (iv)  the ability  of  such  persons  and  families  to pay the amounts charged in regular   banking   channels   for   credit   for   such    improvement, rehabilitation, reconstruction, or redevelopment work, and (v) standards established   by   various   programs  of  the  federal  government  for determining eligibility based on income of such persons and families.   * NB Repealed July 23, 2023  (15) "Blending". The financing of a single mortgage loan  partly  with the  proceeds  of  bonds  issued  pursuant to subdivision one of section twenty-four hundred seven of this title and partly with the proceeds  of bonds issued pursuant to subdivision two of such section.  (16)  "Employer". Any corporation, partnership, or sole proprietorship which maintains an office in the state.   * (17) "Government sponsored enterprises". Privately  owned,  publicly chartered  entities, and wholly-owned corporate instrumentalities of the United States within the department of housing  and  urban  development, created  pursuant  to  12  USC 1717(a)(2)(A), all created by Congress to encourage lending and reduce costs primarily in the  housing  sector  of the economy, and any successor entity or entities created by Congress to continue to serve said purposes.    * NB Repealed July 23, 2023