NY Real Prop L § 281 (2021)
2021 New York Laws RPP - Real Property Article 8 - Conveyances and Mortgages 281 - Credit Line Mortgage.

§  281. Credit line mortgage. 1. (a) 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, 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  purposes  of this section, "credit line mortgage" shall include a reverse mortgage loan  as  defined  in  sections  two  hundred eighty  and  two  hundred  eighty-a  of  this article except that such a credit line mortgage of the reverse mortgage  loan  type  shall  not  be subject  to  the  twenty year limitation set forth in subdivision two of this section.  (b) Payments made by an authorized lender pursuant to any credit  line reverse mortgage made in accordance with section two hundred eighty-a of this  article  during  any  one  year shall be limited to such amount or ratio as may be determined by the superintendent of financial  services. In  the  event  that  a borrower does not take payment under such credit line during the course of any year then that  borrower  shall  have  the ability to increase the yearly payments by that amount available but not borrowed during previous years.   2.  Any credit line mortgage may, and when so expressed therein, shall secure not only the original  indebtedness  but  also  the  indebtedness created  by future advances thereunder made within thirty years from the date of the  recording  of  such  credit  line  mortgage,  whether  such advances are obligatory or are to be made at the option of the lender or otherwise,  to  the same extent and with the same priority of lien as if such future advances had been made at the time such credit line mortgage was recorded pursuant to section two hundred ninety-one of this chapter, although there may have been  no  advances  made  at  the  time  of  the execution  and acknowledgment of such credit line mortgage, and although there may be no indebtedness outstanding at  the  time  any  advance  is made.  The  total  amount  of  indebtedness  that may be so secured by a credit line mortgage may increase or decrease from time to time, but the amount so secured at any one time shall not exceed  the  maximum  amount specified  in  such  credit  line mortgage, plus interest thereon at the rate provided therein, and plus any disbursements made  to  protect  the security   of   such   credit  line  mortgage,  with  interest  on  such disbursements at the rate provided therein.   3. Nothing in this section shall affect the priority of a  lien  under article two of the lien law with respect to future advances made under a credit  line  mortgage after the filing of the notice of such lien under the lien law.   4. This section shall apply to advances made after the effective  date of  this  section under a credit line mortgage, whether such credit line mortgage is recorded  on  or  after,  or  was  recorded  prior  to,  the effective date of this section.   5.  Nothing  in  this  section  shall be construed to limit, impair or otherwise affect the priority under applicable law without reference  to this section of a mortgage, deed of trust, encumbrance or lien which was recorded or filed prior to the effective date of this section.