2023 New York Laws › PBA - Public Authorities › Article 8 - Miscellaneous Authorities › Title 17 - State of New York Mortgage Agency Act › Part 2 › 2426 - Definitions.

§   2426.   Definitions.  As  used  in  sections  twenty-four  hundred
twenty-five through twenty-four hundred twenty-nine inclusive.
1. "Financial institution". Any bank, trust  company,  national  bank,
savings bank, state or federal savings and loan association, or state or
federal  credit  union,  insurance  company,  pension fund or retirement
system of any corporation, association, any other entity which is  owned
or  controlled  by  any  one  or more of the above, provided the same is
supervised by or responsible to any agency of  the  federal  government,
the  state,  any  department  thereof or the governing body of any city,
town or village of the state or any other entity approved by the  agency
or  any  one  or  more of the above when lawfully acting as a trustee or
otherwise in a fiduciary  capacity.  The  term  "financial  institution"
shall also include the New York state housing finance agency and the New
York  state  urban  development  corporation,  the New York city housing
development  corporation,  the  New  York  city  department  of  housing
preservation  and  development  and  any  person  who  is  approved as a
mortgage lender by the federal housing administration  for  purposes  of
insurance  issued by such administration or licensed by the state of New
York as a mortgage banker.
2. "Housing accommodation". Any  existing  building,  structure,  unit
thereof  or  unimproved  real property, which is used or occupied, or is
intended to be used or occupied,  wholly  or  partly,  as  the  home  or
residence of one or more persons.
3.   "Other  real  property".  Any  existing  building,  structure  or
unimproved property which is used or occupied, or is intended to be used
or occupied, primarily for the retail sale of goods or the rendering  of
services.
4.  "Mortgage insurance fund". The mortgage insurance fund established
pursuant to section twenty-four hundred twenty-nine-b of this article.
5. "Mortgage insurance fund requirement". For any category of loans or
development corporation credit support as  of  any  particular  date  of
computation,  an  amount  of  money or cash equivalents equal to (a) the
aggregate of (i) such insured amounts of each category of loans and such
amount of development corporation  credit  support  as  the  agency  has
determined  to  be  due  and  payable  as  of  such date pursuant to its
contracts to insure mortgages or provide development corporation  credit
support plus (ii) an amount equal to twenty per centum of the amounts of
each  category  of  loans insured under the agency's insurance contracts
plus twenty per centum of the amounts to be insured under  the  agency's
commitments to insure less the amounts payable in each category of loans
pursuant  to subparagraph (i) of this paragraph, provided, however, that
if the board of directors of the agency shall  have  established  a  per
centum  for  a  category  of loans, or for one or more loans within such
categories, pursuant to subdivision seven of section twenty-four hundred
twenty-eight of this part, such per  centum  shall  be  substituted  for
twenty  per  centum  in  this  paragraph  for such category or loan, and
provided further, that no such new per centum shall be lower than twenty
per centum  plus  (iii)  an  amount  equal  to  the  respective  amounts
established  by  contract  with  respect  to  each reserve and financial
support fund (which may be determined by  reference  to  percentages  of
amounts  required or permitted to be on deposit in said funds and may be
different for each such fund) for which the agency has  determined  that
the  development  corporation  credit  support account established under
section twenty-four hundred twenty-nine-b of this part is or will  be  a
source  or  potential  source of development corporation credit support,
less the amounts payable with respect to development corporation  credit
support  pursuant  to  subparagraph  (i)  of this paragraph less (b) the
aggregate of  the  amount  of  each  reinsurance  contract  procured  in

connection  with agency obligations determined by the board of directors
of  the  agency  to  be  a  reduction  pursuant  to  this  paragraph  in
calculating  the  mortgage  insurance  fund requirement. For purposes of
pool  insurance,  in no event shall the reserve requirement be less than
twenty percent of the  amounts  insured  under  the  agency's  insurance
contracts.
6.  "Mortgagee".  The  lender  under a mortgage eligible for insurance
pursuant to section twenty-four hundred twenty-eight  of  this  chapter,
and its successors and assigns approved by the agency.
7.  "Mortgagor".  The  original borrower under a mortgage eligible for
insurance pursuant to section twenty-four hundred twenty-eight  of  this
chapter, and its successors and assigns approved by the agency.
8.  "Operating  expenses".  All  costs  of  administering  the agency,
including  but  not  limited  to  salaries  and   wages,   expenses   of
administering  staff functions, fees of consultants, legal fees, charges
incurred for servicing insured mortgage loans, money management,  office
rents,  utility  charges,  cost  of  supplies,  furnishings,  equipment,
machinery and apparatus, maintenance and repair of  property  and  other
expenses incurred in connection with the foregoing.
9. "Region". One or more of the following named areas comprised of the
counties indicated:
(1) Buffalo: Cattaraugus, Chautauqua, Erie and Niagara counties;
(2)  Rochester: Genesee, Livingston, Monroe, Ontario, Orleans, Seneca,
Wayne, Wyoming and Yates counties;
(3) Syracuse: Cayuga, Cortland, Madison, Onondaga and Oswego counties;
(4) Elmira-Binghamton: Allegany, Broome, Chemung, Chenango,  Delaware,
Otsego, Schuyler, Steuben, Tioga and Tompkins counties;
(5)  Mid-Hudson:  Columbia, Dutchess, Greene, Orange, Putnam, Sullivan
and Ulster counties;
(6) Capital: Albany, Montgomery, Rensselaer, Saratoga, Schenectady and
Schoharie counties;
(7)  Mohawk  Valley-Northern:  Clinton,   Essex,   Franklin,   Fulton,
Hamilton,  Herkimer,  Jefferson, Lewis, Oneida, St. Lawrence, Warren and
Washington counties;
(8) Downstate: Rockland and Westchester counties;
(9) Long Island: Nassau and Suffolk counties;
(10) New York City: the five counties comprising the city of New York.
10.  "Rehabilitation".  Repairs,  alterations  or  improvements  of  a
housing  accommodation  designed  to raise the housing standards therein
or, in the case of other  real  property,  designed  to  provide  needed
improvements therein.
11.  "Preservation  loan".  A loan extended by a financial institution
for the purposes of refinancing existing indebtedness secured by one  or
more  mortgages on a housing accommodation or other real property and/or
financing the acquisition of  a  housing  accommodation  or  other  real
property  and  which  otherwise complies with the conditions established
pursuant to section twenty-four hundred twenty-eight of this chapter.
* 12.  "Rehabilitation  loan".  A  loan  extended   by   a   financial
institution  which may include the refinancing of existing indebtedness,
if any, secured by one or more mortgages on the housing accommodation or
other real property to be rehabilitated or financing the acquisition  of
the  housing  accommodation  or other real property to be rehabilitated,
and which otherwise complies with the conditions established pursuant to
section twenty-four hundred twenty-eight of this part, provided  however
that  a  sum  equal to at least twenty percent of the amount of the loan
shall be used for the cost of  rehabilitation  of,  or  construction  of
improvements on a housing accommodation or other real property; provided
further  that  such  percentage  shall  not  be required for a community

residence as such term is defined in subdivision twenty-eight of section
1.03 of the mental hygiene law, or for any  other  residential  facility
funded by, under contract with, or subject to regulation by or under the
jurisdiction  of the department of mental hygiene, providing services to
persons with mental disabilities as such term is defined in  subdivision
three of such section.
* NB Effective until July 23, 2025
* 12.   "Rehabilitation   loan".   A  loan  extended  by  a  financial
institution which may include the refinancing of existing  indebtedness,
if any, secured by one or more mortgages on the housing accommodation or
other  real property to be rehabilitated or financing the acquisition of
the housing accommodation or other real property  to  be  rehabilitated,
and which otherwise complies with the conditions established pursuant to
section  twenty-four  hundred  twenty-eight  of  this  chapter, provided
however that a sum equal to at least twenty-five percent of  the  amount
of  the  loan  shall  be  used  for  the  cost  of rehabilitation of, or
construction of improvements on a housing accommodation  or  other  real
property.
* NB Effective July 23, 2025
13.  "Residential  purposes".  The use or intended use of any space as
the home or residence of one or more persons, excluding use as a housing
accommodation for transients, but including  use  or  intended  use  for
emergency, transitional or shelter housing.
14.  "Cash  equivalent". A letter of credit, insurance policy, surety,
guarantee or other security arrangement.
15. "Pool insurance". Mortgage insurance provided  by  the  agency  to
insure an aggregate of mortgage loans.
16.  Reverse mortgage. A reverse mortgage loan pursuant to section two
hundred eighty or two hundred eighty-a of the real  property  law  shall
mean  a  loan  which  is  secured  by  a first mortgage on real property
improved by a one to four-family residence or condominium  that  is  the
residence  of  the  mortgagor, the proceeds of which are advanced to the
mortgagor during the  loan  term  in  equal  installments,  in  advances
through  a  line  of  credit  or  otherwise,  in lump sums, or through a
combination thereof. A reverse mortgage may be structured to provide for
the addition of accrued but unpaid interest to principal.  Such  reverse
mortgage  loan  may  provide for an initial lump-sum advance wherein the
mortgagor  may  receive  an  amount  necessary  to  pay  closing  costs,
including  but not limited to loan or commitment fees, if any, insurance
premiums, the cost of house repairs, legal fees, the cost of  annuities,
the  costs  of  third  party counseling, the amount necessary to pay off
existing mortgages or liens, and other appropriate costs.
17. "Ancillary bond facility".  That  portion  of  an  ancillary  bond
facility,  as  defined  in the convention center development corporation
act, with respect to which the corporation has an  actual  or  potential
financial obligation or financial right.
18.  "Bonds".  Bonds  as  defined in the convention center development
corporation act.
19. "Corporation".  The  convention  center  development  corporation,
created by the convention center development corporation act.
20.   "Development   corporation  credit  support".  The  sum  of  the
respective amounts (or percentages) of required or permissive funding by
the corporation of each reserve and financial support  fund  established
by  the  corporation  for  its  bonds  and,  to the extent not otherwise
provided in respect of the support of  bonds,  for  its  ancillary  bond
facilities  for  which  the  agency  has determined that the development
corporation credit support account established under section twenty-four

hundred twenty-nine-b of this part is or will be a source  or  potential
source of funding.
21.  "Reserve  and  financial  support  fund".  The  convention center
development  fund  created  by   the   convention   center   development
corporation  act  and each fund (including, but not limited to, any fund
or account in the nature of a reserve  fund,  a  debt  service  fund,  a
revenue  fund, a redemption fund or a reimbursement fund) established by
the  corporation  in  connection  with  its  bonds  or  ancillary   bond
facilities  from  which  amounts are required to be, or available to be,
applied in satisfaction of financial obligations or financial rights  of
the corporation under such bonds or ancillary bond facilities.
22.  "Convention  center  development corporation act". The convention
center development corporation act, constituting chapter thirty-five  of
the laws of nineteen hundred seventy-nine, as amended, by the chapter of
the laws of two thousand four which added this subdivision.