N.Y. Banking Law § 6-h: Reverse mortgage loans authorized

§ 6-h. Reverse mortgage loans authorized. Notwithstanding any

inconsistent provision of law, in addition to any other power exercised

by it, every authorized lender, as defined by section two hundred eighty

or two hundred eighty-a of the real property law, shall have the power

to offer reverse mortgage loans (1) which conform to the provisions of

section two hundred eighty or two hundred eighty-a of the real property

law and the rules and regulations promulgated by the superintendent of

financial services; or (2) which conform to the requirements of the

federal housing administration's home equity conversion mortgage

insurance demonstration program for as long as such program exists as

provided for in section 1715Z-20 of title 12 of the United States Code.

"Reverse mortgage" shall mean the mortgage, deed of trust or other

security instrument relating to a particular reverse mortgage loan

transaction.

The proceeds of a reverse mortgage shall not be considered as income

for the purposes of section four hundred sixty-seven of the real

property tax law; provided, however, that monies used to repay a reverse

mortgage may not be deducted from income, and provided additionally that

any interest or dividends realized from the investment of reverse

mortgage proceeds shall be considered income.