N.Y. Private Housing Finance Law § 42: Definitions

§ 42. Definitions. As used or referred to in this article, unless a

different meaning clearly appears from the context:

1. "Agency" shall mean the corporate governmental agency created by

section forty-three of this article.

1-a. "Amortized value" shall mean, when used with respect to

securities purchased at a premium above or a discount below par, the

value as of any given date obtained by dividing the total amount of the

premium or discount at which such securities were purchased by the

number of days remaining to maturity on such securities at the time of

such purchase and by multiplying the amount so calculated by the number

of days having passed since the date of such purchase; and (a) in the

case of securities purchased at a premium, by deducting the product thus

obtained from the purchase price, and (b) in the case of securities

purchased at a discount, by adding the product thus obtained to the

purchase price.

2. "Bonds" and "notes" shall mean bonds and notes respectively, issued

by the agency pursuant to this article.

3. "Equity bonds" and "equity notes" shall mean bonds and notes

respectively, issued by the agency pursuant to subdivision four of

section forty-six of this article.

4. "Equity loan" shall mean a loan made by the agency to a mutual

company, mutual housing company, mutual redevelopment company, or

housing development fund company which is organized pursuant to the

business corporation law and article eleven of this chapter, in an

amount not to exceed nine per centum of project cost and not in excess

of the aggregate face value of home owners purchase notes received by

such mutual company, mutual housing company, mutual redevelopment

company, or housing development fund company, as the case may be, for

the issuance of shares.

4-a. "Federally-aided mortgage loan" shall mean a loan secured by a

first mortgage lien on the real property of which a project consists and

the personal property attached to or used in connection with the

construction, acquisition, reconstruction, rehabilitation, improvement

or operation of the project, made or financed by the agency to the owner

of such property, which loan is insured or co-insured by the federal

government or in connection with which there has been assigned or

pledged to the agency the right to receive housing assistance payments

to be made by the federal government under a contract entered into

pursuant to section eight of the United States housing act of nineteen

hundred thirty-seven, as amended or supplemented, provided, however,

that such term shall not include mortgage loans made by the agency and

insured by the federal government pursuant to subsection (f) of section

two hundred twenty-three of such act, to refinance mortgage loans made

by the agency or the state prior to the first day of June, nineteen

hundred seventy-nine or theretofore or thereafter, amended, modified, or

increased or loans provided for pursuant to subdivision twenty-nine-a of

section forty-four of this article. Where all or part of the cost of

acquiring any real property included in the project is to be financed by

a federally-aided mortgage loan the term "owner" shall mean the owner

upon such acquisition. Nothing contained herein shall limit or prohibit

the agency from consenting to the modification of any instrument

executed in connection with a federally-aided mortgage loan, provided

that such modification will not materially reduce the value of the

security for such mortgage loan.

4-b. "Federally guaranteed security" means any security, investment or

evidence of indebtedness which is issued pursuant to the national

housing act or any successor provision of law, as amended, which is

either, directly or indirectly, insured or guaranteed in full as to the

repayment of principal and interest by the United States of America or

any instrumentality thereof.

5. "Home owners purchase note" shall mean home owners purchase note as

defined in article one of this chapter.

5-a. "Insured mortgage reserve fund" shall mean the fund created by

section fifty-seven of this chapter.

6. "Mortgage loan" shall mean a loan made by the agency to a company

in an amount not to exceed ninety per centum of the project cost, except

that in the case of a mutual company, an urban rental company which has

not been aided by any loan made prior to September first, nineteen

hundred sixty-eight, or a non-profit company incorporated pursuant to

the provisions of the not-for-profit corporation law and this chapter

for the purpose of providing housing for staff members, employees or

students of a college, university, hospital or child care institution

and their immediate families or in the case of a community development

corporation the loan shall not exceed ninety-five per centum of the

project cost and in the case of a non-profit company incorporated

pursuant to the provisions of the not-for-profit corporation law and

this chapter for the purpose of providing housing for aged or

handicapped persons of low income or in the case of a low income

non-profit housing company the loan shall not exceed the total project

cost, and secured by a first mortgage lien on the real property of which

the project consists and the personal property attached to or used in

connection with the construction, acquisition, reconstruction,

rehabilitation, improvement or operation of the project. "Company,"

"mutual company," "urban rental company," "project cost" and "project"

shall mean company, mutual company, urban rental company, project cost

and project, respectively, as defined in article two of this chapter.

6-a. "Mortgage loan" shall also mean a loan made by the agency to a

community senior citizens center and services company in an amount not

to exceed the total project cost of a project undertaken by such company

pursuant to article seven-A of this chapter, and secured by a first

mortgage lien on the real property of which the project consists and the

personal property attached to or used in connection with the

construction, acquisition, reconstruction, rehabilitation, improvement

or operation of the project.

6-b. "Mortgage loan" shall also mean a loan made by the agency to an

eligible borrower as defined in article twenty-eight-B of the public

health law in an amount not to exceed the total hospital project cost

and secured by a first mortgage lien on the real property of which the

hospital project consists and the personal property attached to or used

in connection with the construction, acquisition, reconstruction,

rehabilitation, improvement or operation of the hospital project. Such

loan may be further secured by such a lien upon other real property

owned by the eligible borrower. Notwithstanding the foregoing provisions

of this subdivision or any other provisions of this article to the

contrary, any personal property may be excluded from the lien of the

mortgage provided (a) the commissioner of health finds that such

property is not essential for the rendition of required hospital

services as such term is defined in article twenty-eight of the public

health law, and (b) the agency consents to such exclusion. "Hospital

project cost" and "hospital project" shall mean hospital project cost

and hospital project, respectively, as defined in article twenty-eight-B

of the public health law.

6-c. "Mortgage loan" shall also mean a loan made by the agency to a

limited-profit nursing home company incorporated pursuant to the

provisions of article twenty-eight-A of the public health law in an

amount not to exceed ninety-five per centum of the nursing home project

cost, and in the case of a non-profit nursing home company incorporated

pursuant to the provisions of article twenty-eight-A of the public

health law and the not-for-profit corporation law in an amount not to

exceed the total nursing home project cost, and secured by a first

mortgage lien on the real property of which the nursing home project

consists and the personal property attached to or used in connection

with the construction, acquisition, reconstruction, rehabilitation,

improvement or operation of the nursing home project. Notwithstanding

the foregoing provisions of this subdivision or any other provision of

this article to the contrary, any personal property may be excluded from

the lien of the mortgage provided (a) the commissioner of health finds

that such property is not essential for the nursing home project as such

term is defined in article twenty-eight-A of the public health law, and

(b) the agency consents to such exclusion. "Nursing home company",

"limited-profit nursing home company", "non-profit nursing home

company", "nursing home project cost" and "nursing home project" shall

mean nursing home company, limited-profit nursing home company,

non-profit nursing home company, nursing home project cost and nursing

home project, respectively, as defined in article twenty-eight-A of the

public health law.

6-d. "Mortgage loan" shall also mean a loan made by the agency to a

company incorporated pursuant to the provisions of the not-for-profit

corporation law in an amount not to exceed the total community mental

health services project cost or community developmental disabilities

services project cost, and secured by a first mortgage lien on the real

property of which the community mental health services project or

community developmental disabilities services project consists and the

personal property attached to or used in connection with the

construction, acquisition, reconstruction, rehabilitation, improvement

or operation of the community mental health services project or

community developmental disabilities services project. "Community mental

health services company," "community developmental disabilities services

company," "community mental health services project cost," "community

developmental disabilities services project cost," "community mental

health services project" and "community developmental disabilities

services project" shall mean community mental health services company,

community developmental disabilities services company, community mental

health services project cost, community developmental disabilities

services project cost, community mental health services project and

community developmental disabilities services project, respectively.

6-e. "Mortgage loan" shall also mean a loan made by the agency to a

non-profit corporation which is an eligible borrower as defined in title

five-A of article six of the social services law in an amount not to

exceed the total youth facilities project cost, and secured by a first

mortgage lien on the real property of which the youth facilities project

consists and the personal property attached to or used in connection

with the construction, acquisition, reconstruction, rehabilitation,

improvement or operation of the youth facilities project. "Youth

facilities project cost" and "youth facilities project" shall mean youth

facilities project cost and youth facilities project, respectively, as

defined in title five-A of article six of the social services law.

6-f. "Mortgage loan" shall also mean an instrument or instruments made

by a company to evidence residual indebtedness, which instrument or

instruments are secured by a mortgage on the real property of the

project.

* 6-g. "Mortgage loan" shall also mean a loan secured by a first

mortgage lien on the real property of which a project consists and the

personal property attached to or used in connection with the

construction or rehabilitation of the project, made or financed by the

agency to the owner of such property, which property a municipal housing

authority, constituted, created or established pursuant to article

thirteen of the public housing law, has agreed to purchase upon the

completion of such construction or rehabilitation.

* NB There are 2 sb 6-g's

* 6-g. "Mortgage loan" shall also mean a loan made by the agency to a

mutual housing company for the purpose of refinancing the existing

mortgage indebtedness of such company in an amount not to exceed the

cost of refinancing the existing mortgage indebtedness of such company

and necessary funds for the replacement, improvement and rehabilitation

of the project owned by such company, all costs incurred by such company

relating to the refinancing of the existing mortgage indebtedness

including amounts required to establish escrow accounts, reserves and

working capital as determined by the agency, and such other amounts as

are permitted by article four of this chapter, and secured by a first

mortgage lien on the real property of which the project consists and the

personal property attached to or used in connection with the

construction, acquisition, reconstruction, rehabilitation, improvement

or operation of the project.

* NB (Operative pending ruling by Internal Revenue Service)

* NB There are 2 sb 6-g's

7. "Mutual company", "mutual housing company" and "mutual

redevelopment company" shall mean mutual company, mutual housing company

and mutual redevelopment company as defined in articles two, four and

five, respectively, of this chapter.

8. "Non-profit company" shall mean a company incorporated pursuant to

the provisions of the not-for-profit corporation law and article two of

this chapter for the purpose of providing housing for staff members,

employees or students of a college, university, hospital or child care

institution and their immediate families or for handicapped or aged

persons of low income or housing for persons of low income or housing

for families of low income as defined under article two of this chapter.

9. "Community development corporation" shall mean a corporation

incorporated pursuant to the provisions of the not-for-profit

corporation law and article six-A of this chapter.

10. "Non-profit project bonds" and "non-profit project notes" shall

mean bonds and notes respectively, issued by the agency for the purposes

of making mortgage loans to mutual companies, non-profit companies or

community development corporations paying interest on such bonds and

notes, establishing reserves to secure such bonds and notes, and paying

of all other expenditures of the agency incident to and necessary or

convenient for the making of such mortgage loans.

11. "Hospital and nursing home project bonds" and "hospital and

nursing home project notes" shall mean bonds and notes respectively,

issued by the agency for the purposes of making mortgage loans to

hospital corporations which are eligible borrowers as defined in article

twenty-eight-B of the public health law or nursing home companies,

paying interest on such bonds and notes, establishing reserves to secure

such bonds and notes, and paying of all other expenditures of the agency

incident to and necessary or convenient for the making of such mortgage

loans.

12. "Urban rental project bonds" and "urban rental project notes"

shall mean bonds and notes respectively, issued by the agency after

August thirty-first, nineteen hundred sixty-eight, for the purposes of

making mortgage loans to urban rental companies, paying interest on such

bonds and notes, establishing reserves to secure such bonds and notes,

and paying of all other expenditures of the agency incident to and

necessary or convenient for the making of such mortgage loans.

13. "Youth facilities project bonds" and "youth facilities project

notes" shall mean bonds and notes, respectively, issued by the agency

for the purposes of making mortgage loans to non-profit corporations

which are eligible borrowers as defined in title five-A of article six

of the social services law, paying interest on such bonds and notes,

establishing reserves to secure such bonds and notes, and paying of all

other expenditures of the agency incident to and necessary or convenient

for the making of such mortgage loans.

14. "Community mental health services and developmental disabilities

services project bonds" and "community mental health services and

developmental disabilities services project notes" shall mean bonds and

notes, respectively, issued by the agency for the purposes of making

mortgage loans to companies incorporated pursuant to the not-for-profit

corporation law, paying interest on such bonds and notes, establishing

reserves to secure such bonds and notes, and paying of all other

expenditures of the agency incident to and necessary or convenient for

the making of such mortgage loans.

14-a. "Community mental health services and developmental disabilities

services project revenue bonds" and "community mental health services

and developmental disabilities services project revenue notes" shall

mean bonds and notes, respectively, issued by the agency for the purpose

of making mortgage loans to companies incorporated pursuant to the

not-for-profit corporation law and article seventy-five of title E of

the mental hygiene law, paying interest on such bonds and notes,

establishing reserves to secure such bonds and notes, and paying of all

other expenditures of the agency incident to and necessary or convenient

for the making of such mortgage loans.

15. "Community senior citizens services project bonds" and "community

senior citizens services project notes" shall mean bonds and notes,

respectively, issued by the agency for the purposes of making mortgage

loans to companies incorporated pursuant to the not-for-profit

corporation law and article seven-A of this chapter, paying interest on

such bonds and notes, establishing reserves to secure such bonds and

notes, and paying of all other expenditures of the agency incident to

and necessary or convenient for the making of such mortgage loans.

16. "State of New York municipal bond bank agency bonds" and "State of

New York municipal bond agency notes" shall mean bonds and notes,

respectively, issued by the state of New York municipal bond bank agency

for the purposes of purchasing municipal bonds from municipalities.

17. "New York state medical care facilities finance agency bonds" and

"New York state medical care facilities finance agency notes" shall mean

bonds and notes, respectively, issued by the New York state medical care

facilities finance agency for the corporate purposes of the New York

state medical care facilities finance agency.

18. "New York state project finance agency bonds" and "New York state

project finance agency notes" shall mean bonds and notes, respectively,

issued by the New York state project finance agency for the corporate

purposes of the New York state project finance agency.

19. "Residual indebtedness." Residual indebtedness shall be

indebtedness of a company in an amount equal to the unpaid principal

balance due on the original mortgage plus all interest accrued thereon

at such time as the mortgage is refinanced less an amount equal to the

principal amount, when made, of the mortgage insured by the federal

government in connection with the refinancing of a project. Such

indebtedness shall be secured by a mortgage which may be subordinate to

the lien of any mortgage loan insured by the federal government and may

contain such terms and conditions not inconsistent with this article as

may be approved by the commissioner, and as the agency may deem

necessary or desirable to secure the repayment of such residual

indebtedness.

* 20. "Revenue housing bonds" shall mean bonds issued by the agency

after May thirty-first, nineteen hundred seventy-six for the purpose of

making mortgage loans to mutual companies, non-profit companies, or

urban rental companies, funding non-profit project notes and urban

rental project notes issued for the purpose of making such mortgage

loans, paying interest on such bonds, establishing reserves to secure

such bonds and paying all other expenditures of the agency incident to

and necessary or convenient for the making of such mortgage loans or the

funding of such notes.

* NB (Effective until ruling by Internal Revenue Service)

* 20. "Revenue housing bonds" shall mean bonds issued by the agency

after May thirty-first, nineteen hundred seventy-six for the purpose of

making mortgage loans to mutual companies, mutual housing companies,

non-profit companies, or urban rental companies, funding non-profit

project notes and urban rental project notes issued for the purpose of

making such mortgage loans, paying interest on such bonds, establishing

reserves to secure such bonds and paying all other expenditures of the

agency incident to and necessary or convenient for the making of such

mortgage loans or the funding of such notes.

* NB (Effective pending ruling by Internal Revenue Service)

21. "Special revenue housing coverage reserve funds" shall mean the

funds created by section fifty-eight of this article.

22. "Bond reserve insurance fund" shall mean the fund created by

section fifty-nine of this article.

* 23. "Lending institution" shall mean any bank or trust company or

savings bank, or any corporation, association or other entity which is

owned or controlled by any one or more such bank or trust company or

savings bank, or any savings and loan association, credit union, federal

national mortgage association approved mortgage banker, national banking

association, federal savings and loan association, federal savings bank,

public pension fund, pension fund with assets over fifty million

dollars, insurance company, federal credit union or other financial

institution or governmental agency of the United States which

customarily makes, purchases, holds, insures or services residential

mortgages.

* NB Effective until July 23, 2027

* 23. "Lending institution" shall mean any bank or trust company or

savings bank, or any corporation, association or other entity which is

owned or controlled by any one or more such bank or trust company or

savings bank, or any savings and loan association, industrial bank,

credit union, federal national mortgage association approved mortgage

banker, national banking association, federal savings and loan

association, pension fund, insurance company, federal credit union or

other financial institution or governmental agency of the United States

which customarily makes, purchases, holds or services residential

mortgages.

* NB Effective July 23, 2027

* 24. "Housing development" shall mean a specific work or improvement,

whether or not to effectuate all or any part of a plan, and consisting

of five or more residential units, and including the lands, buildings

and improvements acquired, owned, constructed, managed or operated to

provide such units and such incidental and appurtenant commercial,

recreation, cultural, communal, dining, medical and nursing treatment,

day care or residential child care and community facilities as may be

approved by the agency. As used in connection with the term housing

development, the term residential unit shall refer to units suitable for

residential use or accommodations included within the term housing as

defined in subdivision nine of section twelve of this chapter.

* NB Repealed July 23, 2027

25. "Housing and non-profit health facility" shall mean a specific

work or improvement, whether or not to effectuate all or any part of a

plan consisting of five or more residential units, and at the election

of the agency such additional health and health related facilities as

the agency may approve; and including the lands, buildings and

improvements acquired, owned, constructed, managed or operated to

provide such units and health, or health related facilities and such

incidental and appurtenant commercial, recreation, cultural, communal,

dining, parking, day care or residential child care, senior citizen and

community facilities as may be approved by the agency acquired, owned,

constructed, rehabilitated, improved, managed or operated by a

non-profit company except that any portion thereof meeting the

definition of a housing development set forth in subdivision twenty-four

hereof may be separately owned by a for profit owner approved by the

agency. As used in connection with the term housing and non-profit

health facility, the term residential unit shall refer to units suitable

for residential use or accommodations included within the term housing

as defined in subdivision nine of section twelve of this chapter, and

the term non-profit company shall mean a company incorporated pursuant

to the provisions of the not-for-profit corporation law for the purpose

of providing housing for staff members, employees, students or users of

a hospital, health, health related facility and their immediate families

or for the purpose of providing a hospital, health, or health related

facility.