N.Y. Public Authorities Law § 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, 2027

* (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, 2027

(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 (i)

a fee simple or leasehold estate in real property, or (ii) any other

instrument which shall constitute or create a security interest in

tangible personal property constituting modular or manufactured housing,

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 (i)

a fee simple or leasehold estate in real property, or (ii) any other

instrument which shall constitute or create a security interest in

tangible personal property constituting modular or manufactured housing,

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 (i) a fee simple or leasehold estate in real property, or

(ii) any other instrument which shall constitute or create a security

interest in tangible personal property constituting modular or

manufactured housing, 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 subdivision ten of section two

hundred ten-B 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 twenty-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, 2027

* (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, 2027 until July 23, 2027

* (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, 2027

(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, 2027

* (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, 2027

* (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, 2027

* (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, 2027

(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, 2027