2010 New York Code
RPP - Real Property
Article 8 - (240 - 281) 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 banking board. 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.