2012 New York Consolidated Laws
RPP - Real Property
Article 8 - (240 - 282) 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 superintendent of financial  services.
  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.