2019 New York Laws
RPP - Real Property
Article 8 - 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.