§ 2402 — Definitions

§ 2402. Definitions. As used in this title, the following words and\nterms shall have the following meanings unless the context shall\nindicate another or different meaning or intent:\n (1) "Agency". The state of New York mortgage agency, the corporate\ngovernmental agency created by section two thousand four hundred three\nof this title.\n * (2) "Bank". Any bank or trust company, savings bank, savings and\nloan association, industrial bank, credit union, national banking\nassociation, federal savings and loan association, federal savings bank\nor federal credit union which is located in the state. The term "bank"\nshall also include a New York state licensed mortgage banker, or a\ndomestic not-for-profit corporation whose public purposes include\ncombatting community deterioration and which is an exempt organization\nas defined in paragraph (e) of subdivision one of section five hundred\nninety of the banking law, or an entity exempt from licensing provisions\nin accordance with paragraph (a) of subdivision two of such section,\nwhich in any such case is approved as a mortgage lender by the Federal\nNational Mortgage Association or by the Federal Home Loan Mortgage\nCorporation, or domestic not-for-profit corporations that are certified\nby the United States department of treasury as community development\nfinancial institutions or licensed by the New York state department of\nfinancial services.\n * NB Effective until July 23, 2027\n * (2) "Bank". Any bank or trust company, savings bank, savings and\nloan association, industrial bank, credit union, national banking\nassociation, federal savings and loan association or federal credit\nunion which is located in the state.\n * NB Effective July 23, 2027\n (3) "Bonds" and "Notes". The bonds and notes respectively issued by\nthe agency pursuant to this title.\n (4) "Comptroller". The comptroller of the state.\n * (5) "Mortgage". A loan owed to a bank secured by a first lien on (i)\na fee simple or leasehold estate in real property, or (ii) any other\ninstrument which shall constitute or create a security interest in\ntangible personal property constituting modular or manufactured housing,\nlocated in the state and improved by a residential structure or, on\nwhich a residential structure for use as single-family modular or\nmanufactured housing purchased and sited on land shall be constructed\nusing the proceeds of such loan, whether or not insured or guaranteed by\nthe United States of America or any agency thereof. The term "mortgage"\nshall also include a loan owed to a bank secured by a second lien on (i)\na fee simple or leasehold estate in real property, or (ii) any other\ninstrument which shall constitute or create a security interest in\ntangible personal property constituting modular or manufactured housing,\nlocated in the state and improved by a residential structure or on which\na residential structure for use as single-family modular or manufactured\nhousing purchased and sited on land shall be constructed using the\nproceeds of the related loan described in paragraph (a) or (b) of this\nsubdivision, whether or not insured or guaranteed by the United States\nof America or any agency thereof, provided, however, that such second\nlien: (a) secures a loan purchased by the agency, and (b) is made at the\nsame time as a first lien securing a loan purchased by the agency\npursuant to its programs or by a government sponsored enterprise or is\nmade at the same time as a new housing loan purchased by the agency\npursuant to section twenty-four hundred five-c of this part. The term\n"mortgage" shall also include loans made by the agency and secured by a\nsecond lien on (i) a fee simple or leasehold estate in real property, or\n(ii) any other instrument which shall constitute or create a security\ninterest in tangible personal property constituting modular or\nmanufactured housing, located in the state and improved by a residential\nstructure or on which a residential structure for use as single-family\nmodular or manufactured housing purchased and sited on land shall be\nconstructed using the proceeds of such loan, whether or not insured or\nguaranteed by the United States of America or any agency thereof,\nprovided however, that the loan made by the agency and secured by such\nsecond lien is made at the same time as a first lien securing a mortgage\nloan purchased by the agency pursuant to its programs or by a government\nsponsored enterprise. In the case of any second lien purchased or made\nhereunder, the mortgagor shall be obligated to contribute from his or\nher own verifiable funds an amount not less than such percentage as the\nagency shall determine, of the lower of the purchase price or appraised\nvalue of the property subject to the first lien. "Real property" as used\nin this subdivision shall include air rights.\n For the purposes of this title and subdivision ten of section two\nhundred ten-B of the tax law, "mortgage" shall include housing loans as\ndefined below. Except for the purposes of subdivision seven of section\ntwenty-four hundred five and subdivision eight of section twenty-four\nhundred five-b of this part, "mortgage" shall also include a loan owed\nto a bank by an individual borrower incurred for the purpose of\nfinancing the purchase of certificates of stock or other evidence of\nownership of an interest in, and a proprietary lease from, a cooperative\nhousing corporation formed for the purpose of the cooperative ownership\nof residential real estate in the state, secured by an assignment or\ntransfer of the benefits of such cooperative ownership, and containing\nsuch terms and conditions as the agency may approve.\n * NB Effective until July 23, 2027\n * (5) "Mortgage". A loan owed to a bank secured by a first lien on a\nfee simple or leasehold estate in real property located in the state and\nimproved by a residential structure, whether or not insured or\nguaranteed by the United States of America or any agency thereof. The\nterm "mortgage" shall also include a loan owed to a bank secured by a\nsecond lien on a fee simple or leasehold estate in real property located\nin the state and improved by a residential structure, whether or not\ninsured or guaranteed by the United States of America or any agency\nthereof, provided, however, that such second lien: (a) secures a loan\npurchased by the agency, and (b) is made at the same time as a first\nlien securing a loan purchased by the agency pursuant to its programs or\nby a government sponsored enterprise or is made at the same time as a\nnew housing loan purchased by the agency pursuant to section twenty-four\nhundred five-c of this part. The term "mortgage" shall also include\nloans made by the agency and secured by a second lien on a fee simple or\nleasehold estate in real property located in the state and improved by a\nresidential structure, whether or not insured or guaranteed by the\nUnited States of America or any agency thereof, provided however, that\nthe loan made by the agency and secured by such second lien is made at\nthe same time as a first lien securing a mortgage loan purchased by the\nagency pursuant to its programs or by a government sponsored enterprise.\nIn the case of any second lien purchased or made hereunder, the\nmortgagor shall be obligated to contribute from his or her own\nverifiable funds an amount not less than such percentage as the agency\nshall determine, of the lower of the purchase price or appraised value\nof the property subject to the first lien. "Real property" as used in\nthis subdivision shall include air rights.\n Except for the purposes of subdivision seven of section two thousand\nfour hundred five of this part, "mortgage" shall also include a loan\nowed to a bank by an individual borrower incurred for the purpose of\nfinancing the purchase of certificates of stock or other evidence of\nownership of an interest in, and a proprietary lease from, a cooperative\nhousing corporation formed for the purpose of the cooperative ownership\nof residential real estate in the state, secured by an assignment or\ntransfer of the benefits of such cooperative ownership, and containing\nsuch terms and conditions as the agency may approve.\n * NB Effective July 23, 2027 until July 23, 2027\n * (5) "Mortgage". A loan owed to a bank secured by a first lien on a\nfee simple or leasehold estate in real property located in the state and\nimproved by a residential structure, whether or not insured or\nguaranteed by the United States of America or any agency thereof. The\nterm "mortgage" shall also include a loan owed to a bank secured by a\nsecond lien on a fee simple or leasehold estate in real property located\nin the state and improved by a residential structure, whether or not\ninsured or guaranteed by the United States of America or any agency\nthereof, provided, however, that such second lien: (a) secures a loan\npurchased by the agency, and (b) is made at the same time as a first\nlien securing a loan purchased by the agency pursuant to its programs or\nis made at the same time as a new housing loan purchased by the agency\npursuant to section twenty-four hundred five-c of this part. The term\n"mortgage" shall also include loans made by the agency and secured by a\nsecond lien on a fee simple or leasehold estate in real property located\nin the state and improved by a residential structure, whether or not\ninsured or guaranteed by the United States of America or any agency\nthereof, provided however, that the loan made by the agency and secured\nby such second lien is made at the same time as a first lien securing a\nmortgage loan purchased by the agency pursuant to its programs or by a\ngovernment sponsored enterprise. In the case of any second lien, the\nmortgagor shall be obligated to contribute from his or her own\nverifiable funds an amount not less than such percentage as the agency\nshall determine, of the lower of the purchase price or appraised value\nof the property subject to the first lien. "Real property" as used in\nthis subdivision shall include air rights.\n Except for the purposes of subdivision seven of section two thousand\nfour hundred five of this part, "mortgage" shall also include a loan\nowed to a bank by an individual borrower incurred for the purpose of\nfinancing the purchase of certificates of stock or other evidence of\nownership of an interest in, and a proprietary lease from, a cooperative\nhousing corporation formed for the purpose of the cooperative ownership\nof residential real estate in the state, secured by an assignment or\ntransfer of the benefits of such cooperative ownership, and containing\nsuch terms and conditions as the agency may approve.\n * NB Effective July 23, 2027\n (6) "State". The state of New York.\n (7) "State agency". Any office, department, board, commission, bureau,\ndivision, public corporation, agency or instrumentality of the state.\n (8) "College". Any institution of higher education recognized and\napproved as such by the regents of the university of the state which\nprovides a course of study leading to the granting of a post-secondary\ndegree or diploma.\n (9) "Career institution". A business, trade, technical or other\noccupational school approved as such by the regents of the university of\nthe state or accredited by a nationally recognized accrediting agency or\nassociation accepted as such by the regents of the university of the\nstate.\n (10) "Loan". A loan which the New York higher education assistance\ncorporation has guaranteed or agreed to guarantee pursuant to article\nfourteen of the education law to a person who is attending or plans to\nattend, on a full-time or part-time basis, a college or career\ninstitution, for the purpose of assisting such person to meet his\nexpenses of higher or career education; provided, however, in no event\nshall the amount of any such loan for any school year exceed the total\namount of (i) the borrower's tuition and educational fees payable to the\ncollege or career institution he is attending or is planning to attend,\nand (ii) sums actually expended or incurred for room and board during\nsuch period, reduced by the total amount of (i) all General and Special\nPurpose Awards (as provided in article thirteen of the education law),\nand (ii) all other forms of direct financial aid received by the\nborrower during such period, however denominated and from whatever\nsource (other than the borrower's family), which by its terms is not\nrepayable by the borrower.\n * (11) "Existing mortgage". A mortgage for which funds were advanced\nprior to the date of the most recent invitation of the agency to banks\nto sell mortgages to the agency.\n * NB Repealed July 23, 2027\n * (12) "Forward commitment mortgage". A mortgage, which includes\nconstruction loans for single-family modular or manufactured housing\npurchased and sited on land, for which a commitment to advance funds is\nmade not earlier than the date the agency issues an invitation to\npurchase mortgages or such later date as specified in the invitation. A\nmortgage made in satisfaction of the obligation of a bank under section\ntwenty-four hundred five of this part is not a forward commitment\nmortgage.\n * NB Repealed July 23, 2027\n * (13) "Housing loan". A loan owed to a bank, secured in a manner\nsatisfactory to the agency, to improve, rehabilitate, reconstruct or\nredevelop one to four unit residences located in the state. The loan\nshall be insured or guaranteed by the United States of America or any\nagency thereof, or by a firm which is authorized by the superintendent\nof financial services of the state of New York to issue such policies in\nthe state.\n * NB Repealed July 23, 2027\n * (14) "Persons and families of low or moderate income". Persons and\nfamilies within the state who are determined by the agency to lack\nsufficient income to pay enough to cause an adequate supply of credit to\nbe made available for new residential improvement loans at carrying\ncharges within the financial means of such persons and families and\nwhose incomes are below the income levels determined by the agency to be\nin need of the assistance made available by this title, taking into\nconsideration, without limitation, such factors as the following: (i)\nthe amount of the total income of such persons and families, (ii) the\nsize of the family unit, (iii) the cost to improve, rehabilitate,\nreconstruct or redevelop residential family dwelling units, (iv) the\nability of such persons and families to pay the amounts charged in\nregular banking channels for credit for such improvement,\nrehabilitation, reconstruction, or redevelopment work, and (v) standards\nestablished by various programs of the federal government for\ndetermining eligibility based on income of such persons and families.\n * NB Repealed July 23, 2027\n (15) "Blending". The financing of a single mortgage loan partly with\nthe proceeds of bonds issued pursuant to subdivision one of section\ntwenty-four hundred seven of this title and partly with the proceeds of\nbonds issued pursuant to subdivision two of such section.\n (16) "Employer". Any corporation, partnership, or sole proprietorship\nwhich maintains an office in the state.\n * (17) "Government sponsored enterprises". Privately owned, publicly\nchartered entities, and wholly-owned corporate instrumentalities of the\nUnited States within the department of housing and urban development,\ncreated pursuant to 12 USC 1717(a)(2)(A), all created by Congress to\nencourage lending and reduce costs primarily in the housing sector of\nthe economy, and any successor entity or entities created by Congress to\ncontinue to serve said purposes.\n * NB Repealed July 23, 2027\n