§ 2426 — Definitions

New York § 2426

• Jurisdiction: New York
• Law PBA: Public Authorities
• Title 17: State of New York Mortgage Agency Act
• Part 2: No title
• Art. 8: Miscellaneous Authorities

Text

§ 2426. Definitions. As used in sections twenty-four hundred\ntwenty-five through twenty-four hundred twenty-nine inclusive.\n 1. "Financial institution". Any bank, trust company, national bank,\nsavings bank, state or federal savings and loan association, or state or\nfederal credit union, insurance company, pension fund or retirement\nsystem of any corporation, association, any other entity which is owned\nor controlled by any one or more of the above, provided the same is\nsupervised by or responsible to any agency of the federal government,\nthe state, any department thereof or the governing body of any city,\ntown or village of the state or any other entity approved by the agency\nor any one or more of the above when lawfully acting as a trustee or\notherwise in a fiduciary capacity. The term "financial institution"\nshall also include the New York state housing finance agency and the New\nYork state urban development corporation, the New York city housing\ndevelopment corporation, the New York city department of housing\npreservation and development and any person who is approved as a\nmortgage lender by the federal housing administration for purposes of\ninsurance issued by such administration or licensed by the state of New\nYork as a mortgage banker.\n 2. "Housing accommodation". Any existing building, structure, unit\nthereof or unimproved real property, which is used or occupied, or is\nintended to be used or occupied, wholly or partly, as the home or\nresidence of one or more persons.\n 3. "Other real property". Any existing building, structure or\nunimproved property which is used or occupied, or is intended to be used\nor occupied, primarily for the retail sale of goods or the rendering of\nservices.\n 4. "Mortgage insurance fund". The mortgage insurance fund established\npursuant to section twenty-four hundred twenty-nine-b of this article.\n 5. "Mortgage insurance fund requirement". For any category of loans or\ndevelopment corporation credit support as of any particular date of\ncomputation, an amount of money or cash equivalents equal to (a) the\naggregate of (i) such insured amounts of each category of loans and such\namount of development corporation credit support as the agency has\ndetermined to be due and payable as of such date pursuant to its\ncontracts to insure mortgages or provide development corporation credit\nsupport plus (ii) an amount equal to twenty per centum of the amounts of\neach category of loans insured under the agency's insurance contracts\nplus twenty per centum of the amounts to be insured under the agency's\ncommitments to insure less the amounts payable in each category of loans\npursuant to subparagraph (i) of this paragraph, provided, however, that\nif the board of directors of the agency shall have established a per\ncentum for a category of loans, or for one or more loans within such\ncategories, pursuant to subdivision seven of section twenty-four hundred\ntwenty-eight of this part, such per centum shall be substituted for\ntwenty per centum in this paragraph for such category or loan, and\nprovided further, that no such new per centum shall be lower than twenty\nper centum plus (iii) an amount equal to the respective amounts\nestablished by contract with respect to each reserve and financial\nsupport fund (which may be determined by reference to percentages of\namounts required or permitted to be on deposit in said funds and may be\ndifferent for each such fund) for which the agency has determined that\nthe development corporation credit support account established under\nsection twenty-four hundred twenty-nine-b of this part is or will be a\nsource or potential source of development corporation credit support,\nless the amounts payable with respect to development corporation credit\nsupport pursuant to subparagraph (i) of this paragraph less (b) the\naggregate of the amount of each reinsurance contract procured in\nconnection with agency obligations determined by the board of directors\nof the agency to be a reduction pursuant to this paragraph in\ncalculating the mortgage insurance fund requirement. For purposes of\npool insurance, in no event shall the reserve requirement be less than\ntwenty percent of the amounts insured under the agency's insurance\ncontracts.\n 6. "Mortgagee". The lender under a mortgage eligible for insurance\npursuant to section twenty-four hundred twenty-eight of this chapter,\nand its successors and assigns approved by the agency.\n 7. "Mortgagor". The original borrower under a mortgage eligible for\ninsurance pursuant to section twenty-four hundred twenty-eight of this\nchapter, and its successors and assigns approved by the agency.\n 8. "Operating expenses". All costs of administering the agency,\nincluding but not limited to salaries and wages, expenses of\nadministering staff functions, fees of consultants, legal fees, charges\nincurred for servicing insured mortgage loans, money management, office\nrents, utility charges, cost of supplies, furnishings, equipment,\nmachinery and apparatus, maintenance and repair of property and other\nexpenses incurred in connection with the foregoing.\n 9. "Region". One or more of the following named areas comprised of the\ncounties indicated:\n (1) Buffalo: Cattaraugus, Chautauqua, Erie and Niagara counties;\n (2) Rochester: Genesee, Livingston, Monroe, Ontario, Orleans, Seneca,\nWayne, Wyoming and Yates counties;\n (3) Syracuse: Cayuga, Cortland, Madison, Onondaga and Oswego counties;\n (4) Elmira-Binghamton: Allegany, Broome, Chemung, Chenango, Delaware,\nOtsego, Schuyler, Steuben, Tioga and Tompkins counties;\n (5) Mid-Hudson: Columbia, Dutchess, Greene, Orange, Putnam, Sullivan\nand Ulster counties;\n (6) Capital: Albany, Montgomery, Rensselaer, Saratoga, Schenectady and\nSchoharie counties;\n (7) Mohawk Valley-Northern: Clinton, Essex, Franklin, Fulton,\nHamilton, Herkimer, Jefferson, Lewis, Oneida, St. Lawrence, Warren and\nWashington counties;\n (8) Downstate: Rockland and Westchester counties;\n (9) Long Island: Nassau and Suffolk counties;\n (10) New York City: the five counties comprising the city of New York.\n 10. "Rehabilitation". Repairs, alterations or improvements of a\nhousing accommodation designed to raise the housing standards therein\nor, in the case of other real property, designed to provide needed\nimprovements therein.\n 11. "Preservation loan". A loan extended by a financial institution\nfor the purposes of refinancing existing indebtedness secured by one or\nmore mortgages on a housing accommodation or other real property and/or\nfinancing the acquisition of a housing accommodation or other real\nproperty and which otherwise complies with the conditions established\npursuant to section twenty-four hundred twenty-eight of this chapter.\n * 12. "Rehabilitation loan". A loan extended by a financial\ninstitution which may include the refinancing of existing indebtedness,\nif any, secured by one or more mortgages on the housing accommodation or\nother real property to be rehabilitated or financing the acquisition of\nthe housing accommodation or other real property to be rehabilitated,\nand which otherwise complies with the conditions established pursuant to\nsection twenty-four hundred twenty-eight of this part, provided however\nthat a sum equal to at least twenty percent of the amount of the loan\nshall be used for the cost of rehabilitation of, or construction of\nimprovements on a housing accommodation or other real property; provided\nfurther that such percentage shall not be required for a community\nresidence as such term is defined in subdivision twenty-eight of section\n1.03 of the mental hygiene law, or for any other residential facility\nfunded by, under contract with, or subject to regulation by or under the\njurisdiction of the department of mental hygiene, providing services to\npersons with mental disabilities as such term is defined in subdivision\nthree of such section.\n * NB Effective until July 23, 2027\n * 12. "Rehabilitation loan". A loan extended by a financial\ninstitution which may include the refinancing of existing indebtedness,\nif any, secured by one or more mortgages on the housing accommodation or\nother real property to be rehabilitated or financing the acquisition of\nthe housing accommodation or other real property to be rehabilitated,\nand which otherwise complies with the conditions established pursuant to\nsection twenty-four hundred twenty-eight of this chapter, provided\nhowever that a sum equal to at least twenty-five percent of the amount\nof the loan shall be used for the cost of rehabilitation of, or\nconstruction of improvements on a housing accommodation or other real\nproperty.\n * NB Effective July 23, 2027\n 13. "Residential purposes". The use or intended use of any space as\nthe home or residence of one or more persons, excluding use as a housing\naccommodation for transients, but including use or intended use for\nemergency, transitional or shelter housing.\n 14. "Cash equivalent". A letter of credit, insurance policy, surety,\nguarantee or other security arrangement.\n 15. "Pool insurance". Mortgage insurance provided by the agency to\ninsure an aggregate of mortgage loans.\n 16. Reverse mortgage. A reverse mortgage loan pursuant to section two\nhundred eighty or two hundred eighty-a of the real property law shall\nmean a loan which is secured by a first mortgage on real property\nimproved by a one to four-family residence or condominium that is the\nresidence of the mortgagor, the proceeds of which are advanced to the\nmortgagor during the loan term in equal installments, in advances\nthrough a line of credit or otherwise, in lump sums, or through a\ncombination thereof. A reverse mortgage may be structured to provide for\nthe addition of accrued but unpaid interest to principal. Such reverse\nmortgage loan may provide for an initial lump-sum advance wherein the\nmortgagor may receive an amount necessary to pay closing costs,\nincluding but not limited to loan or commitment fees, if any, insurance\npremiums, the cost of house repairs, legal fees, the cost of annuities,\nthe costs of third party counseling, the amount necessary to pay off\nexisting mortgages or liens, and other appropriate costs.\n 17. "Ancillary bond facility". That portion of an ancillary bond\nfacility, as defined in the convention center development corporation\nact, with respect to which the corporation has an actual or potential\nfinancial obligation or financial right.\n 18. "Bonds". Bonds as defined in the convention center development\ncorporation act.\n 19. "Corporation". The convention center development corporation,\ncreated by the convention center development corporation act.\n 20. "Development corporation credit support". The sum of the\nrespective amounts (or percentages) of required or permissive funding by\nthe corporation of each reserve and financial support fund established\nby the corporation for its bonds and, to the extent not otherwise\nprovided in respect of the support of bonds, for its ancillary bond\nfacilities for which the agency has determined that the development\ncorporation credit support account established under section twenty-four\nhundred twenty-nine-b of this part is or will be a source or potential\nsource of funding.\n 21. "Reserve and financial support fund". The convention center\ndevelopment fund created by the convention center development\ncorporation act and each fund (including, but not limited to, any fund\nor account in the nature of a reserve fund, a debt service fund, a\nrevenue fund, a redemption fund or a reimbursement fund) established by\nthe corporation in connection with its bonds or ancillary bond\nfacilities from which amounts are required to be, or available to be,\napplied in satisfaction of financial obligations or financial rights of\nthe corporation under such bonds or ancillary bond facilities.\n 22. "Convention center development corporation act". The convention\ncenter development corporation act, constituting chapter thirty-five of\nthe laws of nineteen hundred seventy-nine, as amended, by the chapter of\nthe laws of two thousand four which added this subdivision.\n