§ 253-B — Credit line mortgage

§ 253-b. Credit line mortgage. 1. In the case of a mortgage which is\na credit line mortgage, as defined in subdivision two of this section,\nof real property principally improved or to be improved by a one to six\nfamily owner-occupied residence or dwelling, the principal debt or\nobligation which is or under any contingency may be secured at the date\nof execution of such mortgage or at any time thereafter within the\nmeaning of this article shall mean the maximum principal amount\nspecified in such mortgage. If the tax imposed by and pursuant to the\nauthority of this article is paid on such maximum principal amount, no\nfurther tax shall be payable on advances or readvances by the lender\npursuant to the recorded primary mortgage, provided such advances or\nreadvances are made to the original obligor or obligors named in such\nrecorded primary mortgage. In the event the maximum principal amount of\na credit line mortgage is increased, a tax is imposed as provided in\nsection two hundred fifty-three and pursuant to the authority of section\ntwo hundred fifty-three-a of this article on such new or further\nindebtedness or obligation when the instrument evidencing such further\nindebtedness is recorded. In order to better enforce the provisions of\nthis subdivision and for the privilege of recording an instrument\nevidencing a sale or transfer of real property on which the lien of a\ncredit line mortgage remains outstanding, in the event that a credit\nline mortgage remains outstanding after the sale or transfer of the real\nproperty securing the credit line mortgage to a person or persons who is\nor are not related to the original obligor or obligors by blood,\nmarriage or adoption, or where such credit line mortgage that remains\noutstanding after such sale or transfer is a credit line mortgage of\nproperty other than real property principally improved or to be improved\nby a one to six family owner-occupied residence or dwelling, taxes are\nimposed at the rates applicable under section two hundred fifty-three\nand pursuant to the authority of section two hundred fifty-three-a on\nthe principal debt or obligation which is or under any contingency may\nbe secured at the date when the instrument evidencing the sale or\ntransfer is recorded and no such instrument shall be recorded until the\ntaxes imposed in this section are paid.\n 1-a. In the case of a mortgage which is a credit line mortgage, as\ndefined in subdivision two of this section, of property other than real\nproperty principally improved or to be improved by a one to six family\nowner-occupied residence or dwelling, and where such mortgage is of an\namount less than three million dollars, the tax imposed by and pursuant\nto the authority of this article shall be imposed and paid pursuant to\nthe provisions of subdivision one of this section.\n 2. For the purposes of this section, a "credit line mortgage" shall\nmean any mortgage or deed of trust, other than a mortgage or deed of\ntrust made pursuant to a building loan contract as defined in\nsubdivision thirteen of section two of the lien law, which states that\nit secures indebtedness under a note, credit agreement or other\nfinancing agreement that reflects the fact that the parties reasonably\ncontemplate entering into a series of advances, or advances, payments\nand readvances, and that limits the aggregate amount at any time\noutstanding to a maximum amount specified in such mortgage or deed of\ntrust. For the purpose of this section, "credit line mortgage" shall not\ninclude a reverse mortgage as defined in sections two hundred eighty and\ntwo hundred eighty-a of the real property law.\n 3. The commissioner shall promulgate regulations to provide for the\nenforcement and administration of the taxes imposed by or pursuant to\nsubdivisions one and one-a of this section.\n