Legislation
SECTION 2402
Definitions
Public Authorities (PBA) CHAPTER 43-A, ARTICLE 8, TITLE 17, PART 1
§ 2402. Definitions. As used in this title, the following words and
terms shall have the following meanings unless the context shall
indicate another or different meaning or intent:
(1) "Agency". The state of New York mortgage agency, the corporate
governmental agency created by section two thousand four hundred three
of this title.
* (2) "Bank". Any bank or trust company, savings bank, savings and
loan association, industrial bank, credit union, national banking
association, federal savings and loan association, federal savings bank
or federal credit union which is located in the state. The term "bank"
shall also include a New York state licensed mortgage banker, or a
domestic not-for-profit corporation whose public purposes include
combatting community deterioration and which is an exempt organization
as defined in paragraph (e) of subdivision one of section five hundred
ninety of the banking law, or an entity exempt from licensing provisions
in accordance with paragraph (a) of subdivision two of such section,
which in any such case is approved as a mortgage lender by the Federal
National Mortgage Association or by the Federal Home Loan Mortgage
Corporation, or domestic not-for-profit corporations that are certified
by the United States department of treasury as community development
financial institutions or licensed by the New York state department of
financial services.
* NB Effective until July 23, 2025
* (2) "Bank". Any bank or trust company, savings bank, savings and
loan association, industrial bank, credit union, national banking
association, federal savings and loan association or federal credit
union which is located in the state.
* NB Effective July 23, 2025
(3) "Bonds" and "Notes". The bonds and notes respectively issued by
the agency pursuant to this title.
(4) "Comptroller". The comptroller of the state.
* (5) "Mortgage". A loan owed to a bank secured by a first lien on (i)
a fee simple or leasehold estate in real property, or (ii) any other
instrument which shall constitute or create a security interest in
tangible personal property constituting modular or manufactured housing,
located in the state and improved by a residential structure or, on
which a residential structure for use as single-family modular or
manufactured housing purchased and sited on land shall be constructed
using the proceeds of such loan, whether or not insured or guaranteed by
the United States of America or any agency thereof. The term "mortgage"
shall also include a loan owed to a bank secured by a second lien on (i)
a fee simple or leasehold estate in real property, or (ii) any other
instrument which shall constitute or create a security interest in
tangible personal property constituting modular or manufactured housing,
located in the state and improved by a residential structure or on which
a residential structure for use as single-family modular or manufactured
housing purchased and sited on land shall be constructed using the
proceeds of the related loan described in paragraph (a) or (b) of this
subdivision, whether or not insured or guaranteed by the United States
of America or any agency thereof, provided, however, that such second
lien: (a) secures a loan purchased by the agency, and (b) is made at the
same time as a first lien securing a loan purchased by the agency
pursuant to its programs or by a government sponsored enterprise or is
made at the same time as a new housing loan purchased by the agency
pursuant to section twenty-four hundred five-c of this part. The term
"mortgage" shall also include loans made by the agency and secured by a
second lien on (i) a fee simple or leasehold estate in real property, or
(ii) any other instrument which shall constitute or create a security
interest in tangible personal property constituting modular or
manufactured housing, located in the state and improved by a residential
structure or on which a residential structure for use as single-family
modular or manufactured housing purchased and sited on land shall be
constructed using the proceeds of such loan, whether or not insured or
guaranteed by the United States of America or any agency thereof,
provided however, that the loan made by the agency and secured by such
second lien is made at the same time as a first lien securing a mortgage
loan purchased by the agency pursuant to its programs or by a government
sponsored enterprise. In the case of any second lien purchased or made
hereunder, the mortgagor shall be obligated to contribute from his or
her own verifiable funds an amount not less than such percentage as the
agency shall determine, of the lower of the purchase price or appraised
value of the property subject to the first lien. "Real property" as used
in this subdivision shall include air rights.
For the purposes of this title and subdivision ten of section two
hundred ten-B of the tax law, "mortgage" shall include housing loans as
defined below. Except for the purposes of subdivision seven of section
twenty-four hundred five and subdivision eight of section twenty-four
hundred five-b of this part, "mortgage" shall also include a loan owed
to a bank by an individual borrower incurred for the purpose of
financing the purchase of certificates of stock or other evidence of
ownership of an interest in, and a proprietary lease from, a cooperative
housing corporation formed for the purpose of the cooperative ownership
of residential real estate in the state, secured by an assignment or
transfer of the benefits of such cooperative ownership, and containing
such terms and conditions as the agency may approve.
* NB Effective until July 23, 2025
* (5) "Mortgage". A loan owed to a bank secured by a first lien on a
fee simple or leasehold estate in real property located in the state and
improved by a residential structure, whether or not insured or
guaranteed by the United States of America or any agency thereof. The
term "mortgage" shall also include a loan owed to a bank secured by a
second lien on a fee simple or leasehold estate in real property located
in the state and improved by a residential structure, whether or not
insured or guaranteed by the United States of America or any agency
thereof, provided, however, that such second lien: (a) secures a loan
purchased by the agency, and (b) is made at the same time as a first
lien securing a loan purchased by the agency pursuant to its programs or
by a government sponsored enterprise or is made at the same time as a
new housing loan purchased by the agency pursuant to section twenty-four
hundred five-c of this part. The term "mortgage" shall also include
loans made by the agency and secured by a second lien on a fee simple or
leasehold estate in real property located in the state and improved by a
residential structure, whether or not insured or guaranteed by the
United States of America or any agency thereof, provided however, that
the loan made by the agency and secured by such second lien is made at
the same time as a first lien securing a mortgage loan purchased by the
agency pursuant to its programs or by a government sponsored enterprise.
In the case of any second lien purchased or made hereunder, the
mortgagor shall be obligated to contribute from his or her own
verifiable funds an amount not less than such percentage as the agency
shall determine, of the lower of the purchase price or appraised value
of the property subject to the first lien. "Real property" as used in
this subdivision shall include air rights.
Except for the purposes of subdivision seven of section two thousand
four hundred five of this part, "mortgage" shall also include a loan
owed to a bank by an individual borrower incurred for the purpose of
financing the purchase of certificates of stock or other evidence of
ownership of an interest in, and a proprietary lease from, a cooperative
housing corporation formed for the purpose of the cooperative ownership
of residential real estate in the state, secured by an assignment or
transfer of the benefits of such cooperative ownership, and containing
such terms and conditions as the agency may approve.
* NB Effective July 23, 2025 until July 23, 2025
* (5) "Mortgage". A loan owed to a bank secured by a first lien on a
fee simple or leasehold estate in real property located in the state and
improved by a residential structure, whether or not insured or
guaranteed by the United States of America or any agency thereof. The
term "mortgage" shall also include a loan owed to a bank secured by a
second lien on a fee simple or leasehold estate in real property located
in the state and improved by a residential structure, whether or not
insured or guaranteed by the United States of America or any agency
thereof, provided, however, that such second lien: (a) secures a loan
purchased by the agency, and (b) is made at the same time as a first
lien securing a loan purchased by the agency pursuant to its programs or
is made at the same time as a new housing loan purchased by the agency
pursuant to section twenty-four hundred five-c of this part. The term
"mortgage" shall also include loans made by the agency and secured by a
second lien on a fee simple or leasehold estate in real property located
in the state and improved by a residential structure, whether or not
insured or guaranteed by the United States of America or any agency
thereof, provided however, that the loan made by the agency and secured
by such second lien is made at the same time as a first lien securing a
mortgage loan purchased by the agency pursuant to its programs or by a
government sponsored enterprise. In the case of any second lien, the
mortgagor shall be obligated to contribute from his or her own
verifiable funds an amount not less than such percentage as the agency
shall determine, of the lower of the purchase price or appraised value
of the property subject to the first lien. "Real property" as used in
this subdivision shall include air rights.
Except for the purposes of subdivision seven of section two thousand
four hundred five of this part, "mortgage" shall also include a loan
owed to a bank by an individual borrower incurred for the purpose of
financing the purchase of certificates of stock or other evidence of
ownership of an interest in, and a proprietary lease from, a cooperative
housing corporation formed for the purpose of the cooperative ownership
of residential real estate in the state, secured by an assignment or
transfer of the benefits of such cooperative ownership, and containing
such terms and conditions as the agency may approve.
* NB Effective July 23, 2025
(6) "State". The state of New York.
(7) "State agency". Any office, department, board, commission, bureau,
division, public corporation, agency or instrumentality of the state.
(8) "College". Any institution of higher education recognized and
approved as such by the regents of the university of the state which
provides a course of study leading to the granting of a post-secondary
degree or diploma.
(9) "Career institution". A business, trade, technical or other
occupational school approved as such by the regents of the university of
the state or accredited by a nationally recognized accrediting agency or
association accepted as such by the regents of the university of the
state.
(10) "Loan". A loan which the New York higher education assistance
corporation has guaranteed or agreed to guarantee pursuant to article
fourteen of the education law to a person who is attending or plans to
attend, on a full-time or part-time basis, a college or career
institution, for the purpose of assisting such person to meet his
expenses of higher or career education; provided, however, in no event
shall the amount of any such loan for any school year exceed the total
amount of (i) the borrower's tuition and educational fees payable to the
college or career institution he is attending or is planning to attend,
and (ii) sums actually expended or incurred for room and board during
such period, reduced by the total amount of (i) all General and Special
Purpose Awards (as provided in article thirteen of the education law),
and (ii) all other forms of direct financial aid received by the
borrower during such period, however denominated and from whatever
source (other than the borrower's family), which by its terms is not
repayable by the borrower.
* (11) "Existing mortgage". A mortgage for which funds were advanced
prior to the date of the most recent invitation of the agency to banks
to sell mortgages to the agency.
* NB Repealed July 23, 2025
* (12) "Forward commitment mortgage". A mortgage, which includes
construction loans for single-family modular or manufactured housing
purchased and sited on land, for which a commitment to advance funds is
made not earlier than the date the agency issues an invitation to
purchase mortgages or such later date as specified in the invitation. A
mortgage made in satisfaction of the obligation of a bank under section
twenty-four hundred five of this part is not a forward commitment
mortgage.
* NB Repealed July 23, 2025
* (13) "Housing loan". A loan owed to a bank, secured in a manner
satisfactory to the agency, to improve, rehabilitate, reconstruct or
redevelop one to four unit residences located in the state. The loan
shall be insured or guaranteed by the United States of America or any
agency thereof, or by a firm which is authorized by the superintendent
of financial services of the state of New York to issue such policies in
the state.
* NB Repealed July 23, 2025
* (14) "Persons and families of low or moderate income". Persons and
families within the state who are determined by the agency to lack
sufficient income to pay enough to cause an adequate supply of credit to
be made available for new residential improvement loans at carrying
charges within the financial means of such persons and families and
whose incomes are below the income levels determined by the agency to be
in need of the assistance made available by this title, taking into
consideration, without limitation, such factors as the following: (i)
the amount of the total income of such persons and families, (ii) the
size of the family unit, (iii) the cost to improve, rehabilitate,
reconstruct or redevelop residential family dwelling units, (iv) the
ability of such persons and families to pay the amounts charged in
regular banking channels for credit for such improvement,
rehabilitation, reconstruction, or redevelopment work, and (v) standards
established by various programs of the federal government for
determining eligibility based on income of such persons and families.
* NB Repealed July 23, 2025
(15) "Blending". The financing of a single mortgage loan partly with
the proceeds of bonds issued pursuant to subdivision one of section
twenty-four hundred seven of this title and partly with the proceeds of
bonds issued pursuant to subdivision two of such section.
(16) "Employer". Any corporation, partnership, or sole proprietorship
which maintains an office in the state.
* (17) "Government sponsored enterprises". Privately owned, publicly
chartered entities, and wholly-owned corporate instrumentalities of the
United States within the department of housing and urban development,
created pursuant to 12 USC 1717(a)(2)(A), all created by Congress to
encourage lending and reduce costs primarily in the housing sector of
the economy, and any successor entity or entities created by Congress to
continue to serve said purposes.
* NB Repealed July 23, 2025
terms shall have the following meanings unless the context shall
indicate another or different meaning or intent:
(1) "Agency". The state of New York mortgage agency, the corporate
governmental agency created by section two thousand four hundred three
of this title.
* (2) "Bank". Any bank or trust company, savings bank, savings and
loan association, industrial bank, credit union, national banking
association, federal savings and loan association, federal savings bank
or federal credit union which is located in the state. The term "bank"
shall also include a New York state licensed mortgage banker, or a
domestic not-for-profit corporation whose public purposes include
combatting community deterioration and which is an exempt organization
as defined in paragraph (e) of subdivision one of section five hundred
ninety of the banking law, or an entity exempt from licensing provisions
in accordance with paragraph (a) of subdivision two of such section,
which in any such case is approved as a mortgage lender by the Federal
National Mortgage Association or by the Federal Home Loan Mortgage
Corporation, or domestic not-for-profit corporations that are certified
by the United States department of treasury as community development
financial institutions or licensed by the New York state department of
financial services.
* NB Effective until July 23, 2025
* (2) "Bank". Any bank or trust company, savings bank, savings and
loan association, industrial bank, credit union, national banking
association, federal savings and loan association or federal credit
union which is located in the state.
* NB Effective July 23, 2025
(3) "Bonds" and "Notes". The bonds and notes respectively issued by
the agency pursuant to this title.
(4) "Comptroller". The comptroller of the state.
* (5) "Mortgage". A loan owed to a bank secured by a first lien on (i)
a fee simple or leasehold estate in real property, or (ii) any other
instrument which shall constitute or create a security interest in
tangible personal property constituting modular or manufactured housing,
located in the state and improved by a residential structure or, on
which a residential structure for use as single-family modular or
manufactured housing purchased and sited on land shall be constructed
using the proceeds of such loan, whether or not insured or guaranteed by
the United States of America or any agency thereof. The term "mortgage"
shall also include a loan owed to a bank secured by a second lien on (i)
a fee simple or leasehold estate in real property, or (ii) any other
instrument which shall constitute or create a security interest in
tangible personal property constituting modular or manufactured housing,
located in the state and improved by a residential structure or on which
a residential structure for use as single-family modular or manufactured
housing purchased and sited on land shall be constructed using the
proceeds of the related loan described in paragraph (a) or (b) of this
subdivision, whether or not insured or guaranteed by the United States
of America or any agency thereof, provided, however, that such second
lien: (a) secures a loan purchased by the agency, and (b) is made at the
same time as a first lien securing a loan purchased by the agency
pursuant to its programs or by a government sponsored enterprise or is
made at the same time as a new housing loan purchased by the agency
pursuant to section twenty-four hundred five-c of this part. The term
"mortgage" shall also include loans made by the agency and secured by a
second lien on (i) a fee simple or leasehold estate in real property, or
(ii) any other instrument which shall constitute or create a security
interest in tangible personal property constituting modular or
manufactured housing, located in the state and improved by a residential
structure or on which a residential structure for use as single-family
modular or manufactured housing purchased and sited on land shall be
constructed using the proceeds of such loan, whether or not insured or
guaranteed by the United States of America or any agency thereof,
provided however, that the loan made by the agency and secured by such
second lien is made at the same time as a first lien securing a mortgage
loan purchased by the agency pursuant to its programs or by a government
sponsored enterprise. In the case of any second lien purchased or made
hereunder, the mortgagor shall be obligated to contribute from his or
her own verifiable funds an amount not less than such percentage as the
agency shall determine, of the lower of the purchase price or appraised
value of the property subject to the first lien. "Real property" as used
in this subdivision shall include air rights.
For the purposes of this title and subdivision ten of section two
hundred ten-B of the tax law, "mortgage" shall include housing loans as
defined below. Except for the purposes of subdivision seven of section
twenty-four hundred five and subdivision eight of section twenty-four
hundred five-b of this part, "mortgage" shall also include a loan owed
to a bank by an individual borrower incurred for the purpose of
financing the purchase of certificates of stock or other evidence of
ownership of an interest in, and a proprietary lease from, a cooperative
housing corporation formed for the purpose of the cooperative ownership
of residential real estate in the state, secured by an assignment or
transfer of the benefits of such cooperative ownership, and containing
such terms and conditions as the agency may approve.
* NB Effective until July 23, 2025
* (5) "Mortgage". A loan owed to a bank secured by a first lien on a
fee simple or leasehold estate in real property located in the state and
improved by a residential structure, whether or not insured or
guaranteed by the United States of America or any agency thereof. The
term "mortgage" shall also include a loan owed to a bank secured by a
second lien on a fee simple or leasehold estate in real property located
in the state and improved by a residential structure, whether or not
insured or guaranteed by the United States of America or any agency
thereof, provided, however, that such second lien: (a) secures a loan
purchased by the agency, and (b) is made at the same time as a first
lien securing a loan purchased by the agency pursuant to its programs or
by a government sponsored enterprise or is made at the same time as a
new housing loan purchased by the agency pursuant to section twenty-four
hundred five-c of this part. The term "mortgage" shall also include
loans made by the agency and secured by a second lien on a fee simple or
leasehold estate in real property located in the state and improved by a
residential structure, whether or not insured or guaranteed by the
United States of America or any agency thereof, provided however, that
the loan made by the agency and secured by such second lien is made at
the same time as a first lien securing a mortgage loan purchased by the
agency pursuant to its programs or by a government sponsored enterprise.
In the case of any second lien purchased or made hereunder, the
mortgagor shall be obligated to contribute from his or her own
verifiable funds an amount not less than such percentage as the agency
shall determine, of the lower of the purchase price or appraised value
of the property subject to the first lien. "Real property" as used in
this subdivision shall include air rights.
Except for the purposes of subdivision seven of section two thousand
four hundred five of this part, "mortgage" shall also include a loan
owed to a bank by an individual borrower incurred for the purpose of
financing the purchase of certificates of stock or other evidence of
ownership of an interest in, and a proprietary lease from, a cooperative
housing corporation formed for the purpose of the cooperative ownership
of residential real estate in the state, secured by an assignment or
transfer of the benefits of such cooperative ownership, and containing
such terms and conditions as the agency may approve.
* NB Effective July 23, 2025 until July 23, 2025
* (5) "Mortgage". A loan owed to a bank secured by a first lien on a
fee simple or leasehold estate in real property located in the state and
improved by a residential structure, whether or not insured or
guaranteed by the United States of America or any agency thereof. The
term "mortgage" shall also include a loan owed to a bank secured by a
second lien on a fee simple or leasehold estate in real property located
in the state and improved by a residential structure, whether or not
insured or guaranteed by the United States of America or any agency
thereof, provided, however, that such second lien: (a) secures a loan
purchased by the agency, and (b) is made at the same time as a first
lien securing a loan purchased by the agency pursuant to its programs or
is made at the same time as a new housing loan purchased by the agency
pursuant to section twenty-four hundred five-c of this part. The term
"mortgage" shall also include loans made by the agency and secured by a
second lien on a fee simple or leasehold estate in real property located
in the state and improved by a residential structure, whether or not
insured or guaranteed by the United States of America or any agency
thereof, provided however, that the loan made by the agency and secured
by such second lien is made at the same time as a first lien securing a
mortgage loan purchased by the agency pursuant to its programs or by a
government sponsored enterprise. In the case of any second lien, the
mortgagor shall be obligated to contribute from his or her own
verifiable funds an amount not less than such percentage as the agency
shall determine, of the lower of the purchase price or appraised value
of the property subject to the first lien. "Real property" as used in
this subdivision shall include air rights.
Except for the purposes of subdivision seven of section two thousand
four hundred five of this part, "mortgage" shall also include a loan
owed to a bank by an individual borrower incurred for the purpose of
financing the purchase of certificates of stock or other evidence of
ownership of an interest in, and a proprietary lease from, a cooperative
housing corporation formed for the purpose of the cooperative ownership
of residential real estate in the state, secured by an assignment or
transfer of the benefits of such cooperative ownership, and containing
such terms and conditions as the agency may approve.
* NB Effective July 23, 2025
(6) "State". The state of New York.
(7) "State agency". Any office, department, board, commission, bureau,
division, public corporation, agency or instrumentality of the state.
(8) "College". Any institution of higher education recognized and
approved as such by the regents of the university of the state which
provides a course of study leading to the granting of a post-secondary
degree or diploma.
(9) "Career institution". A business, trade, technical or other
occupational school approved as such by the regents of the university of
the state or accredited by a nationally recognized accrediting agency or
association accepted as such by the regents of the university of the
state.
(10) "Loan". A loan which the New York higher education assistance
corporation has guaranteed or agreed to guarantee pursuant to article
fourteen of the education law to a person who is attending or plans to
attend, on a full-time or part-time basis, a college or career
institution, for the purpose of assisting such person to meet his
expenses of higher or career education; provided, however, in no event
shall the amount of any such loan for any school year exceed the total
amount of (i) the borrower's tuition and educational fees payable to the
college or career institution he is attending or is planning to attend,
and (ii) sums actually expended or incurred for room and board during
such period, reduced by the total amount of (i) all General and Special
Purpose Awards (as provided in article thirteen of the education law),
and (ii) all other forms of direct financial aid received by the
borrower during such period, however denominated and from whatever
source (other than the borrower's family), which by its terms is not
repayable by the borrower.
* (11) "Existing mortgage". A mortgage for which funds were advanced
prior to the date of the most recent invitation of the agency to banks
to sell mortgages to the agency.
* NB Repealed July 23, 2025
* (12) "Forward commitment mortgage". A mortgage, which includes
construction loans for single-family modular or manufactured housing
purchased and sited on land, for which a commitment to advance funds is
made not earlier than the date the agency issues an invitation to
purchase mortgages or such later date as specified in the invitation. A
mortgage made in satisfaction of the obligation of a bank under section
twenty-four hundred five of this part is not a forward commitment
mortgage.
* NB Repealed July 23, 2025
* (13) "Housing loan". A loan owed to a bank, secured in a manner
satisfactory to the agency, to improve, rehabilitate, reconstruct or
redevelop one to four unit residences located in the state. The loan
shall be insured or guaranteed by the United States of America or any
agency thereof, or by a firm which is authorized by the superintendent
of financial services of the state of New York to issue such policies in
the state.
* NB Repealed July 23, 2025
* (14) "Persons and families of low or moderate income". Persons and
families within the state who are determined by the agency to lack
sufficient income to pay enough to cause an adequate supply of credit to
be made available for new residential improvement loans at carrying
charges within the financial means of such persons and families and
whose incomes are below the income levels determined by the agency to be
in need of the assistance made available by this title, taking into
consideration, without limitation, such factors as the following: (i)
the amount of the total income of such persons and families, (ii) the
size of the family unit, (iii) the cost to improve, rehabilitate,
reconstruct or redevelop residential family dwelling units, (iv) the
ability of such persons and families to pay the amounts charged in
regular banking channels for credit for such improvement,
rehabilitation, reconstruction, or redevelopment work, and (v) standards
established by various programs of the federal government for
determining eligibility based on income of such persons and families.
* NB Repealed July 23, 2025
(15) "Blending". The financing of a single mortgage loan partly with
the proceeds of bonds issued pursuant to subdivision one of section
twenty-four hundred seven of this title and partly with the proceeds of
bonds issued pursuant to subdivision two of such section.
(16) "Employer". Any corporation, partnership, or sole proprietorship
which maintains an office in the state.
* (17) "Government sponsored enterprises". Privately owned, publicly
chartered entities, and wholly-owned corporate instrumentalities of the
United States within the department of housing and urban development,
created pursuant to 12 USC 1717(a)(2)(A), all created by Congress to
encourage lending and reduce costs primarily in the housing sector of
the economy, and any successor entity or entities created by Congress to
continue to serve said purposes.
* NB Repealed July 23, 2025