2402 - Definitions.

§  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 section five  hundred ninety of such law, 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.    * NB Effective until July 16, 2011    * (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 16, 2011    (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  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, provided that, 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.    For  the  purposes of this title and of section one hundred ninety and  subsection (a) of section one thousand four hundred fifty-six of the tax  law, "mortgage" shall include housing loans as defined below. Except for  the purposes of subdivision seven of section two thousand  four  hundred  five  and  subdivision eight of section two thousand 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 thebenefits of such cooperative ownership, and containing  such  terms  and  conditions as the agency may approve.    * NB Effective until July 16, 2011    * (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, provided that, 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 16, 2011 until December 31, 2012    * (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,  provided  that,  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 ortransfer of the benefits of such cooperative ownership,  and  containing  such terms and conditions as the agency may approve.    * NB Effective December 31, 2012    (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 16, 2011    * (12)  "Forward  commitment  mortgage".  A  mortgage  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  title is not a forward commitment mortgage.    * NB Repealed July 16, 2011    * (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  insurance  of  the  state  of New York to issue such policies in the  state.    * NB Repealed July 16, 2011    * (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 16, 2011    (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, created by Congress to encourage lending and reduce  costs primarily in the housing sector of the economy.    * NB Repealed December 31, 2012