For purposes of this Part:

1. The term lender shall mean a bank, trust company, savings bank, savings and loan association, credit union, mortgage bankers or exempt organization as defined in section 590 of the Banking Law.
2. The term natural person shall mean an individual.
3. The term junior mortgage loan shall mean a loan or other extension of credit to a natural person secured by:
   1. a mortgage on real property which is:
      1. improved by a one-to-four-family owner-occupied residence;
      2. subject to the lien of one or more prior mortgages or similar recorded encumbrances; or
   2. a junior interest in or junior lien on certificates of stock or other evidences of an ownership interest in, and a proprietary lease from, a corporation or partnership formed for the purpose of cooperative ownership of residential real estate.
4. The term electronically transmitted or electronic media shall mean any transmission via diskette, wire or tape including but not limited to the Intranet (interactive or otherwise), the Internet, any other computer network, electronic mail, or any other similar method of transmission.

These restrictions translate to certain responsibilities with respect to this License. You may choose to offer, and to permit linking proprietary applications with the distribution. Neither the name of Stichting Mathematisch Centrum Amsterdam, The Netherlands. All rights in its sole discretion. Additional Terms. You may not use any license other than Source Code. Except to the Copyright Holder maintains some semblance of artistic control over the development of that system; it is being maintained, then ask the Current Maintainer is allowed only for noncommercial distribution and only if the Electronic Distribution Mechanism is maintained by a Contributor which are posted at http://www.apple.com/legal/guidelinesfor3rdparties.html.

abcdefghijklmnopqrstuvwxyz abcdefghijklmnopqrstuvwxyz abcdefghijklmnopqrstuvwxyz abcdefghijklmnopqrstuvwxyz abcdefghijklmnopqrstuvwxyz abcdefghijklmnopqrstuvwxyz

A revolving credit line secured by a junior mortgage must also comply with the following requirements:

1. the line of credit must be in an amount of $2,500 or more;
2. disclosure shall be provided as set forth in section 80.4 of this Part and in addition, the disclosure shall include a statement to the effect that the cost of title insurance and mortgage recording tax shall be based on the maximum amount of the credit line available to the borrower, whether advanced or not;
3. with each monthly statement, the lender must provide the borrower with a statement which discloses the following items, to the extent applicable:
   1. previous balance;
   2. identification of transactions;
   3. credits;
   4. periodic rate(s) and fact that it (they) may vary;
   5. balance on which finance charge is computed;
   6. amount of finance charge;
   7. annual percentage rate;
   8. other charges;
   9. closing date of billing cycle;
   10. new balance;
   11. free-ride period; and
   12. address for notice of billing errors;
4. the junior mortgage loan shall be deemed to be made in the maximum amount of the credit line available to the borrower, whether advanced or not, for such purposes as title insurance and loan-to-value ratios; and
5. no prepayment penalty shall be permitted where such junior mortgage loan secures a revolving credit line.

1. A lender may make a junior mortgage loan (as such term is defined in section 80.1 of this Part) on the terms and conditions listed in subdivisions (b) and (c) of this section, provided that the borrower occupies the property at the time the loan is made and provided that the proceeds of the loan are used or are to be used by the borrower to finance the purchase of replacement residential property, as such use is ascertained by the lender prior to processing of the application by means of a copy of a contract executed by the loan applicant for the purchase of the replacement property and by any additional means that the lender may require.
2. A bridge loan, as defined in subdivision (a) of this section, may be made by a lender for a maximum term of one year. A bridge loan may be made, at the option of the lender, without any required repayment of either principal or interest during the term of the loan, provided that no compounding of interest occurs. In addition, the period for the loan may be divided into two terms, in which event, prior to commencement of the additional term, the borrower may be required to pay off any interest accumulated over the first term.
3. All bridge loans shall be offered under the following terms and conditions:
   1. The loan shall be due and payable upon the closing of the borrower’s sale of the property securing the loan.
   2. The loan may be prepaid by the borrower at any time, without penalty.
   3. The notification provisions of section 80.5 of this Part shall apply to the loan throughout its duration.
   4. The disclosure provisions of section 80.4 of this Part shall apply, except that the alternative disclosures for balloon-payment loans contained in section 80.4(b) shall be stated as:
      1. In the case where the lender is offering a single-term loan, or where the lender will offer an extension of the loan, which extension was not provided for at the commencement of the loan:

         THE TERM OF THE LOAN IS [MONTHS] [ONE YEAR]. AS A RESULT, YOU WILL BE REQUIRED TO REPAY THE ENTIRE PRINCIPAL BALANCE AND ANY ACCRUED INTEREST THEN OWING [MONTHS] [ONE YEAR] FROM THE DATE ON WHICH THE LOAN IS MADE. THE LENDER HAS NO OBLIGATION TO REFINANCE THIS LOAN AT THE END OF ITS TERM. THEREFORE, YOU MAY BE REQUIRED TO REPAY THE LOAN OUT OF ASSETS YOU OWN OR YOU MAY HAVE TO FIND ANOTHER LENDER WILLING TO REFINANCE THE LOAN.

      2. In the case where the lender is offering a loan divided into two terms:

         THE TERM OF THE LOAN IS MONTHS. AT MATURITY, MONTHS FROM THE DATE ON WHICH THE LOAN IS MADE, AND IN THE EVENT A REFINANCING IS REQUIRED, THE LOAN WILL BE EXTENDED AT [AN INTEREST RATE TO BE DETERMINED AT THE SOLE DISCRETION OF THE LENDER] [THE SAME RATE] [THE SAME RATE TO BE DETERMINED BY MOVEMENT IN INDEX]. SUCH INTEREST RATE MAY BE HIGHER THAN THE INTEREST RATE TO BE PAID ON THIS LOAN.

      In cases where the lender will extend the loan for a second term at the same rate of interest, the last sentence of the above disclosure shall be omitted.
   5. Whether the loan is offered for one term or two terms, fees and points may be taken only once at the inception of the loan, and the borrower may not be charged more than three points at that time. For purposes of this section:
      1. Permissible fees are limited to a property appraisal fee and to the fees and expenses for obtaining a credit history of the applicant. Any amount collected in excess of the actual cost of the credit report fee and property appraisal fee must be returned at or prior to closing.
      2. A point is one percent of the principal amount of the loan, which may be charged only at the time of closing of the bridge loan.
   6. The loan shall be at a fixed rate of interest within each term of the loan.

1. Lenders which comply with sections 226.19(b) and 226.20(c) of Regulation Z (12 CFR part 226) or the provisions of 12 CFR 563.99 will be deemed to be in compliance with sections 80.4(a) and 80.5 of this Part to the extent that sections 80.4(a) and 80.5 pertain to adjustable-rate junior mortgage loan transactions whether or not the transactions would otherwise be subject to section 226.19(b) or 12 CFR 563.99(b).
2. Lenders which comply with sections 226.5b and 226.7 of Regulation Z (12 CFR part 226) will be deemed to be in compliance with sections 80.4(a) and 80.10(c) of this Part to the extent that sections 80.4(a) and 80.10(c) pertain to home equity plans whether or not the plans would otherwise be subject to sections 226.5b and 226.7; provided that lenders supply a copy of the disclosures required by section 226.5b for retention by the borrower.

1. A lender is authorized to make junior mortgage loans in accordance with the provisions of this Part. However, junior mortgage loans which equal or exceed $250,000 when combined with the outstanding unpaid principal balance on existing loans secured by the type of security described in section 80.1(c) of this Part at the time such junior mortgage loan is made, shall be exempt from the provisions of this Part. Except as provided herein, nothing in this Part shall be deemed to limit the authority which a lender may otherwise have under any other provision of law, including sections 103(4-a), 235(6-a), 454(16) and 380(4-a) of the Banking Law to make junior mortgage loans in accordance with such provisions whether or not such loans are secured by one-to-four family owner-occupied residences. A junior mortgage loan, including a revolving credit line as authorized by section 80.10 of this Part, shall be repayable in monthly installments, which may be installments of interest only, and may be structured as a fixed-rate mortgage, a wrap-around mortgage or any type of adjustable rate or other mortgage form as agreed to by the lender and the borrower, unless specifically prohibited by this Part or by section 82.1(b) or 82.2(b) of this Title.
2. Balloon payment mortgages shall be for a term of not less than three years.
3. Electronic disclosurers and notifications are permitted as set forth in this Part.

Every lender which engages in the business of making junior lien mortgage loans shall adopt policies and procedures as are appropriate with respect to the maximum amount which, when added to the aggregate amount unpaid upon all prior mortgages, liens, and other encumbrances of record upon the real property or shares (in the case of a cooperative apartment unit), the lender shall advance pursuant to a junior mortgage loan. Such policies and procedures shall be subject to the superintendent’s periodic review.

1. Prior to accepting an application for a loan, a lender must disclose in writing or via electronic media to each loan applicant, in one or more documents, and in plain language, the terms of the type(s) of loan(s) sought by the applicant. The disclosure statement provided to an applicant shall include at least such of the following information as is relevant to the type of loan being offered:
   1. the term to  maturity;
   2. the initial interest rate, if known, or the manner in which the initial interest rate will be established;
   3. the amount of the initial payment, if known, and an explanation of the lender’s amortization schedule for the loan, including how the lender determines both the amount of each payment and the proportion of each payment which will be credited to interest;
   4. a full explanation of how the interest rate, the payment, the loan balance, or the term to maturity may be adjusted (including identification of the index/indices to be used and how index values may be obtained by the borrower), and how the adjustment of one may affect the others including disclosure of the intervals at which the lender may change the rate on the loan, the time(s) or date(s) at which the lender calculates the rate with respect to the index/indices, and any conditions or events on which the changes in rate are contingent;
   5. the fact that the borrower will receive notification in writing or via electronic media from the lender of increases in the rate or changes in the term of payment, and what information will be contained in each notice of an adjustment and, in the case of a nonamortizing or partially amortizing loan, in the notice of maturity, and how far in advance of an adjustment or maturity each notice will be provided;
   6. where a valid prepayment penalty will be provided for in the loan contract, a description of such penalty;
   7. if the loan contract will provide for escrow payments, a statement of that fact and an explanation of the purpose of requiring escrow payments and how the amount of such payments is established;
   8. a hypothetical example, illustrative of the type of credit being offered, of the effect or the combination of effects that an increase in the rate on the loan may have on the amount of the monthly payment, or the number of monthly payments or the amount of the final payment; and
   9. the history of the movements in the index chosen for the loan, including the highest and lowest interest rates reached by the index, and the dates at which these levels were reached, for each of the three calendar years preceding the year in which the loan is made, provided further that if a loan is made after August 31st of any calendar year, the disclosures shall include the high and low figures for the index’s performance through June 30th of that year and such disclosure may be used as the disclosure of the high and low in index performance for the calendar year next preceding the calendar year in which the loan is made for any loan made prior to March 1st of a calendar year.
   If an application is accepted by telephone, the lender shall mail, deliver or transmit by electronic media the required disclosure statement within three business days.
2. In the case of a balloon-payment mortgage loan, the disclosure required to be given pursuant to subdivision (a) of this section shall include the following notice, or a notice to like effect, as applicable, which notice may be given in writing or via electronic media and which shall also be included in the loan contract:

   THE TERM OF THE LOAN IS __ YEARS. AS A RESULT, YOU WILL BE REQUIRED TO REPAY THE ENTIRE PRINCIPAL BALANCE AND ANY ACCRUED INTEREST THEN OWING __ YEARS FROM THE DATE ON WHICH THE LOAN IS MADE. THE LENDER HAS NO OBLIGATION TO REFINANCE THIS LOAN AT THE END OF ITS TERM. THEREFORE, YOU MAY BE REQUIRED TO REPAY THE LOAN OUT OF ASSETS YOU OWN OR YOU MAY HAVE TO FIND ANOTHER LENDER WILLING TO REFINANCE THE LOAN. ASSUMING THIS LENDER OR ANOTHER LENDER REFINANCES THIS LOAN AT MATURITY, YOU WILL PROBABLY BE CHARGED INTEREST AT MARKET RATES PREVAILING AT THAT TIME AND SUCH RATES MAY BE HIGHER THAN THE INTEREST RATE ON THIS LOAN. YOU MAY ALSO HAVE TO PAY SOME OR ALL OF THE CLOSING COSTS NORMALLY ASSOCIATED WITH A NEW MORTGAGE LOAN.

   If the lender guarantees refinancing of the loan for additional terms until the principal balance has been repaid but does not provide for the recalculation of the interest rate at the time of each refinancing according to a prespecified index, the disclosures and the loan contracts shall include the following notice, or a notice to like effect, as applicable which notice may be given in writing or via electronic media and:

   THE TERM OF THE LOAN IS __ YEARS. AT MATURITY, __YEARS FROM THE DATE ON WHICH THE LOAN IS MADE, AND AT THE TIME OF EACH FURTHER REFINANCING, THE LOAN WILL BE REFINANCED AT AN INTEREST RATE ESTABLISHED BY THE LENDER WITH REFERENCE TO MARKET RATES. SUCH INTEREST RATE(S) MAY BE HIGHER THAN THE INTEREST RATE PAID ON THIS LOAN.

   In addition, at the time it commits itself to make the loan, the lender must inform the applicant in writing or via electronic media of the principal balance which will be due at maturity of the loan or the initial term of the loan (assuming all scheduled principal payments, if any, are made in accordance with the loan contract) and the fact that the borrower will receive notice of maturity in writing or, where the borrower has consented in advance, via electronic media from the lender and the time periods within which such notice will be sent.
3. The lender shall include in the disclosures a statement, in bold face type at least ten point in size, as follows:

   YOU SHOULD CHECK WITH YOUR LEGAL ADVISOR AND WITH OTHER MORTGAGE LIEN HOLDERS AS TO WHETHER ANY PRIOR LIENS CONTAIN ACCELERATION CLAUSES WHICH WOULD BE ACTIVATED BY A JUNIOR ENCUMBRANCE.

4. With regard to the electronic transmission of disclosures, a hard-copy of such disclosure shall be mailed to each applicant who indicates that he or she does not have the computer capacity to down-load and print such disclosure. In those instances in which a hard-copy of the disclosure is not mailed to the applicant, the lender must be able to demonstrate that information was obtained as to the applicant’s computer capacity to down-load and print such disclosure.

1. At least 30 but not more than 120 days prior to a payment adjustment and at least 90 but not more than 120 days prior to the expected maturity of a balloon-payment mortgage, a lender shall provide the borrower with notice in writing or, where the borrower has consented in advance, via electronic media, of the adjustment or of maturity. However, where the loan contract provides that changes in the interest rate shall occur more frequently than changes in the payment, the lender need not notify the borrower of changes in the rate, nor of changes in the loan balance or term resulting from a rate change, until notice of a payment adjustment is given. (For purposes of notification, either in writing or, where the borrower has consented in advance, via electronic media, a payment adjustment is considered to occur as of the date of the interest-rate change immediately preceding the due date of the adjusted payment.) In addition, where the loan contract sets out a schedule of payment adjustments, notice need not be given of payment changes made pursuant to that schedule.
2. In the case of a revolving credit line secured by a junior mortgage, written or, where the borrower has consented in advance, electronic notification of payment changes need only be given at the time the adjusted payment is due.
3. With regard to the electronic transmission of notices, a hard-copy of such notice shall be mailed to each applicant who indicates that he or she does not have the computer capacity to down-load and print such notice. In those instances in which a hard-copy of the notice is not mailed to the applicant, the lender must be able to demonstrate that information was obtained as to the applicant’s computer capacity to down-load and print such notice.

Except for such further limitations on adjustments (i.e., “ ceilings”, “floors” or “initial discounts”) as may be set forth in the loan contract:

1. 1. adjustments to the interest rate shall correspond directly to the movement of an interest-rate index or of an index that measures the rate of inflation, which index is readily available to and verifiable by the borrower and is beyond the control of the lender; provided that a lender may decrease the interest rate at any time, and provided further, that interest rate adjustments may be rounded to the nearest fraction of a percentage point when so stated in the contract. A lender may also increase the interest rate pursuant to a formula or schedule that specifies the amount of the increase, the time at which it may be made, and which is set forth in the loan contract;
   2. adjustments to the monthly payment and loan balance may be made to reflect interest- rate adjustments and, in the case of a payment adjustment, where the adjustment reflects change in the loan balance or is made pursuant to a formula or schedule specifying the percentage or dollar change in the payment, as set forth in the contract;
   3. any combination of indices or a moving average of index values may be used as an index, but a lender may not change or reserve the right to change the index or indices specified in the loan contract unless the initial index or indices specified become(s) unavailable during the term of the loan; and
   4. the loan term may be adjusted only to reflect a change in the interest rate, the payment or the loan balance.
2. Mortgage bankers.
   1. Mortgage bankers may use any single index from among the indices approved by the Superintendent of Banks pursuant to Superintendent’s Regulations, Part 334, on such terms as stated therein. Adjustments in the rate for the loan shall correspond directly to the movements of the index. As provided in section 590-a(3) of the Banking Law, the interest rate of the junior mortgage loan must be reduced in proportion to any decrease in the index rate, while increases in the interest rate based upon changes in the index rate may be made at the option of the mortgage banker. Although any loan may only use a single index for the life of the loan, the mortgage banker may provide for the use of an index similar to the index actually used in the event that the latter index should become unavailable for use during the term of the loan.
   2. The loan contract may provide for payment adjustments to be made pursuant to a formula or schedule specifying the percentage or dollar change in the payments. The loan term may be adjusted only to reflect a change in the interest rate and adjustments to the payment.

No junior mortgage loan shall be made except upon a written and signed certificate which states that the property securing such loan has been examined and which appraises the value of such property. For mortgage loans in an amount greater than $250,000, the appraised value shall be determined by an appraiser licensed or certified or working under the supervision of an appraiser who is licensed pursuant to article 6-E of the Executive Law.

The rate or rates of interest that a lender may take or receive on a junior mortgage loan shall be the rate or rates agreed upon by the lender and the borrower. Such interest may be charged relative to unpaid principal balances or may be precomputed; provided that if a precomputed junior mortgage loan is repaid prior to maturity for any reason, any unearned interest shall be refunded according to the actuarial method based on scheduled remaining balances. The unpaid principal balance may include items listed in subdivisions (a)-(u) of this section. No fee, commission, expense or other charge to the borrower in addition to the interest charge provided for in this section shall be taken, received, reserved or contracted for by a lender in connection with the making or maintenance of a junior mortgage loan, except, where applicable, to the extent not otherwise inconsistent with any other provision of law:

1. a loan origination fee, commitment fee or similar charge;
2. a fee or charge for appraising or surveying the property securing such junior mortgage loan;
3. fees or premiums for a title examination, an abstract of title, title insurance or similar purposes, a credit report fee and a fee taken at closing for a search for tax liens existing at the time of closing if such search is not included in the title examination provided such fees or premiums actually will be paid by the lender;
4. fees or charges prescribed by law which actually are or will be paid by the lender to public officials for determining the existence of or for perfecting or releasing or satisfying any security related to the junior mortgage loan;
5. fees or charges which actually are or will be paid by the lender for any transfer, mortgage recording or related tax;
6. reasonable attorney’s fees representing actual fees charged to the lender in connection with the closing of such junior mortgage loan;
7. charges for credit life, credit accident and health insurance, credit unemployment insurance, and mortgage guaranty insurance;
8. reasonable attorney’s fees not in excess of 15 percent of the unpaid debt in the event of default if such junior mortgage loan is referred to an attorney who is not a salaried employee of the lender for collection;
9. a late charge on any payment that is due and unpaid;
10. fees or charges for processing stop payment orders;
11. fees or charges for handling checks drawn on insufficient funds in accordance with the provisions of section 5-328 of the General Obligations Law;
12. fees or charges for replacing lost or stolen checks;
13. fees or charges for printing checks;
14. fees or charges for converting, at the borrower’s request, all or part of a loan to a closed- end fixed or variable rate term loan;
15. fees or charges for reducing the interest rate on existing junior lien loans or for any other loan modification requested by the borrower;
16. fees or charges taken at closing for a flood zone search;
17. an annual fee;
18. an application fee and/or processing fee each in an amount reasonably related to the services to be performed on behalf of the applicant, which fee shall not be figured as a percentage of the principal amount of the loan, credit line or amount financed;
19. fees or charges for dishonoring a check(s) that cannot be approved since the borrower is in violation of the terms of the agreement or where payment of such a check(s) would cause the borrower to be in violation of the terms of the agreement, but not more than once in a monthly billing cycle;
20. an overlimit fee or charge which may be imposed whenever the specified credit limit is exceeded, but not more than once in a monthly billing cycle; and
21. such other fees or charges as may be specifically authorized by rule or regulation. The fees and/or charges permitted in subdivisions (j), (l), (m), (q), (s) and (t) of this section are permitted only in connection with a revolving credit account.

A contract, note or instrument evidencing or securing a junior mortgage loan shall not contain:

1. any acceleration clause providing that the junior mortgage loan may be declared due and payable upon the mere condition that the lender deems itself insecure with respect to the unpaid balance of such junior mortgage loan;
2. any power of attorney to confess judgment or any other power of attorney;
3. any provision whereby the borrower waives any rights accruing to him under the provisions of this Part;
4. any assignment of or order for the payment of any salary, wages, commissions or other compensation for services, or any part thereof, earned or to be earned; or
5. any provision prohibiting prepayment of the junior mortgage loan in whole or in part or imposing a penalty, except as otherwise permitted by section 5-501(3)(b) of the General Obligations Law, and then only if according to the provisions of the note and mortgage, the interest rate for the loan shall remain fixed for a period of at least five years, the mortgage broker, mortgage banker and/or exempt organization complies with the provisions of sections 38.2, 38.3 and 38.4 of this Title which pertain to prepayment penalties and the loan contract provides for a prepayment penalty; or
6. any clause allowing the lender to change any term of the mortgage agreement other than in those instances set forth in section 226.5b(f)(3) of Regulation Z (12 CFR part 226).