Real Property

ARTICLE 8
CONVEYANCES AND MORTGAGES
Section 240. Definitions and use of terms.
240-b. Certain conveyances authorized; effect thereof.
240-c. Joint tenancy severance.
241. Ancient conveyances abolished.
242. Disclosure prior to the sale of real property.
243. Grant of fee or freehold.
244. When grant takes effect.
245. Estate which passes by grant or devise.
246. Certain deeds declared grants.
247. Conveyance by tenant for life or years of greater estate
than possessed.
248. Effect of conveyance where property is leased.
249. Convenants in mortgages.
251. Convenants not implied.
252. Lineal and collateral warranties abolished.
253. Construction of convenants in grants of freehold
interests.
254. Construction of clauses and convenants in mortgages and
bonds or notes.
254-a. Right of election of mortgagee in certain cases.
254-b. Limitation on late charges.
254-c. Right to a copy of real property appraisals and consumer
reports in certain cases.
254-d Fees by mortgagee for direct payment of real property
taxes by mortgagor prohibited.
255. Construction of grant of appurtenances and of all the
rights and estate of grantor.
256. Construction of grant in executor`s or trustee`s deed of
appurtenances, and of the estate of testator and
grantor.
257. Convenants bind representatives of grantor and mortgagor
and inure to the benefit of whom.
258. Short forms of deeds and mortgages.
259-c. Provision in lease of real property for waiver of trial
by jury in actions for personal injury or property
damage.
260. Lands adversely held may be conveyed or mortgaged.
261. Maintenance of telegraph or other electric wires raises
no presumption of grant.
265. Fraudulent intent, question of fact.
266. Rights of purchaser or incumbrancer for valuable
consideration protected.
267. Conveyances with power to revoke, determine or alter.
268. Disaffirmance of fraudulent act by executor and others.
269. When remainderman may pay interest owed by life tenant.
270. Powers of courts of equity not abridged.
271. Construction of convenants in mortgages on leases of real
property and bonds or notes.
272. Construction of grant of appurtenances, and all of the
rights and estate of the mortgagor.
273. What form of mortgage on lease of real property.
274. Transfers and mortgages of interest in decedents`
estates.
274-a. Certificate of principal amount unpaid on mortgages of
real property.
275. Certificate of discharge of mortgage required.
276. Effect of certain easements on the right to invest in
mortgages.
277. Modification and extension of mortgage investment.
277-a. Powers of fiduciaries and others holding guaranteed
mortgages or mortgage investments.
278. Exchange of mortgage investment.
278-a. Sale or exchange of certain real property or mortgage
investments therein authorized.
279. Graduated payment mortgage.
280. Reverse mortgage loans for persons sixty years of age or
older.
280-a. Reverse mortgage loans for persons seventy years of age
or older.
281. Credit line mortgage.

S 240. Definitions and use of terms. 1. The term "heirs," or other
words of inheritance, are not requisite to create or convey an estate in
fee.
2. The term "conveyance, " as used in this article, includes every
instrument, in writing, except a will, by which any estate or interest
in real property is created, transferred, assigned or surrendered.
3. Every instrument creating, transferring, assigning or surrendering
an estate or interest in real property must be construed according to
the intent of the parties, so far as such intent can be gathered from
the whole instrument, and is consistent with the rules of law.
4. The terms "estate" and "interest in real property" include every
such estate and interest, freehold or chattel, legal or equitable,
present or future, vested or contingent.

S 240-b. Certain conveyances authorized; effect thereof. 1. Any person
or persons owning real property or an interest in real property which he
or they have power to convey, may effectively convey such property or
interest by a conveyance naming himself or themselves and another person
or persons, or one or more of themselves and another person or other
persons, as grantees, and the conveyance has the same effect as to
whether it creates an estate in severalty, a joint tenancy, or a tenancy
by the entirety, or tenancy in common, as if it were a conveyance from a
stranger who owned the property or interest to the persons named as
grantees in the conveyance.
2. Any two or more persons owning real property or an interest in real
property which they have power to convey, may effectively convey such
property or interest by a conveyance naming one, or more than one, or
all such persons, as grantees, and the conveyance has the same effect,
as to whether it creates an estate in severalty, or a joint tenancy, or
a tenancy by the entirety, or tenancy in common, as if it were a
conveyance from a stranger who owned the property or interest to the
persons named as grantees in the conveyance.
3. As used in this section, "person" may be a married person and
"persons" may be persons married to each other.

S 240-c. Joint tenancy severance. 1. In addition to any other means by
which a joint tenancy with right of survivorship may be severed, a joint
tenant may unilaterally sever a joint tenancy in real property without
consent of any non-severing joint tenant or tenants by:
(a) Execution and delivery of a deed that conveys legal title to the
severing joint tenant`s interest to a third person, whether or not
pursuant to an agreement requiring the third person to reconvey legal
title to the severing joint tenant; or
(b) Execution of a written instrument that evidences the intent to
sever the joint tenancy, including a deed that names the severing tenant
as the direct grantee of the severing tenant`s interest.
2. No severance of a joint tenancy pursuant to subdivision one of this
section shall terminate the right of survivorship of any non-severing
joint tenant or tenants as to the severing tenant`s interest unless the
deed or written instrument effecting the severance is recorded, prior to
the death of the severing tenant, in the county where the real property
is located.
3. Nothing in this section shall limit the manner or effect of:
(a) A severance of a joint tenancy pursuant to a written instrument
executed by all joint tenants, or pursuant to a written agreement of all
joint tenants.
(b) A severance of a joint tenancy effected by a deed from a joint
tenant to another joint tenant.
(c) A severance ordered by a court of competent jurisdiction.

S 241. Ancient conveyances abolished. The conveyance of real property
by feoffment, with livery of seizin, or by fines, or common recoveries,
is abolished.

S 242. Disclosure prior to the sale of real property. 1. (a) Any
person, firm, company, partnership or corporation offering to sell real
property to which no utility electric service is provided shall provide
written notice to the prospective purchaser or to the prospective
purchaser`s agent, clearly indicating this fact. Such notice shall be
provided prior to accepting a purchase offer.
(b) Any prospective or actual purchaser who has suffered a loss due to
a violation of this section is entitled to recover any actual damages
incurred from the person offering to sell said real property.
(c) The provisions of this subdivision shall not apply in instances
where the real property being sold lies within the applicable free
footage allowance or service lateral specified by the public service
commission in rule, regulation or public utility tariff.
2. Disclosure prior to the sale of real property to which utility
surcharge payments attach. (a) Any person, firm, company, partnership or
corporation offering to sell real property against which an electric or
gas utility surcharge is assessed for the purpose of defraying the costs
associated with an electric or gas line extension, or for the purpose of
defraying the costs associated with related facilities, shall provide
written notice to the prospective purchaser or the prospective
purchaser`s agent, stating as follows: "This property is subject to an
electric and/or gas utility surcharge". In addition, such notice shall
also state, the type and purpose of the surcharge, the amount of the
surcharge and whether such surcharge is payable on a monthly, yearly or
other basis. Such notice shall be provided by the seller prior to
accepting a purchase offer.
(b) Any prospective or actual purchaser who has suffered a loss due to
a violation of this subdivision is entitled to recover any actual
damages incurred from the person offering to sell or selling said real
property.

S 243. Grant of fee or freehold. A grant in fee or of a freehold
estate, must be subscribed by the person from whom the estate or
interest conveyed is intended to pass, or by his lawful agent thereunto
authorized in writing. If not duly acknowledged before its delivery,
according to the provisions of this chapter, its execution and delivery
must be attested by at least one witness, or, if not so attested, it
does not take effect as against a subsequent purchaser or incumbrancer
until so acknowledged.

S 244. When grant takes effect. A grant takes effect, so as to vest
the estate or interest intended to be conveyed, only from its delivery;
and all the rules of law, now in force, in respect to the delivery of
deeds, apply to grants hereafter executed.

S 245. Estate which passes by grant or devise. A grant or devise of
real property passes all the estate or interest of the grantor or
testator unless the intent to pass a less estate or interest appears by
the express terms of such grant or devise or by necessary implication
therefrom. A greater estate or interest does not pass by any grant or
conveyance, than the grantor possessed or could lawfully convey, at the
time of the delivery of the deeds; except that every grant is conclusive
against the grantor and his heirs claiming from him by descent, and as
against a subsequent purchaser or incumbrancer from such grantor, or
from such heirs claiming as such, other than a subsequent purchaser or
incumbrancer in good faith and for a valuable consideration, who
acquires a superior title by a conveyance that has been first duly
recorded.

S 246. Certain deeds declared grants. Deeds of bargain and sale, and
of lease and release, may continue to be used; and are to be deemed
grants, subject to all the provisions of law in relation thereto.

S 247. Conveyance by tenant for life or years of greater estate than
possessed. A conveyance made by a tenant for life or years, of a
greater estate than he possesses, or can lawfully convey, does not work
a forfeiture of his estate, but passes to the grantee all the title,
estate or interest which such tenant can lawfully convey.

S 248. Effect of conveyance where property is leased. An attornment to
a grantee is not requisite to the validity of a conveyance of real
property occupied by a tenant, or of the rents or profits thereof, or
any other interest therein. But the payment of rent to a grantor, by his
tenant, before notice of the conveyance, binds the grantee; and the
tenant is not liable to such grantee, before such notice, for the breach
of any condition of the lease.

S 249. Covenants in mortgages. A mortgage of real property does not
imply a covenant for the payment of the sum intended to be secured; and
where such covenant is not expressed in the mortgage, or a bond or other
separate instrument to secure such payment has not been given, the
remedies of the mortgagee are confined to the property mentioned in the
mortgage.

S 251. Covenants not implied. A covenant is not implied in a
conveyance of real property, whether the conveyance contains any special
covenant or not.

S 252. Lineal and collateral warranties abolished. Lineal and
collateral warranties, with all their incidents, have been abolished;
but the heirs and devisees of a person, who has made a covenant or
agreement, are answerable thereon, to the extent of the real property
descended or devised to them, in the cases and in the manner prescribed
by law.

S 253. Construction of covenants in grants of freehold interests. In
grants of freehold interests in real property, the following or similar
covenants must be construed as follows:
1. Seizin.--- A covenant that the grantor "is seized of the said
premises (described) in fee simple, and has good right to convey the
same, " must be construed as meaning that such grantor, at the time of
the execution and delivery of the conveyance, is lawfully seized of a
good, absolute and indefeasible estate of inheritance in fee simple, of
and in all and singular the premises thereby conveyed, with the
tenements, hereditaments and appurtenances thereto belonging, and has
good right, full power and lawful authority to grant and convey the same
by the said conveyance.
2. Quiet enjoyment.--- A covenant that the grantee "shall quietly
enjoy the said premises, " must be construed as meaning that such
grantee, his heirs, successors and assigns, shall and may, at all times
thereafter, peaceably and quietly have, hold, use, occupy, possess and
enjoy the said premises, and every part and parcel thereof, with the
appurtenances, without any let, suit, trouble, molestation, eviction, or
disturbance of the grantor, his heirs, successors or assigns, or any
person or persons lawfully claiming or to claim the same.
3. Freedom from incumbrances.--- A covenant "that the said premises
are free from incumbrances, " must be construed as meaning that such
premises are free, clear, discharged and unincumbered of and from all
former and other gifts, grants, titles, charges, estates, judgments,
taxes, assessments, liens and incumbrances, of what nature or kind
soever.
4. Further assurance.--- A covenant that the grantor will "execute or
procure any further necessary assurance of the title to said premises, "
must be construed as meaning that the grantor and his heirs, or
successors, and all and every person or persons whomsoever lawfully or
equitably deriving any estate, right, title or interest of, in, or to
the premises conveyed by, from, under, or in trust for him or them,
shall and will at any time or times thereafter upon the reasonable
request, and at the proper costs and charges of the grantee, his heirs,
successors and assigns, make, do, and execute, or cause to be made, done
and executed, all and every such further and other lawful and reasonable
acts, conveyances and assurances in the law for the better and more
effectually vesting and confirming the premises thereby granted or so
intended to be, in and to the grantee, his heirs, successors or assigns
forever, as by the grantee, his heirs, successors or assigns, or his or
their counsel learned in the law, shall be reasonably advised or
required.
5. Warranty of title.--- A covenant that the grantor "will forever
warrant the title" to the said premises, must be construed as meaning
that the grantor and his heirs, or successors, the premises granted, and
every part and parcel thereof, with the appurtenances, unto the grantee,
his heirs, successors or assigns, against the grantor and his heirs or
successors, and against all and every person or persons whomsoever
lawfully claiming or to claim the same shall and will warrant and
forever defend. 6. Grantor has not incumbered.--- A covenant that the
grantor "has not done or suffered anything whereby the said premises
have been incumbered, " must be construed as meaning that the grantor
has not made, done, committed, executed, or suffered any act or acts,
thing or things whatsoever, whereby or by means whereof, the above
mentioned and described premises, or any part or parcel thereof, now
are, or at any time hereafter shall or may be impeached, charged or
incumbered in any manner or way whatsoever.

S 254. Construction of clauses and covenants in mortgages and bonds or
notes. In mortgages of real property, and in bonds and notes secured
thereby or in assignments of mortgages and bonds and mortgages and
notes, or in agreements to extend or to modify the terms of mortgages
and bonds and mortgages and notes, the following or similar clauses and
covenants must be construed as follows:
1. Clauses of mortgage. The words "This mortgage, made the .......
(A)....... day of ....... (B) ....... , nineteen hundred and .......
(C)....... , between ....... (D) ....... , the mortgagor, and .......
(E)....... , residing at ....... (F) ....... , the mortgagee,
Witnesseth, that to secure the payment of an indebtedness in the sum of
....... (G)....... dollars, lawful money of the United States, to be
paid on the....... (H) ....... day of ....... (I) ....... , nineteen
hundred and ....... (J) ....... , with interests thereon to be computed
from ....... (K)....... at the rate of ....... (L) ....... per centum
per annum, and to be paid ....... (M) ....... , according to a certain
bond, note or obligation bearing even date herewith, the mortgagor
hereby mortgages to the mortgagee (description), " must be construed as
equivalent in meaning to the words "This indenture, made the .......
(A1)..... day of ....... (B1) ....... , in the year nineteen hundred and
....... (C1) ....... between ....... (D1) ....... , party of the first
part, and ....... (E1) ....... , of ....... (F1) ....... , party of the
second part.
"Whereas, the said ....... (D1) ....... is justly indebted to the said
party of the second part in the sum of ....... (G1) ....... dollars,
lawful money of the United States, secured to be paid by his certain
bond, note or obligation, bearing even date herewith, conditioned for
the payment of the said sum of ....... (G1) ....... dollars, on the
....... (H1) ....... day of ....... (I1) ....... nineteen hundred and
........ (J1) ....... and the interest thereon, to be computed from
....... (K1) ....... , at the rate of ....... (L1) ....... per centum
per annum, and to be paid ....... (M1) ...... .
"It being thereby expressly agreed that the whole of the said
principal sum shall become due after default in the payment of any
installment of principal, interest, taxes or assessments, as hereinafter
provided.
"Now this indenture witnesseth, that the said party of the first part,
for the better securing the payment of the said sum of money mentioned
in the condition of the said bond, note or obligation, with interest
thereon, and also for and in consideration of one dollar, paid by the
said party of the second part, the receipt whereof is hereby
acknowledged, doth hereby grant and release unto the said party of the
second part, and to his heirs (or successors) and assigns for ever
(description), together with the appurtenances, and all the estate and
rights of the party of the first part in and to said premises, together
with all fixtures and articles of personal property attached to, or used
in connection with, the premises. To have and to hold the above granted
premises unto the said party of the second part, his heirs and assigns
forever. Provided, always, that if the said party of the first part,
his heirs, executors or administrators, shall pay unto the said party of
the second part, his executors, administrators or assigns, the said sum
of money mentioned in the condition of the said bond, note or
obligation, and the interest thereon, at the time and in the manner
mentioned in the said condition, that then these presents, and the
estate hereby granted, shall cease, determine and be void."
(Explanation: Whatever words are inserted in the blank spaces above
marked (A), (B), (C), (D), (E), (F), (G), (H), (I), (J), (K), (L), and
(M) respectfully, shall be construed as being inserted in the
corresponding blank spaces above marked (A1), (B1), (C1), (D1), (E1),
(F1), (G1), (H1), (I1), (J1), (K1), (L1) and (M1) respectfully.)
2. Covenant that whole sum shall become due. A covenant "that the
whole of the said principal sum and interest shall become due at the
option of the mortgagee: after default in the payment of any installment
of principal or of interest for ....... days; or after default in the
payment of any tax, water rate or assessment for ....... days after
notice and demand; or after default after notice and demand either in
assigning and delivering the policies insuring the buildings against
loss by fire or in reimbursing the mortgagee for premiums paid on such
insurance, as hereinbefore provided; or after default upon request in
furnishing a statement of the amount due on the mortgage and whether any
offsets or defenses exist against the mortgage debt, as hereinafter
provided," must be construed as meaning that should any default be made
in the payment of any installment of principal or of any part thereof,
or in the payment of the said interest, or any part thereof, on any day
whereon the same is made payable, or should any tax, water rate or
assessment, and/or any installment of any assessment which has been
divided into annual installments pursuant to provision of law in such
cases made and provided which now is or may be hereafter imposed upon
the premises hereinafter described, become due or payable, and should
the said installment of principal or interest remain unpaid and in
arrear for the space of ....... days, or such tax, water rate or
assessment or annual installment remain unpaid and in arrear for .......
days after written notice by the mortgagee or obligee, his executors,
administrators, successors or assigns, that such tax or assessment
and/or annual installment is unpaid, and demand for the payment thereof,
or should any default be made after notice and demand either in
assigning and delivering the policies insuring the buildings against
loss by fire or in reimbursing the mortgagee for premiums paid on such
insurance, as hereinafter provided, or upon failure to furnish such
statement of the amount due on the mortgage and whether any offsets or
defenses exist against the mortgage debt, as hereinafter provided, after
the expiration of ....... days in case the request is made personally,
or after the expiration of ....... days after the mailing of such
request in case the request is made by mail, then and from thenceforth,
that is to say, after the lapse of either one of said periods, as the
case may be, the aforesaid principal sum, with all arrearage of interest
thereon, shall, at the option of the said mortgagee or obligee, his
executors, administrators, successors or assigns, become and be due and
payable immediately thereafter, although the period above limited for
the payment thereof may not then have expired, anything thereinbefore
contained to the contrary thereof in any wise notwithstanding.
3. Covenant to pay indebtedness. In default of payment, mortgagee to
have power to sell. A covenant "that the mortgagor will pay the
indebtedness, as hereinbefore provided," must be construed as meaning
that the mortgagor for himself, his heirs, executors and administrators
or successors, doth covenant and agree to pay to the mortgagee, his
executors, administrators, successors and assigns, the principal sum of
money secured by said mortgage, and also the interest thereon as
provided by said mortgage. And if default shall be made in the payment
of the principal sum or the interest that may grow due thereon, or of
any part thereof, or in case of any other default, that then and from
thenceforth it shall be lawful for the mortgagee, his executors,
administrators or successors to enter into and upon all and singular the
premises granted, or intended so to be, and to sell and dispose of the
same, and all benefit and equity of redemption of the said mortgagor,
his heirs, executors, administrators, successors or assigns therein, at
public auction, according to the act in such case made and provided, and
as the attorney of the mortgagor for that purpose duly authorized,
constituted and appointed, to make and deliver to the purchaser or
purchasers thereof a good and sufficient deed or deeds of conveyance for
the same in fee simple (or otherwise; as the case may be) and out of the
money arising from such sale, to retain the principal and interest which
shall then be due, together with the costs and charges of advertisement
and sale of the said premises, rendering the overplus of the
purchase-money, if any there shall be, unto the mortgagor, his heirs,
executors, administrators, successors or assigns, which sale so to be
made shall forever be a perpetual bar both in law and equity against the
mortgagor, his heirs, successors and assigns, and against all other
persons claiming or to claim the premises, or any part thereof by, from
or under him, them or any of them.
4. Mortgagor to keep buildings insured. (a) A covenant "that the
mortgagor will keep the buildings on the premises insured against loss
by fire for the benefit of the mortgagee; that he will assign and
deliver the policies to the mortgagee; and that he will reimburse the
mortgagee for any premiums paid for insurance made by the mortgagee on
the mortgagor`s default in so insuring the buildings or in so assigning
and delivering the policies," shall be construed as meaning that the
mortgagor, his heirs, successors and assigns will, during all the time
until the money secured by the mortgage shall be fully paid and
satisfied, keep the buildings erected on the premises insured against
loss or damage by fire, to an amount to be approved by the mortgagee not
exceeding in the aggregate one hundred per centum of their full
insurable value and in a company or companies to be approved by the
mortgagee, and will assign and deliver the policy or policies of such
insurance to the mortgagee, his executors, administrators, successors or
assigns, which policy or policies shall have endorsed thereon the
standard New York mortgagee clause in the name of the mortgagee, so and
in such manner and form that he and they shall at all time and times,
until the full payment of said moneys, have and hold the said policy or
policies as a collateral and further security for the payment of said
moneys, and in default of so doing, that the mortgagee or his executors,
administrators, successors or assigns, may make such insurance from year
to year, in an amount in the aggregate not exceeding one hundred per
centum of the full insurable value of said buildings erected on the
mortgaged premises for the purposes aforesaid, and pay the premium or
premiums therefor, and that the mortgagor will pay to the mortgagee, his
executors, administrators, successors or assigns, such premium or
premiums so paid, with interest from the time of payment, on demand, and
that the same shall be deemed to be secured by the mortgage, and shall
be collectible thereupon and thereby in like manner as the principal
moneys, and that should the mortgagee by reason of such insurance
against loss by fire receive any sum or sums of money for damage by
fire, and should the mortgagee retain such insurance money instead of
paying it over to the mortgagor, the mortgagee`s right to retain the
same and his duty to apply it in payment of or on account of the sum
secured by the mortgage and in satisfaction or reduction of the lien
thereof shall be limited and qualified as hereafter in this paragraph
provided. Said insurance money so received by the mortgagee shall be
held by him as trust funds until paid over or applied as hereinafter
provided. If the mortgagor shall notify the mortgagee in writing within
thirty days after the fire that the mortgaged premises have been damaged
thereby, and shall thereafter make good the damage by means of such
repairs, restoration or rebuilding as may be necessary to restore the
buildings to their condition prior to the damage, then upon presentation
to the mortgagee within three years after the fire of proof that the
damage has been fully made good (and if he so demands in writing within
thirty days after such presentation of proof, then upon presentation to
the mortgagee within thirty days after such demand of proof also of the
actual cost of such repairs, restoration and rebuilding and of the
reasonable value of any part of the work so performed by the mortgagor)
the mortgagee, unless he rejects the proof submitted to him as
insufficient, shall pay over to the mortgagor so much of said insurance
money theretofore received by the mortgagee as does not exceed the
lesser of (1) the reasonable cost of such repairs, restoration and
rebuilding or (2) the total amount actually paid therefor by the
mortgagor, together with the reasonable value of any part of the work
done by him. Such proof shall be deemed sufficient unless, within sixty
days after presentation of all such proof to the mortgagee as aforesaid,
he shall notify the mortgagor in writing that the proof is rejected.
Any excess of said insurance money over the amount so payable to the
mortgagor shall be applied in reduction of the principal of the
mortgage. Provided, however, that if and so long as there exists any
default by the mortgagor in the performance of any of the terms or
provisions of the mortgage on his part to be performed the mortgagee
shall not be obligated to pay over any of said insurance money received
by him. If the mortgagor shall fail to comply with any of the foregoing
provisions within the time or times hereinabove limited, or shall fail
within sixty days after rejection of the proof so submitted to commence
an action against the mortgagee to recover so much of said insurance
money as is payable to the mortgagor as hereinabove provided, or if the
entire principal of the mortgage shall have become payable by reason of
default or maturity, the mortgagee shall apply said insurance money in
satisfaction or reduction of the principal of the mortgage; and any
excess of said insurance money over the amount required to satisfy the
mortgage shall be paid to the mortgagor. Unless the court, in any such
action, shall determine that the mortgagee`s rejection of the proof
submitted by the mortgagor prior to the commencement of the action was
unreasonable, the mortgagee may offset the reasonable amount, as
determined by the court, of his expense incident to the litigation, and
may reimburse himself out of the insurance money for the amount so
determined. The term "mortgage," as hereinabove used, shall be deemed to
include agreements extending or otherwise in any way modifying the terms
or provisions of an existing mortgage. The term "mortgagor," as
hereinabove used, shall mean the owner for the time being of the
mortgaged fee or the junior mortgagee actually in possession of the
mortgaged property, or the tenant for the time being in possession of
the property under a lease which has been mortgaged. The term
"mortgagee," as hereinabove used, shall be deemed to include the
successors in interest of the mortgagee. In the event that there be more
than one mortgage covering the same premises, such covenant must be
construed as hereinbefore prescribed in this paragraph, except that the
mortgagor, his heirs, successors and assigns, notwithstanding such
foregoing provisions, may not be required to provide such insurance, as
to all the mortgagees combined, in the preferential order of their
priority, for a total amount of more than one hundred per cent of the
insurable value of the buildings on the premises, and a second or
subordinate mortgagee shall be entitled to exercise the rights of a
mortgagee with respect to the procurement of such insurance and the
holding of the policy or policies thereof as hereinbefore prescribed in
this paragraph only when and to the extent that the mortgagor, his
heirs, successors or assigns, as the case may be, does or do not furnish
satisfactory proof of such maximum insurance for the benefit of such
second or subordinate mortgagee and one or more other mortgagees in the
preferential order of their priority in a company or companies duly
authorized to do business in this state.
The limitations and qualifications hereinabove imposed on the
mortgagee`s right to retain proceeds of a fire insurance policy shall
apply only to mortgages or extensions or other modifications thereof
made after the effective date of this act.
(b) A covenant "that the mortgagor will keep the buildings on the
premises insured against loss by flood if the premises are located in an
area identified by the Secretary of Housing and Urban Development as an
area having special flood hazards and in which flood insurance has been
made available under the National Flood Insurance Act of nineteen
hundred sixty-eight; that he will assign and deliver the policies to the
mortgagee; and that he will reimburse the mortgagee for any premiums
paid for insurance made by the mortgagee on the mortgagor`s default in
so insuring the buildings or in so assigning and delivering the
policies," shall be construed as meaning that the mortgagor, his heirs,
successors and assigns will, during all the time until the money secured
by the mortgage shall be fully paid and satisfied, keep the buildings
erected on the premises insured against loss or damage by flood provided
the premises are located in an area identified by the Secretary of
Housing and Urban Development of the United States as an area having
special flood hazards and in which flood insurance is available under
the National Flood Insurance Act of nineteen hundred sixty-eight, to an
amount at least equal to the outstanding principal balance of the money
secured by the mortgage or the maximum limit of coverage available with
respect to the buildings under said Act, whichever is less, and in a
company or companies to be approved by the mortgagee and will assign and
deliver the policy or policies of such insurance to the mortgagee, his
executors, administrators, successors or assigns, which policy or
policies shall have endorsed thereon the standard New York mortgagee
clause in the name of the mortgagee, so and in such manner and form that
he and they shall at all time and times, until the full payment of said
money, have and hold the said policy or policies as a collateral and
further security for the payment of said money, and in default of so
doing, that the mortgagee or his executors, administrators, successors
or assigns may make such insurance from year to year, in the amount as
aforesaid, and pay the premium or premiums therefor, and that the
mortgagor will pay to the mortgagee, his executors, administrators,
successors or assigns, such premium or premiums so paid, with interest
from the time of payment, on demand, and that the same shall be deemed
to be secured by the mortgage, and shall be collectible thereupon and
thereby in like manner as the principal moneys, and that should the
mortgagee by reason of such insurance receive any sum or sums of money
for damage by flood, the provisions for retention, holding application
and payment of said insurance money shall be as set forth in paragraph
(a) above with respect to loss by fire. The term "mortgage," as
hereinabove used, shall be deemed to include agreements extending or
otherwise in any way modifying the terms or provisions of an existing
mortgage. The term "mortgagor," as hereinabove used, shall mean the
owner for the time being of the mortgaged fee or the junior mortgagee
actually in possession of the mortgaged property, or the tenant for the
time being in possession of the property under a lease which has been
mortgaged. The term "mortgagee," as hereinabove used, shall be deemed to
include the successors in interest of the mortgagee. In the event that
there be more than one mortgage covering the same premises, such
covenant must be construed as hereinbefore prescribed in this paragraph
except that the mortgagor, his heirs, successors and assigns,
notwithstanding such foregoing provisions, may not be required to
provide such insurance, as to all the mortgagees combined, in the
preferential order of their priority, for a total amount greater than
the outstanding principal balance of the money secured by the mortgage
or the maximum limit of coverage available with respect to the premises,
whichever is less, and a second or subordinate mortgagee shall be
entitled to exercise the rights of a mortgagee with respect to the
procurement of such insurance and the holding of the policy or policies
thereof as hereinbefore prescribed in this paragraph only when and to
the extent that the mortgagor, his heirs, successors or assigns, as the
case may be, does or do not furnish satisfactory proof of such maximum
insurance for the benefit of such second or subordinate mortgagee and
one or more other mortgagees in the preferential order of their priority
in a company or companies duly authorized to do business in this state.
The limitations and qualifications hereinabove imposed on the
mortgagee`s right to retain proceeds of a flood insurance policy shall
apply only to mortgages or extensions or other modifications thereof
made after the effective date of this act.
4-a. Mortgagor to maintain premises and all improvements thereon in
good condition or repair. (a) A covenant contained in a mortgage on real
property improved by a residence for four families or more that the
mortgagor will maintain the premises and all improvements thereon in
"good condition or repair" shall be construed as meaning that the
mortgagor, his heirs, successors and assigns will, during all the time
until the money secured by the mortgage shall be fully paid and
satisfied, keep the premises and the building or buildings erected
thereon in good condition and repair and free from violations of
applicable municipal or state laws, codes or regulations concerning the
state of such condition and/or repair. Upon a finding and certification
by any such government or its agency of a violation of any such law,
code or regulation involving a serious danger to the health and safety
of the occupants of such mortgaged premises and upon the service of one
copy thereof on the owner of record such mortgagee may declare the
entire balance of the principal sum secured by such mortgage, together
with all accrued interest, immediately due and payable upon the
following conditions: the mortgagee shall allow the mortgagor a
reasonable opportunity to correct the violation and may commence
foreclosure proceedings upon failure of the mortgagor to make such
corrections within the time period mandated by local law, rule or code
enforcement agency, however, no such action shall be commenced within
thirty days of the expiration of the period, if any, specified by local
law, rule or code enforcement regulation.
(b) Should any such mortgagee commence a foreclosure proceeding based
upon such violation and not complete the same because such violation had
been cured, the mortgagee shall be entitled to recover all reasonable
attorney`s fees and disbursements incurred in the bringing of such
proceeding. (c) Notwithstanding the provisions of this section, the
mortgagee and the mortgagor shall retain all existing interest and
rights.
5. Mortgagor to warrant title. A covenant "that the mortgagor warrants
the title to the premises," must be construed as meaning that the
mortgagor warrants that he has good title to said premises and has a
right to mortgage the same and that the mortgagor shall and will make,
execute, acknowledge and deliver in due form of law, all such further or
other deeds or assurances as may at any time hereafter be reasonably
desired or required for the more fully and effectually conveying the
premises by the mortgage described, and thereby granted or intended so
to be, unto the said mortgagee, his executors, administrators,
successors or assigns, for the purpose aforesaid, and unto all and every
person or persons, corporation or corporations, deriving any estate,
right, title or interest therein, under the said indenture of mortgage,
or the power of sale therein contained, and the said granted premises
against the said mortgagor, and all persons claiming through him will
warrant and defend.
6. Mortgagor to pay all taxes, assessments or water rates. A covenant
"that the mortgagor will pay all taxes, assessments or water rates and
in default thereof, the mortgagee may pay the same" must be construed as
meaning that until the amount hereby secured is paid, the mortgagor will
pay all taxes, assessments and water rates which may be assessed or
become liens on said premises, and in default thereof the holder of this
mortgage may pay the same, and the mortgagor will repay the same with
interest, and the same shall be liens on said premises and secured by
the mortgage.
7. Statement of amount due. A covenant "that the mortgagor
within...... days upon request in person or within ...... days upon
request by mail will furnish a written statement duly acknowledged of
the amount due on this mortgage and whether any offsets or defenses
exist against the mortgage debt" must be construed as meaning that the
mortgagor, and any subsequent owner of the premises described herein
upon request, made either personally or by mail, shall certify, by a
writing duly acknowledged, to the mortgagee or to any proposed assignee
of this mortgage, the amount of principal and interest then owing on
this mortgage and whether any offsets or defenses exist against the
mortgage debt within .... days in case the request is made personally,
or within ...... days after the mailing of such request in case the
request is made by mail.
8. Notice and demand. A covenant "that notice and demand or request
may be made in writing and may be served in person or by mail" must be
construed as meaning that every provision for notice and demand or
request shall be deemed fulfilled by written notice and demand or
request personally served on one or more of the persons who shall at the
time hold the record title to the premises, or on their heirs or
successors, or mailed by depositing it in any post-office station or
letter-box, enclosed in a post-paid envelope addressed to such person or
persons, or their heirs or successors, at his, their or its address to
the mortgagee last known.
9. Power of attorney to assignee. The word "assign" or other words of
assignment, when contained in an assignment of a mortgage and bond or
mortgage and note, must be construed as having included in their meaning
that the assignor does thereby make, constitute and appoint the assignee
the true and lawful attorney, irrevocable, of the assignor, in the name
of the assignor, or otherwise, but at the proper costs and charges of
the assignee, to have, use and take all lawful ways and means for the
recovery of the money and interest secured by the said mortgage and bond
or mortgage and note, and in case of payment to discharge the same as
fully as the assignor might or could do if the assignment were not made.
10. Mortgagee entitled to appointment of receiver. A covenant "that
the holder of this mortgage, in any action to foreclose it, shall be
entitled to the appointment of a receiver," must be construed as meaning
that the mortgagee, his heirs, successors or assigns, in any action to
foreclose the mortgage, shall be entitled, without notice and without
regard to adequacy of any security of the debt, to the appointment of a
receiver of the rents and profits of the premises covered by the
mortgage; and the rents and profits in the event of any default or
defaults in paying the principal, interest, taxes, water rents,
assessments or premiums of insurance, are assigned to the holder of the
mortgage as further security for the payment of the indebtedness.

S 254-a. Right of election of mortgagee in certain cases. If a bond or
note, or the mortgage on real property, improved by a one to six family
residence occupied by the owner, securing the payment of same, contains
(1) a provision whereby the mortgagee retains the right to accelerate
the due date for payment of the balance of principal upon a transfer or
sale of such real property or by alienation of title of such real
property due to an act or operation of law, and (2) a provision for
payment of any charge, however denominated, in the nature of a
prepayment fee and if a mortgagor sells or transfers his property or if
title to the mortgaged property is transferred by act or operation of
law and the purchaser requests permission to assume the mortgage or take
the mortgaged premises subject to the mortgage, but the mortgagee does
not consent to such request and thereby necessitates prepayment of the
mortgage, the mortgagee shall not levy a prepayment fee; provided,
however, that the provisions of this section shall not apply to the
extent such provisions are inconsistent with any federal law or
regulation.

S 254-b. Limitation on late charges. 1. If a bond or note, or the
mortgage on real property, heretofore or hereafter made, improved by a
one to six family residence occupied by the owner, securing the payment
of same, or a note representing a loan for the purpose of financing the
purchase of an ownership interest in, and proprietary lease from, a
corporation or partnership formed for the purpose of the cooperative
ownership of residential real estate, contains a provision whereby the
mortgagee or lender retains the right to collect a late charge on any
instalment which has become due and remains unpaid, such charge on any
such delinquent instalment, regardless of the period it remains in
default, shall not exceed and shall only be enforced to the extent of
two percent of such delinquent instalment; provided, however, that no
charge shall be imposed on any instalment paid within fifteen days after
the due date. No such late charge shall be deducted from any regular
instalment payment by the mortgagor or borrower, but shall be separately
charged and collected by the mortgagee or lender. In the absence of a
specific provision in a bond, note or mortgage no late charge on any
delinquent instalment shall be assessed or collected. The term
"instalment" shall include amounts representing interest, amortization
of principal and payments in respect of insurance premiums, taxes and
utility charges if the bond, note or mortgage provides for collection
thereof by the mortgagee.
2. The provisions in this section shall not apply to any loan or
forbearance insured by the federal housing commissioner or for which a
commitment to insure has been made by the federal housing commissioner
or to any loan or forbearance insured or guaranteed pursuant to the
provisions of an act of congress entitled "Servicemen`s Readjustment Act
of 1944", or to the extent the provisions of this section are
inconsistent with any other federal law or regulation.
3. If any provision of this section, or the application of such
provision to any individual, company, corporation, or circumstance,
shall be held invalid, the remainder of this section, and the
application of such section to individuals, companies, corporations, or
circumstances other than those to which it is held invalid, shall not be
affected thereby.

S 254-c. Right to a copy of real property appraisals and consumer
reports in certain cases. 1. Any lender who requires an applicant for a
loan or forbearance, which is to be secured primarily by an interest in
real property, to bear the cost of either an appraisal of said property
or the cost of obtaining a consumer report subject to the provisions of
article twenty-five of the general business law as a condition to the
processing of the application or the granting of the loan or
forbearance, shall, upon the written request of such applicant, provide
to him a copy of said appraisal or consumer report as the case may be,
at no additional cost.
2. "Lender" as used in this section shall mean and include any bank,
trust company, national bank, savings bank, federal mutual savings bank,
savings and loan association, federal savings and loan association,
private banker, credit union, federal credit union, investment company,
insurance company, pension fund, mortgage banker or any other entity.
3. If any provision of this section, or the application of such
provision to any individual, company, corporation or circumstance, shall
be held invalid, the remainder of this section, and the application of
such section to individuals, companies, corporations, or circumstances
other than those to which it is held invalid, shall not be affected
thereby.

S 254-d. Fees by mortgagee for direct payment of real property taxes
by mortgagor prohibited. No mortgagor on a loan secured primarily by an
interest in real property shall be charged a fee by the mortgagee
because the parties have agreed that the mortgagor shall pay real
property taxes on such real property directly to the taxing authority or
authorities and not in escrow to the mortgagee or the mortgagee`s agent.

S 255. Construction of grant of appurtenances and of all the rights
and estate of grantor. In any grant or mortgage of freehold interests
in real estate, the words, "together with the appurtenances and all the
estate and rights of the grantor in and to said premises," must be
construed as meaning, together with all and singular the tenements,
hereditaments and appurtenances thereunto belonging, or in anywise
appertaining, and the reversion and reversions, remainder and
remainders, rents, issues and profits thereof, and also all the estate,
right, title, interest, dower and right of dower, curtesy and right of
curtesy, property, possession, claim and demand whatsoever, both in law
and in equity, of the said grantor of, in and to the said granted
premises and every part and parcel thereof, with the appurtenances.

S 256. Construction of grant in executor`s or trustee`s deed of
appurtenances, and of the estate of testator and grantor. In any deed
by an executor of, or trustee under a will, the words "together with the
appurtenances and also all the estate which the said testator had at the
time of his decease in said premises, and also the estate therein which
said grantor has or has power to convey or dispose of, whether
individually or by virtue of said will or otherwise," must be construed
as meaning, together with all and singular the tenements, hereditaments
and appurtenances thereunto belonging, or in anywise appertaining, and
the reversion and reversions, remainder and remainders, rents, issues
and profits thereof; and also all the estate, right, title, interest,
property, possession, claim and demand whatsoever, both in law and
equity, which the said testator had in his lifetime, and at the time of
his decease, or which the said grantor has or has power to convey or
dispose of, whether individually or by virtue of the said last will and
testament or otherwise, of, in and to the said granted premises, and
every part and parcel thereof, with the appurtenances.

S 257. Covenants bind representatives of grantor and mortgagor and
inure to the benefit of whom. All covenants contained in any grant or
mortgage of real estate bind the heirs, executors, administrators,
successors and assigns, of the grantor or mortgagor, and inure to the
benefit of the heirs, executors, administrators, successors and assigns
of the grantee or mortgagee in the same manner and to the same extent,
and with like effect as if such heirs, executors, administrators,
successors and assigns were so named in such covenants, unless otherwise
in said grant or mortgage expressly provided.

S 258. Short forms of deeds and mortgages. The use of the following
forms of instruments for the conveyance and mortgage of real property is
lawful, but this section does not prevent or invalidate the use of other
forms:
SCHEDULE A.
DEED WITH FULL COVENANTS.
Statutory Form A.
(Individual)
This indenture, made the ....... day of ....... nineteen hundred and
....... , between ....... (insert residence) party of the first part,
and ....... (insert residence) party of the second part,
Witnesseth, that the party of the first part, in consideration of
....... dollars, lawful money of the United States, paid by the party of
the second part, does hereby grant and release unto the party of the
second part, ....... and assigns forever, all ....... (description),
together with the appurtenances and all the estate and rights of the
party of the first part in and to said premises.
To have and to hold the premises herein granted unto the party of the
second part, ....... and assigns forever. And said ....... covenants as
follows:
First. That said ....... is seized of said premises in fee simple, and
has good right to convey the same;
Second. That the party of the second part shall quietly enjoy the said
premises;
Third. That the said premises are free from incumbrances;
Fourth. That the party of the first part will execute or procure any
further necessary assurance of the title to said premises;
Fifth. That said ....... will forever warrant the title to said
premises.
In witness whereof, the party of the first part has hereunto set his
hand and seal the day and year first above written.
In presence of:
SCHEDULE B. DEED WITH FULL COVENANTS.
Statutory Form AA.
(Corporation) This indenture, made the ....... day of ....... ,
nineteen hundred and ....... , between ....... , a corporation organized
under the laws of ....... , party of the first part, and ....... (insert
residence), party of the second part:
Witnesseth, that the party of the first part, in consideration of
....... dollars, lawful money of the United States, paid by the party of
the second part, does hereby grant and release unto the party of the
second part, ....... and assigns forever, all ....... (description),
together with the appurtenances and all the estate and rights of the
party of the first part in and to said premises,
To have and to hold the premises herein granted unto the party of the
second part, ....... and assigns forever. And the party of the first
part covenants as follows:
First. That the party of the first part is seized of the said premises
in fee simple, and has good right to convey the same;
Second. That the party of the second part shall quietly enjoy the said
premises;
Third. That the said premises are free from incumbrances;
Fourth. That the party of the first part will execute or procure any
further necessary assurance of the title to said premises;
Fifth. That the party of the first part will forever warrant the title
to said premises.
In witness whereof, the party of the first part has caused its
corporate seal to be hereunto affixed, and these presents to be signed
by its duly authorized officer the day and year first above written.
SCHEDULE C.
BARGAIN AND SALE DEED.
Statutory Form B. Without Covenant against Grantor.
(Individual)
This indenture, made the ....... day of ....... , nineteen hundred and
....... , between ....... , (insert residence) party of the first part,
and ....... , (insert residence) party of the second part: Witnesseth,
that the party of the first part, in consideration of ....... dollars,
lawful money of the United States, paid by the party of the second part,
does hereby grant and release unto the party of the second part, .......
and assigns forever, all ....... (description), together with the
appurtenances and all the estate and rights of the party of the first
part in and to said premises,
To have and to hold the above granted premises unto the party of the
second part, ....... and assigns forever.
In witness whereof, the party of the first part has hereunto set his
hand and seal the day and year first above written. In presence of:
SCHEDULE D.
BARGAIN AND SALE DEED.
Statutory Form BB. Without Covenant against Grantor.
(Corporation)
This indenture, made the ....... day of ....... , nineteen hundred and
....... , between ....... , a corporation organized under the laws of
....... , party of the first part, and ....... (insert residence), party
of the second part:
Witnesseth, that the party of the first part, in consideration of
....... dollars, lawful money of the United States, paid by the party of
the second part, does hereby grant and release unto the party of the
second part, ....... and assigns forever, all ....... (description),
together with the appurtenances and all the estate and rights of the
party of the first part in and to said premises,
To have and to hold the premises herein granted unto the party of the
second part, ....... and assigns forever.
In witness whereof, the party of the first part has caused its
corporate seal to be hereunto affixed, and these presents to be signed
by its duly authorized officer the day and year first above written.
SCHEDULE E.
BARGAIN AND SALE DEED.
Statutory Form C. With Covenant against Grantor.
(Individual)
This indenture, made the ....... day of ....... , nineteen hundred
and......., between ....... , (insert residence), party of the first
part, and ....... , (insert residence), party of the second part:
Witnesseth, that the party of the first part, in consideration of
....... dollars, lawful money of the United States, paid by the party of
the second part, does hereby grant and release unto the party of the
second part, his heirs and assigns forever, all ....... (description),
together with the appurtenances and all the estate and rights of the
party of the first part in and to said premises.
To have and to hold the premises herein granted unto the party of the
second part, his heirs and assigns forever. And the party of the first
part covenants that he has not done or suffered anything whereby the
said premises have been incumbered in any way whatever.
In witness whereof, the party of the first part has hereunto set his
hand and seal the day and year first above written. In presence of:
SCHEDULE F.
BARGAIN AND SALE DEED.
Statutory Form CC. With Covenant against Grantor.
(Corporation)
This indenture, made the ....... day of ....... , nineteen hundred and
....... , between ....... , a corporation organized under the laws of
....... , party of the first part, and ....... , (insert residence),
party of the second part:
Witnesseth, that the party of the first part, in consideration of
....... dollars, lawful money of the United States, paid by the party of
the second part, does hereby grant and release unto the party of the
second part, ....... and assigns forever, all ....... (description),
together with the appurtenances and all the estate and rights of the
party of the first part in and to said premises.
To have and to hold the premises herein granted unto the party of the
second part, ....... and assigns forever. And the party of the first
part covenants that it has not done or suffered anything whereby the
said premises have been incumbered in any way whatever.
In witness whereof, the party of the first part has caused its
corporate seal to be hereunto affixed and these presents to be signed by
its duly authorized officer the day and year first above written.
SCHEDULE G.
QUITCLAIM DEED.
Statutory Form D.
(Individual)
This indenture, made the ....... day of ....... , nineteen hundred and
....... , between ....... , (insert residence), party of the first part,
and......., (insert residence), party of the second part:
Witnesseth, that the party of the first part, in consideration of
......dollars, lawful money of the United States, paid by the party of
the second part, does hereby remise, release, and quitclaim unto the
party of the second part,......and assigns forever, all (description),
together with the appurtenances and all the estate and rights of the
party of the first part in and to said premises.
To have and to hold the premises herein granted unto the party of the
second part,.....and assigns forever.
In witness whereof, the party of the first part has hereunto set his
hand and seal the day and year first above written.
In presence of: SCHEDULE H.
QUITCLAIM DEED.
Statutory Form DD.
(Corporation)
This indenture, made the ......day of.......,nineteen hundred and
......, between......, a corporation organized under the laws of.......
, party of the first part, and ....... (insert residence), party of the
second part:
Witnesseth, that the party of the first part, in consideration of
....... dollars, lawful money of the United States, paid by the party of
the second part, does hereby remise, release and quitclaim unto the
party of the second part, his heirs and assigns forever, all .......
(description), together with the appurtenances and all the estate and
rights of the party of the first part in and to said premises.
To have and to hold the premises herein granted unto the party of the
second part, his heirs and assigns forever.
In witness whereof, the party of the first part has caused its
corporate seal to be hereunto affixed and these presents to be signed by
its duly authorized officer the day and year first above written.
SCHEDULE I.
EXECUTOR`S DEED.
Statutory Form E.
This indenture, made the ....... day of ....... , nineteen hundred and
....... , between ....... as executor of ....... the last will and
testament of ....... , late of ....... , deceased, party of the first
part, and ....... , (insert residence) party of the second part:
Witnesseth, that the party of the first part, by virtue of the power
and authority to him given in and by the said last will and testament,
and in consideration of ..... dollars, lawful money of the United
States, paid by the party of the second part, does hereby grant and
release unto the party of the second part, ....... his heirs and assigns
forever, all ....... (description), together with the appurtenances, and
also all the estate which the said testator had at the time of his
decease in said premises, and also the estate therein, which the party
of the first part has or has power to convey or dispose of, whether
individually, or by virtue of said will or otherwise.
To have and to hold the premises herein granted unto the party of the
second part, ....... and assigns forever.
And the party of the first part covenants that he has not done or
suffered anything whereby the said premises have been incumbered in any
way whatever.
In witness whereof, the party of the first part has hereunto set his
hand and seal the day and year first above written. In presence of:
SCHEDULE J.
REFEREE`S DEED IN FORECLOSURE.
Statutory Form F.
This deed, made the ....... day of ....... , nineteen hundred and
....... , between ....... , referee duly appointed in the action
hereinafter mentioned, grantor, and ....... (insert residence), grantee:
Witnesseth, that the grantor, the referee appointed in an action
between ....... , plaintiffs, and ....... , defendants, foreclosing a
mortgage recorded on the ....... day of ....... , in the office of the
....... of the county of ....... , in liber ....... of mortgages, at
page ....... , in pursuance of a judgment entered at a special term of
the ....... , on the ....... day of ....... , and in consideration of
....... dollars paid by the grantee, being the highest sum bid at the
sale under said judgment, does hereby grant and convey unto the grantee,
all (description),
To have and to hold the premises herein granted unto the grantee,
....... and assigns forever.
In witness whereof, the grantor has hereunto set his hand and seal.
In presence of:
SCHEDULE K.
REFEREE`S DEED IN PARTITION.
Statutory Form G.
This deed, made the ....... day of ....... , nineteen hundred and
....... , between ....... , referee duly appointed in the action
hereinafter mentioned, grantor, and ....... , (insert residence),
grantee:
Witnesseth, that the grantor, the referee appointed in an action in
partition between ....... , plaintiffs, and ....... , defendants, in
pursuance of a judgment entered at a special term of the ....... , on
the ....... day of ....... , and in consideration of ....... dollars
paid by the grantee, being the highest sum bid at the sale under said
judgment, does hereby grant and convey unto the grantee all
(description),
To have and to hold the premises herein granted unto the grantee,
....... and assigns forever.
In witness whereof, the grantor has hereunto set his hand and seal.
In presence of:
SCHEDULE L.
ASSIGNMENT OF LEASE. Statutory Form H.
Know that ....... , assignor, in consideration of ....... dollars,
paid by ......., assignee, hereby assigns unto the assignee, a certain
lease made by ....... , to ....... , dated the ....... day of ....... ,
and recorded on the ....... day of ....... , in the office of the
....... of the county of ....... , in liber ....... of conveyances, at
page ....... , covering premises ....... , together with the premises
therein described, and the buildings thereon, with the appurtenances,
To have and to hold the same unto the assignee, ....... and assigns,
from the ....... day of ....... , nineteen hundred and ....... , for all
the rest of ....... years mentioned in the said lease, subject to the
rents, covenants, conditions and provisos therein also mentioned.
And the assignor hereby covenants that the said assigned premises are
free from incumbrances.
In witness whereof, the assignor has hereunto set his hand and seal
this ....... day of ....... , nineteen hundred and .......
In presence of:
SCHEDULE M
MORTGAGE
Statutory Form M.
This mortgage, made the ......day of......, nineteen hundred
and........, between......, (insert residence) the mortgagor,
and......(insert residence), the mortgagee.
Witnesseth, that to secure the payment of an indebtedness in the sum
of ....... dollars, lawful money of the United States, to be paid on the
....... day of ....... , nineteen hundred and ....... , with interest
thereon to be computed from ....... , at the rate of ....... per centum
per annum, and to be paid ....... , according to a certain bond or
obligation bearing even date herewith, the mortgagor hereby mortgages to
the mortgagee (description).
And the mortgagor covenants with the mortgagee as follows:
1. That the mortgagor will pay the indebtedness as hereinbefore
provided.
2. That the mortgagor will keep the buildings on the premises insured
against loss by fire for the benefit of the mortgagee; that he will
assign and deliver the policies to the mortgagee; and that he will
reimburse the mortgagee for any premiums paid for insurance made by the
mortgagee on the mortgagor`s default in so insuring the buildings or in
so assigning and delivering the policies.
3. That no building on the premises shall be removed or demolished
without the consent of the mortgagee.
4. That the whole of said principal sum and interest shall become due
at the option of the mortgagee: after default in the payment of any
installment of principal or of interest for ....... days; or after
default in the payment of any tax, water rate or assessment for .......
days after notice and demand; or after default after notice and demand
either in assigning and delivering the policies insuring the buildings
against loss by fire or in reimbursing the mortgagee for premiums paid
on such insurance, as hereinbefore provided; or after default upon
request in furnishing a statement of the amount due on the mortgage and
whether any offsets or defenses exist against the mortgage debt, as
hereinafter provided.
5. That the holder of this mortgage, in any action to foreclose it,
shall be entitled to the appointment of a receiver.
6. That the mortgagor will pay all taxes, assessments or water rates,
and in default thereof, the mortgagee may pay the same.
7. That the mortgagor within ....... days upon request in person or
within ....... days upon request by mail will furnish a written
statement duly acknowledged of the amount due on this mortgage and
whether any offsets or defenses exist against the mortgage debt.
8. That notice and demand or request may be in writing and may be
served in person or by mail.
9. That the mortgagor warrants the title to the premises.
In witness whereof this mortgage has been duly executed by the
mortgagor.
In presence of:
SCHEDULE N
BOND AND MORTGAGE
Statutory Form MN.
This bond and mortgage, made the ....... day of ......., nineteen
hundred and ............, between ..................... (insert
residence), herein referred to as the mortgagor, and
......................, (insert residence) herein referred to as the
mortgagee.
Witnesseth, that the mortgagor, do hereby acknowledge ....... to be
indebted to the mortgagee in the sum of ....... dollars, lawful money of
the United States, which the mortgagor do hereby agree and bind .......
to pay to the mortgagee ....... on the ....... day of ......., nineteen
hundred and ......., with interest thereon to be computed from .......,
at the rate of ....... per centum per annum, and to be paid
............................................................. (insert
terms of payment of interest and/or principal) and to secure the payment
of which the mortgagor hereby mortgages to the mortgagee
.............................................................
(description)
And the mortgagor covenants with the mortgagee as follows:
1. That the mortgagor will pay the indebtedness as hereinbefore
provided.
2. That the mortgagor will keep the buildings on the premises insured
against loss by fire for the benefit of the mortgagee; that he will
assign and deliver the policies to the mortgagee; and that he will
reimburse the mortgagee for any premiums paid for insurance made by the
mortgagee on the mortgagor`s default in so insuring the buildings or in
so assigning and delivering the policies.
3. That no building on the premises shall be removed or demolished
without the consent of the mortgagee.
4. That the whole of said principal sum and interest shall become due
at the option of the mortgagee: after default in the payment of any
installment of principal or of interest for ....... days; or after
default in the payment of any tax, water rate or assessment for ........
days after notice and demand; or after default after notice and demand
either in assigning and delivering the policies insuring the buildings
against loss by fire or in reimbursing the mortgagee for premiums paid
on such insurance, as hereinbefore provided; or after default upon
request in furnishing a statement of the amount due on the bond and
mortgage and whether any offsets or defenses exist against the mortgage
debt, as hereinafter provided.
5. That the holder of this bond and mortgage, in any action to
foreclose the mortgage, shall be entitled to the appointment of a
receiver.
6. That the mortgagor will pay all taxes, assessments or water rates,
and in default thereof, the mortgagee may pay the same.
7. That the mortgagor within ....... days upon request in person or
within ....... days upon request by mail will furnish a written
statement duly acknowledged of the amount due on this bond and mortgage
and whether any offsets or defenses exist against the mortgage debt.
8. That notice and demand or request may be in writing and may be
served in person or by mail. 9. That the mortgagor warrants the title
to the premises.
In witness whereof this bond and mortgage has been duly signed and
sealed by the mortgagor.
In the presence of:
SCHEDULE O.
ASSIGNMENT OF MORTGAGE.
Statutory Form I.
Without Covenant.
Know that ....... , assignor, in consideration of ....... dollars,
paid by ........ , assignee, hereby assigns unto the assignee, a certain
mortgage made by ........ , given to secure payment of the sum of
....... dollars and interest, dated the ....... day of ....... ,
recorded on the ....... day of ....... , in the office of the ....... of
the county of ....... , in liber ....... of mortgages, at page ....... ,
covering premises ....... , together with the bond or obligation
described in said mortgage, and the moneys due and to grow due thereon
with the interest,
To have and to hold the same unto the assignee, and to the successors,
legal representatives and assigns of the assignee forever.
In witness whereof, the assignor has hereunto set his hand and seal
this ....... day of ....... , nineteen hundred and ........
In presence of:
SCHEDULE P
ASSIGNMENT OF MORTGAGE
Statutory form J.
With covenant
Know that ....... , assignor, in consideration of ....... dollars,
paid by ....... , assignee, hereby assigns unto the assignee, a certain
mortgage made by ....... , given to secure payment of the sum of .......
dollars and interest, dated the ....... day of ....... , recorded on the
....... day of ....... , in the office of the ....... of the county of
....... , in liber ....... of mortgages, at page ....... , covering
premises ....... , together with the bond or obligation described in
said mortgage, and the moneys due and to grow due thereon with the
interest,
To have and to hold the same unto the assignee, and to the successors,
legal representatives and assigns of the assignee forever.
And the assignor covenants that there is now owing upon said mortgage,
without offset or defense of any kind, the principal sum of .......
dollars, with interest thereon at ....... per centum per annum from the
....... day of ....... , nineteen hundred and ........
In witness whereof, the assignor has hereunto set his hand and seal
this ....... day of ....... , nineteen hundred and .......
In presence of:
SCHEDULE Q RELEASE OF PART OF MORTGAGED PREMISES
Statutory form K.
This indenture, made the ....... day of ....... , nineteen hundred and
....... , between ....... , party of the first part, and ....... , party
of the second part,
Whereas, ....... by indenture of mortgage, bearing date the .......
day of ....... , nineteen hundred and ....... , recorded in the office
of the ....... of the county of ....... , in liber ....... of mortgages,
of section ....... , page ....... , on the ....... day of ....... ,
nineteen hundred and ....... , for the consideration therein mentioned,
and to secure the payment of the money therein specified, did mortgage
certain lands and tenements of which the lands hereinafter described are
part, unto ....... ,
And whereas, the party of the first part, at the request of the party
of the second part, has agreed to give up and surrender the lands
hereinafter described unto the party of the second part, and to hold and
retain the residue of the mortgaged lands as security for the money
remaining due on said mortgage,
Now this indenture witnesseth, that the party of the first part, in
pursuance of said agreement, and in consideration of ....... dollars,
lawful money of the United States, ....... paid by the party of the
second part, does grant, release and quitclaim unto the party of the
second part, all that part of said mortgaged lands described as follows:
........................................... (description),
Together with the hereditaments and appurtenances thereunto belonging,
and all the right, title and interest of the party of the first part,
of, in and to the same, to the intent that the lands hereby released may
be discharged from said mortgage, and that the rest of the land in said
mortgage specified may remain mortgaged to the party of the first part
as heretofore,
To have and to hold the lands and premises hereby released and
quitclaimed to the party of the second part, ....... and assigns, to
....... and their own proper use, benefit and behoof forever, free,
clear and discharged of and from all lien and claim under and by virtue
of the indenture of mortgage aforesaid.
In witness whereof, the party of the first part has signed and sealed
these presents the day and year first above written.
In presence of:
SCHEDULE R.
SATISFACTION OF MORTGAGE.
Statutory Form L.
Know all men by these presents, that ....... do hereby certify that a
certain indenture of mortgage, bearing date the ....... day of ....... ,
nineteen hundred and ....... , made and executed by ....... , to secure
payment of the principal sum of ....... dollars and interest, and duly
recorded in the office of the ....... of the county of ....... , in
liber ....... of mortgages, of section ....... , page ......, on the
....... day of ....... , nineteen hundred and ....... , is paid, and do
hereby consent that the same be discharged of record.
Dated the ....... day of ....... , nineteen hundred and ........
In presence of:

S 259-c. Provision in lease of real property for waiver of trial by
jury in actions for personal injury or property damage. Any provision in
a lease, executed after the effective date of this act, that a trial by
jury is waived in any action, proceeding or counterclaim brought by
either of the parties thereto against the other in any action for
personal injury or property damage, is null and void.

S 260. Lands adversely held may be conveyed or mortgaged. No grant,
conveyance or mortgage of real property or interest therein shall be
void for the reason that at the time of the delivery thereof such real
property is in the actual possession of a person claiming under a title
adverse to that of the grantor.

S 261. Maintenance of telegraph or other electric wires raises no
presumption of grant. Whenever any wire or cable used for any telegraph,
telephone, electric light or other electric purpose, or for the purpose
of communication otherwise than by the aid of electricity, is or shall
be attached to, or does or shall extend upon or over any building or
land, no lapse of time whatever shall raise a presumption of any grant
of, or justify a prescription of any perpetual right to, such attachment
or extension.

S 265. Fraudulent intent, question of fact. The question of fraudulent
intent in a case arising under this article, shall be deemed a question
of fact and not of law; and a conveyance or charge shall not be adjudged
fraudulent as against creditors, purchasers or incumbrancers, solely on
the ground that it was not founded on a valuable consideration.

S 266. Rights of purchaser or incumbrancer for valuable consideration
protected. This article does not in any manner affect or impair the
title of a purchaser or incumbrancer for a valuable consideration,
unless it appears that he had previous notice of the fraudulent intent
of his immediate grantor, or of the fraud rendering void the title of
such grantor.

S 267. Conveyances with power to revoke, determine or alter. A
conveyance of, or charge on, an estate or interest in real property,
containing a provision for the revocation, determination or alteration
of the estate or interest, or any part thereof, at the will of the
grantor, is void, as against subsequent purchasers and incumbrancers,
from the grantor, for a valuable consideration, of any estate or
interest so liable to be revoked or determined, although the same be not
expressly revoked, determined or altered by the grantor, by virtue of
the power reserved or expressed in the prior conveyance or charge. Where
a power to revoke a conveyance of real property or the rents and profits
thereof, and to reconvey the same, is given to any person, other than
the grantor in such conveyance, and such person thereafter conveys the
same real property, rents or profits to a purchaser or incumbrancer for
a valuable consideration, such subsequent conveyance is valid, in the
same manner and to the same extent as if the power of revocation were
recited therein, and the intent to revoke the former conveyance
expressly declared. If a conveyance to a purchaser or incumbrancer,
under this section, be made before the person making it is entitled to
execute his power of revocation, it is nevertheless valid, from the time
the power of revocation actually vests in such person, in the same
manner, and to the same extent, as if then made.

S 268. Disaffirmance of fraudulent act by executor and others. An
executor, administrator, receiver, assignee or other trustee, may, for
the benefit of creditors, or of others interested in real property held
in trust, disaffirm, treat as void and resist any act done or transfer
or agreement made in fraud of the rights of any creditor, including
himself, interested in such estate or property; and a person who
fraudulently receives, takes, or in any manner interferes with the real
property of a deceased person, or an insolvent corporation, association,
partnership, or individual, is liable to such executor, administrator,
receiver or other trustee for the same, or the value thereof, and for
all damages caused by such act to the trust estate. A creditor of a
deceased insolvent debtor, having a claim or demand exceeding one
hundred dollars against such deceased, may, for the benefit of creditors
or others interested in the real property of such deceased, disaffirm,
treat as void, and resist any act done or conveyance, transfer or
agreement made by such deceased in fraud of the rights of any creditor,
including himself, and may maintain an action to set aside such act,
conveyance, transfer or agreement, without having first obtained a
judgment on such claim or demand; but the same, if disputed, may be
established on the trial. The judgment in such action may provide for
the sale of the premises or property involved, when a conveyance or
transfer thereof is set aside, and that the proceeds thereof be brought
into court or paid into the proper surrogate`s court to be administered
according to law.

S 269. When remainderman may pay interest owed by life tenant.
Whenever real property held by any person for life is incumbered by
mortgage or other lien, the interest on which should be paid by the life
tenant, and such life tenant neglects or refuses to pay such interest,
the remainderman may pay such interest, and recover the amount thereof,
together with interest thereon from the time of such payment, of the
life tenant.

S 270. Powers of courts of equity not abridged. Nothing contained in
this article abridges the powers of courts of equity to compel the
specific performance of agreements in cases of part performance.

S 271. Construction of covenants in mortgages on leases of real
property and bonds or notes. In mortgages on leases of real property and
in bonds or notes secured thereby, the following or similar covenants or
agreements must be construed as follows:
1. In default of payment, mortgagee to have power to sell.--- A
covenant that the mortgagor "will pay the indebtedness, as provided in
the mortgage, and if default be made in the payment of any part thereof,
the mortgagee or obligee shall have power to sell the premises therein
described, according to law," must be construed as meaning that the
mortgagor or obligor shall well and truly pay unto the mortgagee or
obligee the said sum of money mentioned in the condition of the said
bond, note or obligation, and the interest thereon, according to the
condition of the said bond, note or obligation. And if default shall be
made in the payment of the said sum of money therein mentioned, or in
the interest which shall accrue thereon, or of any part of either, that
then and from thenceforth it shall be lawful for the said mortgagee or
obligee, his legal representative or assigns, to sell, transfer and set
over, all the rest, residue and remainder of the said term of years then
yet to come, and all other, the right, title and interest of the said
mortgagor or obligor of, in and to the same, at public auction,
according to the act in such case made and provided. And as the attorney
of the said mortgagor or obligor for that purpose by these presents duly
authorized, constituted and appointed, to make, seal, execute and
deliver to the purchaser or purchasers thereof, a good and sufficient
assignment, transfer or other conveyance in the law, for the said
premises, with the appurtenances; and out of the money arising from such
sale, to retain the principal and interest which shall then be due on
the said bond, note or obligation, together with the costs and charges
of advertisement and sale of the said premises, rendering the overplus
of the purchase-money (if any there shall be) unto the said mortgagor or
obligor, his legal representatives or assigns; which sale, so to be
made, shall forever be a perpetual bar, both in law and equity, against
the said mortgagor or obligor, and against all persons claiming or to
claim the premises or any part thereof, by, from or under him or them,
or any of them.
2. Mortgagor to keep buildings insured.--- A covenant "that the
mortgagor will keep the buildings on the said premises insured against
loss by fire, for the benefit of the mortgagee," must be construed as
meaning that the said mortgagor or obligor shall and will keep the
buildings erected and to be erected upon the lands above conveyed,
insured against loss and damage by fire, by insurance, and in an amount
approved by the said mortgagee or obligee and his assigns, and either
assign the policy and certificates thereof or have such insurance made
payable to the said mortgagee or obligee or his assigns, and in default
thereof it shall be lawful for the said mortgagee or obligee and his
assigns to effect such insurance, and the premium and premiums paid for
effecting the same shall be a lien on the said mortgaged premises, added
to the amount of the said bond, note or obligation, and secured by these
presents, and payable on demand, with legal interest.
3. Mortgagor to pay rent and charges on premises.--- A covenant that
the mortgagor "will pay the rent and other charges mentioned in and made
payable by said indenture of lease within ....... days after said rent
or charges are payable," must be construed as meaning that the said
mortgagor or obligor and his legal representatives and assigns, will pay
or cause to be paid, and discharge all rent and rents mentioned in and
made payable by the indenture of lease aforesaid, and also all taxes,
assessments or other charges that now are a lien, or hereafter shall or
may be levied, assessed or imposed and become a lien upon the premises
above described or any part thereof; and in default thereof, for the
space of ....... after such taxes or assessments or ....... after the
said rent or rents, or any of them shall have become due and payable by
the terms of said lease or by law, then and in each and every such case
the said mortgagee or obligee, his legal representatives or assigns may,
at option, and without notice, pay such rent or rents, taxes,
assessments or other charges and expenses, and the amount so paid, and
interest thereon, from the time of such payment, shall forthwith be due
and payable from the said mortgagor or obligor, his legal
representatives or assigns, to the said mortgagee or obligee, his legal
representatives or assigns, and shall be deemed to be secured by these
presents, and shall be collectable in the same manner, and at the same
time, and upon the same conditions as the interest then next maturing
upon the principal sum hereinbefore mentioned.
4. Agreement that whole sum shall become due.--- The words "And it is
hereby expressly agreed that the whole of the said principal sum shall
become due at the option of said mortgagee or obligee after default in
the payment of any instalment of principal or after default in the
payment of interest for ....... days, or after default in the payment of
any rent or other charge made payable by said indenture of lease for
........ days, or after default in the payment of any tax or assessment
for ....... days after notice and demand," must be construed as meaning
that should any default be made in the payment of any instalment of
principal or any part thereof, or of said interest or any part thereof,
or of any rent or other charge made payable by said indenture or lease,
on any day whereon the same is made payable, or should any tax or
assessment, which now is or may be hereafter imposed upon the premises
hereinafter described, become due and payable, and should the said
interest, rent or other charge aforesaid, remain unpaid and in arrear
for the space of ....... days, or such tax or assessment remain unpaid
and in arrear for ....... days after written notice by the mortgagee or
obligee, his executors, administrators or assigns, that such tax or
assessment is unpaid, and demand for the payment thereof, then and from
thenceforth, that is to say, after the lapse of either one of said
periods, as the case may be, the aforesaid principal sum, with all
arrearage of interest thereon, rent and other charges paid by the
mortgagee or obligee, shall, at the option of the said mortgagee or
obligee, his executors, administrators or assigns, become and be due and
payable immediately thereafter, although the period above limited for
the payment thereof may not then have expired, anything thereinbefore
contained to the contrary thereof in anywise notwithstanding.

S 272. Construction of grant of appurtenances, and all of the rights
and estate of the mortgagor. In any mortgage on a lease of real property
the words "together with the appurtenances and all the estate and rights
of the part ...... of the first part of, in and to said premises under
and by virtue of the aforesaid indenture of lease," must be construed as
meaning, together with all and singular the edifices, buildings, rights,
members, privileges and appurtenances thereunto belonging or in anywise
appertaining; and also all the estate, right, title, interest, term of
years yet to come and unexpired, property, possession, claim and demand
whatsoever, as well in law as in equity, of the said mortgagor or
obligor, of, in and to the said demised premises, and every part and
parcel thereof, with the appurtenances; and also the said indenture of
lease, and the renewal therein provided for, and every clause, article
and condition therein expressed and contained.

S 273. What form of mortgage on lease of real property. The use of the
following form of instrument for mortgages on leases of real property is
lawful, but this section does not prevent or invalidate the use of other
forms.
SCHEDULE D.
MORTGAGE ON LEASE OF REAL PROPERTY.
This indenture, made the ....... day of ....... , in the year one
thousand ....... hundred and ....... , between ....... of (insert
residence) of the first part and ....... of (insert residence) of the
second part; whereas ....... did, by a certain indenture of lease,
bearing date the ....... day of ....... , in the year one thousand nine
hundred and ....... , demise, lease and to farm let unto ....... and to
executors, administrators and assigns, all and singular the premises
hereinafter mentioned and described, together with their appurtenances;
to have and to hold the same unto the said ....... and to .......
executors, administrators and assigns, for and during and until the full
end and term of ....... years, from the ....... day of ....... , one
thousand nine hundred and ....... , fully to be complete and ended,
yielding and paying therefor unto the said ....... and to ....... or
assigns, the yearly rent or sum of ............... .
And whereas, the said part ....... of the first part justly indebted
to the said part ....... of the second part, in the sum of .......
lawful money of the United States of America, secured to be paid by
....... certain bond or obligation, bearing even date herewith,
conditioned for the payment of the said sum of ....... on the .......
day of ....... , nineteen hundred and ....... and the interest thereon
to be computed from ....... at the rate of ....... per centum per annum
and to be paid ...... .
It being thereby expressly agreed that the whole of the said principal
sum shall become due at the option of the mortgagee or obligee after
default in the payment of interest, taxes or assessments or rents as
hereinafter provided.
Now this indenture witnesseth that the said part ....... of the first
part, for the better securing the payment of the said sum of money
mentioned in the condition of the said bond or obligation, with interest
thereon, and also for and in consideration of the sum of one dollar,
paid by the said part ....... of the second part, the receipt whereof is
hereby acknowledged, doth grant and release, assign, transfer and set
over unto said part ....... of the second part, and to his heirs (or
successors) and assigns forever.
(Description)
Together with the appurtenances and all the estate and rights of the
part ........ of the first part of, in and to said premises under and by
virtue of the aforesaid indenture of lease.
To have and hold the said indenture of lease and renewal, and the
above granted premises, unto the said part ....... of the second part,
his heirs and assigns, for and during all the rest, residue and
remainder of the said term of years yet to come and unexpired, in said
indenture of lease and in the renewals therein provided for; subject,
nevertheless, to the rents, covenants, conditions and provisions in the
said indenture of lease mentioned.
Provided always that if the said part ....... of the first part shall
pay unto the said part ....... of the second part, the said sum of money
mentioned in the condition of the said bond or obligation, and the
interest thereon, at the time and in the manner mentioned in the said
condition, that then these presents and the estate hereby granted, shall
cease, determine and be void.
And the said part ....... of the first part covenant ....... with the
said part ....... of the second part as follows:
First. That the part ....... of the first part will pay the
indebtedness as hereinbefore provided.
And if default shall be made in the payment of any part thereof the
said part .......of the second part shall have power to sell the
premises therein described according to law.
Second. That the said premises now are free and clear of all
incumbrances whatsoever, and that ....... ha ....... good right and
lawful authority to convey the same in manner and form hereby conveyed.
Third. That the part .......of the first part will keep the buildings
on the said premises insured against loss by fire, for the benefit of
the mortgagee.
Fourth. That the part ....... of the first part will pay the rents and
other charges mentioned in and made payable by said indenture of lease
within ....... days after said rent or charges are payable.
Fifth. And it is hereby expressly agreed that the whole of the said
principal sum shall become due at the option of the said mortgagee or
obligee after default in the payment of any instalment of principal, or
after default in the payment of interest for ....... days, or after
default in the payment of any rent or other charge made payable by said
indenture of lease for ....... days, or after default in the payment of
any tax or assessment for ....... days after notice and demand.
In witness whereof, the said part ....... of the first part to these
presents ha ....... hereunto set ....... hand ....... and seal .......
the day and year first above written.
Sealed and delivered
In the presence of

S 274. Transfers and mortgages of interest in decedents` estates.
Every conveyance, assignment, or other transfer of, and every mortgage
or other charge upon the interest, or any part thereof, of any person in
the estate of a decedent which is situated within this state, shall be
in writing, and shall be acknowledged or proved in the manner required
to entitle conveyances of real property to be recorded. Any such
instrument may also be recorded as hereinafter provided; and if not so
recorded, it is void against any subsequent purchaser or mortgagee of
the same interest or any part thereof, in good faith and for a valuable
consideration, whose conveyance or mortgage is first duly recorded. If
such interest is entirely in the real property of a decedent, the
conveyance or mortgage shall be recorded in the office of the recording
officer where such real property is situated. If such interest is in
both the personal and the real property of a decedent the conveyance or
mortgage shall be recorded in the office of the surrogate issuing
letters testamentary or letters of administration upon the said
decedent`s estate, or if no such letters have been issued, then in the
office of the surrogate having jurisdiction to issue the same, and also
in the office of the said recording officer. Such a conveyance or
mortgage when so recorded, shall be indexed under the name of the
decedent, in a book to be kept for the purpose by each recording
officer. The person presenting any such instrument for record shall pay
to the clerk of the surrogate`s court a fee of ten cents for each folio.
Such filing or recording shall not be deemed notice of such conveyance,
assignment or other transfer of, or mortgage or other lien or charge
upon the interest, or any part thereof of any person in the estate of a
decedent which is situated within the state, so as to charge the legal
representative of the estate with liability for payment to a legatee or
other beneficiary of an estate unless and until he shall have received
actual notice of such conveyance, assignment or other transfer.

S 274-a. Certificate of principal amount unpaid on mortgages of real
property. 1. The holder of a mortgage upon real property shall execute
and deliver to the owner of the real property upon which such mortgage
is a lien a written instrument setting forth the amount of the principal
of said mortgage remaining unpaid, the date to which interest has been
paid, and the amounts, if any, claimed to be unpaid upon said mortgage
for principal and interest, itemizing the same, provided, however, that
prior written demand by registered or certified mail has been made upon
the holder of such mortgage by such owner of the real property and that
such owner of the real property shall have executed and delivered to
another a written contract to convey, or shall have received a written
commitment to make a mortgage loan upon, the real property or an
interest therein. The written instrument hereinbefore required of the
holder of the mortgage shall be a certificate duly executed and
acknowledged in the same manner as required by law to entitle a
conveyance of real property to be recorded, except that a bank, savings
bank, private banker, trust company, savings and loan association or any
other banking organization, as defined in the banking law, a national
bank or trust company or any other federally-chartered or
federally-regulated savings and loan association or other banking
institution and an insurance company duly organized or licensed to do
business in this state under the insurance law of this state and the
state of New York, or an agency thereof and a political subdivision of
the state of New York or an agency thereof may, in lieu of the said
certificate, furnish a letter signed by a duly authorized officer, or
employee or agent, containing the information required to be set forth
in such certificate. An owner of real property who shall have complied
with the foregoing requirements and who shall not have received the
written instrument from the holder of the mortgage thereon within twenty
days after such compliance shall be entitled to petition a court of
competent jurisdiction for an order requiring such holder of the
mortgage to comply with this section.
2. (a) The mortgagee of an owner-occupied, one-to-six family
residential structure or residential condominium unit, shall deliver
within thirty days, any mortgage related documents to an authorized
individual making a bona fide written demand for such documents. The
mortgagee shall not charge for providing the mortgage-related documents,
provided, however, the mortgagee may charge not more than twenty
dollars, or such amount as may be fixed by the banking board, for each
subsequent payoff statement provided under this subdivision. If the
mortgagee fails to deliver the mortgage-related documents, the mortgagee
shall be liable for the actual damages to the mortgagor by reason of
such failure. In computing actual damages the court may consider the
actual rate of interest on the mortgage debt and current prevailing rate
or rates of interest on comparable debts. However, actual damages do not
include pain and suffering, mental or emotional distress or the like.
The replacement costs of a lost abstract of title required to be
delivered hereunder, may be deducted from the amount required to satisfy
the mortgage.
(b) When used in this section:
(i) "Authorized individual" means the mortgagor, the mortgagor`s
attorney, or the attorney representing a banking organization which has
agreed to make a loan secured by the same real property securing the
mortgage for which the mortgage related documents have been requested.
(ii) "Mortgagee" means (1) the current holder of the mortgage of
record or the current holder of the mortgage, (2) any person to whom
payments are required to be made and (3) their personal representatives,
successors and assigns.
(iii) "Bona fide written demand" means a written demand made by an
authorized individual in connection with a sale or refinancing of the
mortgaged property or some other event where the mortgage is reasonably
expected to be paid off or assigned. Such demand shall either be
delivered personally, or by registered or certified mail, postage
prepaid, return receipt requested. The demand shall include the names of
the mortgagor and mortgagee, the address of the mortgaged property, loan
number, the date of the mortgage or the date it was recorded, the
mortgage related documents demanded and the proposed payoff date or date
of assignment of the mortgage, if applicable. If the demand includes a
request for the abstract of title, the demand shall include the
agreement by the mortgagor to pay for a replacement abstract of title,
the cost of which may not exceed the actual replacement cost of such
abstract of title, in the event that the mortgage is not paid off or the
abstract of title is not returned within thirty days of the proposed
payoff date. Such demand shall include the following in capital letters:
"THIS DEMAND IS MADE UNDER SECTION 274-a OF THE
REAL PROPERTY LAW. FAILURE TO COMPLY WITH THIS
DEMAND MAY RESULT IN SEVERE PENALTIES."
(iv) "Mortgage-related documents" means:
(1) the abstract of title for the real property securing the mortgage
if such document is in the possession and control of the mortgagee. In
the event that the mortgage is not paid off, the authorized individual
receiving the abstract of title shall within thirty days of the proposed
payoff date return the abstract of title to the mortgagee or other
person so designated by the mortgagee; upon a failure to so return the
abstract of title, the mortgagee may obtain a replacement abstract of
title, the cost of which may not exceed the actual replacement cost of
such abstract of title and which shall be paid by the mortgagor;
(2) a payoff statement setting forth the balance of the mortgage,
including principal, interest and other charges assessed pursuant to the
loan documents, together with a per diem rate for interest accruing
after the date to which the balance has been calculated. The payoff
statement may, in the event that the statement reflects payments which
may have not yet cleared, require the authorized individual to obtain
from the mortgagee a day of payoff verification of the payoff statement.
A payoff statement requiring day of payoff verification shall include,
in addition to the address of the mortgagee, the telephone number of the
mortgagee and, if a banking organization or corporation, the name or
department, and its telephone number and facsimile phone number. Unless
the payoff statement requires a day of payoff verification, a mortgagee
furnishing a payoff statement shall be obligated to make its best effort
to furnish a satisfaction of mortgage upon receipt of the amount set
forth in such statement unless such person subsequently notifies the
authorized individual of an error in the payoff statement. The payoff
statement furnished by a mortgagee shall include a name or department in
addition to the address of the banking organization or corporation for
use in connection with preparation of an affidavit under subdivision
five of section nineteen hundred twenty-one of the real property actions
and proceedings law;
(3) if requested and if the title insurance policy is in the
possession and control of the mortgagee, a copy of such policy or a
statement setting forth the name of the insurer and the number of such
policy.
(v) "Banking organization" shall have the same meaning as provided in
subdivision eleven of section two of the banking law and shall include
any institution chartered or licensed by the United States or any state.

S 275. Certificate of discharge of mortgage required. 1. Whenever a
mortgage upon real property is due and payable, and the full amount of
principal and interest due on the mortgage is paid, a certificate of
discharge of mortgage shall be given to the mortgagor or person
designated by him, signed by the person or persons specified in section
three hundred twenty-one of this chapter. The person signing the
certificate shall, within thirty days thereafter, arrange to have the
certificate presented for recording to the recording officer of the
county where the mortgage is recorded. The provisions of this section
shall not apply to any mortgage granted to or made by the state of New
York, or any agency or instrumentality thereof or any political
subdivision of the state or any agency or instrumentality thereof.
2. For purposes of this section, the full amount of principal and
interest due on a mortgage shall not be considered to be paid whenever
such mortgage continues to secure a bona fide debt and an enforceable
lien continues to exist, such as may occur in the following situations:
(a) the commercial practice of lenders trading or selling mortgages on
the secondary market;
(b) the replacement of a construction loan with permanent financing;
(c) the refinancing of an existing loan with a new lender, such as
where the original lender assigns a note and the mortgage securing its
payment to another lender in return for consideration and such mortgage
is consolidated with another mortgage which secures any funds advanced
by the new lender to the mortgagor;
(d) the modification of the terms of a loan by a mortgagor and
mortgagee in order to avoid foreclosure; and
(e) a refinancing that occurs in conjunction with the sale of property
such that the seller conveys property to the purchaser subject to the
lien of the mortgage and the original lender assigns its note and
mortgage on the property to the purchaser`s lender.
3. Except with respect to the assignment of a mortgage in connection
with a transaction described in paragraph (a) of subdivision two of this
section, in order to record an assignment of a mortgage there must be
set forth in the assignment document or attached thereto and recorded as
part thereof a statement under oath signed by the mortgagor or any other
party to the transaction having knowledge of the facts (provided such
other party asserts such knowledge), that the assignee is not acting as
a nominee of the mortgagor and that the mortgage continues to secure a
bona fide obligation. With respect to the assignment of a mortgage in
connection with a transaction described in paragraph (a) of subdivision
two of this section, such assignment shall contain the following
statement: "This assignment is not subject to the requirements of
section two hundred seventy-five of the Real Property Law because it is
an assignment within the secondary mortgage market."

S 276. Effect of certain easements on the right to invest in
mortgages. The existence of an easement in real property acquired or
reserved by a municipal corporation, a railroad corporation or other
transportation corporation, shall not be deemed an encumbrance upon such
real property under any law relating to investments in mortgages upon
real property by corporations, trustees, executors, administrators,
guardians or other persons holding trust funds, but the effect of such
an easement upon the real property which it affects, shall be taken into
consideration in determining the value thereof.

S 277. Modification and extension of mortgage investment. 1.
Corporations, trustees, executors, administrators, guardians,
committees, conservators and other persons holding trust funds, savings
banks and other corporations that shall have made or shall own or hold
an investment, with the specified ratio of real property security, in a
bond and mortgage or share or part thereof or series or group of bonds
and mortgages or in any instrument evidencing any collateral or other
interest in such a bond and mortgage or share or part thereof or such
series or group of bonds and mortgages, or in any participation or other
certificate secured by the deposit of, or evidencing any share, part or
interest in the principal sum of any such bond and mortgage or share or
part thereof or series or group of bonds and mortgages, whether any of
such investments, instruments or certificates be guaranteed or not, may,
prior to April first, nineteen hundred sixty-nine waive or modify, or
agree to waive or modify, either with or without consideration and prior
or subsequent to maturity, any terms and conditions thereof, including
the rate of interest, due or to become due and extend or re-extend or
agree to extend or re-extend such bond and mortgage or share or part
thereof, or such series or group or such evidencing instrument or
participation or other certificate for a period of not more than five
years from the time of such extension, by agreement with the owner of
the real property subject to the lien of such bond and mortgage or bonds
and mortgages or by agreement with the issuer or guarantor of any such
evidencing instrument or participation or other certificate,
notwithstanding that, at the time of such waiver, modification,
extension or agreement, the value of such real property may be less than
that required by law for an original investment of such an amount
therein by such holder and, in case any such investment is guaranteed,
any such holder thereof may also extend or re-extend or agree to extend
or re-extend the time of payment under the guaranty for a like period
from its due date, and may release or agree to release such guaranty or
from time to time waive or modify or agree to waive or modify any terms
or conditions thereof, including the rate of interest due or to become
due.
2. In addition to the provisions of subdivision one hereof, any
corporation, trustee, executor, administrator, guardian, committee,
conservator or other person, including any official of the state or any
political subdivision thereof, holding trust funds, or any savings bank
or other corporation that shall have made or shall own or hold such
investment, may prior to April first, nineteen hundred sixty-nine join
in promulgating, participate in, consent to or pay any assessment under
or incur any necessary expense in connection with participation in any
plan providing for the readjustment, modification or reorganization of
such investment, which plan is required by the terms thereof or the
provisions of law applicable thereto to be approved by a court of this
or any other state or of the United States, having competent
jurisdiction over proceedings for such readjustment, modification or
reorganization, and if such plan shall have been or shall hereafter be
duly approved by any such court, may execute such instruments and do
such acts as may be required thereby, and as may be necessary or
desirable for the consummation thereof, and may accept and hold, as
legal investments, any securities or obligations, secured or unsecured,
issued pursuant to such plan so approved, notwithstanding, without
limiting the generality of the foregoing, that such plan may provide for
the extension of the maturity or reduction of the principal, or of the
rate of interest, or for any other modification of such investment or of
any bond and mortgage or bonds and mortgages held as security for or for
the benefit of the holders of such investment.
3. This section shall be construed so as to effectuate its purpose as
a grant of powers. The limitations and restrictions contained herein
shall not apply to powers granted by any other law but only to the
powers granted herein.

S 277-a. Powers of fiduciaries and others holding guaranteed mortgages
or mortgage investments. Trustees, executors, administrators, guardians,
committees for incompetents, conservators of conservatees and all other
persons acting in any fiduciary capacity, including all officials of the
state or any political subdivision thereof, and corporations organized
under, or subject to the provisions of the banking law or the insurance
law, who hold any mortgage investment or any wholly owned mortgage
guaranteed by a guaranty corporation, or who hold any claim against a
guaranty corporation, may assent to a plan of reorganization or
readjustment of the guaranty corporation or of the business thereof, or
to any proposal, however designated, to buy any assets of such guaranty
corporation, which has been or shall be approved by the supreme court;
and in connection therewith may assign such claims, execute such
instruments and do such acts as may be required by such plan or
proposal, or as may be necessary or desirable for the consummation
thereof; and may accept in exchange for such claims, and hold same as
legal investments, any stock, securities or obligations, secured or
unsecured, issued pursuant to such plan or proposal; and may join in any
voting trust agreement provided for by such plan or proposal. The terms
"mortgage investment" and "guaranty corporation" as used herein shall be
construed as said terms are defined by section two of chapter seven
hundred forty-five of the laws of nineteen hundred thirty-three, as
amended, and by section three of chapter nineteen of the laws of
nineteen hundred thirty-five, as amended.

S 278. Exchange of mortgage investment. Trustees, executors,
administrators, guardians, committees, conservators, receivers, the town
treasurer of any town and other persons and corporations holding trust
funds, corporations and private bankers organized under or subject to
the provisions of the banking law, the superintendent of banks as
conservator, liquidator or rehabilitator of any such corporation or
private banker organized under and subject to the provisions of the
banking law, persons, partnerships, and corporations organized under or
subject to the provisions of the insurance law, the superintendent of
insurance as conservator, liquidator or rehabilitator of any such
person, partnership or corporation organized under or subject to the
provisions of the insurance law, and other domestic corporations, that
shall have made or shall hold an investment, whether with or without a
specified ratio of real property security, in a bond secured by mortgage
on real property or share or part thereof, whether guaranteed or not,
may, at any time without an order of the court or other authority,
exchange, prior or subsequent to maturity, such bond and mortgage or
share or part thereof and any rights in respect thereto, for bonds of
Home Owners` Loan Corporation, a corporation created under home owners`
loan act of nineteen hundred and thirty-three, and may hold such bonds
of Home Owners` Loan Corporation as authorized and lawful investments
for any and all purposes, notwithstanding the provisions of any general
or special law of this state inconsistent with the provisions of this
section.

S 278-a. Sale or exchange of certain real property or mortgage
investments therein authorized. Trustees, executors, administrators,
guardians, committees, conservators and all other persons or
corporations holding trust funds or acting in a fiduciary capacity,
corporations and private bankers organized under or subject to the
provisions of the banking law, the superintendent of banks as
conservator, liquidator or rehabilitator of any such corporation or
private banker organized under and subject to the provisions of the
banking law, persons, partnerships and corporations organized under or
subject to the provisions of the insurance law, the superintendent of
insurance as conservator, liquidator or rehabilitator of any such
person, partnership or corporation organized under or subject to the
provisions of the insurance law who or which (1) own any property on
which there is a building defined in the multiple dwelling law as an old
law tenement or who or which hold a mortgage or other lien on such
property, or
(2) own any property, improved or unimproved, or any mortgage or other
lien thereon, within any section of a municipality included in a map
showing sections containing areas for clearance, replanning and low rent
housing, adopted by the planning commission of the municipality as a
whole or part of the master plan, or
(3) own any property, improved or unimproved, or any mortgage or other
lien thereon, within any section of a municipality which may be
designated by the planning commission or the housing authority of the
municipality as substandard or insanitary, may sell such property,
mortgage or lien, and may, notwithstanding any other provision of law,
receive and hold in exchange therefor securities issued by a corporation
owning or acquiring title to such property, if such corporation shall
agree in writing at the time of such sale, to reconstruct, improve,
alter, repair or demolish such property or to construct a new building
on such property, or on such property and on any contiguous property
owned or to be acquired by such corporation.

S 279. Graduated payment mortgage. 1. A "graduated payment mortgage"
means a mortgage which provides: (i) monthly payments of principal and
interest which are lower during the initial years of the mortgage; and
(ii) that the graduation rate for the monthly payments, the term of
graduation and the interest rate are fixed throughout the term of the
loan; and (iii) monthly payments of principal and interest shall be
sufficient to pay all interest and to effect full repayment of principal
within the term of the mortgage as fixed at its origination.
2. Every graduated payment mortgage shall be subject to the following:
(a) the average annual rate of increase for principal and interest
payments shall not exceed:
(i) 7.5 percent per annum for a mortgage with a graduation period of
five years or less;
(ii) 6.5 percent per annum for a mortgage with a graduation period of
six years;
(iii) 5.5 percent per annum for a mortgage with a graduation period of
seven years;
(iv) 4.5 percent per annum for a mortgage with a graduation period of
eight years;
(v) 3.5 percent per annum for a mortgage with a graduation period of
nine years; and
(vi) 3 percent per annum for a mortgage with a graduation period of
ten years.
(b) periodic payments of principal and interest shall not change more
than once per annum and increases shall be limited to the first ten
years of the term of the mortgage.
(c) payments of principal and interest are required in amounts
sufficient to pay all interest and full repayment of principal within a
period not to exceed forty years.
3. Graduated payment mortgages may be offered only if the lender:
(a) offers the prospective borrower a non-graduated payment mortgage
loan at the prevailing rate being offered by that lender; (b) provides
the mortgagor with the option to convert the graduated payment mortgage
loan to a non-graduated payment mortgage loan at a pre-determined time
agreed upon between the borrower and lender and at the same rate of
interest provided for the graduated payment mortgage loan; and
(c) discloses in advance on a uniform disclosure statement, prescribed
by the banking board, the relevant provisions of the graduated payment
mortgage loan including:
(i) a side by side comparison of interest rates and other terms that
differ between a non-graduated payment mortgage loan and a graduated
payment mortgage loan;
(ii) payment schedules for both types of loans and the total payment
in dollars over the full term of each loan;
(iii) a statement prominently displayed that borrowers have the option
to elect a non-graduated payment mortgage loan; and
(iv) a description of the conversion option.
4. Failure of any lender to comply with any of the foregoing
provisions shall not render the mortgage void or unenforceable unless
otherwise provided by law.
5. The provisions of this section shall be applicable only to a
mortgage on real property improved by a one to six family residence
given by a natural person to secure a loan or to any agreement or note
made by a natural person in pursuance of any loan for the purpose of
financing the purchase of or refinancing an existing ownership interest
in certificates of stock or other evidence of an ownership interest in,
and a proprietary lease from, a corporation or partnership formed for
the purpose of the cooperative ownership of real estate, unsecured
except to the extent of an assignment or transfer of the stock
certificates or other evidence of ownership interest of the borrower and
the proprietary lease within ninety days from the making of the loan
which would otherwise conform to the provisions of this section but is
not otherwise entitled to be recorded as a mortgage.

S 280. Reverse mortgage loans for persons sixty years of age or older.
1. For purposes of this section the following terms shall have the
following meanings:
(a) Reverse mortgage loans. A loan which is secured by a first
mortgage on real property improved by a one- to four-family residence or
condominium that is the residence of the mortgagor(s) the proceeds of
which are advanced to the mortgagor(s) during the term of the loan in
equal installments, in advances through a line of credit or otherwise,
in lump sums, or through a combination thereof.
(b) Term reverse mortgage loan. Any reverse mortgage loan that has a
fixed term to maturity.
(c) Tenure reverse mortgage loan. Any reverse mortgage loan that does
not have a fixed term to maturity, but rather matures solely upon
contingent events, such as events including but not limited to death or
the real property securing the loan no longer being the mortgagors`
principal residence.
(d) Authorized lender. Any bank, trust company, national banking
association, savings bank, savings and loan association, federal savings
bank, federal savings and loan association, credit union, or federal
credit union or any licensed mortgage banker approved for the making of
reverse mortgage loans by the superintendent of banks or any entity
exempted from licensing pursuant to section five hundred ninety of the
banking law and approved for the making of reverse mortgage loans by the
superintendent of banks.
(e) Mortgagor. A tenant in severalty who is sixty years of age or
older, or if the real property is held by tenants by the entirety or by
joint tenancy, the youngest of which is sixty years of age or older.
(f) Banking board. The board established pursuant to section thirteen
of the banking law.
(g) Superintendent of banks. The position established pursuant to
section twelve of the banking law as the head of the banking department
and pursuant to section thirteen of the banking law as the chairman and
executive head of the banking board.
2. A reverse mortgage loan pursuant to this section shall be subject
to the following:
(a) the loan to value ratio shall be determined by the banking board;
and
(b) subject to such rules or regulations as the banking board shall
adopt, any authorized lender or any successor or assign of such
authorized lender which suspends, ceases or makes late payments to a
mortgagor under a reverse mortgage loan shall be subject to forfeiture
(as liquidated damages to such mortgagor and not as a penalty) of twice
the interest which would otherwise have been earned during the period in
which payments were suspended, ceased or made late, provided that said
authorized lender or any successor or assign of such authorized lender
shall have the right to make payments pursuant to said loan agreement
within fifteen days of each payment date, without penalty; and
(c) the outstanding balance may be prepaid in full by the mortgagor
without penalty at any time during the term and/or tenure of the loan;
and
(d) an authorized lender is prohibited from using or attaching any
property or asset of the mortgagor except the real property securing the
reverse mortgage loan in settlement of a reverse mortgage obligation;
and
(e) the authorized lender must deliver to an applicant such
disclosures as may be required by the banking board which shall describe
the relevant portions of the reverse mortgage being offered, and shall
include but not be limited to the following items:
(i) except for a tenure reverse mortgage loan, a schedule of payments
to and from the mortgagor and the total payments in dollars over the
term of the reverse mortgage loan for both the mortgagor and mortgagee
depending on the type of reverse mortgage loan being offered;
(ii) a statement prominently displayed advising applicants to consult
with appropriate authorities regarding tax and estate planning
consequences of a reverse mortgage;
(iii) where applicable a description of prepayment and refinancing
features;
(iv) the interest rate and, except for a tenure reverse mortgage loan,
the total interest payable on the loan;
(v) a statement concerning the compliance of the lender with the
criteria established by the banking board that an authorized lender must
meet before it may make reverse mortgage loans pursuant to this section;
and
(vi) a statement setting forth those events which would terminate the
reverse mortgage loan; and
(f) in the event that an authorized lender or holder of the reverse
mortgage loan intends to initiate foreclosure proceedings the mortgagor
shall have the right to designate a third party who shall be notified.
In the event that the mortgagor has not designated a third party to
receive such notice of foreclosure, then the authorized lender or the
holder of said reverse mortgage loan shall notify the local or county
office for the aging of its intent to commence foreclosure proceedings.
Such entity shall take appropriate action to protect the interests of
the mortgagor; and
(g) an authorized lender must deliver to the applicant, upon
application, if available, a statement prepared by the local or county
office for the aging on the advisability and availability of independent
counseling and information services. Further, no reverse mortgage
commitment shall be issued by an authorized lender until the applicant
presents, in writing, a statement that the terms of the reverse mortgage
loan have been explained by an attorney, a housing and urban development
certified counselor or any other counseling service as indicated on the
statement supplied by the county or local office for the aging or a
signed affidavit indicating that the applicant, although made aware of
the importance of counseling and its local availability through the
provision of such information by the authorized lender, chooses not to
utilize any of the aforementioned available services. The form of such
statement and affidavit shall be developed by the New York state office
for the aging; and
(h) any such reverse mortgage shall expressly and conspicuously bear a
legend identifying it as such; and
(i) subject to such rules or regulations as the banking board may
adopt, a reverse mortgage loan shall be made at either a fixed or
variable rate of interest.
3. A reverse mortgage loan pursuant to this section may:
(a) provide that the mortgagor`s closing costs, including but not
limited to loan or commitment fees, if any, insurance premiums, house
repairs, legal fees, the cost of annuities, the costs of third-party
counseling, the costs of existing mortgages or liens, and other
appropriate costs be included in the principal of the reverse mortgage
loan and disbursed out of the loan proceeds at closing;
(b) provide for the maintenance of an escrow account by the authorized
lender for purposes of payment of real property taxes, insurance on the
property securing the loan, or any other fees and expenses as may be
permitted by banking board regulation;
(c) provide that an authorized lender may, consistent with federal
laws and regulations, include a due-on-sale clause in its reverse
mortgage loan agreement and at its option exercise and enforce such
clause in accordance with its terms.
4. The banking board shall adopt those rules or regulations as it
considers appropriate to govern reverse mortgage loans made pursuant to
this section. No reverse mortgage loan shall be made unless it conforms
to the requirements of this section and such rules and regulations as
the banking board may adopt except those reverse mortgage loans made
pursuant to section two hundred eighty-a of this article. A reverse
mortgage loan made by any authorized lender, national banking
association, federal savings and loan association or federal credit
union in conformity with applicable federal laws and regulations
specifically regulating reverse mortgage loans shall be deemed to
conform to the requirements of this section unless such reverse mortgage
loan fails to conform to such rules and regulations as the banking board
has expressly declared to be neither preempted by, nor otherwise
inconsistent with such federal laws or regulations. Those rules or
regulations shall include, but are not limited to, the form and contents
of any disclosure statement, with the exception of the counseling
statement prepared by the New York state office for the aging pursuant
to paragraph (g) of subdivision two of this section, that authorized
lenders must provide to mortgagors.
5. Notwithstanding any inconsistent provision of law, the priority of
the lien of a reverse mortgage, including the lien for all principal,
interest, fees, costs, shared appreciation and other charges assessed in
connection with the reverse mortgage, shall date from the recording of
the reverse mortgage irrespective of the date of any advance of reverse
mortgage loan proceeds or the date by which an authorized lender shall
be entitled to shared appreciation or accrued but unpaid interest, fees,
costs or other charges.
6. Nothing in this section shall be construed to limit, impair or
otherwise affect the priority under applicable law of any other
mortgage, deed of trust, encumbrance or lien which was recorded or filed
prior to the effective date of this section.
7. The sale or transfer of the real property securing the reverse
mortgage loan to a person other than an original mortgagor or mortgagors
shall result in the termination of the loan.
8. In a term reverse mortgage loan, the real property securing the
reverse mortgage loan may be reappraised by an independent appraiser at
the end of the loan term. If the value of the real property has
appreciated, the term of the reverse mortgage may be extended or
refinanced, however, the total reverse mortgage loan amount may not
exceed such amount or ratio as may be determined by the banking board.
The refinancing of the reverse mortgage loan shall be provided by the
original authorized lender or by any other authorized lender designated
by the mortgagee.
9. The principal, including any accrued but unpaid interest, of a
reverse mortgage loan agreement entered into pursuant to this section
may be insured by the mortgagor. If such insurance is purchased from or
otherwise provided by any agency of the state of New York the mortgagor
shall be granted the right, for a term reverse mortgage loan, to
refinance or extend the reverse mortgage loan at the end of the term,
subject to such rules or regulations as the banking board may adopt. The
authorized lender shall have the option to choose between refinancing or
extending the reverse mortgage loan. Subject to obtaining an adequate
increase in the insurance and subject to such rules and regulations as
the banking board may adopt, the total reverse mortgage loan amount
shall not exceed such amount or loan to value ratio as may be determined
by the banking board. The refinancing of the reverse mortgage loan shall
be provided by the original authorized lender or by any other authorized
lender designated by the mortgagee.
10. Any authorized lender offering reverse mortgage loans pursuant to
this section shall also offer reverse mortgage loans pursuant to section
two hundred eighty-a of this article. Subject to this section in the
event that an authorized lender makes reverse mortgage loans under this
section then that lender must make an equal number of reverse mortgage
loans pursuant to section two hundred eighty-a of this article. Such
loans shall be made to individuals who meet the requirements promulgated
in section two hundred eighty-a of this article provided that such
individual seeking the loan would otherwise qualify and be approved for
that loan. In the event that no or insufficient applications for
reverse mortgage loans pursuant to section two hundred eighty-a of this
article are made to a lender who has previously made reverse mortgage
loans pursuant to this section then there shall be no requirement for
that lender to make a reverse mortgage loan pursuant to section two
hundred eighty-a of this article. It shall also not be a requirement
that an authorized lender make any reverse mortgage loan to any
individual who would not qualify for such loan and/or would not
otherwise be approved for such loan.
11. Nothing contained in this section, section six-h of the banking
law or any other provision of law shall be construed to prohibit a
banking organization or licensed mortgage banker from providing reverse
mortgages to homeowners in this state under the federal housing
administration`s home equity conversion mortgage insurance demonstration
program.

S 280-a. Reverse mortgage loans for persons seventy years of age or
older. 1. For purposes of this section, the following terms shall have
the following meanings:
(a) Reverse mortgage loan. A loan which is secured by a first mortgage
on real property improved by a one to four-family residence or
condominium that is the residence of the mortgagor(s) the proceeds of
which are advanced to the mortgagor(s) during the term of the loan in
equal installments, or in advances through a line of credit or
otherwise, in lump sums, or through a combination thereof.
(b) Term reverse mortgage loan. As used in this section, any reverse
mortgage loan that has a fixed term for payments to the mortgagor(s).
(c) Tenure reverse mortgage loan. As used in this section, any reverse
mortgage loan that does not have a fixed term for payments to the
mortgagor(s).
(d) Authorized lender. Any bank, trust company, national banking
association, savings bank, savings and loan association, federal savings
bank, federal savings and loan association, credit union, or federal
credit union or any licensed mortgage banker approved for the making of
reverse mortgage loans by the superintendent of banks or any entity
exempted from licensing pursuant to section five hundred ninety of the
banking law and approved for the making of reverse mortgage loans by the
superintendent of banks.
(e) Mortgagor. A tenant in severalty who is seventy years of age or
older, or if the real property is held by tenants by the entirety or by
joint tenancy, the youngest of which is seventy years of age or older
and whose income does not exceed eighty percent of the median income of
the county in which he or she resides.
(f) Banking board. The board established pursuant to section thirteen
of the banking law.
(g) Superintendent of banks. The position established pursuant to
section twelve of the banking law as the head of the banking department
and pursuant to section thirteen of the banking law as the chairman and
executive head of the banking board.
2. A reverse mortgage loan pursuant to this section shall be subject
to the following:
(a) the mortgagor shall be granted lifetime possession of the subject
premises of the real property which is the security for the reverse
mortgage loan, as long as such real property remains the mortgagors`
principal residence and subject to a limited waiver of the right of
foreclosure as determined by the banking board; and
(b) the term of the reverse mortgage, except for a tenure reverse
mortgage loan, shall be for a period of ten years or less; and
(c) the loan to value ratio shall be determined by the banking board;
and
(d) subject to such rules or regulations as the banking board shall
adopt, for that period of time commencing at the end of the loan term or
ten years after the reverse mortgage loan commences, whichever occurs
first, and ending at such time as the reverse mortgage loan is paid in
full, the authorized lender, at its option, may receive no more than
twenty percent of the future appreciation of the property securing the
reverse mortgage loan as full or partial consideration for the making of
a reverse mortgage loan; provided, however, that such future
appreciation shall be limited by such rules and regulations as the
banking board may adopt or the authorized lender may charge a fixed rate
of interest on the outstanding balance of monies advanced under the
reverse mortgage agreement or any combination thereof. Said reverse
mortgage loan shall not come due and shall be extended until the
voluntary relinquishment by the mortgagors of possessory interest in
such real property, the real property no longer being the mortgagors`
principal residence, the death of the mortgagors, or such other events
as may be determined by the banking board. Any such appreciation shall
not be considered interest for the purposes of any law regulating the
maximum rate of interest which may be charged, taken or received
including sections 190.40 and 190.42 of the penal law; and
(e) the authorized lender shall maintain an escrow account for the
purposes of paying real property taxes, insurance premiums of the
property securing the reverse mortgage loan, or for the payment of any
other fees and expenses as may be permitted by banking board regulation;
and
(f) subject to such rules or regulations as the banking board may
adopt, an authorized lender or any successor or assign of such
authorized lender which may suspends, ceases or makes late payments to a
mortgagor under a reverse mortgage loan shall be subject to forfeiture
(as liquidated damages to such mortgagor and not as a penalty) of twice
the interest which would otherwise have been earned during the period in
which payments were suspended, ceased, or made late, provided that said
authorized lender or any successor or assign of such authorized lender
shall have the right to make payments pursuant to said loan agreement
within fifteen days of each payment date without penalty; and
(g) an authorized lender must deliver to an applicant such disclosures
as may be required by the banking board which shall describe the
relevant portions of the reverse mortgage being offered, and shall
include but not be limited to the following items: (i) except for a
tenure reverse mortgage loan, a schedule of payments to and from the
mortgagor and the total payments in dollars over the term of the reverse
mortgage loan for both the mortgagor and mortgagee, depending on the
type of reverse mortgage loan being offered; (ii) a statement
prominently displayed advising applicants to consult with appropriate
authorities regarding tax and estate planning consequences of a reverse
mortgage; (iii) where applicable a description of prepayment and
refinancing features; (iv) to the extent determinable at or prior to the
inception of the reverse mortgage loan, the interest rate and, except
for a tenure reverse mortgage loan, the total interest payable on the
reverse mortgage loan; (v) a statement concerning the compliance of the
lender with the criteria established by the banking board that an
authorized lender must meet before it may make reverse mortgage loans
pursuant to this section; and (vi) a statement setting forth those
events which would terminate the reverse mortgage loan; and
(h) the outstanding balance may be prepaid in full by the mortgagor
without penalty at any time during the reverse mortgage loan term; and
(i) an authorized lender is prohibited from using or attaching any
property or asset of the mortgagor except the real property securing the
reverse mortgage loan in settlement of a reverse mortgage obligation;
and
(j) an authorized lender must deliver to the applicant upon
application, if available, a statement prepared by the local or county
office for the aging on the advisability and availability of independent
counseling and information services. Further, no reverse mortgage
commitment shall be issued by the authorized lender until the applicant
presents, in writing, a statement that the terms of the reverse mortgage
loan have been explained to them by an attorney, a housing and urban
development certified counselor or any other counseling service as
indicated on the statement supplied by the county or local office for
the aging or a signed affidavit indicating that the applicant, although
made aware of the importance of counseling and its local availability
through the provision of such information by the authorized lender,
chooses not to utilize any of the aforementioned available services. The
form of such statement and affidavit shall be developed by the New York
state office for the aging; and
(k) a reverse mortgage pursuant to this section shall expressly and
conspicuously bear a legend identifying it as such; and
(l) subject to such rules or regulations as the banking board may
adopt, a reverse mortgage loan shall be made at either a fixed or
variable rate of interest; and
(m) in the event that an authorized lender or holder of the reverse
mortgage loan intends to initiate foreclosure proceedings the mortgagor
shall have the right to designate a third party who shall be notified.
In the event that the mortgagor has not designated a third party to
receive such notice of foreclosure, then the authorized lender or the
holder of said reverse mortgage loan shall notify the local or county
office for the aging of its intent to commence foreclosure proceedings.
Such entity shall take appropriate action to protect the interests of
the mortgagor.
3. A reverse mortgage loan pursuant to this section may:
(a) provide that an authorized lender may, consistent with federal
laws and regulations, include a due-on-sale clause in its reverse
mortgage loan agreement and at its option exercise and enforce such
clause in accordance with its terms;
(b) provide that the mortgagor`s closing costs, including but not
limited to loan or commitment fees if any, insurance premiums, house
repairs, legal fees, the costs of annuities, the costs of third party
counseling, the costs of existing mortgages or liens, and other
appropriate costs be included in the principal of the reverse mortgage
loan and disbursed out of the loan proceeds at closing.
4. The banking board shall adopt those rules or regulations as it
considers appropriate to govern reverse mortgage loans made pursuant to
this section. No reverse mortgage loan shall be made unless it conforms
to the requirements of this section and such rules and regulations as
the banking board may adopt except those reverse mortgage loans made
pursuant to section two hundred eighty of this article. A reverse
mortgage loan made by any authorized lender, national banking
association, federal savings and loan association or federal credit
union in conformity with applicable federal laws and regulations
specifically regulating reverse mortgage loans shall be deemed to
conform to the requirements of this section unless such reverse mortgage
loan fails to conform to such rules and regulations as the banking board
has expressly declared to be neither preempted by, nor otherwise
inconsistent with such federal laws or regulations. Those rules or
regulations shall include, but are not limited to:
(a) any limitations on the taking of a percentage of the future
appreciation of the real property securing the reverse mortgage loan as
consideration for making the reverse mortgage loan;
(b) the execution by an authorized lender of a limited waiver of the
right of foreclosure;
(c) with the exception of the counseling statement prepared by the New
York state office for the aging pursuant to paragraph (j) of subdivision
two of this section, the form and contents of any disclosure statement
that authorized lenders must provide to mortgagors.
5. Notwithstanding any inconsistent provision of law, the priority of
the lien of a reverse mortgage, including the lien for all principal,
interest, fees, costs, shared appreciation and other charges assessed in
connection with the reverse mortgage, shall date from the recording of
the mortgage irrespective of the date of any advance of reverse mortgage
loan proceeds or the date by which an authorized lender shall be
entitled to shared appreciation or accrued but unpaid interest, fees,
costs or other charges.
6. Nothing in this section shall be construed to limit, impair or
otherwise affect the priority, under applicable law, of any other
mortgage, deed of trust, encumbrance or lien which was recorded or filed
prior to the effective date of this section.
7. The sale or transfer of the real estate securing the reverse
mortgage loan to a person other than an original mortgagor or mortgagors
shall result in the termination of the reverse mortgage loan.
8. In a term reverse mortgage loan, the real property securing the
reverse mortgage may be reappraised by an independent appraiser at the
end of the loan term. If the value of the property has appreciated, the
term of the reverse mortgage may be extended or refinanced; however the
total reverse mortgage loan amount may not exceed such amount or loan to
value ratio as may be determined by the banking board. The refinancing
of the reverse mortgage loan shall be provided by the original
authorized lender or by any other authorized lender designated by the
mortgagee.
9. The principal, including any accrued but unpaid interest, of a
reverse mortgage loan agreement entered into pursuant to this section
must be insured by the mortgagor. If such insurance is purchased from or
otherwise provided by any agency of the state of New York, the mortgagor
shall be granted the right, for a term reverse mortgage loan, to
refinance or extend the reverse mortgage loan at the end of the term,
subject to such rules and regulations as the banking board may adopt.
The authorized lender shall have the option to choose between
refinancing or extending the reverse mortgage loan. Subject to obtaining
an adequate increase in the insurance and subject to such rules and
regulations as the banking board may adopt, the total reverse mortgage
loan amount shall not exceed such amount or ratio as may be determined
by the banking board. The refinancing of the reverse mortgage loan shall
be provided by the original authorized lender or by any other authorized
lender designated by the mortgagee.

S 281. Credit line mortgage. 1. (a) For the purposes of this section,
a "credit line mortgage" shall mean any mortgage or deed of trust, other
than a mortgage or deed of trust made pursuant to a building loan
contract as defined in subdivision thirteen of section two of the lien
law, which states that it secures indebtedness under a note, credit
agreement or other financing agreement that reflects the fact that the
parties reasonably contemplate entering into a series of advances,
payments and readvances, and that limits the aggregate amount at any
time outstanding to a maximum amount specified in such mortgage or deed
of trust. For purposes of this section, "credit line mortgage" shall
include a reverse mortgage loan as defined in sections two hundred
eighty and two hundred eighty-a of this article except that such a
credit line mortgage of the reverse mortgage loan type shall not be
subject to the twenty year limitation set forth in subdivision two of
this section.
(b) Payments made by an authorized lender pursuant to any credit line
reverse mortgage made in accordance with section two hundred eighty-a of
this article during any one year shall be limited to such amount or
ratio as may be determined by the banking board. In the event that a
borrower does not take payment under such credit line during the course
of any year then that borrower shall have the ability to increase the
yearly payments by that amount available but not borrowed during
previous years.
2. Any credit line mortgage may, and when so expressed therein, shall
secure not only the original indebtedness but also the indebtedness
created by future advances thereunder made within twenty years from the
date of the recording of such credit line mortgage, whether such
advances are obligatory or are to be made at the option of the lender or
otherwise, to the same extent and with the same priority of lien as if
such future advances had been made at the time such credit line mortgage
was recorded pursuant to section two hundred ninety-one of this chapter,
although there may have been no advances made at the time of the
execution and acknowledgment of such credit line mortgage, and although
there may be no indebtedness outstanding at the time any advance is
made. The total amount of indebtedness that may be so secured by a
credit line mortgage may increase or decrease from time to time, but the
amount so secured at any one time shall not exceed the maximum amount
specified in such credit line mortgage, plus interest thereon at the
rate provided therein, and plus any disbursements made to protect the
security of such credit line mortgage, with interest on such
disbursements at the rate provided therein.
3. Nothing in this section shall affect the priority of a lien under
article two of the lien law with respect to future advances made under a
credit line mortgage after the filing of the notice of such lien under
the lien law.
4. This section shall apply to advances made after the effective date
of this section under a credit line mortgage, whether such credit line
mortgage is recorded on or after, or was recorded prior to, the
effective date of this section.
5. Nothing in this section shall be construed to limit, impair or
otherwise affect the priority under applicable law without reference to
this section of a mortgage, deed of trust, encumbrance or lien which was
recorded or filed prior to the effective date of this section.