N.Y. Real Property Law Section 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 Lien Law § 2 (Definitions)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 § 280-A (Reverse mortgage loans for persons seventy years of age or older)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 superintendent of financial services. 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 thirty 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 § 291 (Recording of conveyances)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.

Source: Section 281 — Credit line mortgage, https://www.­nysenate.­gov/legislation/laws/RPP/281 (updated Sep. 22, 2014; accessed Jul. 13, 2024).

240
Definitions and use of terms
240‑B
Certain conveyances authorized
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
Covenants in mortgages
251
Covenants not implied
252
Lineal and collateral warranties abolished
253
Construction of covenants in grants of freehold interests
254
Construction of clauses and covenants 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
Covenants 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
265‑A
Home equity theft prevention
265‑B
Distressed property consulting contracts
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 covenants 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
280‑B
Federal home equity conversion mortgage regulation
280‑D
Federal home equity conversion mortgage default and foreclosure regulation
281
Credit line mortgage
282
Mortgagor’s right to recover attorneys’ fees in actions or proceedings arising out of foreclosures of residential property

Accessed:
Jul. 13, 2024

Last modified:
Sep. 22, 2014

§ 281’s source at nysenate​.gov

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