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. 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. 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. 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:
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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 statemen