A New York loan in 2026 is secured by shares and a proprietary lease in a Manhattan cooperative. Assuming the borrower is a natural person borrowing primarily for personal, family or household use, does this collateral fall within the Article 12-D mortgage loan definition?
Correct Answer
C) Within the statutory definition of a mortgage loan itself
Mortgage loan includes a loan secured by any certificate of stock or other evidence of ownership in, and proprietary lease from, a corporation or partnership formed for the purpose of cooperative ownership of residential real property. Other choices: cooperative interests are named expressly; no unit count is attached to that limb; and no regulation is needed. The manufactured home limb is the one left to regulation. Source: N.Y. Banking Law § 590(1)(a)
Why This Is the Correct Answer
Mortgage loan includes a loan secured by any certificate of stock or other evidence of ownership in, and proprietary lease from, a corporation or partnership formed for the purpose of cooperative ownership of residential real property. Other choices: cooperative interests are named expressly; no unit count is attached to that limb; and no regulation is needed. The manufactured home limb is the one left to regulation. Source: N.Y. Banking Law § 590(1)(a)
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