N.Y. Banking Law § 380-g

§ 380-g. Power to engage in line of credit financing of residential\nreal estate. A savings and loan association is authorized to invest an\namount, not exceeding the lesser of (a) ten per centum of the sum of its\nsurplus, undivided profits, and reserves or (b) one per centum of its\nassets, in loans or in interests therein the principal purpose of which\nis to provide financing with respect to what is or is expected to become\nprimarily residential real estate within this state, where (i) the\nassociation relies substantially for repayment on the borrower's general\ncredit standing, with or without other security, or (ii) the association\nrelies on other assurances for repayment, including but not limited to a\nguaranty or similar obligation of a third party, and, in either case\ndescribed in clause (i) or (ii), regardless of whether or not the\nassociation takes security.\n