(a) A lender is authorized to make junior mortgage loans in accordance with the provisions of this Part. However, junior mortgage loans which equal or exceed $250,000 when combined with the outstanding unpaid principal balance on existing loans secured by the type of security described in section 80.1(c) of this Part at the time such junior mortgage loan is made, shall be exempt from the provisions of this Part. Except as provided herein, nothing in this Part shall be deemed to limit the authority which a lender may otherwise have under any other provision of law, including sections 103(4-a), 235(6-a), 454(16) and 380(4-a) of the Banking Law to make junior mortgage loans in accordance with such provisions whether or not such loans are secured by one-to-four family owner-occupied residences. A junior mortgage loan, including a revolving credit line as authorized by section 80.10 of this Part, shall be repayable in monthly installments, which may be installments of interest only, and may be structured as a fixed-rate mortgage, a wrap-around mortgage or any type of adjustable rate or other mortgage form as agreed to by the lender and the borrower, unless specifically prohibited by this Part or by section 82.1(b) or 82.2(b) of this Title.

(b) Balloon payment mortgages shall be for a term of not less than three years.

(c) Electronic disclosurers and notifications are permitted as set forth in this Part.