N.Y. ISC Law § 4222

§ 4222. Policy loans. The policy loan value referred to in paragraph\neight of subsection (a) of section three thousand two hundred three of\nthis chapter shall be the cash surrender value at the end of the current\npolicy year calculated in accordance with the provisions of:\n (a) Subsection (a) of section four thousand two hundred twenty of this\narticle, for policies issued before the operative date of section four\nthousand two hundred twenty-one of this article, except that any\ndividends credited to the policy need not be included and such policies\nmay provide that the company may defer any such loan for not exceeding\nsix months after receipt of the loan application;\n (b) Section four thousand two hundred twenty-one of this article, for\npolicies issued on or after the operative date of such section, except\nthat the policy loan value for a policy under which any cash surrender\nvalue is adjusted in accordance with a market-value adjustment formula\nshall be a percentage (not less than seventy-five percent) of the sum of\n(1) the amount of any loan outstanding and (2) the remaining portion of\nthe cash surrender value as so adjusted at the time the loan is applied\nfor, but, if the policy so provides, not in excess of such cash\nsurrender value before adjustment. The company shall reserve the right\nto defer any such loan, except when made to pay premiums, for six months\nafter receipt of the loan application.\n