(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.