N.Y. Comp. Codes R. & Regs. tit. 3 § 33.7
In the case of any loan made pursuant to this Part which is repaid according to equal monthly payments and which will result in a balloon payment as the final payment, the lending institution shall give prior notice to the person primarily liable on the loan, within the time periods provided for notifications under section 33.5 of this Part, of the borrower's option either to pay the entire amount of the balloon payment or to request in writing, and upon request to receive a refinancing, of any amount remaining unpaid after the final regular payment. For purposes of this section, a balloon payment means any payment which is two times or more the amount of an equal monthly payment. For purposes of this Part, the amount refinanced shall be deemed a new loan. The same index, the terms, conditions and requirements applicable to the initial loan pursuant to contract and the requirements of this Part shall continue to apply to the new loan, except for the term of the loan, the provisions of this section and section 33.2 of this Part, and provided that the monthly payment amount may be varied.
N.Y. Comp. Codes R. & Regs. Tit. 3 § 33.7