NY Pub Auth L § 2429-B (2021)
2021 New York Laws PBA - Public Authorities Article 8 - Miscellaneous Authorities Title 17 - State of New York Mortgage Agency Act Part 2 2429-B - Mortgage Insurance Fund.

§  2429-b.  Mortgage  insurance fund. * 1. (a) The agency shall create and establish a mortgage insurance fund. Within such  fund,  the  agency shall  establish:  (i)  a  special  account, which shall be divided into sub-accounts for each region as defined in subdivision nine  of  section twenty-four  hundred twenty-six of this title; (ii) a single family pool insurance account; (iii) a project pool insurance account;  and  (iv)  a development  corporation  credit support account. The single family pool insurance account shall  be  used  for  all  business  relating  to  the insurance  of  mortgages  on properties with one to four dwelling units, the project pool insurance  account  shall  be  used  for  all  business relating  to  the  insurance of mortgages on properties other than those with one to four dwelling units, and the development corporation  credit support  account  shall be used for all business relating to development corporation credit support. Separate  sub-accounts  may  be  established within  the  special  account,  the  pool  insurance  accounts,  and the development corporation credit support account as deemed appropriate  by the agency.  (b)  (i) The mortgage insurance fund shall be used as a revolving fund for carrying out the provisions of this title with respect to  mortgages insured and development corporation credit support, provided thereunder. (ii)  The  agency  shall pay into such fund all moneys which may be made available to the agency for the purposes of such fund from  any  source, including but not limited to the moneys received from recording officers pursuant  to  the  provisions  of subdivision two of section two hundred sixty-one of the tax law. The agency shall credit the amount  of  moneys received  from  the  recording  officer  of  each  county,  pursuant  to subdivision two of section two hundred sixty-one of the tax law, to  the special  account.  In  any fiscal year, no more than fifty per centum of the amount received from the recording officers during  the  consecutive twelve  month  period  ending on the preceding March thirty-first may be used by the agency for the purpose of  insuring  mortgages  on  property located  in any one region pursuant to section two thousand four hundred twenty-eight of this part, provided, however, that this provision  shall not  include or be applied to pool insurance of mortgage loans purchased by the agency. The agency shall credit any other  moneys  which  may  be made  available  to  the  agency  for the purposes of such fund from any other source to the special account, the single  family  pool  insurance account,   the  project  pool  insurance  account,  or  the  development corporation credit  support  account,  as  appropriate.  Any  income  or interest  earned by, or increment to, the mortgage insurance fund due to the investment thereof shall be credited to  the  special  account,  the applicable pool insurance account, or the development corporation credit support account, as appropriate.  (c)  The  agency  may  credit  from  the special account to the single family pool insurance account, to the project pool insurance account and to the development corporation credit support account such moneys as are required to satisfy the mortgage  insurance  fund  requirement  of  such accounts,  except  that  during  any twelve-month period ending on March thirty-first  the  aggregate  amount   credited   to   the   development corporation  credit  support account (excluding amounts described in the last sentence of paragraph (b) of this subdivision) shall not exceed the lesser of (i) fifty million dollars or (ii) the aggregate of the amounts required  under  the  contracts  executed  by  the  agency  to   provide development corporation support.  (d)  Moneys,  investments and cash equivalents of the special account, the single family pool insurance account,  the  project  pool  insurance account  and the development corporation credit support account shall be kept separate and shall not be commingled with each other  or  with  any  other  accounts  which  may  be established from time to time, except as otherwise authorized by this section.  (e)  Moneys,  investments  and  cash equivalents of the pool insurance accounts and the development corporation credit support account shall be excluded from the excess balance calculation set  forth  in  subdivision two of this section. However, if at any time the moneys, investments and cash  equivalents  (valued  as  determined by the agency) of either pool insurance account or the development corporation credit support  account exceed the amount necessary to attain and maintain the credit rating or, with   respect   to   development  corporation  credit  support,  credit worthiness (as determined by the  agency)  required  to  accomplish  the purposes  of  such  account the agency shall transfer such excess to the special account and such excess shall be included in the excess  balance calculation.   * NB Effective until July 23, 2023   * 1.  The agency shall create and establish a mortgage insurance fund. Within such fund, the agency shall establish a  special  account,  which shall  be  divided  into  sub-accounts  for  each  region  as defined in subdivision nine of section twenty-four hundred twenty-six of this  part and  a  development  corporation credit support account. The development corporation credit support  account  shall  be  used  for  all  business related to development corporation credit support. Separate sub-accounts may  be  established  within  the development corporation credit support account as deemed appropriate by the agency. The mortgage insurance fund shall be used as a revolving fund for carrying  out  the  provisions  of this title with respect to mortgages insured and development corporation support  provided  thereunder.  The  agency shall pay into such fund all moneys which may be made available to the agency  for  the  purposes  of such  fund  from  any  source,  including  but not limited to the moneys received  from  recording  officers  pursuant  to  the   provisions   of subdivision  two  of  section  two hundred sixty-one of the tax law. The agency shall credit the amount of moneys  received  from  the  recording officer  of  each  county,  pursuant  to  subdivision two of section two hundred sixty-one of the  tax  law,  to  the  special  account.  In  any calendar year, no more than fifty per centum of the amount received from the  recording  officers  and credited to the special account during the consecutive  twelve  month  period  ending  on  the  preceding  December thirty-first  may  be  used  by  the  agency for the purpose of insuring mortgages on property located in any one region pursuant to section  two thousand four hundred twenty-eight of this part. The agency shall credit any  other  moneys  which  may  be  made available to the agency for the purposes of such fund from any other source to the  special  account  or the  development corporation credit support account, as appropriate. Any income or interest earned by, or increment to,  the  mortgage  insurance fund  due  to  the  investment  thereof shall be credited to the special account or the development corporation credit account, as appropriate.   * NB Effective July 23, 2023   * 1-a. All moneys held in  the  mortgage  insurance  fund,  except  as hereinafter provided, shall be used, as required, solely for the payment of  the  agency's liabilities arising from mortgages insured as provided in section twenty-four hundred twenty-nine-a of this part and  from  the provision  of  development  corporation  credit  support  as provided in section twenty-four  hundred  twenty-eight-a  of  this  part;  provided, however,  that no moneys shall be withdrawn from any account at any time in such amount as would reduce the amount of, as applicable, the special account, either pool insurance account or  the  development  corporation credit  support  account  to less than its applicable mortgage insurance fund requirement, except for the purpose of paying such  liabilities  as  the  same  become  due  and for the payment of which other moneys of the agency are not available. All payments pursuant to  section  twenty-four hundred  twenty-nine-a  of  this part, and expenses attributable thereto shall  be  debited  to  the  special  account  or the single family pool insurance  account  or  the  project  pool  insurance  account  or   the development  corporation  credit support account, as appropriate, within the mortgage insurance fund. All other operating expenses of the  agency with  respect  to  insurance  of  mortgages  and  providing  development corporation credit support shall be debited to the special account,  the single family pool insurance account, the project pool insurance account or  the  development  corporation  credit  support  account  within  the mortgage insurance fund, as appropriate.   * NB Effective until July 23, 2023   * 1-a. All moneys held in  the  mortgage  insurance  fund,  except  as hereinafter provided, shall be used, as required, solely for the payment of  the  agency's liabilities arising from mortgages insured as provided in section twenty-four hundred twenty-nine-a of this part and  from  the provision  of  development  corporation  credit  support  as provided in section twenty-four  hundred  twenty-eight-a  of  this  part;  provided, however,  that no moneys shall be withdrawn from any account at any time in such amount as would reduce the amount of, as applicable, the special account or the development corporation credit support  account  to  less than  its applicable mortgage insurance fund requirement, except for the purpose of paying such liabilities as the same become due  and  for  the payment  of  which  other  moneys  of  the agency are not available. All payments pursuant to section twenty-four hundred twenty-nine-a  of  this part,  and expenses attributable thereto shall be debited to the special account or the development corporation credit support account within the mortgage insurance fund. All other operating expenses of the agency with respect to insurance of mortgages and providing development  corporation credit   support  shall  be  debited  to  the  special  account  or  the development corporation  credit  support  account  within  the  mortgage insurance fund, as appropriate.   * NB Effective July 23, 2023   2.  On  or before March twentieth in each year, the board of directors of the agency shall determine the amount estimated to be received by the agency from the additional tax imposed pursuant to subdivision one-a  of section  two  hundred  fifty-three  of  the tax law and deposited in the mortgage insurance fund and credited to the  special  account  plus  any other  monies  deposited  in  such  account  plus the amount of reserves available in such special account with respect to  mortgage  loans  that were  previously  insured in accordance with section twenty-four hundred twenty-eight  or  development  corporation  credit  support   previously provided  pursuant to section twenty-four hundred twenty-eight-a of this part  under  contracts  or  commitments  that  have  been  satisfied  or cancelled,  pursuant  to subdivision one of this section, except charges and fees levied by the agency pursuant to  section  twenty-four  hundred twenty-nine-c of this part, which shall be added in the computation only when  such a commitment is cancelled or expires or when the insurance or contractual  arrangement  to  provide  development  corporation   credit support applied for is declared effective. Such determination made on or before  March  twentieth  in each year shall be made for the consecutive twelve-month period ending on the  subsequent  March  thirty-first.  The board shall then determine the estimated excess balance, if any, in such special  account  by determining the amount by which such credits exceed twenty per centum, or such other per centums or amounts as may have been established by  the  board  of  directors  of  the  agency  pursuant  to subdivision  seven  of  section twenty-four hundred twenty-eight of this  part, of the amounts insured or committed to be insured and the  amounts of  development  corporation  credit support established by the board of directors  of  the  agency  pursuant  to  section  twenty-four   hundred twenty-eight-a  of  this  part  to  be provided during such twelve-month period plus any payments by the agency during such  twelve-month  period on  account  of  a  mortgage  or  development corporation credit support contract entered into during such twelve-month  period  ending  on  such March  thirty-first,  plus  the  operating expenses of the agency during such twelve-month period with  respect  to  insurance  of  mortgages  or provision  of  development  corporation credit support, which amount may not exceed an amount determined and certified by  the  director  of  the budget,  with  notification  to  the  chairman  of  the  senate  finance committee and chairman of the assembly ways and means committee.  On  or before  May  fifteenth,  the board shall determine any adjustment to the estimated excess balance necessary to  reflect  the  variance,  if  any, between  such  estimated  excess  balance  and the actual excess balance computed as of March thirty-first, and shall certify such adjustment  to the  director of the budget. The agency shall include such adjustment in the estimated excess balance  determination  for  the  following  fiscal year,  unless  otherwise  instructed  by the director of the budget. The agency shall submit to the director of the budget an  estimate  of  such operating  expenses on or before the tenth business day in March of each year and the director of the budget shall make such certification before March twentieth of each year.   Upon making the determination of the  estimated  excess  balance,  the agency  shall  certify such determination to the director of the budget, the chairmen of the senate finance committee and the assembly  ways  and means  committee,  and  the  comptroller.  Payment  of  such  actual  or estimated excess balance shall be made within ninety  days  after  March twentieth.  The  agency  shall,  at the direction of the director of the budget, pay such estimated or actual excess balance, if  any,  from  the special  account  to  the  comptroller  for deposit to the state general fund; provided, however, that if the aggregate  amount  in  the  special account  as  of  such  date  is  less  than  the mortgage insurance fund requirement, the agency shall retain all or that  portion  of  any  such estimated  or actual excess balance in such special account necessary to increase the aggregate amount in such special account  to  the  mortgage insurance  fund requirement. The director of the budget shall notify the chairmen of the senate finance committee and the assembly ways and means committee ten days prior to the issuance of the directive in respect  to the  payment  of  the  estimated or actual excess balance to the general fund.   Further provided, however, that the budget  to  be  submitted  to  the legislature   by   the   governor  pursuant  to  article  seven  of  the constitution shall separately state the  amount  of  such  estimated  or actual  excess  balance  determined  as  hereinabove prescribed, if any, which shall be included in the  monies  and  revenues  estimated  to  be available during the current and ensuing fiscal years, respectively.   3.  The moneys in such fund shall be deposited in one or more banks or trust  companies  designated  in  the  manner  provided   by   law,   as depositories of the funds of the state. The agency may invest the moneys in  such  fund  in  obligations  specified  in  subdivision four of this section. Any interest earned or capital gain realized on  the  money  so deposited  or invested shall accrue to and become part of such fund. The separate identity of such fund shall be maintained  whether  its  assets consist of cash or investments or both.   4.  Moneys  in  such  fund may be invested (a) in special time deposit accounts in, or  certificates  of  deposit  issued  by,  a  bank,  trust  company,  savings  bank  or  savings  and  loan  association located and authorized to do business in this state, provided,  however,  that  such time  deposit  account or certificate of deposit shall be payable within such  time  as the proceeds may be needed to meet expenditures estimated to be incurred by the agency and provided further that such time deposit account or certificate of deposit be secured by a pledge of  obligations of the United States of America or obligations of the state, any city of the  state,  or other municipal corporation, school district or district corporation of the state or  obligations  of  agencies  of  the  federal government; or (b) in obligations of the United States of America or the state  which may from time to time be legally purchased by savings banks within the state as an investment of funds belonging to them or in their control, or in obligations of the Federal National Mortgage Association, or (c) in  Government  National  Mortgage  Association  mortgage  backed securities,  provided such obligations shall be payable or redeemable at the option of the owner within such times as the proceeds may be  needed to meet expenditures estimated to be incurred by the agency.   5.  In  computing  the  amount  of the mortgage insurance fund for the purposes of this section, securities in which all or a portion  of  such fund shall be invested shall be valued at par if purchased at par, or if purchased  at  other than par, at amortized value. Amortized value, when used with respect to securities  purchased  at  a  premium  above  or  a discount  below  par, shall mean the value as of any given date obtained by dividing the total premiums or discount at which such securities were purchased by the number of interest payments remaining  to  maturity  on such  securities  after  such  purchase and by multiplying the amount so calculated by the number of interest payment dates having  passed  since the  date  of such purchase; and (i) in the case of securities purchased at a premium by deducting the product thus obtained  from  the  purchase price,  and  (ii)  in  the case of securities purchased at a discount by adding the product thus obtained to the purchase price.   6. The agency may create and establish such other fund or funds as may be necessary  or  desirable  for  the  carrying  out  of  its  corporate purposes.