NY Pub Auth L § 2404 (2021)
2021 New York Laws PBA - Public Authorities Article 8 - Miscellaneous Authorities Title 17 - State of New York Mortgage Agency Act Part 1 2404 - Powers of the Agency.

§  2404.  Powers  of  the  agency. Except as otherwise limited by this title, the agency shall have power:  (1) To sue and be sued;  (2) To have a seal and alter the same at pleasure;  (3) To make and execute contracts and all other instruments  necessary or  convenient  for  the exercise of its powers and functions under this title;  (4) To make and  alter  by-laws  for  its  organization  and  internal management;  (5) To acquire, hold and dispose of real and personal property for its corporate purposes;  (6)  To appoint officers, agents and employees, prescribe their duties and qualifications and fix their compensation;   * (7) To (a) acquire, and  contract  to  acquire,  existing  mortgages owned  by  banks  and to enter into advance commitments to banks for the purchase of said mortgages, all subject to  the  provisions  of  section twenty-four  hundred  five  of  this  part, (b) acquire, and contract to acquire, forward commitment mortgages made by banks and  to  enter  into advance  commitments  to  banks  for the purchase of said mortgages, all subject to the provisions of section twenty-four hundred five-b of  this part,  (c)  acquire,  and contract to acquire, new housing loans made by banks and to enter into advance commitments to banks for the purchase of said housing loans, all subject to the provisions of section twenty-four hundred five-c of this part, (d) to  acquire  and  contract  to  acquire mortgages  pursuant to section twenty-four hundred five-d of this title, and (e) acquire, and contract  to  acquire,  new  construction  mortgage loans  for  single-family  modular or manufactured housing purchased and sited on land owned by banks and to enter into  advance  commitments  to banks  for the purchase of such mortgages, all subject to the provisions of section twenty-four hundred five-b of this part;   * NB Effective until July 23, 2023   * (7) To acquire, and contract to acquire, mortgages  owned  by  banks and  to enter into advance commitments to banks for the purchase of said mortgages, all subject to the provisions of section  two  thousand  four hundred five of this title;   * NB Effective July 23, 2023  (8)  Subject  to  any  agreement  with  bondholders or noteholders, to invest moneys of the agency not required for  immediate  use,  including proceeds  from  the  sale  of  any bonds or notes, in obligations of the state or the United States of America or obligations the  principal  and interest  of  which  are guaranteed by the state or the United States of America or in certificates of deposit or time deposits secured  in  such manner as the agency shall determine, or in obligations of any agency of the state or the United States of America 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.  (9)  Subject to any agreement with bondholders or noteholders, to sell any mortgages or other personal  property  acquired  by  the  agency  at public  or  private  sale  and  at  such  price  or  prices  as it shall determine, provided, however, that a private sale shall be limited to an agency  of  the  federal  government,  the  federal  national   mortgage association,  or  a  sale  of  a  mortgage  to  a bank from which it was originally purchased. If the agency  determines  to  sell  mortgages  at public  sale,  a notice of such sale shall be published at least once at least five days prior to the date of such sale in a financial  newspaper or journal published in the city of New York;  (10)  Subject  to  any  agreement  with bondholders or noteholders, to purchase bonds  or  notes  of  the  agency,  which  shall  thereupon  be cancelled,  at  a price not exceeding (a) if the bonds or notes are then redeemable, the redemption price then applicable plus  accrued  interest to  the next interest payment date thereon, or (b) if the bonds or notes are not then redeemable, the redemption price applicable  on  the  first date after such purchase upon which the notes or bonds become subject to redemption  at  the  option  of the agency plus accrued interest to said date;  (11) To borrow money and to issue negotiable bonds and  notes  and  to provide for the rights of the holders thereof;  (12) To engage the services of private consultants on a contract basis for rendering professional and technical assistance and advice;  (13)  To  make  and  execute  contracts for the servicing of mortgages acquired by the agency pursuant to this title, and to pay the reasonable value of services rendered to the agency pursuant to those contracts;  (14) To renegotiate, refinance  or  foreclose,  or  contract  for  the foreclosure of, any mortgage in default; to waive any default or consent to the modification of the terms of any mortgage; to commence any action to  protect or enforce any right conferred upon it by any law, mortgage, contract or other agreement, and to bid for and purchase  such  property at  any  foreclosure or at any other sale, or acquire or take possession of any such  property;  to  operate,  manage,  lease,  dispose  of,  and otherwise  deal  with such property, in such manner as would further the purposes of the agency, subject to any agreement with its bondholders or noteholders;  (15) To contract for and to accept any gifts or  grants  or  loans  of funds or property or financial or other aid in any form from the federal government  or  any agency or instrumentality thereof, or from the state or any agency or instrumentality thereof, or from any other  source  and to  comply,  subject to the provisions of this title, with the terms and conditions thereof;  (16) To enter into agreements, in its discretion, to pay  annual  sums in  lieu of taxes to any municipality or taxing district of the state in respect of any real property which is owned by the agency and located in such municipality or taxing district, provided, however, that the amount so paid for any year upon such property shall not exceed  the  sum  last paid  as  taxes on such property to such municipality or taxing district prior to the time of its acquisition by the agency;  (17) Make and contract to make loans  and  purchase  and  contract  to purchase  loans made by banks, pension funds, credit unions, colleges or vocational institutions,  all  subject  to  the  provisions  of  section twenty-four hundred five-a of this title;  (18)  Procure  or  require  the procurement of a policy or policies of group life insurance to insure repayment of loans made  or  acquired  by the agency in event of the death of the borrower;  (19) Subject to provisions of section two thousand four hundred five-a and  any  agreement  with  bondholders  or  noteholders,  renegotiate or refinance any loan in default; waive  any  default  or  consent  to  the modification  of  the  terms  of  any  loan;  forgive all or part of any indebtedness; and commence  any  action  or  proceeding  to  protect  or enforce  any right conferred upon it by law, loan agreement, contract or other agreement;  (20) Prescribe standards and criteria for the granting of applications for loans and loan purchases, insofar as such standards and criteria are not inconsistent with this title;  (21) Make and execute contracts for the administration or servicing of any loan made or acquired by the agency and pay the reasonable value  of services rendered to the agency pursuant to such contracts;  (22)  Subject  to  any agreement with bondholders or noteholders, sell any loans made or acquired by the agency at public or private  sale  and at such price or prices and on such terms as the agency shall determine;  (23)  Establish,  revise  from  time  to time, charge and collect such premiums or fees in connection with loans and purchases, as  the  agency shall determine.  (23-a)  To and shall develop, promote and ensure that, where possible, minority groups which traditionally have been disadvantaged,  and  women are   afforded  equal  opportunity  for  contracts  in  connection  with development and construction contracts for developments, facilities  and projects  financed by the issuance of bonds, notes and other obligations of the agency.  (24)  To  establish  and  administer  a  mortgage  credit  certificate program,  as  defined in the internal revenue code of the United States, in conformity with that and other applicable provisions of such code and any regulations issued thereunder by the United States department of the treasury,  to  issue  mortgage  credit  certificates  pursuant  to  such program,  and  to make all elections and determinations relating to such program, including without limitation, an election not to issue  all  or any portion of the private activity bond volume allocated to the agency.  (25)  In  connection  with  the  issuance  of bonds for the purpose of furthering forward commitment mortgage  programs  described  in  section twenty-four  hundred  five-b  of  this  title, where the mortgagor is to receive mortgage credit certificates issued by the agency,  to  covenant and  consent  that the interest on any of its bonds shall be includible, under the United  States  Internal  Revenue  Code  of  nineteen  hundred eighty-six,  as amended or any subsequent corresponding internal revenue law of the United States, in the gross income  of  the  holders  of  the bonds  to  the  same  extent and in the same manner that the interest on bills, bonds, notes  or  other  obligations  of  the  United  States  is includible  in  the  gross  income  of  the  holders  thereof under said Internal Revenue Code or any such subsequent law.  (26) Participation in housing programs. Subject to any agreement  with bondholders  and  noteholders,  the  agency is hereby authorized, at the direction of the director of  the  budget,  to  transfer  to  the  state comptroller  for deposit in the New York state infrastructure trust fund to the credit of the housing  reserve  account  established  by  section eighty-eight  of the state finance law, as an expense of the agency, any payment, less applicable expenses, received on account of  interest  and principal  on  any  mortgages owned by the agency pursuant to the agency additional mortgage loan fund  established  pursuant  to  the  homeowner mortgage  revenue  bonds  general  resolution and not pledged (i) to pay principal of and interest on bonds and notes pursuant to any  resolution or  trust  indenture  under  which  bonds  or  notes  of  the agency are authorized to be  issued,  (ii)  to  the  payment  of  losses  upon  the foreclosure,  default or delinquency of mortgage loans pledged under any resolution or trust indenture under which bonds or notes of  the  agency are  authorized  to  be  issued  and  (iii)  to  pay  the  reimbursement obligation of the agency to any providers  of  credit  enhancement  with respect  to  (i)  or  (ii) above in connection with any resolution. Such transfer shall be made in such amounts and at such times as specified in an agreement executed between the agency and the director of the budget, provided, however, that no further transfers for deposit shall  be  made to such housing reserve account from the agency after the sum of (i) the cumulative total of such deposits and (ii) the payments of the aggregate  reserve  amount  of  the  agency  made  pursuant to section seven of the chapter of  the  laws  of  nineteen  hundred  eighty-eight  adding  this subdivision, equals eighty million dollars.  (27)  Additional participation in housing or other state programs. (a) Subject to any agreement with bondholders and noteholders, the agency is hereby authorized, at the direction of the director of  the  budget,  to transfer to the state comptroller for deposit in such fund or account as provided in such direction as an expense of the agency, an amount not to exceed  twenty-two  million  dollars,  provided that such amount is made available to the agency directly  or  indirectly  pursuant  to  (i)  the agency's  defeasance  of  its  home  mortgage  revenue bonds, series one through four and/or (ii) the issuance of bonds  or  notes,  proceeds  of which will be transferred to the state and used for the purpose of state programs, which bonds or notes shall be payable in whole or in part from assets  made  available  to the agency pursuant to such defeasance. Such transfer shall be made in such amounts and at such times as specified in an agreement or agreements executed between the agency and the  director of  the  budget,  with  copies  to  be  provided  to the chairman of the assembly ways and means committee and the chairman of the senate finance committee.  (b) The provisions of section seventeen of  the  public  officers  law shall  apply  to  members of the board of directors, officers, employees and agents of the agency in connection with any and all claims, demands, suits, actions or proceedings which may be made or brought  against  any of  them  arising  out  of  any  determinations made or actions taken or omitted to be  taken  in  compliance  with  any  undertakings  under  or pursuant  to  the  terms  of  this  subdivision.  The provisions of this paragraph  shall  be  in  addition  to  and  shall  not   supplant   any indemnification or other benefits heretofore or hereafter conferred upon members of the board of directors, officers, employees and agents of the agency, by action of such agency or otherwise.  (c)  The  state shall and hereby agrees to and does indemnify and save harmless the agency from  and  against  any  and  all  liability,  loss, damage,  interest,  judgments  and liens growing out of, and any and all costs and expenses (including, but not  limited  to,  counsel  fees  and disbursements) arising out of or incurred in connection with any and all claims,  demands,  suits,  actions  or  proceedings which may be made or brought against it arising out of any  determinations  made  or  actions taken or omitted to be taken or compliance with any obligations under or pursuant  to  the terms of this subdivision; except for fraudulent acts, actions taken in bad faith, gross negligence or willful misconduct.  (28) To establish and administer a lease-purchase program or  programs in accordance with section twenty-four hundred five-d of this title.  (29) To pay or reimburse any federal recapture income tax payable by a borrower in connection with a mortgage loan;  (30)  To make loans secured by mortgages secured by a second lien on a fee simple or leasehold estate in real property located in the state and improved  by  a  residential  structure,  whether  or  not  insured   or guaranteed  by  the  United  States  of  America  or any agency thereof, provided however, that the loan made by the agency and secured  by  such second lien is made at the same time as a first lien securing a mortgage loan purchased by the agency pursuant to its programs or by a government sponsored enterprise.  (31)  To  administer  the  fund  and  operate the program set forth in section twenty-four hundred five-f of this part.  (32) To form a subsidiary to be  known  as  "the  state  of  New  York mortgage  agency  community  restoration  fund" for the purpose of using funds available to the agency under the program  set  forth  in  section  twenty-four  hundred  five-f  of this part and of owning and holding any residences, mortgages and mortgage notes acquired by the agency, and  to otherwise  carry  out the purposes of section twenty-four hundred five-f of  this  part. Such subsidiary created pursuant to this subdivision may exercise and perform one  or  more  of  the  purposes,  powers,  duties, functions,  rights  and  responsibilities  of the agency, other than the issuance of indebtedness, in connection with real and personal  property with  respect  to  which  the  agency holds or held a mortgage, security interest or other collateral. Such subsidiary shall have  the  power  to own, acquire and dispose of real property, and to acquire, own and hold, service  and  dispose of mortgages and mortgage notes. It shall have the right to foreclose or contract to foreclose on any mortgage acquired  by such  subsidiary, under the laws of the state, to commence any action to protect or to enforce the rights conveyed to it by law, contract or  any agreement  and  to dispose of any such property and to otherwise proceed with any action as may be necessary to protect  the  interests  of  said subsidiary.  Notwithstanding any other provision of law to the contrary, the transfer of title to such subsidiary or any other actions  taken  by the  agency  or such subsidiary to enforce the agency's rights under the mortgage, security interest or other collateral interest or to  protect, acquire,  own, manage or dispose of the property shall be deemed to be a corporate purpose of the agency granted to it to carry out the  purposes of  section  twenty-four  hundred  five-f  of this part. Such subsidiary shall be established in the form of  a  public  benefit  corporation  by executing  and  filing  with  the  secretary  of  state a certificate of incorporation which shall identify the agency as the  entity  organizing such subsidiary and set forth the name of such subsidiary public benefit corporation,  its duration, the location of its principal office and its corporate purposes as provided in this subdivision and which certificate may be amended from time to time by the  filing  of  amendments  thereto with  the  secretary  of  state,  provided  that  the subsidiary created hereunder shall cease to exist at such time as  the  program  authorized under  section  twenty-four  hundred five-f of this part is no longer in existence. Such subsidiary  shall  be  organized  as  a  public  benefit corporation,  shall  be a body politic and corporate, and shall have all the privileges, immunities, tax exemptions and other exemptions  of  the agency.  The members of such subsidiary shall be the same as the members of the agency.  (33) To do any and all things necessary or convenient to carry out its purposes and exercise the powers given and granted in this title.