NY Priv Hous Fin L § 576-D (2021)
2021 New York Laws PVH - Private Housing Finance Article 11 - Housing Development Fund Companies 576-D - Master Servicing Agreement.

§  576-d.  Master  servicing  agreement. 1. The commissioner is hereby authorized to use the monies held in the  housing  development  fund  to make  advances  to  a  local  loan administrator that has entered into a written  master  servicing  agreement  prescribed  by  the  commissioner pursuant to subdivision two of this section.   2.  The  commissioner,  in  consultation  with  the comptroller, shall prescribe  a  master  servicing  agreement  to  be   executed   by   the commissioner and local loan administrators. Such agreement shall provide that:  (a) any advances made to a local loan administrator shall be used solely for the purpose of providing loans to agricultural producers  for undertaking  farmworker  housing projects; (b) the total amount of loans made to any single agricultural producer shall not  exceed  two  hundred thousand  dollars  per  annum; (c) the term of any loan shall not exceed ten years and equal payments of principal  payable  no  less  frequently than  annually shall be required to be made on such loan during the term such loan is  outstanding  which  payments  will  liquidate  the  entire principal  balance  of  the  loan  over  its  term;  (d)  the local loan administrator is required to pay to the commissioner  for  deposit  into the  housing development fund all repayments including interest, if any, received from any agricultural producers on account of such loan, except for  that  portion  permitted  to  be  retained  by   the   local   loan administrator  as  a fee pursuant to the master servicing agreement. The master servicing agreement shall also set forth: (i)  the  form  of  any note  and security agreement to be executed by the agricultural producer in connection with any loan, which shall include a provision that use of the loan to provide housing for a family member of the borrower  or  its principals  shall  constitute  a  default  under  the  loan and security agreement; (ii) the rate of interest, if any, to be charged on any loan; (iii)  the  amount  of  any  fee  to  be  retained  by  the  local  loan administrator  for  servicing  any  loan;  (iv)  the form of application required to be completed by an agricultural producer for any  loan;  (v) the  form  of  requisition and certification to be required from a local loan administrator to obtain an advance of funds from the  commissioner; (vi) any other conditions to be imposed upon an agricultural producer as a  condition  of  receiving  a  loan;  (vii)  the responsibilities to be performed by the local loan administrator in connection with  reviewing, approving  and  servicing the loan and the circumstances under which the commissioner  may  terminate  a  master  servicing   agreement;   (viii) conditions  necessary  to insure prompt closing on loans for which funds are advanced, including payment of  interest  of  funds  from  the  time advanced  until  utilized;  and  (ix)  such  other  requirements  as the commissioner may from time to time establish by  rules  and  regulations consistent with the purposes of this section.   3. (a) The commissioner shall, subject to the availability of funds as appropriated  by  the  legislature, advance from the housing development fund to a local loan administrator the amount of funds requested in  any requisition  within  fifteen  business  days after receipt of all of the following: a completed requisition for an advance of  funds;  copies  of any   applications  and  any  supporting  documentation  to  which  such requisition  pertains;  and  a  certification  from   the   local   loan administrator  with respect to such requisition in addition to any other representation  and  statement  required  by   the   commissioner.   The certification  from  the  local loan administrator shall state that: (i) the loan administrator has performed its responsibilities in  connection with  review  and  approval  of  applications  to which such requisition pertains, (ii) to the best of the local loan  administrator's  knowledge the  loans,  to  which  the  advances  pertain,  comply  with the master servicing agreement and the provisions of this section,  and  (iii)  the  borrowers  have  demonstrated  their  ability  to  make  the  repayments required under the loan. In the event that funds are  not  available  or the   commissioner  determines  that  the  requisition,  application  or certification   is   defective,  it  shall  so  notify  the  local  loan administrator  within  fifteen  business  days  after  receipt  of   the requisition.  (b)  The  commissioner  shall establish criteria for prioritizing loan applications in  the  event  that  the  requisitions  submitted  to  the commissioner  by one or more local loan administrators exceed the amount then available for the purposes of this  section.  Such  criteria  shall give  a  priority  to housing for farmworkers and take into account: (i) whether the farmworker housing project to which the application pertains is  for  the  purpose  of  bringing  non-conforming  accommodations   in compliance  with  the provisions of the state sanitary code or the state fire prevention and building code; (ii) whether the  farmworker  housing project  to  which  the  application pertains is the most cost effective approach  to  enable  the  agricultural   producer   to   construct   or rehabilitate  dwelling accommodations for farmworkers; (iii) whether the agricultural producer making application lacks the  financial  resources to  undertake  the  farmworker  housing project without obtaining a loan pursuant  to  this  section;  and  (iv)  such  other  factors   as   the commissioner deems relevant. In applying the criteria to be utilized for prioritizing  loans,  the  commissioner shall be entitled to rely on the information contained in the copies of the applications  submitted  with the requisition.