2023 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, 2025
* 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, 2025
* 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, 2025
* 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, 2025
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.