2023 New York Laws › PBA - Public Authorities › Article 8 - Miscellaneous Authorities › Title 17 - State of New York Mortgage Agency Act › Part 1 › 2407 - Bond Limits.

§  2407.  Bond limits. (1) Except for notes issued in nineteen hundred
seventy and nineteen hundred seventy-one, the  agency  shall  not  issue
bonds  and  notes,  the  interest  on which is not included in the gross
income of the holders of the bonds and notes  under  the  United  States
Internal   Revenue   Code   of  1986,  as  amended,  or  any  subsequent
corresponding internal revenue law of the United States, in an aggregate
principal amount exceeding ten  billion  seven  hundred  twenty  million
dollars,  excluding  from  such  limitation  (a)  an amount equal to any
original issue discount from the principal amount of any bonds or  notes
issued,  (b)  bonds  and  notes  issued  to refund outstanding bonds and
notes, and (c) bonds and notes not described in paragraph  (b)  of  this
subdivision  issued  to refund outstanding bonds and notes in accordance
with the provisions of the Internal Revenue Code  of  1986  or  the  Tax
Reform  Act  of  1986,  as  amended,  where  such bonds or notes are not
included in the statewide volume cap  on  private  purpose  bonds  under
section  146  of  such  code  provided, however, that upon any refunding
pursuant to this paragraph or paragraph (b) of  this  subdivision,  such
exclusion  shall  apply  only  to  the  extent  that  the  amount of the
refunding bonds or notes does not exceed (i) the outstanding  amount  of
the  refunded  bonds  or  notes,  plus  (ii)  to the extent permitted by
applicable federal tax law, costs of issuance of the refunding bonds  or
notes  to be financed from the proceeds of the refunding bonds or notes.
No such bond or note shall be issued by the  agency  on  or  after  July
twenty-third, two thousand twenty-five, excluding bonds and notes issued
to  refund outstanding bonds and notes. No more than one billion dollars
of proceeds of bonds or notes issued by  the  agency  pursuant  to  this
subdivision  shall  be  used  for  mortgage  purposes  by  blending with
proceeds of bonds issued pursuant to subdivision two of this section.
(2) In connection with the  issuance  of  bonds  for  the  purpose  of
furthering programs described in this title, the agency is authorized to
covenant  and  consent  that  the interest on any of its bonds, notes or
other obligations shall be includable, under the United States  Internal
Revenue  Code  of  1986,  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  includable  in the gross income of the holders thereof under
said Internal Revenue Code or any such subsequent law. Pursuant to  this
subdivision,   the   agency  shall  not  issue  bonds,  notes  or  other
obligations in an aggregate principal amount exceeding one billion  five
hundred  million dollars, excluding from such limitation bonds, notes or
other obligations issued to refund outstanding  bonds,  notes  or  other
obligations.  No  such bond, note or other obligation shall be issued by
the agency on or after  July  twenty-third,  two  thousand  twenty-five,
excluding bonds, notes or other obligations issued to refund outstanding
bonds,  notes  or  other obligations and no mortgages shall be purchased
with the proceeds of such bonds, notes or other obligations  after  such
date.  The  board  of  directors  of  the agency shall establish program
guidelines for purposes of bonds,  notes  or  other  obligations  issued
pursuant  to  this  subdivision.  The board of directors shall establish
from time to time maximum income limits of persons eligible  to  receive
mortgages  financed by bonds, notes or other obligations issued pursuant
to this subdivision, which income limits with respect  to  one-third  of
the  total  principal  amount  of mortgages authorized to be so financed
shall not exceed one hundred twenty-five percent of the  latest  maximum
income  limits  permitted  under  the  Internal Revenue Code of 1986, as
amended, for mortgagors financed by mortgage revenue bonds, with respect
to one-third of such principal amount  authorized  to  be  so  financed,

shall  not exceed one hundred thirty-five percent of such income limits,
and with respect to one-third of such principal amount authorized to  be
so  financed, shall not exceed one hundred fifty percent of such limits,
provided  that  notwithstanding the foregoing, the maximum income limits
of persons eligible to receive mortgages financed by  the  agency  under
its  neighborhood  revitalization  program  (and  any successor program)
shall not exceed one hundred fifty percent of the latest maximum  income
limits  permitted  under  the Internal Revenue Code of 1986, as amended,
for mortgagors financed by mortgage revenue bonds.
(3) The fixing of the statutory maximums in this section shall not  be
construed  as constituting a contract between the agency and the holders
of its bonds or notes that additional bonds and notes may not be  issued
subsequently  by  the  agency  in the event that such statutory maximums
shall subsequently be increased by law.