2023 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, 2025
* (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, 2025
(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.