§ 7607 — Management and investment of funds

New York § 7607

• Jurisdiction: New York
• Law ISC: Insurance
• Art. 76: Property/casualty Security Funds

Text

§ 7607. Management and investment of funds. (a) Each of the two funds\ngoverned by this article shall be separate and apart. Each fund shall\nalso be separate and apart from any other fund and from all other state\nmoneys, and the faith and credit of the state of New York is pledged for\ntheir safekeeping. The commissioner shall be the custodian of the funds.\nAll disbursements shall be made by the commissioner upon vouchers signed\nby the superintendent, or his deputy. The moneys of the funds may be\ninvested by the commissioner in obligations of the United States or of\nthis state and in interest bearing certificates of deposit of a bank or\ntrust company located and authorized to do business in this state, or of\na national bank located in this state, secured by a pledge of direct\nobligations of the United States or of the state of New York in an\namount equal to the amount of such certificates of deposit, or in\naccordance with the provisions of section ninety-eight-a of the state\nfinance law.\n (b) With respect to the moneys in the property/casualty insurance\nsecurity fund the commissioner may also invest in:\n (1) obligations of public benefit corporations whose obligations are\nlegal for investment by public officers and bodies of this state;\n (2) up to thirty-three and one-third percent of the net value of the\nfund in mortgage loans or deeds of trust on real property improved by\none, two, three or four family residences owned by one or more\nindividuals and occupied by an owner and located in this state. The\namount invested in mortgage loans and deeds of trust may not exceed the\nlesser of ninety percent of the appraised value of the real property or\nthirty-five thousand dollars if a one-family residence, forty thousand\ndollars if a two-family residence, forty-five thousand dollars if a\nthree-family residence, or fifty thousand dollars if a four-family\nresidence. The mortgage or deed of trust shall provide for monthly\nprincipal and interest payments in amounts sufficient to pay all\ninterest and effect full repayment of principal within seventy-five\npercent of the estimated remaining useful life of the building or thirty\nyears, whichever is less.\n (c) The commissioner may sell any investment of either fund, if\nadvisable, for proper administration or in the best interests of the\nfund.\n