§ 2404 — Powers of the agency

New York § 2404

• Jurisdiction: New York
• Law PBA: Public Authorities
• Title 17: State of New York Mortgage Agency Act
• Part 1: No title
• Art. 8: Miscellaneous Authorities

Text

§ 2404. Powers of the agency. Except as otherwise limited by this\ntitle, the agency shall have power:\n (1) To sue and be sued;\n (2) To have a seal and alter the same at pleasure;\n (3) To make and execute contracts and all other instruments necessary\nor convenient for the exercise of its powers and functions under this\ntitle;\n (4) To make and alter by-laws for its organization and internal\nmanagement;\n (5) To acquire, hold and dispose of real and personal property for its\ncorporate purposes;\n (6) To appoint officers, agents and employees, prescribe their duties\nand qualifications and fix their compensation;\n * (7) To (a) acquire, and contract to acquire, existing mortgages\nowned by banks and to enter into advance commitments to banks for the\npurchase of said mortgages, all subject to the provisions of section\ntwenty-four hundred five of this part, (b) acquire, and contract to\nacquire, forward commitment mortgages made by banks and to enter into\nadvance commitments to banks for the purchase of said mortgages, all\nsubject to the provisions of section twenty-four hundred five-b of this\npart, (c) acquire, and contract to acquire, new housing loans made by\nbanks and to enter into advance commitments to banks for the purchase of\nsaid housing loans, all subject to the provisions of section twenty-four\nhundred five-c of this part, (d) to acquire and contract to acquire\nmortgages pursuant to section twenty-four hundred five-d of this title,\nand (e) acquire, and contract to acquire, new construction mortgage\nloans for single-family modular or manufactured housing purchased and\nsited on land owned by banks and to enter into advance commitments to\nbanks for the purchase of such mortgages, all subject to the provisions\nof section twenty-four hundred five-b of this part;\n * NB Effective until July 23, 2027\n * (7) To acquire, and contract to acquire, mortgages owned by banks\nand to enter into advance commitments to banks for the purchase of said\nmortgages, all subject to the provisions of section two thousand four\nhundred five of this title;\n * NB Effective July 23, 2027\n (8) Subject to any agreement with bondholders or noteholders, to\ninvest moneys of the agency not required for immediate use, including\nproceeds from the sale of any bonds or notes, in obligations of the\nstate or the United States of America or obligations the principal and\ninterest of which are guaranteed by the state or the United States of\nAmerica or in certificates of deposit or time deposits secured in such\nmanner as the agency shall determine, or in obligations of any agency of\nthe state or the United States of America which may from time to time be\nlegally purchased by savings banks within the state as an investment of\nfunds belonging to them or in their control, or in obligations of the\nFederal National Mortgage Association.\n (9) Subject to any agreement with bondholders or noteholders, to sell\nany mortgages or other personal property acquired by the agency at\npublic or private sale and at such price or prices as it shall\ndetermine, provided, however, that a private sale shall be limited to an\nagency of the federal government, the federal national mortgage\nassociation, or a sale of a mortgage to a bank from which it was\noriginally purchased. If the agency determines to sell mortgages at\npublic sale, a notice of such sale shall be published at least once at\nleast five days prior to the date of such sale in a financial newspaper\nor journal published in the city of New York;\n (10) Subject to any agreement with bondholders or noteholders, to\npurchase bonds or notes of the agency, which shall thereupon be\ncancelled, at a price not exceeding (a) if the bonds or notes are then\nredeemable, the redemption price then applicable plus accrued interest\nto the next interest payment date thereon, or (b) if the bonds or notes\nare not then redeemable, the redemption price applicable on the first\ndate after such purchase upon which the notes or bonds become subject to\nredemption at the option of the agency plus accrued interest to said\ndate;\n (11) To borrow money and to issue negotiable bonds and notes and to\nprovide for the rights of the holders thereof;\n (12) To engage the services of private consultants on a contract basis\nfor rendering professional and technical assistance and advice;\n (13) To make and execute contracts for the servicing of mortgages\nacquired by the agency pursuant to this title, and to pay the reasonable\nvalue of services rendered to the agency pursuant to those contracts;\n (14) To renegotiate, refinance or foreclose, or contract for the\nforeclosure of, any mortgage in default; to waive any default or consent\nto the modification of the terms of any mortgage; to commence any action\nto protect or enforce any right conferred upon it by any law, mortgage,\ncontract or other agreement, and to bid for and purchase such property\nat any foreclosure or at any other sale, or acquire or take possession\nof any such property; to operate, manage, lease, dispose of, and\notherwise deal with such property, in such manner as would further the\npurposes of the agency, subject to any agreement with its bondholders or\nnoteholders;\n (15) To contract for and to accept any gifts or grants or loans of\nfunds or property or financial or other aid in any form from the federal\ngovernment or any agency or instrumentality thereof, or from the state\nor any agency or instrumentality thereof, or from any other source and\nto comply, subject to the provisions of this title, with the terms and\nconditions thereof;\n (16) To enter into agreements, in its discretion, to pay annual sums\nin lieu of taxes to any municipality or taxing district of the state in\nrespect of any real property which is owned by the agency and located in\nsuch municipality or taxing district, provided, however, that the amount\nso paid for any year upon such property shall not exceed the sum last\npaid as taxes on such property to such municipality or taxing district\nprior to the time of its acquisition by the agency;\n (17) Make and contract to make loans and purchase and contract to\npurchase loans made by banks, pension funds, credit unions, colleges or\nvocational institutions, all subject to the provisions of section\ntwenty-four hundred five-a of this title;\n (18) Procure or require the procurement of a policy or policies of\ngroup life insurance to insure repayment of loans made or acquired by\nthe agency in event of the death of the borrower;\n (19) Subject to provisions of section two thousand four hundred five-a\nand any agreement with bondholders or noteholders, renegotiate or\nrefinance any loan in default; waive any default or consent to the\nmodification of the terms of any loan; forgive all or part of any\nindebtedness; and commence any action or proceeding to protect or\nenforce any right conferred upon it by law, loan agreement, contract or\nother agreement;\n (20) Prescribe standards and criteria for the granting of applications\nfor loans and loan purchases, insofar as such standards and criteria are\nnot inconsistent with this title;\n (21) Make and execute contracts for the administration or servicing of\nany loan made or acquired by the agency and pay the reasonable value of\nservices rendered to the agency pursuant to such contracts;\n (22) Subject to any agreement with bondholders or noteholders, sell\nany loans made or acquired by the agency at public or private sale and\nat such price or prices and on such terms as the agency shall determine;\n (23) Establish, revise from time to time, charge and collect such\npremiums or fees in connection with loans and purchases, as the agency\nshall determine.\n (23-a) To and shall develop, promote and ensure that, where possible,\nminority groups which traditionally have been disadvantaged, and women\nare afforded equal opportunity for contracts in connection with\ndevelopment and construction contracts for developments, facilities and\nprojects financed by the issuance of bonds, notes and other obligations\nof the agency.\n (24) To establish and administer a mortgage credit certificate\nprogram, as defined in the internal revenue code of the United States,\nin conformity with that and other applicable provisions of such code and\nany regulations issued thereunder by the United States department of the\ntreasury, to issue mortgage credit certificates pursuant to such\nprogram, and to make all elections and determinations relating to such\nprogram, including without limitation, an election not to issue all or\nany portion of the private activity bond volume allocated to the agency.\n (25) In connection with the issuance of bonds for the purpose of\nfurthering forward commitment mortgage programs described in section\ntwenty-four hundred five-b of this title, where the mortgagor is to\nreceive mortgage credit certificates issued by the agency, to covenant\nand consent that the interest on any of its bonds shall be includible,\nunder the United States Internal Revenue Code of nineteen hundred\neighty-six, as amended or any subsequent corresponding internal revenue\nlaw of the United States, in the gross income of the holders of the\nbonds to the same extent and in the same manner that the interest on\nbills, bonds, notes or other obligations of the United States is\nincludible in the gross income of the holders thereof under said\nInternal Revenue Code or any such subsequent law.\n (26) Participation in housing programs. Subject to any agreement with\nbondholders and noteholders, the agency is hereby authorized, at the\ndirection of the director of the budget, to transfer to the state\ncomptroller for deposit in the New York state infrastructure trust fund\nto the credit of the housing reserve account established by section\neighty-eight of the state finance law, as an expense of the agency, any\npayment, less applicable expenses, received on account of interest and\nprincipal on any mortgages owned by the agency pursuant to the agency\nadditional mortgage loan fund established pursuant to the homeowner\nmortgage revenue bonds general resolution and not pledged (i) to pay\nprincipal of and interest on bonds and notes pursuant to any resolution\nor trust indenture under which bonds or notes of the agency are\nauthorized to be issued, (ii) to the payment of losses upon the\nforeclosure, default or delinquency of mortgage loans pledged under any\nresolution or trust indenture under which bonds or notes of the agency\nare authorized to be issued and (iii) to pay the reimbursement\nobligation of the agency to any providers of credit enhancement with\nrespect to (i) or (ii) above in connection with any resolution. Such\ntransfer shall be made in such amounts and at such times as specified in\nan agreement executed between the agency and the director of the budget,\nprovided, however, that no further transfers for deposit shall be made\nto such housing reserve account from the agency after the sum of (i) the\ncumulative total of such deposits and (ii) the payments of the aggregate\nreserve amount of the agency made pursuant to section seven of the\nchapter of the laws of nineteen hundred eighty-eight adding this\nsubdivision, equals eighty million dollars.\n (27) Additional participation in housing or other state programs. (a)\nSubject to any agreement with bondholders and noteholders, the agency is\nhereby authorized, at the direction of the director of the budget, to\ntransfer to the state comptroller for deposit in such fund or account as\nprovided in such direction as an expense of the agency, an amount not to\nexceed twenty-two million dollars, provided that such amount is made\navailable to the agency directly or indirectly pursuant to (i) the\nagency's defeasance of its home mortgage revenue bonds, series one\nthrough four and/or (ii) the issuance of bonds or notes, proceeds of\nwhich will be transferred to the state and used for the purpose of state\nprograms, which bonds or notes shall be payable in whole or in part from\nassets made available to the agency pursuant to such defeasance. Such\ntransfer shall be made in such amounts and at such times as specified in\nan agreement or agreements executed between the agency and the director\nof the budget, with copies to be provided to the chairman of the\nassembly ways and means committee and the chairman of the senate finance\ncommittee.\n (b) The provisions of section seventeen of the public officers law\nshall apply to members of the board of directors, officers, employees\nand agents of the agency in connection with any and all claims, demands,\nsuits, actions or proceedings which may be made or brought against any\nof them arising out of any determinations made or actions taken or\nomitted to be taken in compliance with any undertakings under or\npursuant to the terms of this subdivision. The provisions of this\nparagraph shall be in addition to and shall not supplant any\nindemnification or other benefits heretofore or hereafter conferred upon\nmembers of the board of directors, officers, employees and agents of the\nagency, by action of such agency or otherwise.\n (c) The state shall and hereby agrees to and does indemnify and save\nharmless the agency from and against any and all liability, loss,\ndamage, interest, judgments and liens growing out of, and any and all\ncosts and expenses (including, but not limited to, counsel fees and\ndisbursements) arising out of or incurred in connection with any and all\nclaims, demands, suits, actions or proceedings which may be made or\nbrought against it arising out of any determinations made or actions\ntaken or omitted to be taken or compliance with any obligations under or\npursuant to the terms of this subdivision; except for fraudulent acts,\nactions taken in bad faith, gross negligence or willful misconduct.\n (28) To establish and administer a lease-purchase program or programs\nin accordance with section twenty-four hundred five-d of this title.\n (29) To pay or reimburse any federal recapture income tax payable by a\nborrower in connection with a mortgage loan;\n (30) To make loans secured by mortgages secured by a second lien on a\nfee simple or leasehold estate in real property located in the state and\nimproved by a residential structure, whether or not insured or\nguaranteed by the United States of America or any agency thereof,\nprovided however, that the loan made by the agency and secured by such\nsecond lien is made at the same time as a first lien securing a mortgage\nloan purchased by the agency pursuant to its programs or by a government\nsponsored enterprise.\n (31) To administer the fund and operate the program set forth in\nsection twenty-four hundred five-f of this part.\n (32) To form a subsidiary to be known as "the state of New York\nmortgage agency community restoration fund" for the purpose of using\nfunds available to the agency under the program set forth in section\ntwenty-four hundred five-f of this part and of owning and holding any\nresidences, mortgages and mortgage notes acquired by the agency, and to\notherwise carry out the purposes of section twenty-four hundred five-f\nof this part. Such subsidiary created pursuant to this subdivision may\nexercise and perform one or more of the purposes, powers, duties,\nfunctions, rights and responsibilities of the agency, other than the\nissuance of indebtedness, in connection with real and personal property\nwith respect to which the agency holds or held a mortgage, security\ninterest or other collateral. Such subsidiary shall have the power to\nown, acquire and dispose of real property, and to acquire, own and hold,\nservice and dispose of mortgages and mortgage notes. It shall have the\nright to foreclose or contract to foreclose on any mortgage acquired by\nsuch subsidiary, under the laws of the state, to commence any action to\nprotect or to enforce the rights conveyed to it by law, contract or any\nagreement and to dispose of any such property and to otherwise proceed\nwith any action as may be necessary to protect the interests of said\nsubsidiary. Notwithstanding any other provision of law to the contrary,\nthe transfer of title to such subsidiary or any other actions taken by\nthe agency or such subsidiary to enforce the agency's rights under the\nmortgage, security interest or other collateral interest or to protect,\nacquire, own, manage or dispose of the property shall be deemed to be a\ncorporate purpose of the agency granted to it to carry out the purposes\nof section twenty-four hundred five-f of this part. Such subsidiary\nshall be established in the form of a public benefit corporation by\nexecuting and filing with the secretary of state a certificate of\nincorporation which shall identify the agency as the entity organizing\nsuch subsidiary and set forth the name of such subsidiary public benefit\ncorporation, its duration, the location of its principal office and its\ncorporate purposes as provided in this subdivision and which certificate\nmay be amended from time to time by the filing of amendments thereto\nwith the secretary of state, provided that the subsidiary created\nhereunder shall cease to exist at such time as the program authorized\nunder section twenty-four hundred five-f of this part is no longer in\nexistence. Such subsidiary shall be organized as a public benefit\ncorporation, shall be a body politic and corporate, and shall have all\nthe privileges, immunities, tax exemptions and other exemptions of the\nagency. The members of such subsidiary shall be the same as the members\nof the agency.\n (33) To do any and all things necessary or convenient to carry out its\npurposes and exercise the powers given and granted in this title.\n