§ 2428-A — Development corporation credit support account as source of development corporation credit support

New York § 2428-A

• Jurisdiction: New York
• Law PBA: Public Authorities
• Title 17: State of New York Mortgage Agency Act
• Part 2: No title
• Art. 8: Miscellaneous Authorities

Text

§ 2428-a. Development corporation credit support account as source of\ndevelopment corporation credit support. 1. The agency is authorized,\nsubject to the provisions of this title, to provide the development\ncorporation credit support account as a source or potential source of\npayment of development corporation credit support. The agency may\nprovide the development corporation credit support account as a source\nor potential source of payment of all or any development corporation\ncredit support upon the terms (which shall include a requirement to\nrepay to the mortgage insurance fund any amounts transferred to the\ncorporation or the convention center development fund) and under the\nconditions it shall set forth in the applicable contracts between the\nagency and such other parties (including the corporation) as the agency\nshall deem appropriate with respect to the applicable reserve and\nfinancial support funds which are to receive the benefit of such\ndevelopment corporation credit support. The agency may not execute a\ncontract to provide development corporation credit support if, at the\ntime such contract is executed, such execution would impair any\nthen-existing credit rating of the single family pool insurance account\nor the project pool insurance account.\n 2. For purposes of determining the mortgage insurance fund requirement\nwith respect to the development corporation credit support account, the\nboard of directors of the agency, by a vote of a majority of all of its\nmembers, shall approve or authorize the applicable contracts which shall\nestablish the amount of the required or permitted deposits in each\nreserve and financial support fund (which may be determined by reference\nto percentages of such required or permitted amounts) for which the\ndevelopment corporation credit support account is or will be a source or\npotential source of development corporation credit support. Such amounts\n(or percentages) may be different for each reserve and financial support\nfund.\n 3. For purposes of section twenty-four hundred eleven of this title, a\ndevelopment corporation credit support agreement shall be deemed and\nregarded as a mortgage insurance contract for the benefit of parties to\nsuch agreement.\n