§ 2429-B — Mortgage insurance fund

New York § 2429-B

• 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

§ 2429-b. Mortgage insurance fund. * 1. (a) The agency shall create\nand establish a mortgage insurance fund. Within such fund, the agency\nshall establish: (i) a special account, which shall be divided into\nsub-accounts for each region as defined in subdivision nine of section\ntwenty-four hundred twenty-six of this title; (ii) a single family pool\ninsurance account; (iii) a project pool insurance account; and (iv) a\ndevelopment corporation credit support account. The single family pool\ninsurance account shall be used for all business relating to the\ninsurance of mortgages on properties with one to four dwelling units,\nthe project pool insurance account shall be used for all business\nrelating to the insurance of mortgages on properties other than those\nwith one to four dwelling units, and the development corporation credit\nsupport account shall be used for all business relating to development\ncorporation credit support. Separate sub-accounts may be established\nwithin the special account, the pool insurance accounts, and the\ndevelopment corporation credit support account as deemed appropriate by\nthe agency.\n (b) (i) The mortgage insurance fund shall be used as a revolving fund\nfor carrying out the provisions of this title with respect to mortgages\ninsured and development corporation credit support, provided thereunder.\n(ii) The agency shall pay into such fund all moneys which may be made\navailable to the agency for the purposes of such fund from any source,\nincluding but not limited to the moneys received from recording officers\npursuant to the provisions of subdivision two of section two hundred\nsixty-one of the tax law. The agency shall credit the amount of moneys\nreceived from the recording officer of each county, pursuant to\nsubdivision two of section two hundred sixty-one of the tax law, to the\nspecial account. In any fiscal year, no more than fifty per centum of\nthe amount received from the recording officers during the consecutive\ntwelve month period ending on the preceding March thirty-first may be\nused by the agency for the purpose of insuring mortgages on property\nlocated in any one region pursuant to section two thousand four hundred\ntwenty-eight of this part, provided, however, that this provision shall\nnot include or be applied to pool insurance of mortgage loans purchased\nby the agency. The agency shall credit any other moneys which may be\nmade available to the agency for the purposes of such fund from any\nother source to the special account, the single family pool insurance\naccount, the project pool insurance account, or the development\ncorporation credit support account, as appropriate. Any income or\ninterest earned by, or increment to, the mortgage insurance fund due to\nthe investment thereof shall be credited to the special account, the\napplicable pool insurance account, or the development corporation credit\nsupport account, as appropriate.\n (c) The agency may credit from the special account to the single\nfamily pool insurance account, to the project pool insurance account and\nto the development corporation credit support account such moneys as are\nrequired to satisfy the mortgage insurance fund requirement of such\naccounts, except that during any twelve-month period ending on March\nthirty-first the aggregate amount credited to the development\ncorporation credit support account (excluding amounts described in the\nlast sentence of paragraph (b) of this subdivision) shall not exceed the\nlesser of (i) fifty million dollars or (ii) the aggregate of the amounts\nrequired under the contracts executed by the agency to provide\ndevelopment corporation support.\n (d) Moneys, investments and cash equivalents of the special account,\nthe single family pool insurance account, the project pool insurance\naccount and the development corporation credit support account shall be\nkept separate and shall not be commingled with each other or with any\nother accounts which may be established from time to time, except as\notherwise authorized by this section.\n (e) Moneys, investments and cash equivalents of the pool insurance\naccounts and the development corporation credit support account shall be\nexcluded from the excess balance calculation set forth in subdivision\ntwo of this section. However, if at any time the moneys, investments and\ncash equivalents (valued as determined by the agency) of either pool\ninsurance account or the development corporation credit support account\nexceed the amount necessary to attain and maintain the credit rating or,\nwith respect to development corporation credit support, credit\nworthiness (as determined by the agency) required to accomplish the\npurposes of such account the agency shall transfer such excess to the\nspecial account and such excess shall be included in the excess balance\ncalculation.\n * NB Effective until July 23, 2027\n * 1. The agency shall create and establish a mortgage insurance fund.\nWithin such fund, the agency shall establish a special account, which\nshall be divided into sub-accounts for each region as defined in\nsubdivision nine of section twenty-four hundred twenty-six of this part\nand a development corporation credit support account. The development\ncorporation credit support account shall be used for all business\nrelated to development corporation credit support. Separate sub-accounts\nmay be established within the development corporation credit support\naccount as deemed appropriate by the agency. The mortgage insurance fund\nshall be used as a revolving fund for carrying out the provisions of\nthis title with respect to mortgages insured and development corporation\nsupport provided thereunder. The agency shall pay into such fund all\nmoneys which may be made available to the agency for the purposes of\nsuch fund from any source, including but not limited to the moneys\nreceived from recording officers pursuant to the provisions of\nsubdivision two of section two hundred sixty-one of the tax law. The\nagency shall credit the amount of moneys received from the recording\nofficer of each county, pursuant to subdivision two of section two\nhundred sixty-one of the tax law, to the special account. In any\ncalendar year, no more than fifty per centum of the amount received from\nthe recording officers and credited to the special account during the\nconsecutive twelve month period ending on the preceding December\nthirty-first may be used by the agency for the purpose of insuring\nmortgages on property located in any one region pursuant to section two\nthousand four hundred twenty-eight of this part. The agency shall credit\nany other moneys which may be made available to the agency for the\npurposes of such fund from any other source to the special account or\nthe development corporation credit support account, as appropriate. Any\nincome or interest earned by, or increment to, the mortgage insurance\nfund due to the investment thereof shall be credited to the special\naccount or the development corporation credit account, as appropriate.\n * NB Effective July 23, 2027\n * 1-a. All moneys held in the mortgage insurance fund, except as\nhereinafter provided, shall be used, as required, solely for the payment\nof the agency's liabilities arising from mortgages insured as provided\nin section twenty-four hundred twenty-nine-a of this part and from the\nprovision of development corporation credit support as provided in\nsection twenty-four hundred twenty-eight-a of this part; provided,\nhowever, that no moneys shall be withdrawn from any account at any time\nin such amount as would reduce the amount of, as applicable, the special\naccount, either pool insurance account or the development corporation\ncredit support account to less than its applicable mortgage insurance\nfund requirement, except for the purpose of paying such liabilities as\nthe same become due and for the payment of which other moneys of the\nagency are not available. All payments pursuant to section twenty-four\nhundred twenty-nine-a of this part, and expenses attributable thereto\nshall be debited to the special account or the single family pool\ninsurance account or the project pool insurance account or the\ndevelopment corporation credit support account, as appropriate, within\nthe mortgage insurance fund. All other operating expenses of the agency\nwith respect to insurance of mortgages and providing development\ncorporation credit support shall be debited to the special account, the\nsingle family pool insurance account, the project pool insurance account\nor the development corporation credit support account within the\nmortgage insurance fund, as appropriate.\n * NB Effective until July 23, 2027\n * 1-a. All moneys held in the mortgage insurance fund, except as\nhereinafter provided, shall be used, as required, solely for the payment\nof the agency's liabilities arising from mortgages insured as provided\nin section twenty-four hundred twenty-nine-a of this part and from the\nprovision of development corporation credit support as provided in\nsection twenty-four hundred twenty-eight-a of this part; provided,\nhowever, that no moneys shall be withdrawn from any account at any time\nin such amount as would reduce the amount of, as applicable, the special\naccount or the development corporation credit support account to less\nthan its applicable mortgage insurance fund requirement, except for the\npurpose of paying such liabilities as the same become due and for the\npayment of which other moneys of the agency are not available. All\npayments pursuant to section twenty-four hundred twenty-nine-a of this\npart, and expenses attributable thereto shall be debited to the special\naccount or the development corporation credit support account within the\nmortgage insurance fund. All other operating expenses of the agency with\nrespect to insurance of mortgages and providing development corporation\ncredit support shall be debited to the special account or the\ndevelopment corporation credit support account within the mortgage\ninsurance fund, as appropriate.\n * NB Effective July 23, 2027\n 2. On or before March twentieth in each year, the board of directors\nof the agency shall determine the amount estimated to be received by the\nagency from the additional tax imposed pursuant to subdivision one-a of\nsection two hundred fifty-three of the tax law and deposited in the\nmortgage insurance fund and credited to the special account plus any\nother monies deposited in such account plus the amount of reserves\navailable in such special account with respect to mortgage loans that\nwere previously insured in accordance with section twenty-four hundred\ntwenty-eight or development corporation credit support previously\nprovided pursuant to section twenty-four hundred twenty-eight-a of this\npart under contracts or commitments that have been satisfied or\ncancelled, pursuant to subdivision one of this section, except charges\nand fees levied by the agency pursuant to section twenty-four hundred\ntwenty-nine-c of this part, which shall be added in the computation only\nwhen such a commitment is cancelled or expires or when the insurance or\ncontractual arrangement to provide development corporation credit\nsupport applied for is declared effective. Such determination made on or\nbefore March twentieth in each year shall be made for the consecutive\ntwelve-month period ending on the subsequent March thirty-first. The\nboard shall then determine the estimated excess balance, if any, in such\nspecial account by determining the amount by which such credits exceed\ntwenty per centum, or such other per centums or amounts as may have been\nestablished by the board of directors of the agency pursuant to\nsubdivision seven of section twenty-four hundred twenty-eight of this\npart, of the amounts insured or committed to be insured and the amounts\nof development corporation credit support established by the board of\ndirectors of the agency pursuant to section twenty-four hundred\ntwenty-eight-a of this part to be provided during such twelve-month\nperiod plus any payments by the agency during such twelve-month period\non account of a mortgage or development corporation credit support\ncontract entered into during such twelve-month period ending on such\nMarch thirty-first, plus the operating expenses of the agency during\nsuch twelve-month period with respect to insurance of mortgages or\nprovision of development corporation credit support, which amount may\nnot exceed an amount determined and certified by the director of the\nbudget, with notification to the chairman of the senate finance\ncommittee and chairman of the assembly ways and means committee. On or\nbefore May fifteenth, the board shall determine any adjustment to the\nestimated excess balance necessary to reflect the variance, if any,\nbetween such estimated excess balance and the actual excess balance\ncomputed as of March thirty-first, and shall certify such adjustment to\nthe director of the budget. The agency shall include such adjustment in\nthe estimated excess balance determination for the following fiscal\nyear, unless otherwise instructed by the director of the budget. The\nagency shall submit to the director of the budget an estimate of such\noperating expenses on or before the tenth business day in March of each\nyear and the director of the budget shall make such certification before\nMarch twentieth of each year.\n Upon making the determination of the estimated excess balance, the\nagency shall certify such determination to the director of the budget,\nthe chairmen of the senate finance committee and the assembly ways and\nmeans committee, and the comptroller. Payment of such actual or\nestimated excess balance shall be made within ninety days after March\ntwentieth. The agency shall, at the direction of the director of the\nbudget, pay such estimated or actual excess balance, if any, from the\nspecial account to the comptroller for deposit to the state general\nfund; provided, however, that if the aggregate amount in the special\naccount as of such date is less than the mortgage insurance fund\nrequirement, the agency shall retain all or that portion of any such\nestimated or actual excess balance in such special account necessary to\nincrease the aggregate amount in such special account to the mortgage\ninsurance fund requirement. The director of the budget shall notify the\nchairmen of the senate finance committee and the assembly ways and means\ncommittee ten days prior to the issuance of the directive in respect to\nthe payment of the estimated or actual excess balance to the general\nfund.\n Further provided, however, that the budget to be submitted to the\nlegislature by the governor pursuant to article seven of the\nconstitution shall separately state the amount of such estimated or\nactual excess balance determined as hereinabove prescribed, if any,\nwhich shall be included in the monies and revenues estimated to be\navailable during the current and ensuing fiscal years, respectively.\n 3. The moneys in such fund shall be deposited in one or more banks or\ntrust companies designated in the manner provided by law, as\ndepositories of the funds of the state. The agency may invest the moneys\nin such fund in obligations specified in subdivision four of this\nsection. Any interest earned or capital gain realized on the money so\ndeposited or invested shall accrue to and become part of such fund. The\nseparate identity of such fund shall be maintained whether its assets\nconsist of cash or investments or both.\n 4. Moneys in such fund may be invested (a) in special time deposit\naccounts in, or certificates of deposit issued by, a bank, trust\ncompany, savings bank or savings and loan association located and\nauthorized to do business in this state, provided, however, that such\ntime deposit account or certificate of deposit shall be payable within\nsuch time as the proceeds may be needed to meet expenditures estimated\nto be incurred by the agency and provided further that such time deposit\naccount or certificate of deposit be secured by a pledge of obligations\nof the United States of America or obligations of the state, any city of\nthe state, or other municipal corporation, school district or district\ncorporation of the state or obligations of agencies of the federal\ngovernment; or (b) in obligations of the United States of America or the\nstate which may from time to time be legally purchased by savings banks\nwithin the state as an investment of funds belonging to them or in their\ncontrol, or in obligations of the Federal National Mortgage Association,\nor (c) in Government National Mortgage Association mortgage backed\nsecurities, provided such obligations shall be payable or redeemable at\nthe option of the owner within such times as the proceeds may be needed\nto meet expenditures estimated to be incurred by the agency.\n 5. In computing the amount of the mortgage insurance fund for the\npurposes of this section, securities in which all or a portion of such\nfund shall be invested shall be valued at par if purchased at par, or if\npurchased at other than par, at amortized value. Amortized value, when\nused with respect to securities purchased at a premium above or a\ndiscount below par, shall mean the value as of any given date obtained\nby dividing the total premiums or discount at which such securities were\npurchased by the number of interest payments remaining to maturity on\nsuch securities after such purchase and by multiplying the amount so\ncalculated by the number of interest payment dates having passed since\nthe date of such purchase; and (i) in the case of securities purchased\nat a premium by deducting the product thus obtained from the purchase\nprice, and (ii) in the case of securities purchased at a discount by\nadding the product thus obtained to the purchase price.\n 6. The agency may create and establish such other fund or funds as may\nbe necessary or desirable for the carrying out of its corporate\npurposes.\n