§ 218 — Mortgages

§ 218. Mortgages. 1. Any redevelopment corporation may borrow funds\nand secure the repayment thereof by mortgage. Every such mortgage shall\ncontain reasonable amortization provisions and shall be a lien upon no\nother real property except that forming the whole or a part of a single\ndevelopment area.\n 2. Certificates, bonds and notes, or part interests therein, or any\npart of an issue thereof, which are issued by a redevelopment\ncorporation and secured by a first mortgage on the real property of the\nredevelopment corporation, or any part thereof, shall be securities in\nwhich all the following persons, partnerships or corporations and public\nbodies or public officers may legally invest the funds within their\ncontrol, provided that the principal amount thereof shall not exceed the\nlimits, if any, imposed by law for such investments by the person,\npartnership, corporation, public body or public officer making the same:\nevery executor, administrator, trustee, guardian, committee, conservator\nor other person or corporation holding trust funds or acting in a\nfiduciary capacity; the state, its subdivisions, cities, all other\npublic bodies, all public officers; persons, partnerships and\ncorporations organized under or subject to the provisions of the banking\nlaw (including savings banks, savings and loan associations, trust\ncompanies, bankers and private banking corporations); the superintendent\nof financial services as conservator, liquidator or rehabilitator of any\nsuch person, partnership or corporation; persons, partnerships or\ncorporations organized under or subject to the provisions of the\ninsurance law; and the superintendent of financial services as\nconservator, liquidator or rehabilitator of any such person, partnership\nor corporation.\n 3. Any mortgage on the real property in a development area, or any\npart thereof, may create a first lien, or a second or other junior lien,\nupon such real property.\n 4. The limits as to principal amount secured by mortgage referred to\nin paragraph two of this section two hundred eighteen shall not apply to\ncertificates, bonds and notes, or part interests therein, or any part of\nan issue thereof, which are secured by first mortgage on real property\nin a development area, or any part thereof, which the federal housing\nadministrator has insured or has made a commitment to insure under the\nnational housing act. Any such person, partnership, corporation, public\nbody or public officer may receive and hold any debentures, certificates\nor other instruments issued or delivered by the federal housing\nadministrator, pursuant to the national housing act, in compliance with\nthe contract of insurance of a mortgage on real property in the\ndevelopment area, or any part thereof.\n