§ 407 — Participation by certain corporations and individuals

New York § 407

• Jurisdiction: New York
• Law PVH: Private Housing Finance
• Art. 8: Loans to Owners of Existing Multiple Dwellings

Text

§ 407. Participation by certain corporations and individuals. 1. One\nor more banking institutions, foundations, labor unions, employers'\nassociations, veterans' organizations, insurance companies, trustees,\nfiduciaries or any combination of the foregoing, shall have the power to\nparticipate and invest, singly or jointly, with a municipality or the\nNew York city housing development corporation in a bond or note and\nsingle participating mortgage, or in separate bonds or notes and\nmortgages pursuant to and in accordance with the provisions of this\narticle. As used in this section, the terms "trustees" and "fiduciaries"\nshall include any fiduciary or fiduciaries holding funds for investment.\n 2. Banking institutions and insurance companies may exercise such\npower on such conditions as may be prescribed or authorized by the\nsuperintendent of financial services.\n 3. Where one or more banking institutions, foundations, labor unions,\nemployers' associations, veterans' organizations, insurance companies,\ntrustees or fiduciaries participates and invests with a municipality or\nthe New York city housing development corporation as provided in\nsubdivision one, the interest of each need not be equal as to priority\nof lien, interest rate, time or rate of amortization or otherwise.\n 4. Where a municipality joins with one or more corporations\norganizations or individuals of the kind hereinabove mentioned in making\na loan secured by a single participating mortgage or by separate\nmortgages, the municipality may make provision, either in the mortgage\nor mortgages or by separate agreement, for the performance of such\nservices as are generally performed by a banking institution or\ninsurance company which itself owns and holds a mortgage or by a trustee\nunder a trust mortgage. The agency is hereby authorized to act as\ntrustee or to consent to the appointment of a banking institution to act\nin such capacity.\n