§ 57. Insured mortgage reserve fund.
1.The agency shall create and\nestablish a special fund, to be known as the insured mortgage reserve\nfund, and shall pay into such fund all monies appropriated and made\navailable by the state for the purposes of such fund and any other\nmonies from any other source or sources available therefor. The monies\nheld in such fund shall be used (1) to meet the agency's obligations\nunder an agreement with the federal government pursuant to subdivision\ntwenty-eight of section forty-four of this article, (2) to meet the\nagency's obligations to pay the principal of and interest on notes\nissued for the purpose of making a mortgage loan to a company which\nmortgage loan or a subsequent mortgage loan to such company has been\ninsured by the federal governme
Free access — add to your briefcase to read the full text and ask questions with AI
§ 57. Insured mortgage reserve fund. 1. The agency shall create and\nestablish a special fund, to be known as the insured mortgage reserve\nfund, and shall pay into such fund all monies appropriated and made\navailable by the state for the purposes of such fund and any other\nmonies from any other source or sources available therefor. The monies\nheld in such fund shall be used (1) to meet the agency's obligations\nunder an agreement with the federal government pursuant to subdivision\ntwenty-eight of section forty-four of this article, (2) to meet the\nagency's obligations to pay the principal of and interest on notes\nissued for the purpose of making a mortgage loan to a company which\nmortgage loan or a subsequent mortgage loan to such company has been\ninsured by the federal government, only however to the extent that all\nother revenues of the agency, including the proceeds of any sale,\nassignment or other disposition of a mortgage loan insured by the\nfederal government, available for such purposes are not sufficient to\nmeet such obligations of the agency, (3) to establish escrow accounts as\nmay be required by the federal government as a condition for the\nissuance of mortgage insurance, (4) to pay for installation of such life\nsafety devices as may be required by the federal government which\ndevices are in addition to and not in substitution for any requirement\nheretofore imposed on the company, and (5) to pay closing costs arising\nout of the company's obtaining mortgage insurance from the federal\ngovernment. Any income or interest earned by, or increment to the\ninsured mortgage reserve fund may be used for authorized purposes\nincluding, but not limited to, the addition of such income or interest\nearned, or increment to the monies held in such fund for the purposes\nherein provided, the repayment of appropriation expenditures made to the\ncredit of such fund, or to secure the payment of the principal of and\ninterest on notes or revenue housing bonds. Any portion of the monies\nheld in such fund shall, if the federal government so requires, be\nsegregated from any other portion thereof and applied solely to meet the\nagency's obligations under any agreement made pursuant to subdivision\ntwenty-eight of section forty-four, provided that the amount so\nsegregated shall not exceed the maximum obligation under any such\ncontract or contracts.\n