§ 339-FF — Mortgage investments on units by state agencies, insurers, banking organizations and fiduciaries; limitation to first mortgages

§ 339-ff. Mortgage investments on units by state agencies, insurers,\nbanking organizations and fiduciaries; limitation to first mortgages.\n(a) The following persons: (1) public officers, bodies of the state,\nmunicipalities, and municipal subdivisions, (2) persons doing an\ninsurance business (as defined by section one thousand one hundred one\nof the insurance law), (3) banking organizations (as defined by section\ntwo of the banking law), and (4) executors, administrators, trustees,\nguardians and other fiduciaries, are authorized to invest in bonds,\nnotes and evidences of indebtedness which are secured by first mortgages\nor deeds of trust upon units and the appurtenant common interests,\nwherever such persons may invest, and subject to all of the rules and\nlimitations applicable to such investment, in bonds, notes and evidences\nof indebtedness which are secured by first mortgages or deeds of trust\nupon real estate. Where the applicable limitations are dependent upon\nthe type of use of the real estate, only the type of use of the\nparticular unit or units which constitute the security for such\ninvestment shall be taken into consideration for the purpose of such\nlimitations. The existence of any prior lien for taxes, assessments or\nother similar charges not yet delinquent shall be disregarded in\ndetermining whether a mortgage or deed of trust is a first mortgage or\ndeed of trust.\n (b) No person enumerated in subdivision (a) of this section may invest\nin bonds, notes or evidences of indebtedness secured by mortgages or\ndeeds of trust upon units and the appurtenant common interests, which\nare other than first mortgages or deeds of trust thereupon,\nnotwithstanding any other provision of law (including section three\nhundred thirty-nine-g of this chapter).\n (c) Notwithstanding subdivisions (a) and (b), banking organizations\nare authorized, subject to the rules and limitations applicable thereto\ncontained in subdivision four-a of section one hundred three,\nsubdivision six-a of section two hundred thirty-five, subdivision four-a\nof section three hundred eighty and subdivision eight of section four\nhundred fifty-six of the banking law, and the New York job development\nauthority is authorized to invest in bonds, notes and evidences of\nindebtedness which are secured by mortgages other than first mortgages\nupon units and the appurtenant common interests, provided such mortgages\nare in compliance with title eight of article eight of the public\nauthorities law.\n (d) Notwithstanding subdivisions (a) and (b) of this section, the New\nYork state urban development corporation is authorized to invest in\nbonds, notes and evidences of indebtedness which are secured by\nmortgages other than first mortgages upon units and the appurtenant\ncommon interests, provided that (i) such units are owned or are to be\nacquired by a corporation as defined in subparagraph five of paragraph\n(a) of section one hundred two of the not-for-profit corporation law and\nare to be used for commercial purposes, and such corporation has\nexecuted a loan authorization agreement with the New York state urban\ndevelopment corporation on or before June thirtieth, nineteen hundred\neighty-eight or (ii) such units are developed as a part of a project of\nthe New York state urban development corporation that received specific\nauthorization in chapter eight hundred thirty-nine of the laws of\nnineteen hundred eighty-seven; and further provided that such\ninvestments and subordinate mortgages are in compliance with chapter one\nhundred seventy-four of the laws of nineteen hundred sixty-eight, as\nsubsequently amended.\n (e) Notwithstanding subdivisions (a) and (b) of this section, the New\nYork city housing development corporation and a city having a population\nof one million or more are authorized to invest in bonds, notes, and\nevidences of indebtedness which are secured by mortgages other than\nfirst mortgages upon dwelling units and the appurtenant common interests\nprovided that such investment is made in connection with a project\nundertaken pursuant to the private housing finance law or the general\nmunicipal law.\n (f) Notwithstanding subdivisions (a) and (b) of this section, the\ndivision of housing and community renewal and the housing trust fund\ncorporation, their successors and assigns, are authorized to invest in\nbonds, notes, and evidences of indebtedness which are secured by\nmortgages other than first mortgages upon dwelling units and the\nappurtenant common interests provided that such investment is made in\nconnection with a project undertaken pursuant to the private housing\nfinance law.\n