NY State Senate Bill 2009-S3692

Archive: Last Bill Status - In Senate Committee Corporations, Authorities And Commissions Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Actions

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Date of Action	Assembly Actions - Lowercase Senate Actions - UPPERCASE
May 06, 2010	print number 3692b
May 06, 2010	amend and recommit to corporations, authorities and commissions
Jan 06, 2010	referred to corporations, authorities and commissions
Apr 24, 2009	print number 3692a
Apr 24, 2009	amend and recommit to corporations, authorities and commissions
Mar 27, 2009	referred to corporations, authorities and commissions

Bill Amendments

Original

B (Active)

2009-S3692 - Details

Current Committee:: Senate Corporations, Authorities And Commissions
Laws Affected:: Amd §§2425, 2426, 2427, 2429-a & 2429-b, add §2428-b, Pub Auth L; amd §19, Chap 555 of 1989

2009-S3692 - Summary

Relates to the NYS interim short-term financing account; amends chapter 555 of the laws of 1989 relating to establishing a NYS interim short-term financing account within the state of New York Mortgage Agency, in relation to the effective date.

2009-S3692 - Sponsor Memo

                                 BILL NUMBER:  S3692

 TITLE OF BILL :

An act to amend the public authorities law, in relation to the New
York state interim short-term financing account and to amend chapter
555 of the laws of 1989 amending the public authorities law and other
laws, relating to establishing a New York state infrastructure trust
fund, in relation to interim short-term financing account within the
state of New York mortgage agency mortgage insurance fund


 PURPOSE :

This bill would authorize the State of New York Mortgage Agency
("SONYMA") to use funds of the Mortgage Insurance Fund ("MIF") to
acquire mortgage loans until SONYMA obtains long-term financing for
these acquisitions.

S SUMMARY OF PROVISIONS :

Section 1 of the bill amends Public Authorities Law ("PAL") § 2425 by
adding a statement of legislative findings.

Section 2 would amend Public Authorities Law ("PAL") § 2426 to define
"interim short-term financing support."

Sections 3 and 4 would provide additional powers to SONYMA for interim
short-term financing.

Sections 5 through 8 would authorize SONYMA to create an interim short
term financing account within the mortgage insurance fund to be used
for interim short-term financing support.  These sections would also
provide that: (1) the mortgage insurance fund shall be used as a
revolving fund with respect to interim short-term financing support;
(2) that SONYMA may credit from the special account to the interim
short-term financing account such moneys as are required to satisfy
the mortgage insurance reserve requirement thereof; (3) that mortgage
loans purchased with moneys in the interim short-term financing
account shall be kept in the interim short-term financing account and
shall not be commingled with any other accounts except as otherwise
authorized; and (4) that the interim short-term financing account
shall be excluded from the excess balance calculation set forth in PAL
§ 2429-b(2).

Section 9 would provide that certain amendments to law enacted in
1989, in 2004 and as part of this bill shall continue to apply to
certain commitments for mortgage insurance, development corporation
credit support and interim short-term financing support in force on or
before July 16, 2011.

Section 10 would provide that this bill and powers delineated therein
be liberally construed to effectuate the intent and purpose of the
bill.

Section 11 would contain a severability clause.

Section 12 would provide that the bill takes effect immediately.

 EXISTING LAW :

Under current law, SONYMA's MIF does not have authority to provide
interim short-term financing support for SONYMA's mortgage loan
acquisitions.

 LEGISLATIVE HISTORY :
None.

 STATEMENT IN SUPPORT :

SONYMA's mortgage programs are continuously available to mortgagors
throughout New York State. Qualifying mortgage loans made to low and
moderate income homebuyers are delivered to SONYMA by its
participating banks on a weekly basis for purchase by SONYMA, at
stated rates of interest. SONYMA funds the loan purchases primarily
through the issuance of tax-exempt bonds in the capital markets.
Throughout its history, SONYMA has never been precluded from issuing
bonds on a regular basis and, when needed, to fund bond purchases.

The current global credit and liquidity crisis has had a severe impact
on the way SONYMA funds its programs. The disruption in the short-term
debt markets resulted in higher interest rates, shutting off access to
the capital markets for extended periods of time, and this has
impacted the bond issuance process at SONYMA.

For the first time, this fall SONYMA was not able to schedule a bond
issuance, due to the credit crisis. Along with other housing bond
issuers throughout the country, SONYMA could not issue bonds to fund
its mortgages. SONYMA has had to use excess available funds, which
would normally be used to subsidize programs to acquire its mortgage
loans. Only recently, as the crisis has eased has SONYMA been able to
come to market with a bond issue that was not as large as SONYMA would
have expected.

Additionally, SONYMA, like other housing bond issuers, depends on
issuing a certain amount of variable rate bonds as part of its bond
issues. This device allows it to lower overall costs. An effect of the
credit crisis has been to make variable rate bonds both more expensive
and less available to issuers, primarily due to the dearth of
liquidity facility providers. These entities provide back-up for
SONYMA in cases where variable rate bonds are tendered by bondholders.

The lack of capital market access, plus the increased costs and
lessened liquidity for variable rate bonds make it imperative for
SONYMA to avail itself of alternative ways of acquiring funds to pay
for its m011gage loan commitments.

This proposal would allow the MIF to make "warehousing" loans to
SONYMA, so SONYMA can acquire those mortgage loans in anticipation of
coming to market with a bond issue. Once SONYMA is able to access the
capital markets, SONYMA would repay the MIF for any funds lent to the
single-family program. In any case, each loan from the MIF to the
single-family program would have to be repaid in full within six
months of execution. This kind of warehousing program will provide a
stable funding alternative to SONYMA so that it can maintain its
continuously available mortgage programs in times when access to the
capital markets is shut off, or made prohibitively expensive.

The loan from the MIF can only be made so long as the then existing
rating on the MIF is not adversely affected as a result of the use of
the excess reserves to fund the loan to SONYMA's single family
program.

 BUDGET IMPLICATIONS :

None.

 EFFECTIVE DATE
The bill takes effect immediately.

2009-S3692 - Bill Text download pdf

co-Sponsors

2009-S3692A - Details

Current Committee:: Senate Corporations, Authorities And Commissions
Laws Affected:: Amd §§2425, 2426, 2427, 2429-a & 2429-b, add §2428-b, Pub Auth L; amd §19, Chap 555 of 1989

2009-S3692A - Summary

2009-S3692A - Sponsor Memo

                                 BILL NUMBER:  S3692A

 TITLE OF BILL :

An act to amend the public authorities law, in relation to the New
York state interim short-term financing account and to amend chapter
555 of the laws of 1989 amending the public authorities law and other
laws, relating to establishing a New York state infrastructure trust
fund, in relation to interim short-term financing account within the
state of New York mortgage agency mortgage insurance fund


 PURPOSE :

This bill would authorize the State of New York Mortgage Agency
("SONYMA") to use funds of the Mortgage Insurance Fund ("MIF") to
acquire mortgage loans until SONYMA obtains long-term financing for
these acquisitions.

 SUMMARY OF PROVISIONS :

Section 1 of the bill amends Public Authorities Law ("PAL") § 2425 by
adding a statement of legislative findings.

Section 2 would amend Public Authorities Law ("PAL") § 2426 to define
"interim short-term financing support."

Sections 3 and 4 would provide additional powers to SONYMA for interim
short-term financing.

Sections 5 through 8 would authorize SONYMA to create an interim short
term financing account within the mortgage insurance fund to be used
for interim short-term financing support.  These sections would also
provide that: (1) the mortgage insurance fund shall be used as a
revolving fund with respect to interim short-term financing support;
(2) that SONYMA may credit from the special account to the interim
short-term financing account such moneys as are required to satisfy
the mortgage insurance reserve requirement thereof; (3) that mortgage
loans purchased with moneys in the interim short-term financing
account shall be kept in the interim short-term financing account and
shall not be commingled with any other accounts except as otherwise
authorized; and (4) that the interim short-term financing account
shall be excluded from the excess balance calculation set forth in PAL
§ 2429-b(2).

Section 9 would provide that certain amendments to law enacted in
1989, in 2004 and as part of this bill shall continue to apply to
certain commitments for mortgage insurance, development corporation
credit support and interim short-term financing support in force on or
before July 16, 2011.

Section 10 would provide that this bill and powers delineated therein
be liberally construed to effectuate the intent and purpose of the
bill.

Section 11 would contain a severability clause.

Section 12 would provide that the bill takes effect immediately.

 EXISTING LAW :

Under current law, SONYMA's MIF does not have authority to provide
interim short-term financing support for SONYMA's mortgage loan
acquisitions.

 LEGISLATIVE HISTORY :
None.

 STATEMENT IN SUPPORT :

SONYMA's mortgage programs are continuously available to mortgagors
throughout New York State. Qualifying mortgage loans made to low and
moderate income homebuyers are delivered to SONYMA by its
participating banks on a weekly basis for purchase by SONYMA, at
stated rates of interest. SONYMA funds the loan purchases primarily
through the issuance of tax-exempt bonds in the capital markets.
Throughout its history, SONYMA has never been precluded from issuing
bonds on a regular basis and, when needed, to fund bond purchases.

The current global credit and liquidity crisis has had a severe impact
on the way SONYMA funds its programs. The disruption in the short-term
debt markets resulted in higher.  interest rates, shutting off access
to the capital markets for extended periods of time, and this has
impacted the bond issuance process at SONYMA.

For the first time, this fall SONYMA was not able to schedule a bond
issuance, due to the credit crisis. Along with other housing bond
issuers throughout the country, SONYMA could not issue bonds to fund
its mortgages. SONYMA has had to use excess available funds, which
would normally be used to subsidize programs to acquire its mortgage
loans. Only recently, as the crisis has eased, has SONYMA been able to
come to market with a bond issue that was not as large as SONYMA would
have expected.

Additionally, SONYMA, like other housing bond issuers, depends on
issuing a certain amount of variable rate bonds as part of its bond
issues. This device allows it to lower overall costs. An effect of the
credit crisis has been to make variable rate bonds both more expensive
and less available to issuers, primarily due to the dearth of
liquidity facility providers. These entities provide back-up for
SONYMA in cases where variable rate bonds are tendered by bondholders.

The lack of capital market access, plus the increased costs and
lessened liquidity for variable rate bonds make it imperative for
SONYMA to avail itself of alternative ways of acquiring funds to pay
for its mortgage loan commitments.

This proposal would allow the MIF to make "warehousing" funds
available to SONYMA, so SONYMA can acquire those mortgage loans in
anticipation of coming to market with a bond issue. The loan would be
deposited in the newly-created interim short-term financing account.
Once SONYMA is able to access the capital markets, SONYMA would buy
the loans out of the interim short-term financing account and the
funds therein would be replenished. This kind of warehousing program
will provide a stable funding alternative to SONYMA so that it can
maintain its continuously available mortgage programs in times when
access to the capital markets is shut off, or made prohibitively
expensive.

The interim short-term financing account can only be used so long as
the then existing rating on the MIF is not adversely affected as a
result of the use of the excess reserves to fund the temporary loan
acquisitions.

 BUDGET IMPLICATIONS :

None.

 EFFECTIVE DATE :
The bill takes effect immediately.

2009-S3692A - Bill Text download pdf

                            
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                 3692--A

                       2009-2010 Regular Sessions

                            I N  S E N A T E

                             March 27, 2009
                               ___________

Introduced by Sen. PERKINS -- (at request of the State of New York Mort-
  gage Agency) -- read twice and ordered printed, and when printed to be
  committed  to  the  Committee on Corporations, Authorities and Commis-
  sions -- committee discharged,  bill  amended,  ordered  reprinted  as
  amended and recommitted to said committee

AN  ACT to amend the public authorities law, in relation to the New York
  state interim short-term financing account and to amend chapter 555 of
  the laws of 1989 amending the public authorities law and  other  laws,
  relating  to  establishing a New York state infrastructure trust fund,
  in relation to interim short-term financing account within  the  state
  of New York mortgage agency mortgage insurance fund

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. Section 2425 of the public authorities law  is  amended  by
adding a new eleventh undesignated paragraph to read as follows:
  ALSO,  IT IS HEREBY FOUND AND DECLARED THAT IT IS IN THE PUBLIC INTER-
EST TO PROVIDE THE OPPORTUNITY FOR INTERIM SHORT-TERM FINANCING FOR  THE
STATE  OF  NEW  YORK  MORTGAGE AGENCY'S MORTGAGE ACQUISITION PROGRAMS TO
FURTHER EXPAND THE AGENCY'S MISSION TO PROVIDE AFFORDABLE HOUSING TO LOW
AND MODERATE INCOME FIRST-TIME HOMEBUYERS.
  S 2. Section 2426 of the public authorities law is amended by adding a
new subdivision 23 to read as follows:
  23. "INTERIM SHORT-TERM  FINANCING  SUPPORT".  AUTHORITY  GRANTED  THE
STATE  OF  NEW  YORK MORTGAGE AGENCY ("SONYMA") TO USE THE MONIES IN ITS
MORTGAGE INSURANCE FUND TO  ACQUIRE  MORTGAGE  LOANS  PENDING  OBTAINING
LONG-TERM FINANCING.
  S  3.  The opening paragraph of section 2427 of the public authorities
law, as amended by chapter 3 of the laws of 2004, is amended and  a  new
subdivision 11 is added to read as follows:

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD09087-05-9

S. 3692--A                          2

  The  agency  shall  have  the  following  additional  powers only with
respect to insuring mortgage loans [and], providing  development  corpo-
ration credit support, AND INTERIM SHORT-TERM FINANCING SUPPORT:
  11.  TO PROVIDE FOR INTERIM SHORT-TERM FINANCING SUPPORT FOR THE STATE
OF NEW YORK MORTGAGE AGENCY'S SINGLE FAMILY PROGRAMS.
  S 4. The public authorities law is amended by  adding  a  new  section
2428-b to read as follows:
  S  2428-B.  INTERIM  SHORT-TERM  FINANCING  SUPPORT.  1. THE AGENCY IS
AUTHORIZED,  SUBJECT  TO  THE  PROVISIONS  OF  THIS  TITLE,  TO  PROVIDE
SHORT-TERM  INTERIM FINANCING SUPPORT FOR THE AGENCY'S MORTGAGE ACQUISI-
TION PROGRAMS BY MAKING MONIES IN THE MORTGAGE INSURANCE FUND  AVAILABLE
FOR  THE PURPOSE OF PROVIDING FUNDS TO ACQUIRE MORTGAGE LOANS UNTIL SUCH
TIME AS PERMANENT FINANCING BECOMES AVAILABLE.
  2. THE BOARD OF DIRECTORS OF THE AGENCY, BY A VOTE OF  A  MAJORITY  OF
ALL OF ITS MEMBERS OR OF A COMMITTEE THEREOF SO EMPOWERED, SHALL APPROVE
THE TERMS OF THE INTERIM SHORT-TERM FINANCING LOANS.
  3. ON OR BEFORE THE FIFTEENTH DAY OF MAY IN EACH YEAR, THE CHAIRMAN OF
THE BOARD OF THE AGENCY SHALL REPORT TO THE MEMBERS ON ANY DISBURSEMENTS
MADE  FROM  THE INTERIM SHORT-TERM FINANCING ACCOUNT FOR THE CONSECUTIVE
TWELVE-MONTH PERIOD ENDING ON THE  THIRTY-FIRST  DAY  OF  MARCH  IN  THE
PRECEDING YEAR.
  S 5. Section 2429-a of the public authorities law, as amended by chap-
ter 3 of the laws of 2004, is amended to read as follows:
  S  2429-a.  Payment of insurance [and], development corporation credit
support, AND INTERIM SHORT-TERM FINANCING SUPPORT. 1. The  agency  shall
establish  procedures  to  be  followed by a mortgagee in the event of a
default under the terms of any mortgage insured by the agency. The agen-
cy may require that prior to  submitting  a  claim  to  the  agency  for
payment  of insurance the mortgagee shall take such actions with respect
to the property securing the defaulted mortgage as may be  specified  by
the  agency to be satisfactory evidence of a continuing default, includ-
ing but not limited to the following: (i) becoming lawfully the  mortga-
gee  in  possession  thereof; (ii) causing a receiver to be appointed of
such property; (iii) obtaining voluntary conveyance of  the  mortgagor's
right and title to such property; or (iv) obtaining by foreclosure clear
and unencumbered title to such property, all in such manner as the agen-
cy  may  require. Following submission of a valid claim the agency shall
pay an amount which  shall  not  exceed  the  lesser  of  (1)  the  then
outstanding  insured  principal amount of the mortgage multiplied by the
per centum of such outstanding amount insured by the agency  and  a  per
centum  of  the  mortgagee's cost arising from the default, inclusive of
public liens and delinquent and unpaid interest, all as the  agency  may
from  time  to  time  allow,  which  per centum shall not exceed the per
centum of the outstanding principal indebtedness insured by  the  agency
or  (2)  the  insured amount of the mortgage at the date of execution of
the insurance contract or its latest amendment, if any, except that  the
agency  shall  pay  the greater of the two amounts on claims by a public
employee pension fund, or by a public benefit corporation  derived  from
the  sale of notes or bonds issued by said corporation, provided that no
more than the actual loss suffered by such public employee pension  fund
or public benefit corporation shall be paid. Such payment may be made by
the agency in a lump sum, or in partial payments made within such period
of time as may be agreed to between the agency and the mortgagee, all in
accordance with procedures to be established by the agency.
  2. The agency shall establish, by contract or otherwise, procedures to
be  followed  with respect to development corporation credit support for

S. 3692--A                          3

which the development corporation credit support account has been deter-
mined by the agency to be a source or potential source of payment.
  3.  THE AGENCY SHALL ESTABLISH BY CONTRACT OR OTHERWISE, PROCEDURES TO
BE FOLLOWED WITH RESPECT TO MAKING INTERIM SHORT-TERM FINANCING  SUPPORT
FOR THE TEMPORARY ACQUISITION OF MORTGAGE LOANS.
  S  6.  Section  2429-b  of  the  public authorities law, as amended by
section 13 of chapter 3 of the laws of  2004,  is  amended  to  read  as
follows:
  S  2429-b. Mortgage insurance fund. 1. (a) The agency shall create and
establish a mortgage insurance fund. Within such fund, the agency  shall
establish:  (i)  a  special account, which shall be divided into sub-ac-
counts for each region as defined in subdivision nine of  section  twen-
ty-four  hundred  twenty-six  of  this  title; (ii) a single family pool
insurance account; (iii) a project pool insurance account; [and] (iv)  a
development  corporation  credit  support  account;  AND  (V) AN INTERIM
SHORT-TERM FINANCING ACCOUNT. The single family pool  insurance  account
shall be used for all business relating to the insurance of mortgages on
properties  with  one to four dwelling units, the project pool insurance
account shall be used for all business  relating  to  the  insurance  of
mortgages  on  properties  other  than  those  with one to four dwelling
units, [and] the development corporation credit support account shall be
used  for  all  business  relating  to  development  corporation  credit
support,  AND THE INTERIM SHORT-TERM FINANCING ACCOUNT SHALL BE USED FOR
ALL BUSINESS RELATING TO INTERIM SHORT-TERM FINANCING SUPPORT.  Separate
sub-accounts  may  be  established  within the special account, the pool
insurance accounts, [and] the  development  corporation  credit  support
account AND THE INTERIM SHORT-TERM FINANCING ACCOUNT as deemed appropri-
ate by the agency.
  (b)  (i) The mortgage insurance fund shall be used as a revolving fund
for carrying out the provisions of this title with respect to  mortgages
insured   and   development   corporation  credit  support  AND  INTERIM
SHORT-TERM FINANCING SUPPORT, provided  thereunder.    (ii)  The  agency
shall  pay  into such fund all moneys which may be made available to the
agency for the purposes of such fund from any source, including but  not
limited  to  the moneys received from recording officers pursuant to the
provisions of subdivision two of section two hundred  sixty-one  of  the
tax  law. The agency shall credit the amount of moneys received from the
recording officer of each county, pursuant to subdivision two of section
two hundred sixty-one of the tax law, to the  special  account.  In  any
fiscal  year,  no more than fifty per centum of the amount received from
the recording officers during the consecutive twelve month period ending
on the preceding March thirty-first may be used by the  agency  for  the
purpose  of  insuring  mortgages  on  property located in any one region
pursuant to section two thousand four hundred twenty-eight of this part,
provided, however, that this provision shall not include or  be  applied
to  pool  insurance  OR  PRIMARY  MORTGAGE  INSURANCE  of mortgage loans
purchased by the agency. The agency shall credit any other moneys  which
may  be  made available to the agency for the purposes of such fund from
any other source to the special account, the single family  pool  insur-
ance  account,  the project pool insurance account, [or] the development
corporation credit support account, OR THE INTERIM SHORT-TERM  FINANCING
ACCOUNT  as  appropriate. Any income or interest earned by, or increment
to, the mortgage insurance fund due to the investment thereof  shall  be
credited  to the special account, the applicable pool insurance account,
[or] the development corporation  credit  support  account,  OR  INTERIM
SHORT-TERM FINANCING ACCOUNT, as appropriate.

S. 3692--A                          4

  (c) The agency may credit from the special account to the single fami-
ly  pool insurance account, to the project pool insurance account and to
the development corporation credit support account such  moneys  as  are
required  to  satisfy  the  mortgage  insurance fund requirement of such
accounts,  except  that  during  any twelve-month period ending on March
thirty-first the aggregate amount credited  to  the  development  corpo-
ration  credit  support account (excluding amounts described in the last
sentence of paragraph (b) of this  subdivision)  shall  not  exceed  the
lesser of (i) fifty million dollars or (ii) the aggregate of the amounts
required  under the contracts executed by the agency to provide develop-
ment corporation support.   THE  AGENCY  MAY  CREDIT  FROM  THE  SPECIAL
ACCOUNT  TO  THE INTERIM SHORT-TERM FINANCING ACCOUNT SUCH MONEYS AS ARE
IN EXCESS OF THE AMOUNTS REQUIRED TO SATISFY THE MORTGAGE INSURANCE FUND
REQUIREMENTS OF THE SINGLE FAMILY POOL INSURANCE  ACCOUNT,  THE  PROJECT
POOL  INSURANCE  ACCOUNT, AND THE DEVELOPMENT CORPORATION CREDIT SUPPORT
ACCOUNT.
  (d) Moneys, investments and cash equivalents of the  special  account,
the  single  family  pool  insurance account, the project pool insurance
account [and], the development corporation credit support  account,  AND
THE  INTERIM  SHORT-TERM  FINANCING  ACCOUNT  shall be kept separate and
shall not be commingled with each other or with any other accounts which
may be established from time to time, except as otherwise authorized  by
this section.
  (e)  Moneys,  investments  and  cash equivalents of the pool insurance
accounts [and], the development corporation credit support account,  AND
THE  INTERIM  SHORT-TERM  FINANCING  ACCOUNT  shall be excluded from the
excess balance calculation set forth in subdivision two of this section.
However, if at any time the moneys,  investments  and  cash  equivalents
(valued  as  determined  by the agency) of either pool insurance account
[or], the development corporation credit support account, OR THE INTERIM
SHORT-TERM FINANCING ACCOUNT exceed the amount necessary to  attain  and
maintain  the  credit rating or, with respect to development corporation
credit support, credit worthiness (as determined by the agency) required
to accomplish the purposes of such account  the  agency  shall  transfer
such  excess to the special account and such excess shall be included in
the excess balance calculation.
  1-a. All moneys held in the mortgage insurance fund, except as herein-
after provided, shall be used, as required, solely for  the  payment  of
the  agency's  liabilities arising from mortgages insured as provided in
section twenty-four hundred twenty-nine-a of this part [and],  from  the
provision  of  development  corporation  credit  support  as provided in
section twenty-four hundred twenty-eight-a of this part,  AND  FROM  THE
PROVISION OF INTERIM SHORT-TERM FINANCING SUPPORT AS PROVIDED IN SECTION
TWENTY-FOUR HUNDRED TWENTY-EIGHT-B OF THIS PART; provided, however, that
no moneys shall be withdrawn from any account at any time in such amount
as  would  reduce  the  amount  of,  as applicable, the special account,
either pool insurance account  or  the  development  corporation  credit
support  account  to  less  than  its applicable mortgage insurance fund
requirement, except for the purpose of paying such  liabilities  as  the
same  become due and for the payment of which other moneys of the agency
are not available. All payments pursuant to section twenty-four  hundred
twenty-nine-a  of  this part, and expenses attributable thereto shall be
debited to the special account  or  the  single  family  pool  insurance
account  or the project pool insurance account or the development corpo-
ration credit  support  account  OR  THE  INTERIM  SHORT-TERM  FINANCING
ACCOUNT,  as  appropriate, within the mortgage insurance fund. All other

S. 3692--A                          5

operating expenses of the agency with respect to insurance of  mortgages
[and],  providing  development  corporation  credit support, AND INTERIM
SHORT-TERM FINANCING SUPPORT shall be debited to  the  special  account,
the  single  family  pool  insurance account, the project pool insurance
account [or] the development corporation credit support account  OR  THE
INTERIM SHORT-TERM FINANCING ACCOUNT within the mortgage insurance fund,
as appropriate.
  2.  On  or before March twentieth in each year, the board of directors
of the agency shall determine the amount estimated to be received by the
agency from the additional tax imposed pursuant to subdivision one-a  of
section  two  hundred  fifty-three  of  the tax law and deposited in the
mortgage insurance fund and credited to the  special  account  plus  any
other  monies  deposited  in  such  account  plus the amount of reserves
available in such special account with respect to  mortgage  loans  that
were  previously  insured in accordance with section twenty-four hundred
twenty-eight OF THIS PART, or  development  corporation  credit  support
previously  provided  pursuant  to  section  twenty-four hundred twenty-
eight-a of this part under  contracts  or  commitments  that  have  been
satisfied  or  cancelled, OR INTERIM SHORT-TERM FINANCING SUPPORT PREVI-
OUSLY  MADE  AVAILABLE   PURSUANT   TO   SECTION   TWENTY-FOUR   HUNDRED
TWENTY-EIGHT-B  OF  THIS PART THAT HAS BEEN REPAID, pursuant to subdivi-
sion one of this section, except charges and fees levied by  the  agency
pursuant  to  section  twenty-four  hundred  twenty-nine-c of this part,
which shall be added in the computation only when such a  commitment  is
cancelled or expires or when the insurance or contractual arrangement to
provide  development  corporation  credit  support OR INTERIM SHORT-TERM
FINANCING SUPPORT applied for is declared effective. Such  determination
made  on  or  before  March twentieth in each year shall be made for the
consecutive twelve-month period ending on the subsequent  March  thirty-
first.  The  board shall then determine the estimated excess balance, if
any, in such special account by determining the  amount  by  which  such
credits  exceed  twenty per centum, or such other per centums or amounts
as may have been established by the board of  directors  of  the  agency
pursuant  to  subdivision  seven  of section twenty-four hundred twenty-
eight of this part, of the amounts insured or committed  to  be  insured
and the amounts of development corporation credit support established by
the  board  of  directors  of the agency pursuant to section twenty-four
hundred  twenty-eight-a  of  this  part,  AND  THE  AMOUNTS  OF  INTERIM
SHORT-TERM  FINANCING  SUPPORT AS MAY HAVE BEEN ESTABLISHED BY THE BOARD
OF DIRECTORS OF THE AGENCY PURSUANT TO SECTION TWENTY-FOUR HUNDRED TWEN-
TY-EIGHT-B OF THIS PART to be provided during such  twelve-month  period
plus  any  payments  by  the  agency  during such twelve-month period on
account of a  mortgage  [or],  development  corporation  credit  support
contract  entered  into OR INTERIM SHORT-TERM FINANCING SUPPORT PROVIDED
during such twelve-month period ending on such March thirty-first,  plus
the  operating  expenses  of  the agency during such twelve-month period
with respect to insurance  of  mortgages  or  provision  of  development
corporation  credit  support  OR  INTERIM  SHORT-TERM FINANCING SUPPORT,
which amount may not exceed an amount determined and  certified  by  the
director  of the budget, with notification to the chairman of the senate
finance committee and chairman of the assembly ways and means committee.
On or before May fifteenth, the board shall determine any adjustment  to
the  estimated excess balance necessary to reflect the variance, if any,
between such estimated excess balance  and  the  actual  excess  balance
computed  as of March thirty-first, and shall certify such adjustment to
the director of the budget. The agency shall include such adjustment  in

S. 3692--A                          6

the  estimated  excess  balance  determination  for the following fiscal
year, unless otherwise instructed by the director  of  the  budget.  The
agency  shall  submit  to the director of the budget an estimate of such
operating  expenses on or before the tenth business day in March of each
year and the director of the budget shall make such certification before
March twentieth of each year.
  Upon making the determination of the  estimated  excess  balance,  the
agency  shall  certify such determination to the director of the budget,
the chairmen of the senate finance committee and the assembly  ways  and
means  committee,  and  the comptroller. Payment of such actual or esti-
mated excess balance shall be made within ninety days after March  twen-
tieth. The agency shall, at the direction of the director of the budget,
pay  such  estimated  or actual excess balance, if any, from the special
account to the comptroller  for  deposit  to  the  state  general  fund;
provided,  however,  that if the aggregate amount in the special account
as of such date is less than the mortgage  insurance  fund  requirement,
the  agency  shall  retain  all or that portion of any such estimated or
actual excess balance in such special account necessary to increase  the
aggregate  amount in such special account to the mortgage insurance fund
requirement. The director of the budget shall notify the chairmen of the
senate finance committee and the assembly ways and means  committee  ten
days prior to the issuance of the directive in respect to the payment of
the estimated or actual excess balance to the general fund.
  Further  provided,  however,  that  the  budget to be submitted to the
legislature by the governor pursuant to article seven of  the  constitu-
tion  shall  separately  state  the  amount  of such estimated or actual
excess balance determined as hereinabove prescribed, if any, which shall
be included in the monies and revenues estimated to be available  during
the current and ensuing fiscal years, respectively.
  3. The moneys, OTHER THAN THE MONIES IN THE INTERIM SHORT-TERM FINANC-
ING  ACCOUNT  WHEN  INVESTED  IN  MORTGAGE  LOANS, in such fund shall be
deposited in one or more banks or  trust  companies  designated  in  the
manner  provided  by law, as depositories of the funds of the state. The
agency may invest the moneys in such fund in  obligations  specified  in
subdivision  four  of  this section. Any interest earned or capital gain
realized on the money so deposited  or  invested  shall  accrue  to  and
become  part  of  such fund. The separate identity of such fund shall be
maintained whether its assets consist of cash or investments or both.
  4. Moneys in such fund, OTHER THAN MONEYS IN  THE  INTERIM  SHORT-TERM
FINANCING  ACCOUNT, may be invested (a) in special time deposit accounts
in, or certificates of deposit issued by, a bank, trust company, savings
bank or savings and loan association located and authorized to do  busi-
ness in this state, provided, however, that such time deposit account or
certificate of deposit shall be payable within such time as the proceeds
may be needed to meet expenditures estimated to be incurred by the agen-
cy and provided further that such time deposit account or certificate of
deposit  be  secured  by a pledge of obligations of the United States of
America or obligations of the state, any city of  the  state,  or  other
municipal  corporation,  school  district or district corporation of the
state or obligations of agencies of the federal government;  or  (b)  in
obligations  of the United States of America or the state which may from
time to time be legally purchased by savings banks within the  state  as
an  investment  of  funds  belonging  to them or in their control, or in
obligations of the Federal National Mortgage Association  provided  such
obligations  shall  be  payable or redeemable at the option of the owner

S. 3692--A                          7

within such times as the proceeds may be  needed  to  meet  expenditures
estimated to be incurred by the agency.
  MONEYS  IN  THE  INTERIM SHORT-TERM FINANCING ACCOUNT SHALL BE USED TO
ACQUIRE MORTGAGE LOANS OF THE AGENCY PENDING THE AGENCY OBTAINING  LONG-
TERM  FINANCING  FOR THE PURCHASE THEREOF, WHICH MORTGAGE LOANS SHALL BE
DEEMED INVESTMENTS OF THE INTERIM SHORT-TERM FINANCING ACCOUNT. AT  SUCH
TIME AS THE AGENCY OBTAINS LONG-TERM FINANCING FOR THE PURCHASE OF MORT-
GAGE  LOANS  ON  DEPOSIT  IN THE INTERIM SHORT-TERM FINANCING ACCOUNT AS
INVESTMENTS THEREOF, THE AGENCY SHALL PURCHASE SAID MORTGAGE  LOANS  AND
THE  MONEYS  SHALL  BE  DEPOSITED  IN  THE  INTERIM SHORT-TERM FINANCING
ACCOUNT. MONEYS IN THE INTERIM SHORT-TERM FINANCING ACCOUNT THAT ARE NOT
INVESTED IN MORTGAGE LOANS AS SET FORTH HEREIN SHALL BE INVESTED AS  SET
FORTH IN PARAGRAPH (B) OF THIS SUBDIVISION.
  5.  In  computing  the  amount  of the mortgage insurance fund for the
purposes of this section, securities in which all or a portion  of  such
fund shall be invested shall be valued at par if purchased at par, or if
purchased  at  other than par, at amortized value. Amortized value, when
used with respect to securities  purchased  at  a  premium  above  or  a
discount  below  par, shall mean the value as of any given date obtained
by dividing the total premiums or discount at which such securities were
purchased by the number of interest payments remaining  to  maturity  on
such  securities  after  such  purchase and by multiplying the amount so
calculated by the number of interest payment dates having  passed  since
the  date  of such purchase; and (i) in the case of securities purchased
at a premium by deducting the product thus obtained  from  the  purchase
price,  and  (ii)  in  the case of securities purchased at a discount by
adding the product thus obtained to the purchase price.
  6. The agency may create and establish such other fund or funds as may
be necessary  or  desirable  for  the  carrying  out  of  its  corporate
purposes.
  S 7. Subdivision 1 of section 2429-b of the public authorities law, as
amended  by  section  14 of chapter 3 of the laws of 2004, is amended to
read as follows:
  1. The agency shall create and establish a  mortgage  insurance  fund.
Within  such  fund,  the agency shall establish a special account, which
shall be divided into sub-accounts for each region as defined in  subdi-
vision  nine  of  section  twenty-four  hundred  twenty-six of this part
[and]; a development corporation credit support account, AND AN  INTERIM
SHORT-TERM FINANCING ACCOUNT. The development corporation credit support
account  shall  be  used  for all business related to development corpo-
ration credit support, AND  THE  INTERIM  SHORT-TERM  FINANCING  ACCOUNT
SHALL  BE USED FOR ALL BUSINESS RELATING TO INTERIM SHORT-TERM FINANCING
SUPPORT.  Separate sub-accounts may be established within  the  develop-
ment  corporation  credit  support  account  AND  THE INTERIM SHORT-TERM
FINANCING ACCOUNT as deemed appropriate  by  the  agency.  The  mortgage
insurance  fund  shall  be used as a revolving fund for carrying out the
provisions of this title with respect to mortgages insured and TO devel-
opment corporation support  AND  INTERIM  SHORT-TERM  FINANCING  SUPPORT
provided  thereunder.  The  agency  shall  pay into such fund all moneys
which may be made available to the agency for the purposes of such  fund
from  any  source, including but not limited to the moneys received from
recording officers pursuant to the  provisions  of  subdivision  two  of
section  two  hundred  sixty-one of the tax law. The agency shall credit
the amount of moneys received from the recording officer of each county,
pursuant to subdivision two of section two hundred sixty-one of the  tax
law,  to  the  special account. In any calendar year, no more than fifty

S. 3692--A                          8

per centum of the amount received from the recording officers and  cred-
ited  to  the special account during the consecutive twelve month period
ending on the preceding December thirty-first may be used by the  agency
for  the  purpose  of  insuring mortgages on property located in any one
region pursuant to section two thousand  four  hundred  twenty-eight  of
this  part PROVIDED, THAT THIS PROVISION SHALL NOT INCLUDE OR BE APPLIED
TO POOL INSURANCE  ON  PRIMARY  MORTGAGE  INSURANCE  OF  MORTGAGE  LOANS
PURCHASED BY THE AGENCY.  The agency shall credit any other moneys which
may  be  made available to the agency for the purposes of such fund from
any other source to the special account or the  development  corporation
credit  support  account OR THE INTERIM SHORT-TERM FINANCING ACCOUNT, as
appropriate. Any income or interest earned  by,  or  increment  to,  the
mortgage  insurance fund due to the investment thereof shall be credited
to the special account or the development corporation credit account  OR
THE INTERIM SHORT-TERM FINANCING ACCOUNT, as appropriate.
  S  8. Subdivision 1-a of section 2429-b of the public authorities law,
as amended by section 15 of chapter 3 of the laws of 2004, is amended to
read as follows:
  1-a. All moneys held in the mortgage insurance fund, except as herein-
after provided, shall be used, as required, solely for  the  payment  of
the  agency's  liabilities arising from mortgages insured as provided in
section twenty-four hundred twenty-nine-a of  this  part  and  from  the
provision  of  development  corporation  credit  support  as provided in
section twenty-four hundred twenty-eight-a of this part,  AND  FROM  THE
PROVISION OF INTERIM SHORT-TERM FINANCING SUPPORT AS PROVIDED IN SECTION
TWENTY-FOUR HUNDRED TWENTY-EIGHT-B OF THIS PART; provided, however, that
no moneys shall be withdrawn from any account at any time in such amount
as would reduce the amount of, as applicable, the special account or the
development corporation credit support account to less than its applica-
ble  mortgage  insurance  fund  requirement,  except  for the purpose of
paying such liabilities as the same become due and for  the  payment  of
which  other moneys of the agency are not available. All payments pursu-
ant to section twenty-four  hundred  twenty-nine-a  of  this  part,  and
expenses attributable thereto shall be debited to the special account or
the  development  corporation  credit  support  account  OR  THE INTERIM
SHORT-TERM FINANCING ACCOUNT within the  mortgage  insurance  fund.  All
other  operating  expenses  of  the  agency with respect to insurance of
mortgages and providing development  corporation  credit  support    AND
PROVIDING  INTERIM  SHORT-TERM FINANCING SUPPORT shall be debited to the
special account or the development corporation credit support account OR
THE INTERIM SHORT-TERM FINANCING ACCOUNT within the  mortgage  insurance
fund, as appropriate.
  S 9. Section 19 of chapter 555 of the laws of 1989 amending the public
authorities law and other laws relating to establishing a New York state
infrastructure  trust  fund,  as  amended  by chapter 230 of the laws of
2007, is amended to read as follows:
  S 19. This act shall take effect immediately and shall  be  deemed  to
have  been  in full force and effect on and after June 15, 1989 provided
that the amendments to law effected by sections  six  and  nine  through
seventeen of this act, as amended, shall cease to be of force and effect
on  and  after July 16, [2009] 2011, on which date the provisions of the
public authorities law amended by such sections shall be as they were in
force and effect immediately  prior  to  this  act  taking  effect,  and
provided however that the amendments to law effected by sections six and
nine  through seventeen of this act, as amended, shall continue to apply
to all commitments issued or policies or development corporation  credit

S. 3692--A                          9

support  OR  INTERIM  SHORT-TERM FINANCING SUPPORT in force on or before
July 16, [2009] 2011,  and  provided  further  that  the  amendments  to
section 2429-b of the public authorities law made by section 13 of chap-
ter  3 of the laws of 2004 which amended this section shall not cease to
be of force and effect prior to the time that full payment of all devel-
opment corporation credit support obligations has been made or  provided
for,  AND  PROVIDED FURTHER THAT THE AMENDMENTS TO SECTION 2429-B OF THE
PUBLIC AUTHORITIES LAW MADE BY SECTIONS 6, 7 AND 8 OF A CHAPTER  OF  THE
LAWS  OF 2009, WHICH AMENDED THIS SECTION SHALL NOT CEASE TO BE OF FORCE
AND EFFECT PRIOR TO THE TIME THAT FULL PAYMENT OF ALL INTERIM SHORT-TERM
FINANCING SUPPORT OBLIGATIONS HAS BEEN MADE OR PROVIDED FOR.
  S 10. Construction. This act and all powers granted  hereby  shall  be
liberally construed to effectuate its intent and their purposes, without
implied limitations thereon. This act shall constitute full and complete
authority  for all things herein contemplated to be done. All rights and
powers herein granted shall be cumulative with those derived from  other
sources  and  shall not, except as expressly stated herein, be construed
in limitation thereof. Insofar as the provisions of this act are  incon-
sistent  with  the  provisions of any other act, general or special, the
provisions of this act shall be controlling.
  S 11. Severability clause. If any clause, sentence, paragraph, section
or part of this act be adjudged by any court of  competent  jurisdiction
to  be invalid, such judgment shall not affect, impair or invalidate the
remainder hereof but shall be applied in its operation  to  the  clause,
sentence,  paragraph,  section  or  part hereof directly involved in the
controversy in which such judgment shall have been rendered.
  S 12. This act shall take effect immediately; provided, however, that:
  a. The comptroller of the state of New York shall notify the  legisla-
tive  bill  drafting  commission  upon such enactment and allocation and
shall also notify the commissioner when full payment of all obligations,
including credit support obligations, has been made or provided for,  as
enacted  by section 19 of chapter 555 of the laws of 1989, as amended by
section nine of this act, in order that the commission may  maintain  an
accurate and timely effective data base of the official text of the laws
of  the  state of New York in furtherance of effecting the provisions of
section 44 of the legislative law and section 70-b of the  public  offi-
cers law.
  b.  The  amendments  to  subdivision 1 of section 2429-b of the public
authorities law made by section six of this act shall be subject to  the
expiration  and  reversion of such subdivision pursuant to section 19 of
chapter 555 of the laws of 1989, as amended, when  upon  such  date  the
provisions of section seven of this act shall take effect.
  c.  The  amendments to subdivision 1-a of section 2429-b of the public
authorities law made by section six of this act shall be subject to  the
expiration  and  reversion of such subdivision pursuant to section 19 of
chapter 555 of the laws of 1989, as amended, when  upon  such  date  the
provisions of section eight of this act shall take effect.

co-Sponsors

2009-S3692B (ACTIVE) - Details

Current Committee:: Senate Corporations, Authorities And Commissions
Laws Affected:: Amd §§2425, 2426, 2427, 2429-a & 2429-b, add §2428-b, Pub Auth L; amd §19, Chap 555 of 1989

2009-S3692B (ACTIVE) - Summary

2009-S3692B (ACTIVE) - Sponsor Memo

                                 BILL NUMBER:  S3692B

 TITLE OF BILL :

An act to amend the public authorities law, in relation to the New
York state interim short-term financing account and to amend chapter
555 of the laws of 1989 amending the public authorities law and other
laws, relating to establishing a New York state infrastructure trust
fund, in relation to interim short-term financing account within the
state of New York mortgage agency mortgage insurance fund

 PURPOSE :

This bill would authorize the state of New York Mortgage Agency
("SONYMA") to use funds of the Mortgage Insurance Fund ("MIF") to
acquire mortgage loans until SONYMA obtains long-term financing for
these acquisitions.

 SUMMARY OF PROVISIONS :

Section 1 of the bill amends Public Authorities Law ("PAL") § 2425 by
adding a statement of legislative findings.

Section 2 would amend public Authorities Law ("PAL") § 2426 to define
"interim short-term financing support."

Sections 3 and 4 would provide additional powers to SONYMA for interim
short-term financing.

Sections 5 through 8 would authorize SONYMA to create an interim short
term financing account within the mortgage insurance fund to be used
for interim short-term financing support. These sections would also
provide that: (1) the mortgage insurance fund shall be used as a
revolving fund with respect to interim short-term financing support;
(2) that SONYMA may credit from the special account to the interim
short-term financing account such moneys as are required to satisfy
the mortgage insurance reserve requirement thereof; (3) that mortgage
loans purchased with moneys in the interim short-term financing
account shall be kept in the interim short-term financing account and
shall not be commingled with any other accounts except as otherwise
authorized; and (4) that the interim short-term financing account
shall be excluded from the excess balance calculation set forth in PAL
§ 2429-b(2).

Section 9 would provide that certain amendments to law enacted in
1989, in 2004 and as part of this bill shall continue to apply to
certain commitments for mortgage insurance, development corporation
credit support and interim short-term financing support in force on or
before July 16, 2012.

Section 10 would provide that this bill and powers delineated therein
be liberally construed to effectuate the intent and purpose of the
bill.

Section 11 would contain a severability clause.

Section 12 would provide that the bill takes effect immediately.

 EXISTING LAW :
Under current law, SONYMA's MIF does not have authority to provide
interim short-term financing support for SONYMA's mortgage loan
acquisitions.

 LEGISLATIVE HISTORY :

None.
 STATEMENT IN SUPPORT :

SONYMA's mortgage programs are continuously available to mortgagors
throughout New York State. Qualifying mortgage loans made to low and
moderate income homebuyers are delivered to SONYMA by its
participating banks on a weekly basis for purchase by SONYMA, at
stated rates of interest. SONYMA funds the loan purchases primarily
through the issuance of tax-exempt bonds in the capital markets.
Throughout its history, SONYMA has never been precluded from issuing
bonds on a regular basis and, when needed, to fund bond purchases.

The current global credit and liquidity crisis has had a severe impact
on the way SONYMA funds its programs. The disruption in the short-term
debt markets resulted in higher. interest rates, shutting off access
to the capital markets for extended periods of time, and this has
impacted the bond issuance process at SONYMA.

For the first time, this fall SONYMA was not able to schedule a bond
issuance, due to the credit crisis. Along with other housing bond
issuers throughout the country, SONYMA could not issue bonds to fund
its mortgages. SONYMA has had to use excess available funds, which
would normally be used to subsidize programs to acquire its mortgage
loans.  Only recently, as the crisis has eased, has SONYMA been able
to come to market with a bond issue that was not as large as SONYMA
would have expected.

Additionally, SONYMA, like other housing bond issuers, depends on
issuing a certain amount of variable rate bonds as part of its bond
issues.  This device allows it to lower overall costs. An effect of
the credit crisis has been to make variable rate bonds both more
expensive and less available to issuers, primarily due to the dearth
of liquidity facility providers. These entities provide back-up for
SONYMA in cases where variable rate bonds are tendered by bondholders.

The lack of capital market access, plus the increased costs and
lessened liquidity for variable rate bonds make it imperative for
SONYMA to avail itself of alternative ways of acquiring funds to pay
for its mortgage loan commitments.

This proposal would allow the MIF to make "warehousing" funds
available to SONYMA, so SONYMA can acquire those mortgage loans in
anticipation of coming to market with a bond issue. The loan would be
deposited in the newly-created interim short-term financing account.
Once SONYMA is able to access the capital markets, SONYMA would buy
the loans out of the interim short-term financing account and the
funds therein would be replenished. This kind of warehousing program
will provide a stable funding alternative to SONYMA so that it can
maintain its continuously available mortgage programs in times when
access to the capital markets is shut off, or made prohibitively
expensive.

The interim short-term financing account can only be used so long as
the then existing rating on the MIF is not adversely affected as a
result of the use of the excess reserves to fund the temporary loan
acquisitions.

 BUDGET IMPLICATIONS :

None.

 EFFECTIVE DATE :
The bill takes effect immediately.

2009-S3692B (ACTIVE) - Bill Text download pdf

                            
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                 3692--B

                       2009-2010 Regular Sessions

                            I N  S E N A T E

                             March 27, 2009
                               ___________

Introduced by Sens. PERKINS, THOMPSON -- read twice and ordered printed,
  and  when  printed  to  be committed to the Committee on Corporations,
  Authorities and Commissions --  committee  discharged,  bill  amended,
  ordered  reprinted  as  amended  and  recommitted to said committee --
  recommitted to the Committee on Corporations, Authorities and  Commis-
  sions   in  accordance  with  Senate  Rule  6,  sec.  8  --  committee
  discharged, bill amended, ordered reprinted as amended and recommitted
  to said committee

AN ACT to amend the public authorities law, in relation to the New  York
  state interim short-term financing account and to amend chapter 555 of
  the  laws  of 1989 amending the public authorities law and other laws,
  relating to establishing a New York state infrastructure  trust  fund,
  in  relation  to interim short-term financing account within the state
  of New York mortgage agency mortgage insurance fund

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section  1.  Section  2425 of the public authorities law is amended by
adding a new closing paragraph to read as follows:
  ALSO, IT IS HEREBY FOUND AND DECLARED THAT IT IS IN THE PUBLIC  INTER-
EST  TO PROVIDE THE OPPORTUNITY FOR INTERIM SHORT-TERM FINANCING FOR THE
STATE OF NEW YORK MORTGAGE AGENCY'S  MORTGAGE  ACQUISITION  PROGRAMS  TO
FURTHER EXPAND THE AGENCY'S MISSION TO PROVIDE AFFORDABLE HOUSING TO LOW
AND MODERATE INCOME FIRST-TIME HOMEBUYERS.
  S 2. Section 2426 of the public authorities law is amended by adding a
new subdivision 23 to read as follows:
  23.  "INTERIM  SHORT-TERM  FINANCING  SUPPORT".  AUTHORITY GRANTED THE
STATE OF NEW YORK MORTGAGE AGENCY ("SONYMA") TO USE THE  MONIES  IN  ITS
MORTGAGE  INSURANCE  FUND  TO  ACQUIRE  MORTGAGE LOANS PENDING OBTAINING
LONG-TERM FINANCING.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD09087-06-0

S. 3692--B                          2

  S 3. The opening paragraph of section 2427 of the  public  authorities
law,  as  amended by chapter 3 of the laws of 2004, is amended and a new
subdivision 11 is added to read as follows:
  The  agency  shall  have  the  following  additional  powers only with
respect to insuring mortgage loans [and], providing  development  corpo-
ration credit support, AND INTERIM SHORT-TERM FINANCING SUPPORT:
  11.  TO PROVIDE FOR INTERIM SHORT-TERM FINANCING SUPPORT FOR THE STATE
OF NEW YORK MORTGAGE AGENCY'S SINGLE FAMILY PROGRAMS.
  S 4. The public authorities law is amended by  adding  a  new  section
2428-b to read as follows:
  S  2428-B.  INTERIM  SHORT-TERM  FINANCING  SUPPORT.  1. THE AGENCY IS
AUTHORIZED,  SUBJECT  TO  THE  PROVISIONS  OF  THIS  TITLE,  TO  PROVIDE
SHORT-TERM  INTERIM FINANCING SUPPORT FOR THE AGENCY'S MORTGAGE ACQUISI-
TION PROGRAMS BY MAKING MONIES IN THE MORTGAGE INSURANCE FUND  AVAILABLE
FOR  THE PURPOSE OF PROVIDING FUNDS TO ACQUIRE MORTGAGE LOANS UNTIL SUCH
TIME AS PERMANENT FINANCING BECOMES AVAILABLE.
  2. THE BOARD OF DIRECTORS OF THE AGENCY, BY A VOTE OF  A  MAJORITY  OF
ALL OF ITS MEMBERS OR OF A COMMITTEE THEREOF SO EMPOWERED, SHALL APPROVE
THE TERMS OF THE INTERIM SHORT-TERM FINANCING LOANS.
  3. ON OR BEFORE THE FIFTEENTH DAY OF MAY IN EACH YEAR, THE CHAIRMAN OF
THE BOARD OF THE AGENCY SHALL REPORT TO THE MEMBERS ON ANY DISBURSEMENTS
MADE  FROM  THE INTERIM SHORT-TERM FINANCING ACCOUNT FOR THE CONSECUTIVE
TWELVE-MONTH PERIOD ENDING ON THE  THIRTY-FIRST  DAY  OF  MARCH  IN  THE
PRECEDING YEAR.
  S 5. Section 2429-a of the public authorities law, as amended by chap-
ter 3 of the laws of 2004, is amended to read as follows:
  S  2429-a.  Payment of insurance [and], development corporation credit
support, AND INTERIM SHORT-TERM FINANCING SUPPORT. 1. The  agency  shall
establish  procedures  to  be  followed by a mortgagee in the event of a
default under the terms of any mortgage insured by the agency. The agen-
cy may require that prior to  submitting  a  claim  to  the  agency  for
payment  of insurance the mortgagee shall take such actions with respect
to the property securing the defaulted mortgage as may be  specified  by
the  agency to be satisfactory evidence of a continuing default, includ-
ing but not limited to the following: (i) becoming lawfully the  mortga-
gee  in  possession  thereof; (ii) causing a receiver to be appointed of
such property; (iii) obtaining voluntary conveyance of  the  mortgagor's
right and title to such property; or (iv) obtaining by foreclosure clear
and unencumbered title to such property, all in such manner as the agen-
cy  may  require. Following submission of a valid claim the agency shall
pay an amount which  shall  not  exceed  the  lesser  of  (1)  the  then
outstanding  insured  principal amount of the mortgage multiplied by the
per centum of such outstanding amount insured by the agency  and  a  per
centum  of  the  mortgagee's cost arising from the default, inclusive of
public liens and delinquent and unpaid interest, all as the  agency  may
from  time  to  time  allow,  which  per centum shall not exceed the per
centum of the outstanding principal indebtedness insured by  the  agency
or  (2)  the  insured amount of the mortgage at the date of execution of
the insurance contract or its latest amendment, if any, except that  the
agency  shall  pay  the greater of the two amounts on claims by a public
employee pension fund, or by a public benefit corporation  derived  from
the  sale of notes or bonds issued by said corporation, provided that no
more than the actual loss suffered by such public employee pension  fund
or public benefit corporation shall be paid. Such payment may be made by
the agency in a lump sum, or in partial payments made within such period

S. 3692--B                          3

of time as may be agreed to between the agency and the mortgagee, all in
accordance with procedures to be established by the agency.
  2. The agency shall establish, by contract or otherwise, procedures to
be  followed  with respect to development corporation credit support for
which the development corporation credit support account has been deter-
mined by the agency to be a source or potential source of payment.
  3. THE AGENCY SHALL ESTABLISH BY CONTRACT OR OTHERWISE, PROCEDURES  TO
BE  FOLLOWED WITH RESPECT TO MAKING INTERIM SHORT-TERM FINANCING SUPPORT
FOR THE TEMPORARY ACQUISITION OF MORTGAGE LOANS.
  S 6. Section 2429-b of the  public  authorities  law,  as  amended  by
section  13  of  chapter  3  of  the laws of 2004, is amended to read as
follows:
  S 2429-b. Mortgage insurance fund. 1. (a) The agency shall create  and
establish  a mortgage insurance fund. Within such fund, the agency shall
establish: (i) a special account, which shall be  divided  into  sub-ac-
counts  for  each region as defined in subdivision nine of section twen-
ty-four hundred twenty-six of this title;  (ii)  a  single  family  pool
insurance  account; (iii) a project pool insurance account; [and] (iv) a
development corporation credit  support  account;  AND  (V)  AN  INTERIM
SHORT-TERM  FINANCING  ACCOUNT. The single family pool insurance account
shall be used for all business relating to the insurance of mortgages on
properties with one to four dwelling units, the project  pool  insurance
account  shall  be  used  for  all business relating to the insurance of
mortgages on properties other than  those  with  one  to  four  dwelling
units, [and] the development corporation credit support account shall be
used  for  all  business  relating  to  development  corporation  credit
support, AND THE INTERIM SHORT-TERM FINANCING ACCOUNT SHALL BE USED  FOR
ALL  BUSINESS RELATING TO INTERIM SHORT-TERM FINANCING SUPPORT. Separate
sub-accounts may be established within the  special  account,  the  pool
insurance  accounts,  [and]  the  development corporation credit support
account AND THE INTERIM SHORT-TERM FINANCING ACCOUNT as deemed appropri-
ate by the agency.
  (b) (i) The mortgage insurance fund shall be used as a revolving  fund
for  carrying out the provisions of this title with respect to mortgages
insured  and  development  corporation  credit   support   AND   INTERIM
SHORT-TERM  FINANCING  SUPPORT,  provided  thereunder.   (ii) The agency
shall pay into such fund all moneys which may be made available  to  the
agency  for the purposes of such fund from any source, including but not
limited to the moneys received from recording officers pursuant  to  the
provisions  of  subdivision  two of section two hundred sixty-one of the
tax law. The agency shall credit the amount of moneys received from  the
recording officer of each county, pursuant to subdivision two of section
two  hundred  sixty-one  of  the tax law, to the special account. In any
fiscal year, no more than fifty per centum of the amount  received  from
the recording officers during the consecutive twelve month period ending
on  the  preceding  March thirty-first may be used by the agency for the
purpose of insuring mortgages on property  located  in  any  one  region
pursuant to section two thousand four hundred twenty-eight of this part,
provided,  however,  that this provision shall not include or be applied
to pool insurance  OR  PRIMARY  MORTGAGE  INSURANCE  of  mortgage  loans
purchased  by the agency. The agency shall credit any other moneys which
may be made available to the agency for the purposes of such  fund  from
any  other  source to the special account, the single family pool insur-
ance account, the project pool insurance account, [or]  the  development
corporation  credit support account, OR THE INTERIM SHORT-TERM FINANCING
ACCOUNT as appropriate. Any income or interest earned by,  or  increment

S. 3692--B                          4

to,  the  mortgage insurance fund due to the investment thereof shall be
credited to the special account, the applicable pool insurance  account,
[or]  the  development  corporation  credit  support account, OR INTERIM
SHORT-TERM FINANCING ACCOUNT, as appropriate.
  (c) The agency may credit from the special account to the single fami-
ly  pool insurance account, to the project pool insurance account and to
the development corporation credit support account such  moneys  as  are
required  to  satisfy  the  mortgage  insurance fund requirement of such
accounts, except that during any twelve-month  period  ending  on  March
thirty-first  the  aggregate  amount  credited to the development corpo-
ration credit support account (excluding amounts described in  the  last
sentence  of  paragraph  (b)  of  this subdivision) shall not exceed the
lesser of (i) fifty million dollars or (ii) the aggregate of the amounts
required under the contracts executed by the agency to provide  develop-
ment  corporation  support.    THE  AGENCY  MAY  CREDIT FROM THE SPECIAL
ACCOUNT TO THE INTERIM SHORT-TERM FINANCING ACCOUNT SUCH MONEYS  AS  ARE
IN EXCESS OF THE AMOUNTS REQUIRED TO SATISFY THE MORTGAGE INSURANCE FUND
REQUIREMENTS  OF  THE  SINGLE FAMILY POOL INSURANCE ACCOUNT, THE PROJECT
POOL INSURANCE ACCOUNT, AND THE DEVELOPMENT CORPORATION  CREDIT  SUPPORT
ACCOUNT.
  (d)  Moneys,  investments and cash equivalents of the special account,
the single family pool insurance account,  the  project  pool  insurance
account  [and],  the development corporation credit support account, AND
THE INTERIM SHORT-TERM FINANCING ACCOUNT  shall  be  kept  separate  and
shall not be commingled with each other or with any other accounts which
may  be established from time to time, except as otherwise authorized by
this section.
  (e) Moneys, investments and cash equivalents  of  the  pool  insurance
accounts  [and], the development corporation credit support account, AND
THE INTERIM SHORT-TERM FINANCING ACCOUNT  shall  be  excluded  from  the
excess balance calculation set forth in subdivision two of this section.
However,  if  at  any  time the moneys, investments and cash equivalents
(valued as determined by the agency) of either  pool  insurance  account
[or], the development corporation credit support account, OR THE INTERIM
SHORT-TERM  FINANCING  ACCOUNT exceed the amount necessary to attain and
maintain the credit rating or, with respect to  development  corporation
credit support, credit worthiness (as determined by the agency) required
to  accomplish  the  purposes  of such account the agency shall transfer
such excess to the special account and such excess shall be included  in
the excess balance calculation.
  1-a. All moneys held in the mortgage insurance fund, except as herein-
after  provided,  shall  be used, as required, solely for the payment of
the agency's liabilities arising from mortgages insured as  provided  in
section  twenty-four  hundred twenty-nine-a of this part [and], from the
provision of development  corporation  credit  support  as  provided  in
section  twenty-four  hundred  twenty-eight-a of this part, AND FROM THE
PROVISION OF INTERIM SHORT-TERM FINANCING SUPPORT AS PROVIDED IN SECTION
TWENTY-FOUR HUNDRED TWENTY-EIGHT-B OF THIS PART; provided, however, that
no moneys shall be withdrawn from any account at any time in such amount
as would reduce the amount  of,  as  applicable,  the  special  account,
either  pool  insurance  account  or  the development corporation credit
support account to less than  its  applicable  mortgage  insurance  fund
requirement,  except  for  the purpose of paying such liabilities as the
same become due and for the payment of which other moneys of the  agency
are  not available. All payments pursuant to section twenty-four hundred
twenty-nine-a of this part, and expenses attributable thereto  shall  be

S. 3692--B                          5

debited  to  the  special  account  or  the single family pool insurance
account or the project pool insurance account or the development  corpo-
ration  credit  support  account  OR  THE  INTERIM  SHORT-TERM FINANCING
ACCOUNT,  as  appropriate, within the mortgage insurance fund. All other
operating expenses of the agency with respect to insurance of  mortgages
[and],  providing  development  corporation  credit support, AND INTERIM
SHORT-TERM FINANCING SUPPORT shall be debited to  the  special  account,
the  single  family  pool  insurance account, the project pool insurance
account [or] the development corporation credit support account  OR  THE
INTERIM SHORT-TERM FINANCING ACCOUNT within the mortgage insurance fund,
as appropriate.
  2.  On  or before March twentieth in each year, the board of directors
of the agency shall determine the amount estimated to be received by the
agency from the additional tax imposed pursuant to subdivision one-a  of
section  two  hundred  fifty-three  of  the tax law and deposited in the
mortgage insurance fund and credited to the  special  account  plus  any
other  monies  deposited  in  such  account  plus the amount of reserves
available in such special account with respect to  mortgage  loans  that
were  previously  insured in accordance with section twenty-four hundred
twenty-eight OF THIS PART, or  development  corporation  credit  support
previously  provided  pursuant  to  section  twenty-four hundred twenty-
eight-a of this part under  contracts  or  commitments  that  have  been
satisfied  or  cancelled, OR INTERIM SHORT-TERM FINANCING SUPPORT PREVI-
OUSLY  MADE  AVAILABLE   PURSUANT   TO   SECTION   TWENTY-FOUR   HUNDRED
TWENTY-EIGHT-B  OF  THIS PART THAT HAS BEEN REPAID, pursuant to subdivi-
sion one of this section, except charges and fees levied by  the  agency
pursuant  to  section  twenty-four  hundred  twenty-nine-c of this part,
which shall be added in the computation only when such a  commitment  is
cancelled or expires or when the insurance or contractual arrangement to
provide  development  corporation  credit  support OR INTERIM SHORT-TERM
FINANCING SUPPORT applied for is declared effective. Such  determination
made  on  or  before  March twentieth in each year shall be made for the
consecutive twelve-month period ending on the subsequent  March  thirty-
first.  The  board shall then determine the estimated excess balance, if
any, in such special account by determining the  amount  by  which  such
credits  exceed  twenty per centum, or such other per centums or amounts
as may have been established by the board of  directors  of  the  agency
pursuant  to  subdivision  seven  of section twenty-four hundred twenty-
eight of this part, of the amounts insured or committed  to  be  insured
and the amounts of development corporation credit support established by
the  board  of  directors  of the agency pursuant to section twenty-four
hundred  twenty-eight-a  of  this  part,  AND  THE  AMOUNTS  OF  INTERIM
SHORT-TERM  FINANCING  SUPPORT AS MAY HAVE BEEN ESTABLISHED BY THE BOARD
OF DIRECTORS OF THE AGENCY PURSUANT TO SECTION TWENTY-FOUR HUNDRED TWEN-
TY-EIGHT-B OF THIS PART to be provided during such  twelve-month  period
plus  any  payments  by  the  agency  during such twelve-month period on
account of a  mortgage  [or],  development  corporation  credit  support
contract  entered  into OR INTERIM SHORT-TERM FINANCING SUPPORT PROVIDED
during such twelve-month period ending on such March thirty-first,  plus
the  operating  expenses  of  the agency during such twelve-month period
with respect to insurance  of  mortgages  or  provision  of  development
corporation  credit  support  OR  INTERIM  SHORT-TERM FINANCING SUPPORT,
which amount may not exceed an amount determined and  certified  by  the
director  of the budget, with notification to the chairman of the senate
finance committee and chairman of the assembly ways and means committee.
On or before May fifteenth, the board shall determine any adjustment  to

S. 3692--B                          6

the  estimated excess balance necessary to reflect the variance, if any,
between such estimated excess balance  and  the  actual  excess  balance
computed  as of March thirty-first, and shall certify such adjustment to
the  director of the budget. The agency shall include such adjustment in
the estimated excess balance  determination  for  the  following  fiscal
year,  unless  otherwise  instructed  by the director of the budget. The
agency shall submit to the director of the budget an  estimate  of  such
operating  expenses on or before the tenth business day in March of each
year and the director of the budget shall make such certification before
March twentieth of each year.
  Upon making the determination of the  estimated  excess  balance,  the
agency  shall  certify such determination to the director of the budget,
the chairmen of the senate finance committee and the assembly  ways  and
means  committee,  and  the comptroller. Payment of such actual or esti-
mated excess balance shall be made within ninety days after March  twen-
tieth. The agency shall, at the direction of the director of the budget,
pay  such  estimated  or actual excess balance, if any, from the special
account to the comptroller  for  deposit  to  the  state  general  fund;
provided,  however,  that if the aggregate amount in the special account
as of such date is less than the mortgage  insurance  fund  requirement,
the  agency  shall  retain  all or that portion of any such estimated or
actual excess balance in such special account necessary to increase  the
aggregate  amount in such special account to the mortgage insurance fund
requirement. The director of the budget shall notify the chairmen of the
senate finance committee and the assembly ways and means  committee  ten
days prior to the issuance of the directive in respect to the payment of
the estimated or actual excess balance to the general fund.
  Further  provided,  however,  that  the  budget to be submitted to the
legislature by the governor pursuant to article seven of  the  constitu-
tion  shall  separately  state  the  amount  of such estimated or actual
excess balance determined as hereinabove prescribed, if any, which shall
be included in the monies and revenues estimated to be available  during
the current and ensuing fiscal years, respectively.
  3. The moneys, OTHER THAN THE MONIES IN THE INTERIM SHORT-TERM FINANC-
ING  ACCOUNT  WHEN  INVESTED  IN  MORTGAGE  LOANS, in such fund shall be
deposited in one or more banks or  trust  companies  designated  in  the
manner  provided  by law, as depositories of the funds of the state. The
agency may invest the moneys in such fund in  obligations  specified  in
subdivision  four  of  this section. Any interest earned or capital gain
realized on the money so deposited  or  invested  shall  accrue  to  and
become  part  of  such fund. The separate identity of such fund shall be
maintained whether its assets consist of cash or investments or both.
  4. Moneys in such fund, OTHER THAN MONEYS IN  THE  INTERIM  SHORT-TERM
FINANCING  ACCOUNT, may be invested (a) in special time deposit accounts
in, or certificates of deposit issued by, a bank, trust company, savings
bank or savings and loan association located and authorized to do  busi-
ness in this state, provided, however, that such time deposit account or
certificate of deposit shall be payable within such time as the proceeds
may be needed to meet expenditures estimated to be incurred by the agen-
cy and provided further that such time deposit account or certificate of
deposit  be  secured  by a pledge of obligations of the United States of
America or obligations of the state, any city of  the  state,  or  other
municipal  corporation,  school  district or district corporation of the
state or obligations of agencies of the federal government;  or  (b)  in
obligations  of the United States of America or the state which may from
time to time be legally purchased by savings banks within the  state  as

S. 3692--B                          7

an  investment  of  funds  belonging  to them or in their control, or in
obligations of the Federal National Mortgage Association  provided  such
obligations  shall  be  payable or redeemable at the option of the owner
within  such  times  as  the proceeds may be needed to meet expenditures
estimated to be incurred by the agency.
  MONEYS IN THE INTERIM SHORT-TERM FINANCING ACCOUNT SHALL  BE  USED  TO
ACQUIRE  MORTGAGE LOANS OF THE AGENCY PENDING THE AGENCY OBTAINING LONG-
TERM FINANCING FOR THE PURCHASE THEREOF, WHICH MORTGAGE LOANS  SHALL  BE
DEEMED  INVESTMENTS OF THE INTERIM SHORT-TERM FINANCING ACCOUNT. AT SUCH
TIME AS THE AGENCY OBTAINS LONG-TERM FINANCING FOR THE PURCHASE OF MORT-
GAGE LOANS ON DEPOSIT IN THE INTERIM  SHORT-TERM  FINANCING  ACCOUNT  AS
INVESTMENTS  THEREOF,  THE AGENCY SHALL PURCHASE SAID MORTGAGE LOANS AND
THE MONEYS SHALL  BE  DEPOSITED  IN  THE  INTERIM  SHORT-TERM  FINANCING
ACCOUNT. MONEYS IN THE INTERIM SHORT-TERM FINANCING ACCOUNT THAT ARE NOT
INVESTED  IN MORTGAGE LOANS AS SET FORTH HEREIN SHALL BE INVESTED AS SET
FORTH IN PARAGRAPH (B) OF THIS SUBDIVISION.
  5. In computing the amount of the  mortgage  insurance  fund  for  the
purposes  of  this section, securities in which all or a portion of such
fund shall be invested shall be valued at par if purchased at par, or if
purchased at other than par, at amortized value. Amortized  value,  when
used  with  respect  to  securities  purchased  at  a premium above or a
discount below par, shall mean the value as of any given  date  obtained
by dividing the total premiums or discount at which such securities were
purchased  by  the  number of interest payments remaining to maturity on
such securities after such purchase and by  multiplying  the  amount  so
calculated  by  the number of interest payment dates having passed since
the date of such purchase; and (i) in the case of  securities  purchased
at  a  premium  by deducting the product thus obtained from the purchase
price, and (ii) in the case of securities purchased  at  a  discount  by
adding the product thus obtained to the purchase price.
  6. The agency may create and establish such other fund or funds as may
be  necessary  or  desirable  for  the  carrying  out  of  its corporate
purposes.
  S 7. Subdivision 1 of section 2429-b of the public authorities law, as
amended by section 14 of chapter 3 of the laws of 2004,  is  amended  to
read as follows:
  1.  The  agency  shall create and establish a mortgage insurance fund.
Within such fund, the agency shall establish a  special  account,  which
shall  be divided into sub-accounts for each region as defined in subdi-
vision nine of section  twenty-four  hundred  twenty-six  of  this  part
[and];  a development corporation credit support account, AND AN INTERIM
SHORT-TERM FINANCING ACCOUNT. The development corporation credit support
account shall be used for all business  related  to  development  corpo-
ration  credit  support,  AND  THE  INTERIM SHORT-TERM FINANCING ACCOUNT
SHALL BE USED FOR ALL BUSINESS RELATING TO INTERIM SHORT-TERM  FINANCING
SUPPORT.    Separate sub-accounts may be established within the develop-
ment corporation credit  support  account  AND  THE  INTERIM  SHORT-TERM
FINANCING  ACCOUNT  as  deemed  appropriate  by the agency. The mortgage
insurance fund shall be used as a revolving fund for  carrying  out  the
provisions of this title with respect to mortgages insured and TO devel-
opment  corporation  support  AND  INTERIM  SHORT-TERM FINANCING SUPPORT
provided thereunder. The agency shall pay  into  such  fund  all  moneys
which  may be made available to the agency for the purposes of such fund
from any source, including but not limited to the moneys  received  from
recording  officers  pursuant  to  the  provisions of subdivision two of
section two hundred sixty-one of the tax law. The  agency  shall  credit

S. 3692--B                          8

the amount of moneys received from the recording officer of each county,
pursuant  to subdivision two of section two hundred sixty-one of the tax
law, to the special account. In any calendar year, no  more  than  fifty
per  centum of the amount received from the recording officers and cred-
ited to the special account during the consecutive twelve  month  period
ending  on the preceding December thirty-first may be used by the agency
for the purpose of insuring mortgages on property  located  in  any  one
region  pursuant  to  section  two thousand four hundred twenty-eight of
this part PROVIDED, THAT THIS PROVISION SHALL NOT INCLUDE OR BE  APPLIED
TO  POOL  INSURANCE  ON  PRIMARY  MORTGAGE  INSURANCE  OF MORTGAGE LOANS
PURCHASED BY THE AGENCY.  The agency shall credit any other moneys which
may be made available to the agency for the purposes of such  fund  from
any  other  source to the special account or the development corporation
credit support account OR THE INTERIM SHORT-TERM FINANCING  ACCOUNT,  as
appropriate.  Any  income  or  interest  earned by, or increment to, the
mortgage insurance fund due to the investment thereof shall be  credited
to  the special account or the development corporation credit account OR
THE INTERIM SHORT-TERM FINANCING ACCOUNT, as appropriate.
  S 8. Subdivision 1-a of section 2429-b of the public authorities  law,
as amended by section 15 of chapter 3 of the laws of 2004, is amended to
read as follows:
  1-a. All moneys held in the mortgage insurance fund, except as herein-
after  provided,  shall  be used, as required, solely for the payment of
the agency's liabilities arising from mortgages insured as  provided  in
section  twenty-four  hundred  twenty-nine-a  of  this part and from the
provision of development  corporation  credit  support  as  provided  in
section  twenty-four  hundred  twenty-eight-a of this part, AND FROM THE
PROVISION OF INTERIM SHORT-TERM FINANCING SUPPORT AS PROVIDED IN SECTION
TWENTY-FOUR HUNDRED TWENTY-EIGHT-B OF THIS PART; provided, however, that
no moneys shall be withdrawn from any account at any time in such amount
as would reduce the amount of, as applicable, the special account or the
development corporation credit support account to less than its applica-
ble mortgage insurance fund  requirement,  except  for  the  purpose  of
paying  such  liabilities  as the same become due and for the payment of
which other moneys of the agency are not available. All payments  pursu-
ant  to  section  twenty-four  hundred  twenty-nine-a  of this part, and
expenses attributable thereto shall be debited to the special account or
the development  corporation  credit  support  account  OR  THE  INTERIM
SHORT-TERM  FINANCING  ACCOUNT  within  the mortgage insurance fund. All
other operating expenses of the agency  with  respect  to  insurance  of
mortgages  and  providing  development  corporation  credit support  AND
PROVIDING INTERIM SHORT-TERM FINANCING SUPPORT shall be debited  to  the
special account or the development corporation credit support account OR
THE  INTERIM  SHORT-TERM FINANCING ACCOUNT within the mortgage insurance
fund, as appropriate.
  S 9. Section 19 of chapter 555 of the laws of 1989 amending the public
authorities law and other laws relating to establishing a New York state
infrastructure trust fund, as amended by chapter  192  of  the  laws  of
2009, is amended to read as follows:
  S  19.  This  act shall take effect immediately and shall be deemed to
have been in full force and effect on and after June 15,  1989  provided
that  the  amendments  to  law effected by sections six and nine through
seventeen of this act, as amended, shall cease to be of force and effect
on and after July 16, [2011] 2012, on which date the provisions  of  the
public authorities law amended by such sections shall be as they were in
force  and  effect  immediately  prior  to  this  act taking effect, and

S. 3692--B                          9

provided however that the amendments to law effected by sections six and
nine through seventeen of this act, as amended, shall continue to  apply
to  all commitments issued or policies or development corporation credit
support  OR  INTERIM  SHORT-TERM FINANCING SUPPORT in force on or before
July 16, [2011] 2012,  and  provided  further  that  the  amendments  to
section 2429-b of the public authorities law made by section 13 of chap-
ter  3 of the laws of 2004 which amended this section shall not cease to
be of force and effect prior to the time that full payment of all devel-
opment corporation credit support obligations has been made or  provided
for,  AND  PROVIDED FURTHER THAT THE AMENDMENTS TO SECTION 2429-B OF THE
PUBLIC AUTHORITIES LAW MADE BY SECTIONS 6, 7 AND 8 OF THE CHAPTER OF THE
LAWS OF 2010, WHICH AMENDED THIS SECTION SHALL NOT CEASE TO BE OF  FORCE
AND EFFECT PRIOR TO THE TIME THAT FULL PAYMENT OF ALL INTERIM SHORT-TERM
FINANCING SUPPORT OBLIGATIONS HAS BEEN MADE OR PROVIDED FOR.
  S  10.  Construction.  This act and all powers granted hereby shall be
liberally construed to effectuate its intent and their purposes, without
implied limitations thereon. This act shall constitute full and complete
authority for all things herein contemplated to be done. All rights  and
powers  herein granted shall be cumulative with those derived from other
sources and shall not, except as expressly stated herein,  be  construed
in  limitation thereof. Insofar as the provisions of this act are incon-
sistent with the provisions of any other act, general  or  special,  the
provisions of this act shall be controlling.
  S 11. Severability clause. If any clause, sentence, paragraph, section
or  part  of this act be adjudged by any court of competent jurisdiction
to be invalid, such judgment shall not affect, impair or invalidate  the
remainder  hereof  but  shall be applied in its operation to the clause,
sentence, paragraph, section or part hereof  directly  involved  in  the
controversy in which such judgment shall have been rendered.
  S 12. This act shall take effect immediately; provided, however, that:
  a.  The comptroller of the state of New York shall notify the legisla-
tive bill drafting commission upon such  enactment  and  allocation  and
shall also notify the commissioner when full payment of all obligations,
including  credit support obligations, has been made or provided for, as
enacted by section 19 of chapter 555 of the laws of 1989, as amended  by
section  nine  of this act, in order that the commission may maintain an
accurate and timely effective data base of the official text of the laws
of the state of New York in furtherance of effecting the  provisions  of
section  44  of the legislative law and section 70-b of the public offi-
cers law.
  b. The amendments to subdivision 1 of section  2429-b  of  the  public
authorities  law made by section six of this act shall be subject to the
expiration and reversion of such subdivision pursuant to section  19  of
chapter  555  of  the  laws of 1989, as amended, when upon such date the
provisions of section seven of this act shall take effect.
  c. The amendments to subdivision 1-a of section 2429-b of  the  public
authorities  law made by section six of this act shall be subject to the
expiration and reversion of such subdivision pursuant to section  19  of
chapter  555  of  the  laws of 1989, as amended, when upon such date the
provisions of section eight of this act shall take effect.

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Senate Bill S3692

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Archive: Last Bill Status - In Senate Committee Corporations, Authorities And Commissions Committee

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Sponsored By

Bill Perkins

Archive: Last Bill Status - In Senate Committee Corporations, Authorities And Commissions Committee

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Antoine M. Thompson

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Antoine M. Thompson

2009-S3692B (ACTIVE) - Details

2009-S3692B (ACTIVE) - Summary

2009-S3692B (ACTIVE) - Sponsor Memo

2009-S3692B (ACTIVE) - Bill Text download pdf

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