S T A T E O F N E W Y O R K
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5520
2009-2010 Regular Sessions
I N A S S E M B L Y
February 13, 2009
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Introduced by M. of A. V. LOPEZ -- read once and referred to the Commit-
tee on Housing
AN ACT to amend the private housing finance law, in relation to provid-
ing authority for the New York city housing development corporation to
invest in investment agreements provided by rated securities firms and
insurance companies
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Subdivision 14 of section 654 of the private housing
finance law, as amended by chapter 740 of the laws of 1989, is amended
to read as follows:
14. To invest any funds held in reserves or sinking funds, or any
funds not required for immediate use or disbursement, at the discretion
of the corporation, in obligations of the city, state or federal govern-
ment, obligations the principal and interest of which are guaranteed by
the city, state or federal government, obligations of agencies of the
federal government which may from time to time be legally purchased by
savings banks of the state as investments of funds belonging to them or
in their control and be approved by the comptroller, obligations in
which the comptroller of the state of New York is authorized to invest
pursuant to section ninety-eight of the state finance law, obligations
of the New York city municipal water finance authority, participation
certificates of the federal home loan mortgage corporation [or], mort-
gage-backed securities of the federal national mortgage association[.],
OR INVESTMENT AGREEMENTS CONTINUOUSLY SECURED BY OBLIGATIONS WITH ANY
INSURANCE OR REINSURANCE COMPANY OR CORPORATE AFFILIATE THEREOF RATED BY
AT LEAST TWO OF THE THREE NATIONALLY RECOGNIZED RATING AGENCIES IN ONE
OF ITS TWO HIGHEST CATEGORIES, PROVIDED THAT EACH OF THE FOLLOWING
CONDITIONS BE SATISFIED FOR INVESTMENT AGREEMENTS WITH INSURANCE OR
REINSURANCE COMPANIES OR THEIR CORPORATE AFFILIATES: (I) SUCH OBLI-
GATIONS SECURING SUCH INVESTMENT AGREEMENTS SHALL BE OF THE TYPE AUTHOR-
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD08857-01-9
A. 5520 2
IZED TO BE PURCHASED BY THE CORPORATION PURSUANT TO THIS SUBDIVISION;
(II) SUCH OBLIGATIONS SECURING SUCH INVESTMENT AGREEMENTS ARE DELIVERED
TO A TRUSTEE FOR THE BENEFIT OF THE CORPORATION OR, WITH RESPECT TO
MONEYS PLEDGED UNDER A RESOLUTION RELATING TO BONDS OR NOTES OF THE
CORPORATION, TO THE TRUSTEE UNDER SUCH RESOLUTION, OR ARE SUPPORTED BY A
SAFE KEEPING RECEIPT ISSUED BY A DEPOSITORY SATISFACTORY TO THE CORPO-
RATION AS APPLICABLE, PROVIDED SUCH INVESTMENT AGREEMENTS PROVIDE THAT
THE VALUE OF THE UNDERLYING OBLIGATIONS SHALL BE MAINTAINED AT A CURRENT
MARKET VALUE, CALCULATED NO LESS FREQUENTLY THAN MONTHLY, OF NOT LESS
THAN THE AMOUNT DEPOSITED THEREUNDER; AND (III) SUCH OBLIGATIONS ARE
FREE AND CLEAR OF ADVERSE THIRD PARTY CLAIMS;
S 2. This act shall take effect immediately.