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

                                  8653

                       2009-2010 Regular Sessions

                          I N  A S S E M B L Y

                              June 2, 2009
                               ___________

Introduced  by M. of A. JORDAN, RAIA, SAYWARD, CORWIN, SCOZZAFAVA, SALA-
  DINO, WALKER, BURLING -- Multi-Sponsored by  --  M.  of  A.  BACALLES,
  BARCLAY,  CALHOUN,  CROUCH, McKEVITT, MOLINARO, OAKS, TEDISCO, THIELE,
  TOWNSEND, WEISENBERG -- read once and referred  to  the  Committee  on
  Ways and Means

AN  ACT  to  amend  the tax law, the private housing finance law and the
  public authorities law, in relation to providing certain  tax  credits
  and financial assistance for home ownership for certain veterans

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

  Section 1. This act shall be known and may be cited as the  "New  York
homes for heroes act".
  S  2. Section 606 of the tax law is amended by adding a new subsection
(qq) to read as follows:
  (QQ) CREDIT FOR CERTAIN FEES PAID TO THE FEDERAL  HOME  LOAN  MORTGAGE
CORPORATION.  (1) AN ELIGIBLE TAXPAYER SHALL BE ALLOWED A CREDIT AGAINST
THE TAX IMPOSED BY THIS ARTICLE. THE AMOUNT  OF  SUCH  CREDIT  SHALL  BE
EQUAL  TO  THE  THREE-QUARTERS  OF  ONE  PERCENT DIFFERENCE BETWEEN FEES
CHARGED TO VETERANS OF THE NATIONAL GUARD OR ARMED FORCES  RESERVES  AND
THE  SAME  FEES  CHARGED TO ELIGIBLE ACTIVE DUTY VETERANS, UNDER LOAN OR
LOAN GUARANTEE PROGRAMS ADMINISTERED OR FUNDED BY THE FEDERAL HOME  LOAN
MORTGAGE CORPORATION.
  (2)  FOR THE PURPOSES OF THIS SECTION, AN "ELIGIBLE TAXPAYER" SHALL BE
A VETERAN OF THE NEW YORK NATIONAL GUARD OR MILITARY RESERVE.
  (3) FOR THE PURPOSES OF THIS SUBSECTION, "VETERAN" SHALL MEAN A PERSON
WHO SERVED IN THE ACTIVE MILITARY, NAVAL, OR AIR SERVICE DURING A PERIOD
OF WAR, OR WHO WAS A RECIPIENT OF THE ARMED FORCES EXPEDITIONARY  MEDAL,
NAVY  EXPEDITIONARY  MEDAL,  MARINE CORPS EXPEDITIONARY MEDAL, OR GLOBAL
WAR ON TERRORISM EXPEDITIONARY MEDAL, AND WHO WAS DISCHARGED OR RELEASED
THEREFROM UNDER HONORABLE CONDITIONS.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD11945-01-9

              

A. 8653                             2

  (4) FOR THE PURPOSES OF THIS SUBSECTION, "SERVICE DURING TIME OF  WAR"
SHALL MEAN:
  (A)  THE  INDIVIDUAL  IN  QUESTION WAS A RECIPIENT OF THE ARMED FORCES
EXPEDITIONARY MEDAL, THE NAVY EXPEDITIONARY MEDAL OR  THE  MARINE  CORPS
EXPEDITIONARY MEDAL FOR PARTICIPATION IN OPERATIONS IN LEBANON FROM JUNE
FIRST, NINETEEN HUNDRED EIGHTY-THREE TO DECEMBER FIRST, NINETEEN HUNDRED
EIGHTY-SEVEN,  IN  GRENADA  FROM  OCTOBER TWENTY-THIRD, NINETEEN HUNDRED
EIGHTY-THREE TO NOVEMBER TWENTY-FIRST, NINETEEN HUNDRED EIGHTY-THREE, OR
IN PANAMA FROM DECEMBER TWENTIETH, NINETEEN HUNDRED EIGHTY-NINE TO JANU-
ARY THIRTY-FIRST, NINETEEN HUNDRED NINETY; OR
  (B) THE INDIVIDUAL SERVED ON ACTIVE DUTY FOR NINETY DAYS  OR  MORE  IN
THE  ARMED  FORCES  OF THE UNITED STATES DURING ANY ONE OF THE FOLLOWING
WARS OR HOSTILITIES:
  (I) IN THE SPANISH-AMERICAN WAR FROM THE TWENTY-FIRST  DAY  OF  APRIL,
EIGHTEEN  HUNDRED  NINETY-EIGHT  TO  THE ELEVENTH DAY OF APRIL, EIGHTEEN
HUNDRED NINETY-NINE, INCLUSIVE;
  (II) IN THE PHILIPPINE INSURRECTION OR  THE  CHINA  RELIEF  EXPEDITION
FROM  THE  ELEVENTH  DAY  OF  APRIL, EIGHTEEN HUNDRED NINETY-NINE TO THE
FOURTH DAY OF JULY, NINETEEN HUNDRED TWO, INCLUSIVE;
  (III) IN THE MEXICAN BORDER CAMPAIGN FROM THE NINTH DAY OF MAY,  NINE-
TEEN  HUNDRED SIXTEEN TO THE FIFTH DAY OF APRIL, NINETEEN HUNDRED SEVEN-
TEEN, INCLUSIVE;
  (IV) IN WORLD WAR I FROM THE SIXTH  DAY  OF  APRIL,  NINETEEN  HUNDRED
SEVENTEEN  TO  THE  ELEVENTH DAY OF NOVEMBER, NINETEEN HUNDRED EIGHTEEN,
INCLUSIVE;
  (V) IN WORLD WAR II FROM THE SEVENTH DAY OF DECEMBER, NINETEEN HUNDRED
FORTY-ONE  TO  THE  THIRTY-FIRST  DAY  OF  DECEMBER,  NINETEEN   HUNDRED
FORTY-SIX, INCLUSIVE;
  (VI)  IN  THE  KOREAN HOSTILITIES FROM THE TWENTY-SEVENTH DAY OF JUNE,
NINETEEN HUNDRED FIFTY TO THE  THIRTY-FIRST  DAY  OF  JANUARY,  NINETEEN
HUNDRED FIFTY-FIVE, INCLUSIVE;
  (VII)  IN THE VIETNAM CONFLICT FROM THE TWENTY-SECOND DAY OF DECEMBER,
NINETEEN HUNDRED SIXTY-ONE TO THE SEVENTH DAY OF MAY,  NINETEEN  HUNDRED
SEVENTY-FIVE; OR
  (VIII)  IN  THE  PERSIAN  GULF CONFLICT FROM THE SECOND DAY OF AUGUST,
NINETEEN HUNDRED NINETY TO THE END OF SUCH CONFLICT.
  S 3. Paragraph (a) of subdivision 3 of section  1112  of  the  private
housing  finance  law, as amended by chapter 898 of the laws of 1986, is
amended to read as follows:
  (a) Serve the lowest income households in the applicable region and is
designed to continue to be affordable to such households for a  substan-
tial  period  of  time  OR SERVE HOUSEHOLDS IN WHICH THE HOME BUYER IS A
SERVICE RELATED DISABLED VETERAN.
  FOR PURPOSES OF THIS SECTION, "SERVICE RELATED DISABLED VETERAN" SHALL
MEAN A PERSON WHO: (I) SERVED IN THE  ACTIVE  MILITARY,  NAVAL,  OR  AIR
SERVICE  DURING A TIME OF WAR AS DEFINED IN THIS PARAGRAPH, OR WHO WAS A
RECIPIENT OF THE ARMED FORCES EXPEDITIONARY  MEDAL,  NAVY  EXPEDITIONARY
MEDAL,  MARINE  CORPS  EXPEDITIONARY  MEDAL,  OR GLOBAL WAR ON TERRORISM
EXPEDITIONARY MEDAL, AND WHO WAS DISCHARGED OR RELEASED THEREFROM  UNDER
HONORABLE  CONDITIONS,  OR  (II) HAS BEEN AWARDED A DISABILITY RATING OF
FORTY PERCENT OR HIGHER FROM THE  FEDERAL  VETERAN'S  ADMINISTRATION  OR
FROM  THE UNITED STATES DEPARTMENT OF DEFENSE, WHERE THAT DISABILITY WAS
INCURRED IN THE LINE OF DUTY  IN  THE  ACTIVE  MILITARY,  NAVAL  OR  AIR
SERVICE,  AS DOCUMENTED ACCORDING TO RULES AND REGULATIONS TO BE PROMUL-
GATED BY THE DIVISION.

A. 8653                             3

  FOR THE PURPOSES OF THIS SECTION, "SERVICE DURING TIME OF  WAR"  SHALL
MEAN  THAT:  (I) THE INDIVIDUAL IN QUESTION WAS A RECIPIENT OF THE ARMED
FORCES EXPEDITIONARY MEDAL, THE NAVY EXPEDITIONARY MEDAL OR  THE  MARINE
CORPS  EXPEDITIONARY  MEDAL  FOR  PARTICIPATION IN OPERATIONS IN LEBANON
FROM  JUNE FIRST, NINETEEN HUNDRED EIGHTY-THREE TO DECEMBER FIRST, NINE-
TEEN HUNDRED EIGHTY-SEVEN, IN GRENADA FROM OCTOBER  TWENTY-THIRD,  NINE-
TEEN  HUNDRED  EIGHTY-THREE  TO  NOVEMBER TWENTY-FIRST, NINETEEN HUNDRED
EIGHTY-THREE, OR IN PANAMA FROM  DECEMBER  TWENTIETH,  NINETEEN  HUNDRED
EIGHTY-NINE TO JANUARY THIRTY-FIRST, NINETEEN HUNDRED NINETY; OR
  (II)  THE  INDIVIDUAL SERVED ON ACTIVE DUTY FOR NINETY DAYS OR MORE IN
THE ARMED FORCES OF THE UNITED STATES DURING ANY ONE  OF  THE  FOLLOWING
WARS OR HOSTILITIES:
  (1) IN THE MEXICAN BORDER CAMPAIGN FROM THE NINTH DAY OF MAY, NINETEEN
HUNDRED  SIXTEEN  TO THE FIFTH DAY OF APRIL, NINETEEN HUNDRED SEVENTEEN,
INCLUSIVE;
  (2) IN WORLD WAR I FROM THE  SIXTH  DAY  OF  APRIL,  NINETEEN  HUNDRED
SEVENTEEN  TO  THE  ELEVENTH DAY OF NOVEMBER, NINETEEN HUNDRED EIGHTEEN,
INCLUSIVE;
  (3) IN WORLD WAR II FROM THE SEVENTH DAY OF DECEMBER, NINETEEN HUNDRED
FORTY-ONE  TO  THE  THIRTY-FIRST  DAY  OF  DECEMBER,  NINETEEN   HUNDRED
FORTY-SIX, INCLUSIVE;
  (4)  IN  THE  KOREAN  HOSTILITIES FROM THE TWENTY-SEVENTH DAY OF JUNE,
NINETEEN HUNDRED FIFTY TO THE  THIRTY-FIRST  DAY  OF  JANUARY,  NINETEEN
HUNDRED FIFTY-FIVE, INCLUSIVE;
  (5)  IN  THE  VIETNAM CONFLICT FROM THE TWENTY-SECOND DAY OF DECEMBER,
NINETEEN HUNDRED SIXTY-ONE TO THE SEVENTH DAY OF MAY,  NINETEEN  HUNDRED
SEVENTY-FIVE; OR
  (6)  IN THE PERSIAN GULF CONFLICT FROM THE SECOND DAY OF AUGUST, NINE-
TEEN HUNDRED NINETY TO THE END OF SUCH CONFLICT.
  S 4. The private housing finance law is amended by adding a new  arti-
cle 19-A to read as follows:
                               ARTICLE XIX-A
                 VETERAN'S HOME AND LAND OWNERSHIP LOAN
SECTION 1115.   LEGISLATIVE PURPOSE.
        1115-A. DEFINITIONS.
        1115-B. CREATION  OF THE "VETERAN'S HOME AND LAND OWNERSHIP LOAN
                  FUND".
        1115-C. PURPOSE AND TERMS OF LOAN.
        1115-D. LOAN REPAYMENT.
        1115-E. ISSUANCE OF BONDS.
        1115-F. ADOPTION OF REGULATIONS.
  S 1115. LEGISLATIVE PURPOSE. IT IS HEREBY FOUND AND DECLARED THAT MANY
NEW YORK RESIDENTS HAVE SERVED OUR NATION HONORABLY IN THE ARMED  FORCES
OF  THE  UNITED  STATES  OF  AMERICA,  AND THAT MANY SUCH RESIDENTS HAVE
SACRIFICED CONSIDERABLY DURING THEIR SERVICE. IT IS IN THE PUBLIC INTER-
EST BOTH TO DEMONSTRATE OUR APPRECIATION FOR THAT SERVICE  BY  PROVIDING
STATE  FINANCIAL ASSISTANCE TO SUCH VETERANS; IN ORDER TO ENCOURAGE HOME
OWNERSHIP AND THE REHABILITATION  OF  DETERIORATING  HOUSING,  STABILIZE
COMMUNITIES AND IMPROVE THE LOCAL TAX BASE.
  S  1115-A.  DEFINITIONS. FOR THE PURPOSES OF THIS ARTICLE, THE FOLLOW-
ING TERMS SHALL HAVE THE FOLLOWING MEANINGS:
  1. "PERSON" MEANS AN HONORABLY DISCHARGED  VETERAN OF THE ARMED FORCES
OF THE UNITED STATES OF AMERICA, OR THEIR SURVIVING UNMARRIED SPOUSE.
  2. "VETERAN" MEANS A PERSON WHO SERVED IN THE ACTIVE MILITARY,  NAVAL,
OR  AIR  SERVICE  DURING  TIME OF WAR AS DEFINED IN SUBDIVISION THREE OF
THIS SECTION, OR WHO WAS A RECIPIENT OF THE ARMED  FORCES  EXPEDITIONARY

A. 8653                             4

MEDAL,  NAVY  EXPEDITIONARY  MEDAL, MARINE CORPS EXPEDITIONARY MEDAL, OR
GLOBAL WAR ON TERRORISM EXPEDITIONARY MEDAL, AND WHO WAS  DISCHARGED  OR
RELEASED THEREFROM UNDER HONORABLE CONDITIONS.
  3. "SERVICE DURING TIME OF WAR" MEANS:
  (A)  THE  INDIVIDUAL  IN  QUESTION WAS A RECIPIENT OF THE ARMED FORCES
EXPEDITIONARY MEDAL, THE NAVY EXPEDITIONARY MEDAL OR  THE  MARINE  CORPS
EXPEDITIONARY MEDAL FOR PARTICIPATION IN OPERATIONS IN LEBANON FROM JUNE
FIRST, NINETEEN HUNDRED EIGHTY-THREE TO DECEMBER FIRST, NINETEEN HUNDRED
EIGHTY-SEVEN,  IN  GRENADA  FROM  OCTOBER TWENTY-THIRD, NINETEEN HUNDRED
EIGHTY-THREE TO NOVEMBER TWENTY-FIRST, NINETEEN HUNDRED EIGHTY-THREE, OR
IN PANAMA FROM DECEMBER TWENTIETH, NINETEEN HUNDRED EIGHTY-NINE TO JANU-
ARY THIRTY-FIRST, NINETEEN HUNDRED NINETY, OR
  (B) THE INDIVIDUAL SERVED ON ACTIVE DUTY FOR NINETY DAYS  OR  MORE  IN
THE  ARMED  FORCES  OF THE UNITED STATES DURING ANY ONE OF THE FOLLOWING
WARS OR HOSTILITIES:
  (I) IN WORLD WAR I FROM THE  SIXTH  DAY  OF  APRIL,  NINETEEN  HUNDRED
SEVENTEEN  TO  THE  ELEVENTH DAY OF NOVEMBER, NINETEEN HUNDRED EIGHTEEN,
INCLUSIVE;
  (II) IN WORLD WAR II  FROM  THE  SEVENTH  DAY  OF  DECEMBER,  NINETEEN
HUNDRED  FORTY-ONE TO THE THIRTY-FIRST DAY OF DECEMBER, NINETEEN HUNDRED
FORTY-SIX, INCLUSIVE;
  (III) IN THE KOREAN HOSTILITIES FROM THE TWENTY-SEVENTH DAY  OF  JUNE,
NINETEEN  HUNDRED  FIFTY  TO  THE  THIRTY-FIRST DAY OF JANUARY, NINETEEN
HUNDRED FIFTY-FIVE, INCLUSIVE;
  (IV) IN THE VIETNAM CONFLICT FROM THE TWENTY-SECOND DAY  OF  DECEMBER,
NINETEEN  HUNDRED  SIXTY-ONE TO THE SEVENTH DAY OF MAY, NINETEEN HUNDRED
SEVENTY-FIVE; OR
  (V) IN THE PERSIAN GULF CONFLICT FROM THE SECOND DAY OF AUGUST,  NINE-
TEEN HUNDRED NINETY TO THE END OF SUCH CONFLICT.
  4. "AGENCY" MEANS THE NEW YORK STATE HOUSING FINANCE AGENCY CREATED BY
SECTION FORTY-THREE OF THIS CHAPTER.
  S  1115-B.  CREATION  OF  THE  "VETERAN'S HOME AND LAND OWNERSHIP LOAN
FUND".  THERE IS HEREBY ESTABLISHED A "VETERAN'S HOME AND LAND OWNERSHIP
LOAN FUND". SUCH FUND SHALL BE USED TO MAKE  LOANS  AUTHORIZED  BY  THIS
ARTICLE AND FOR EXPENSES INCURRED BY THE AGENCY IN THE IMPLEMENTATION OF
THE PROGRAM ESTABLISHED BY THIS ARTICLE.
  S  1115-C.  PURPOSE AND TERMS OF LOAN. 1. THE AGENCY, ACTING ON BEHALF
OF THE STATE MAY IN ITS DISCRETION, ENTER INTO A CONTRACT WITH AN ELIGI-
BLE PERSON TO PROVIDE A LOAN TO ASSIST IN THE PURCHASE OF A DWELLING  OR
THE  PURCHASE  AND  REHABILITATION  OF  A DWELLING CONTAINING UP TO FOUR
RESIDENTIAL UNITS, PROVIDED SUCH PERSON SHALL RESIDE IN AT LEAST ONE  OF
SUCH  UNITS.  SUCH  LOAN MAY ALSO BE MADE FOR THE PURCHASE OF UNIMPROVED
REAL PROPERTY WHEN SUCH PROPERTY SHALL BE USED FOR THE CONSTRUCTION OF A
NEW DWELLING.
  2. SUCH LOAN SHALL NOT EXCEED TWENTY PERCENT  OF  THE  VALUE  FOR  THE
PURCHASE  OF A HOME, OR FORTY THOUSAND DOLLARS FOR THE PURCHASE OF UNIM-
PROVED REAL PROPERTY. SUCH VALUE SHALL BE DETERMINED FROM THE APPRAISAL,
IF ANY, REQUIRED BY THE LENDING INSTITUTION GRANTING THE FIRST  MORTGAGE
LOAN  ON  SUCH  DWELLING,  AND IF NO SUCH APPRAISAL HAS BEEN MADE AT THE
TIME THAT A CONTRACT FOR LOAN IS ENTERED INTO PURSUANT TO THIS  ARTICLE,
THE AGENCY SHALL CAUSE SUCH APPRAISAL TO BE MADE.
  S  1115-D. LOAN REPAYMENT. 1. ANY LOAN CONTRACTED FOR PURSUANT TO THIS
ARTICLE SHALL BE SECURED BY A SECOND MORTGAGE ON THE DWELLING  OR  UNIM-
PROVED  REAL  PROPERTY  PURCHASED  BY  THE RECIPIENT OF SUCH LOAN IF THE
RECIPIENT OF SUCH LOAN ASSIGNS, TRANSFERS OR OTHERWISE  CONVEYS  HIS  OR
HER  INTEREST  IN  SUCH  DWELLING OR CEASES TO OCCUPY SUCH DWELLING, THE

A. 8653                             5

UNPAID PRINCIPAL BALANCE OF SAID SECOND MORTGAGE, TOGETHER WITH INTEREST
THEREON, SHALL BECOME DUE AND PAYABLE. IF THE RECIPIENT OF ANY  LOAN  IS
UNABLE  TO REPAY THE LOAN, THE AGENCY, AT ITS DISCRETION, MAY ADJUST THE
INTEREST RATE, TERMS AND CONDITIONS OF THE LOAN TO FACILITATE REPAYMENT.
  2.  REPAYMENT  OF  ANY  LOAN  PROVIDED IN ACCORDANCE WITH THIS ARTICLE
SHALL BE SUBJECT TO AN INTEREST RATE TO BE DETERMINED IN ACCORDANCE WITH
TERMS AND CONDITIONS AS THE AGENCY MAY ESTABLISH. IN NO CASE  SHALL  THE
TERM  EXCEED  THE TERM OF THE FIRST MORTGAGE OBTAINED FOR THE PURPOSE OF
PURCHASING SUCH DWELLING EXCEPT, IN THE  CASE  OF  A  GRADUATED  PAYMENT
MORTGAGE  LOAN,  THE  TERM OF THE LOAN MADE PURSUANT TO THIS ARTICLE MAY
EXCEED THE EXPECTED TERM OF SUCH MORTGAGE LOAN PROVIDED. THE TERM OF THE
LOAN MADE PURSUANT TO THIS ARTICLE DOES NOT EXCEED THE LESSER OF:
  (A) THE TERM INDICATED BY THE LIMITED  AMORTIZATION  SCHEDULE  OF  THE
GRADUATED PAYMENT MORTGAGE LOAN; OR
  (B)  THIRTY  YEARS. PAYMENTS BY HOMEOWNERS SHALL BE PAID TO THE AGENCY
AND DEPOSITED IN THE VETERAN'S HOME AND LAND OWNERSHIP LOAN FUND.
  S 1115-E. ISSUANCE OF BONDS. 1. THE AGENCY SHALL HAVE THE POWER AND IS
HEREBY AUTHORIZED FROM TIME TO TIME TO ISSUE ITS  NEGOTIABLE  BONDS  AND
NOTES IN CONFORMITY WITH APPLICABLE PROVISIONS OF THE UNIFORM COMMERCIAL
CODE  IN  SUCH  PRINCIPAL  AMOUNTS  AS, IN THE DISCRETION OF THE AGENCY,
SHALL BE NECESSARY TO CARRY OUT THE PURPOSES OF THIS ARTICLE, BUT NOT IN
EXCESS OF AN AGGREGATE AMOUNT OF TWENTY MILLION DOLLARS.
  2. EXCEPT AS MAY OTHERWISE BE EXPRESSLY PROVIDED BY  THE  AGENCY,  ALL
BONDS  AND  NOTES  ISSUED  SHALL BE PAYABLE OUT OF ANY MONEYS, ASSETS OR
REVENUES OF THE STATE, SUBJECT ONLY TO ANY AGREEMENT WITH BONDHOLDERS OR
NOTEHOLDERS PLEDGING ANY PARTICULAR MONEYS, ASSETS OR REVENUES.
  3. BONDS AND NOTES SHALL BE AUTHORIZED BY A RESOLUTION OR  RESOLUTIONS
OF THE AGENCY ADOPTED IN THE MANNER PROVIDED BY LAW.
  4.  SUCH BONDS OR NOTES SHALL BEAR SUCH DATE OR DATES, SHALL MATURE AT
SUCH TIME OR TIMES, SHALL BEAR INTEREST AT SUCH RATE OR RATES, SHALL  BE
OF  SUCH  DENOMINATIONS,  SHALL BE IN SUCH FORM, CARRY SUCH REGISTRATION
PRIVILEGES, BE EXECUTED IN SUCH MANNER, BE PAYABLE IN  LAWFUL  MONEY  OF
THE  UNITED  STATES OF AMERICA AT SUCH PLACE OR PLACES WITHIN OR WITHOUT
THE STATE, BE SUBJECT TO SUCH TERMS OF REDEMPTION PRIOR TO  MATURITY  AS
MAY  BE  PROVIDED  BY SUCH RESOLUTION OR RESOLUTIONS OR SUCH CERTIFICATE
WITH RESPECT TO SUCH BONDS OR NOTES,  AS  THE  CASE  MAY  BE;  PROVIDED,
HOWEVER,  THAT  THE  MAXIMUM  MATURITY  OF BONDS SHALL NOT EXCEED THIRTY
YEARS FROM THE DATE THEREOF AND THE MAXIMUM MATURITY  OF  NOTES  OR  ANY
RENEWALS  THEREOF  SHALL  NOT  EXCEED  SEVEN  YEARS FROM THE DATE OF THE
ORIGINAL ISSUE OF SUCH NOTES.
  5. ANY SUCH BONDS OR NOTES MAY BE SOLD AT SUCH  PRICE  OR  PRICES,  AT
PUBLIC  OR  PRIVATE SALE, IN SUCH MANNER AND FROM TIME TO TIME AS MAY BE
DETERMINED BY THE AGENCY, AND THE AGENCY MAY PAY ALL EXPENSES,  PREMIUMS
AND   COMMISSIONS  WHICH  IT  MAY  DEEM  NECESSARY  OR  ADVANTAGEOUS  IN
CONNECTION WITH THE ISSUANCE AND SALE THEREOF. NO BONDS OR NOTES MAY  BE
SOLD  AT  PRIVATE  SALE,  HOWEVER, UNLESS SUCH SALE AND THE TERM THEREOF
HAVE BEEN APPROVED IN WRITING BY:
  (A) THE COMPTROLLER, IF SUCH SALE IS NOT TO THE COMPTROLLER; OR
  (B) THE STATE DIRECTOR OF THE BUDGET, IF SUCH SALE  IS  TO  THE  COMP-
TROLLER.
  6.  THE  AGENCY IS AUTHORIZED TO PROVIDE FOR THE ISSUANCE OF ITS BONDS
OR NOTES FOR THE PURPOSE OF REFUNDING  ANY  SUCH  BONDS  OR  NOTES  THEN
OUTSTANDING,  INCLUDING  THE  PAYMENT OF ANY REDEMPTION PREMIUMS THEREON
AND ANY INTEREST ACCRUED OR  TO  ACCRUE  TO  THE  REDEMPTION  DATE  NEXT
SUCCEEDING  THE  DATE  OF DELIVERY OF SUCH REFUNDING BONDS OR NOTES. THE
PROCEEDS OF ANY SUCH BONDS OR NOTES ISSUED FOR THE PURPOSE OF SO REFUND-

A. 8653                             6

ING OUTSTANDING BONDS  OR  NOTES  SHALL  BE  FORTHWITH  APPLIED  TO  THE
PURCHASE OR RETIREMENT OF SUCH OUTSTANDING BONDS OR NOTES OR THE REDEMP-
TION  OF  SUCH  OUTSTANDING  BONDS  OR NOTES ON THE REDEMPTION DATE NEXT
SUCCEEDING  THE  DATE  OF  DELIVERY OF SUCH REFUNDING BONDS OR NOTES AND
MAY, PENDING SUCH APPLICATION, BE PLACED IN ESCROW TO BE APPLIED TO SUCH
PURCHASE OR RETIREMENT OR REDEMPTION ON SUCH  DATE.  ANY  SUCH  ESCROWED
PROCEEDS, PENDING SUCH USE, MAY BE INVESTED AND REINVESTED ONLY IN OBLI-
GATIONS  OF  OR  GUARANTEED BY THE STATE OR THE UNITED STATES OF AMERICA
AND EITHER:
  (A) THE YIELD FROM WHICH DOES NOT EXCEED THE AVERAGE NET INTEREST COST
PER ANNUM, EXPRESSED AS A PERCENTAGE, ON SUCH REFUNDING  BONDS  BY  MORE
THAN ONE-HALF OF ONE PERCENT; OR
  (B) THE INCOME FROM WHICH IS EXEMPT FROM FEDERAL TAXATION, MATURING AT
SUCH TIME OR TIMES AS SHALL BE APPROPRIATE TO ASSURE THE PROMPT PAYMENT,
AS  TO  PRINCIPAL,  INTEREST  AND  REDEMPTION  PREMIUM,  IF  ANY, ON THE
OUTSTANDING BONDS OR NOTES TO BE SO REFUNDED BY PURCHASE, RETIREMENT  OR
REDEMPTION, AS THE CASE MAY BE.
  THE  INTEREST,  INCOME  AND PROFITS, IF ANY, EARNED OR REALIZED ON ANY
SUCH INVESTMENT MAY ALSO BE APPLIED TO THE PAYMENT  OF  THE  OUTSTANDING
BONDS  OR NOTES TO BE SO REFUNDED BY PURCHASE, RETIREMENT OR REDEMPTION,
AS THE CASE MAY BE. AFTER THE TERMS OF THE ESCROW HAVE BEEN FULLY SATIS-
FIED AND CARRIED OUT, ANY BALANCE OF SUCH PROCEEDS AND INTEREST, IF ANY,
EARNED OR REALIZED ON THE INVESTMENTS THEREOF MAY  BE  RETURNED  TO  THE
AGENCY FOR USE BY IT IN ANY LAWFUL MANNER. ALL SUCH BONDS OR NOTES SHALL
BE  ISSUED  AND SECURED AND SHALL BE SUBJECT TO THE PROVISIONS OF LAW IN
THE SAME MANNER AND TO THE SAME EXTENT  AS  ANY  OTHER  BONDS  OR  NOTES
ISSUED PURSUANT TO LAW.
  7.  WHETHER  OR NOT THE BONDS AND NOTES ARE OF SUCH FORM AND CHARACTER
AS TO BE NEGOTIABLE INSTRUMENTS UNDER THE TERMS OF THE  UNIFORM  COMMER-
CIAL  CODE,  THE  BONDS AND NOTES ARE HEREBY MADE NEGOTIABLE INSTRUMENTS
WITHIN THE MEANING OF AND FOR ALL THE PURPOSES OF THE UNIFORM COMMERCIAL
CODE, SUBJECT ONLY THE PROVISIONS OF THE BONDS AND NOTES  FOR  REGISTRA-
TION.
  8. ANY RESOLUTION OR RESOLUTIONS AUTHORIZING ANY BONDS OR NOTES PURSU-
ANT  TO  THE PROVISIONS OF THIS ARTICLE MAY CONTAIN PROVISIONS WHICH MAY
BE A PART OF THE CONTRACT WITH THE HOLDERS OF SUCH BONDS  OR  NOTES,  AS
TO:
  (A) PLEDGING OR CREATING A LIEN, TO THE EXTENT PROVIDED BY SUCH RESOL-
UTION  OR RESOLUTIONS, ON ALL OR ANY PART OF ANY MONEYS HELD IN TRUST OR
OTHERWISE BY OTHERS FOR THE PAYMENT OF SUCH BONDS OR NOTES;
  (B) THE SETTING ASIDE OF RESERVES OR SINKING FUNDS AND THE  REGULATION
OR DISPOSITION THEREOF;
  (C)  LIMITATIONS   ON THE PURPOSE TO WHICH THE PROCEEDS OF SALE OF ANY
ISSUE OF SUCH BONDS OR NOTES THEN OR THEREAFTER  TO  BE  ISSUED  MAY  BE
APPLIED;
  (D)  LIMITATIONS  ON  THE  ISSUANCE  OF ADDITIONAL BONDS OR NOTES, THE
TERMS UPON WHICH ADDITIONAL BONDS OR NOTES MAY BE  ISSUED  AND  SECURED,
AND UPON THE REFUNDING OF OUTSTANDING OR OTHER BONDS OR NOTES;
  (E) THE PROCEDURE, IF ANY, BY WHICH THE TERMS OF ANY CONTRACT WITH THE
HOLDERS  OF  BONDS  OR  NOTES MAY BE AMENDED OR ABROGATED, THE AMOUNT OF
BONDS OR NOTES THE HOLDERS OF WHICH MUST CONSENT THERETO AND THE  MANNER
IN WHICH SUCH CONSENT MAY BE GIVEN;
  (F)  PROVIDING  FOR THE RIGHTS AND REMEDIES OF THE HOLDERS OF BONDS OR
NOTES IN THE EVENT OF DEFAULT, PROVIDED, HOWEVER, THAT SUCH  RIGHTS  AND
REMEDIES  SHALL NOT BE INCONSISTENT WITH THE GENERAL LAWS OF THIS STATE;
AND

A. 8653                             7

  (G) ANY OTHER MATTERS OF LIKE OR DIFFERENT CHARACTER, WHICH IN ANY WAY
AFFECT THE SECURITY AND PROTECTION OF THE BONDS OR NOTES AND THE  RIGHTS
OF THE HOLDERS THEREOF.
  S  1115-F. ADOPTION OF REGULATIONS. THE AGENCY SHALL ADOPT REGULATIONS
PROVIDING FOR QUALIFICATIONS OF ELIGIBLE PERSONS, REQUIREMENTS AND LIMI-
TATIONS AS TO ADJUSTMENTS OF TERMS AND CONDITIONS OF REPAYMENT,  FUNDING
PRIORITIES  AND  ANY  ADDITIONAL  REQUIREMENTS  AS IT DEEMS NECESSARY TO
CARRY OUT THE PURPOSES OF THIS ARTICLE.
  S 5. The public authorities law is amended by  adding  a  new  section
2405-f to read as follows:
  S 2405-F. PURCHASE OF VETERANS' ASSISTED FORWARD COMMITMENT MORTGAGES.
(1)  IN  ACCORDANCE  WITH THE AUTHORITY SET FORTH IN SECTION TWENTY-FOUR
HUNDRED FIVE-B OF THIS PART, THE AGENCY MAY PURCHASE VETERANS'  ASSISTED
FORWARD  COMMITMENT  MORTGAGES  FROM  BANKS AT SUCH PRICES AND UPON SUCH
TERMS AND CONDITIONS AS IT SHALL DETERMINE. IN CONDUCTING ITS PROGRAM OF
PURCHASING VETERANS' ASSISTED FORWARD COMMITMENT MORTGAGES,  THE  AGENCY
SHALL  BE  GOVERNED  BY SECTION TWENTY-FOUR HUNDRED FIVE-B OF THIS PART.
THE BOARD OF DIRECTORS OF THE AGENCY SHALL ESTABLISH FROM TIME  TO  TIME
MAXIMUM  INCOME  LIMITS  OF  PERSONS ELIGIBLE TO RECEIVE SUCH MORTGAGES,
WHICH INCOME LIMITS SHALL NOT EXCEED THE LATEST  MAXIMUM  INCOME  LIMITS
PERMITTED   UNDER   THE   INTERNAL  REVENUE  CODE  OF  NINETEEN  HUNDRED
EIGHTY-SIX, AS AMENDED,  FOR  MORTGAGES  FINANCED  BY  MORTGAGE  REVENUE
BONDS.
  (2)  FOR  THE PURPOSES OF THIS SECTION, THE FOLLOWING TERMS SHALL HAVE
THE FOLLOWING MEANINGS:
  (A) "VETERAN" MEANS A PERSON WHO SERVED IN THE ACTIVE MILITARY, NAVAL,
OR AIR SERVICE DURING A TIME OF WAR AS  DEFINED  BELOW,  OR  WHO  WAS  A
RECIPIENT  OF  THE  ARMED FORCES EXPEDITIONARY MEDAL, NAVY EXPEDITIONARY
MEDAL, MARINE CORPS EXPEDITIONARY MEDAL,  OR  GLOBAL  WAR  ON  TERRORISM
EXPEDITIONARY  MEDAL, AND WHO WAS DISCHARGED OR RELEASED THEREFROM UNDER
HONORABLE CONDITIONS.
  (B) "SERVICE DURING A TIME OF WAR" MEANS: (I) THE INDIVIDUAL IN  QUES-
TION  WAS  A RECIPIENT OF THE ARMED FORCES EXPEDITIONARY MEDAL, THE NAVY
EXPEDITIONARY MEDAL OR THE MARINE CORPS EXPEDITIONARY MEDAL FOR  PARTIC-
IPATION  IN  OPERATIONS  IN  LEBANON  FROM  JUNE FIRST, NINETEEN HUNDRED
EIGHTY-THREE TO DECEMBER FIRST, NINETEEN HUNDRED EIGHTY-SEVEN, IN GRENA-
DA FROM OCTOBER TWENTY-THIRD, NINETEEN HUNDRED EIGHTY-THREE TO  NOVEMBER
TWENTY-FIRST,  NINETEEN HUNDRED EIGHTY-THREE, OR IN PANAMA FROM DECEMBER
TWENTIETH, NINETEEN HUNDRED EIGHTY-NINE TO JANUARY  THIRTY-FIRST,  NINE-
TEEN HUNDRED NINETY; OR
  (II)  THE  INDIVIDUAL SERVED ON ACTIVE DUTY FOR NINETY DAYS OR MORE IN
THE ARMED FORCES OF THE UNITED STATES DURING ANY ONE  OF  THE  FOLLOWING
WARS OR HOSTILITIES:
  (A)  IN  THE  SPANISH-AMERICAN WAR FROM THE TWENTY-FIRST DAY OF APRIL,
EIGHTEEN HUNDRED NINETY-EIGHT TO THE ELEVENTH  DAY  OF  APRIL,  EIGHTEEN
HUNDRED NINETY-NINE, INCLUSIVE;
  (B) IN THE PHILIPPINE INSURRECTION OR THE CHINA RELIEF EXPEDITION FROM
THE  ELEVENTH  DAY  OF APRIL, EIGHTEEN HUNDRED NINETY-NINE TO THE FOURTH
DAY OF JULY, NINETEEN HUNDRED TWO, INCLUSIVE;
  (C) IN THE MEXICAN BORDER CAMPAIGN FROM THE NINTH DAY OF MAY, NINETEEN
HUNDRED SIXTEEN TO THE FIFTH DAY OF APRIL, NINETEEN  HUNDRED  SEVENTEEN,
INCLUSIVE;
  (D)  IN  WORLD  WAR  I  FROM  THE SIXTH DAY OF APRIL, NINETEEN HUNDRED
SEVENTEEN TO THE ELEVENTH DAY OF NOVEMBER,  NINETEEN  HUNDRED  EIGHTEEN,
INCLUSIVE;

A. 8653                             8

  (E) IN WORLD WAR II FROM THE SEVENTH DAY OF DECEMBER, NINETEEN HUNDRED
FORTY-ONE   TO  THE  THIRTY-FIRST  DAY  OF  DECEMBER,  NINETEEN  HUNDRED
FORTY-SIX, INCLUSIVE;
  (F)  IN  THE  KOREAN  HOSTILITIES FROM THE TWENTY-SEVENTH DAY OF JUNE,
NINETEEN HUNDRED FIFTY TO THE  THIRTY-FIRST  DAY  OF  JANUARY,  NINETEEN
HUNDRED FIFTY-FIVE, INCLUSIVE;
  (G)  IN  THE  VIETNAM CONFLICT FROM THE TWENTY-SECOND DAY OF DECEMBER,
NINETEEN HUNDRED SIXTY-ONE TO THE SEVENTH DAY OF MAY,  NINETEEN  HUNDRED
SEVENTY-FIVE; OR
  (H)  IN THE PERSIAN GULF CONFLICT FROM THE SECOND DAY OF AUGUST, NINE-
TEEN HUNDRED NINETY TO THE END OF SUCH CONFLICT.
  (3) FOR ANY VETERANS' ASSISTED FORWARD COMMITMENT MORTGAGE, THE  MAXI-
MUM  LOAN-TO-VALUE  RATIO  SHALL  BE ESTABLISHED BY THE AGENCY, PROVIDED
THAT SUCH LOAN SHALL NOT EXCEED NINETY-NINE  PERCENT  OF  THE  APPRAISED
VALUE OF THE MORTGAGED PREMISES.
  S  6.  This  act shall take effect immediately; provided however, that
(a) sections two and five of this act shall take effect on the ninetieth
day after it shall have become a law;
  (b) section three of this act shall take effect on the  thirtieth  day
after it shall have become a law;
  (c)  section  four  of  this  act shall take effect on the one hundred
eightieth day after it shall have become a law; and
  (d) further provided, however, that effective immediately,  the  addi-
tion,  amendment  and/or  repeal of any rule or regulation necessary for
the implementation of this act on its effective date are authorized  and
directed to be made and completed on or before such effective date.