NY State Senate Bill 2009-S1238

Archive: Last Bill Status - In Senate Committee Housing, Construction And Community Development 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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Date of Action	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 06, 2010	referred to housing, construction and community development
Jan 28, 2009	referred to housing, construction and community development

co-Sponsors

2009-S1238 (ACTIVE) - Details

Current Committee:: Senate Housing, Construction And Community Development
Law Section:: Private Housing Finance Law
Laws Affected:: Add Art XIV §§700 - 724, amd §§405, 407, 802 & 805, Priv Hous Fin L

2009-S1238 (ACTIVE) - Summary

Creates the Buffalo housing development corporation; enumerates the powers and duties of the corporation and the powers and duties of its members; authorizes the issuance of bonds.

2009-S1238 (ACTIVE) - Sponsor Memo

                                 BILL NUMBER:  S1238

 TITLE OF BILL :
An act to amend the private housing finance law, in relation to
creating the Buffalo housing  development corporation


 PURPOSE :
Creates the Buffalo Housing Development Corporation (BHDC). Allows the
BHDC to issue bonds, the proceeds of which are used to make loans to
private entities and to developers through banks or other lending
institutions.

 SUMMARY OF PROVISIONS :
The private housing finance law is amended by adding a new article 14
to read as follows:

Article XIV Buffalo Housing Development Corporation

Section 700. Short title.

701. Statement of legislative findings and purpose

702. Definitions

703. Buffalo housing development corporation

704. Powers of the corporation

705. Subsidiaries; how created

706. Housing assistance corporation

707. Residential mortgage insurance corporation

708. Notes and bonds of the corporation

709. Authorization of contracts for taxation by the United States of
interest on obligations guaranteed thereby

710. Reserve funds appropriations

711. Agreement with the state

712. State and city not liable on notes

713. City's right to require redemption of bonds

714. Remedies of note holders and bondholders

715. Assistance to the corporation

716. Notes and bonds as legal investments

717. Exemption from taxation

718. Employees of the corporation

719. Assistance by the division of residential development 720. Moneys
of the corporation

721. Actions

722. Annual Report

723. Severability
724. Inconsistent provisions on other laws superseded.

 JUSTIFICATION :
There continues to exist in the city of Buffalo a seriously inadequate
supply of safe and sanitary dwelling accommodations within the
financial reach of families and persons, particularly of low/middle
income. In order to encourage the investment of private capital and
provide such dwelling accommodations, the creation of this corporation
in Buffalo is very much needed. A similar corporation in New York City
has had great success. There also exist a large number of multiple
dwellings in need of rehabilitation or other improvements and this
corporation will also allow these dwellings to be rehabilitated
without public aid in the form of low interest loans to the owners of
such multiple dwellings.

 LEGISLATIVE HISTORY :
S.6903 of 2002 referred to Housing, Construction and Community
Development
2003 - Print Number S.3407A
2004- S.2407-A/A7342-A Referred to Housing, Construction and Community
Development.

 EFFECTIVE DATE :
This act shall take effect on the one hundred twentieth day after it
shall have become a law.

2009-S1238 (ACTIVE) - Bill Text download pdf

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

                                  1238

                       2009-2010 Regular Sessions

                            I N  S E N A T E

                            January 28, 2009
                               ___________

Introduced by Sens. THOMPSON, ONORATO -- read twice and ordered printed,
  and  when  printed  to  be  committed  to  the  Committee  on Housing,
  Construction and Community Development

AN ACT to amend the private housing finance law, in relation to creating
  the Buffalo housing  development corporation

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

  Section  1. The private housing finance law is amended by adding a new
article 14 to read as follows:
                                ARTICLE XIV
                 BUFFALO HOUSING DEVELOPMENT CORPORATION

SECTION 700. SHORT TITLE.
        701. STATEMENT OF LEGISLATIVE FINDINGS AND PURPOSE.
        702. DEFINITIONS.
        703. BUFFALO HOUSING DEVELOPMENT CORPORATION.
        704. POWERS OF THE CORPORATION.
        705. SUBSIDIARIES; HOW CREATED.
        706. HOUSING ASSISTANCE CORPORATION.
        707. RESIDENTIAL MORTGAGE INSURANCE CORPORATION.
        708. NOTES AND BONDS OF THE CORPORATION.
        709. AUTHORIZATION OF  CONTRACTS  FOR  TAXATION  BY  THE  UNITED
               STATES OF INTEREST ON OBLIGATIONS GUARANTEED THEREBY.
        710. RESERVE FUNDS AND APPROPRIATIONS.
        711. AGREEMENT WITH THE STATE.
        712. STATE AND CITY NOT LIABLE ON NOTES AND BONDS.
        713. CITY'S RIGHT TO REQUIRE REDEMPTION OF BONDS.
        714. REMEDIES OF NOTEHOLDERS AND BONDHOLDERS.
        715. ASSISTANCE TO THE CORPORATION.
        716. NOTES AND BONDS AS LEGAL INVESTMENTS.
        717. EXEMPTION FROM TAXATION.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD05296-01-9

S. 1238                             2

        718. EMPLOYEES OF THE CORPORATION.
        719. ASSISTANCE BY THE DIVISION OF RESIDENTIAL DEVELOPMENT.
        720. MONEYS OF THE CORPORATION.
        721. ACTIONS.
        722. ANNUAL REPORT.
        723. SEVERABILITY.
        724. INCONSISTENT PROVISIONS IN OTHER LAWS SUPERSEDED.
  S  700.  SHORT  TITLE. THIS ARTICLE SHALL BE KNOWN AND MAY BE CITED AS
THE "BUFFALO HOUSING DEVELOPMENT CORPORATION ACT".
  S 701. STATEMENT OF LEGISLATIVE FINDINGS AND PURPOSE. 1. THERE CONTIN-
UES TO EXIST IN THE CITY OF BUFFALO A  SERIOUSLY  INADEQUATE  SUPPLY  OF
SAFE  AND SANITARY DWELLING ACCOMMODATIONS WITHIN THE FINANCIAL REACH OF
FAMILIES AND PERSONS OF LOW INCOME. THE ORDINARY OPERATIONS  OF  PRIVATE
ENTERPRISE  CANNOT  PROVIDE AN ADEQUATE SUPPLY OF SUCH ACCOMMODATIONS AT
RENTALS AND CARRYING CHARGES WHICH FAMILIES AND PERSONS  OF  LOW  INCOME
CAN  AFFORD. IN ORDER TO ENCOURAGE THE INVESTMENT OF PRIVATE CAPITAL AND
PROVIDE SUCH DWELLING ACCOMMODATIONS,  PROVISIONS  SHOULD  BE  MADE  FOR
MORTGAGE  LOANS AT LOW INTEREST RATES TO HOUSING COMPANIES THAT, SUBJECT
TO REGULATION AS TO RENTS, PROFITS, DIVIDENDS AND DISPOSITION  OF  THEIR
PROPERTY,  SUPPLY MULTIPLE DWELLING ACCOMMODATIONS, AND OTHER FACILITIES
INCIDENTAL OR APPURTENANT THERETO TO SUCH FAMILIES AND PERSONS. FOR THAT
PURPOSE THERE SHOULD BE CREATED A CORPORATE GOVERNMENTAL AGENCY,  TO  BE
KNOWN  AS  THE "BUFFALO HOUSING DEVELOPMENT CORPORATION," WHICH, THROUGH
THE ISSUANCE OF ITS BONDS, NOTES OR OTHER  OBLIGATIONS  TO  THE  PRIVATE
INVESTING PUBLIC, MAY ATTRACT A BROAD BASE OF INVESTMENT BY THE GREATEST
NUMBER  OF  THE GENERAL PUBLIC AND OBTAIN THE FUNDS NECESSARY TO MAKE OR
FINANCE THE MAKING OF SUCH MORTGAGE LOANS.
  2. THERE ALSO EXISTS IN THE CITY OF BUFFALO A LARGE NUMBER OF MULTIPLE
DWELLINGS WHICH ARE INADEQUATE, UNSAFE OR INSANITARY AND  WHICH  CAN  BE
MADE  ADEQUATE,  SAFE,  AND SANITARY BY REHABILITATION OR OTHER IMPROVE-
MENT. SUCH REHABILITATION OR IMPROVEMENT CANNOT READILY BE  PROVIDED  BY
THE  ORDINARY OPERATIONS OF PRIVATE ENTERPRISE WITHOUT PUBLIC AID IN THE
FORM OF LOW INTEREST LOANS TO THE OWNERS OF SUCH MULTIPLE DWELLINGS.  IN
ORDER  TO  ENCOURAGE THE INVESTMENT OF PRIVATE CAPITAL IN SUCH REHABILI-
TATION AND IMPROVEMENT, THE AGENCY SHOULD ALSO BE EMPOWERED, THROUGH THE
ISSUANCE OF ITS BONDS, NOTES OR OTHER OBLIGATIONS TO THE PRIVATE INVEST-
ING PUBLIC, TO OBTAIN THE FUNDS NECESSARY TO MAKE OR FINANCE THE  MAKING
OF SUCH LOW INTEREST LOANS.
  THE  NECESSITY  IN  THE  PUBLIC INTEREST FOR THE PROVISIONS ENACTED IN
THIS ARTICLE IS HEREBY DECLARED AS  A  MATTER  OF  LEGISLATIVE  DETERMI-
NATION.
  S  702.  DEFINITIONS. AS USED OR REFERRED TO IN THIS ARTICLE, UNLESS A
DIFFERENT MEANING CLEARLY APPEARS FROM THE CONTEXT:
  1. "CORPORATION" SHALL MEAN THE CORPORATE GOVERNMENTAL AGENCY  CREATED
BY SECTION SEVEN HUNDRED THREE OF THIS ARTICLE.
  2. "STATE" SHALL MEAN THE STATE OF NEW YORK.
  3. "CITY" SHALL MEAN THE CITY OF BUFFALO.
  4. "MAYOR" SHALL MEAN THE MAYOR OF THE CITY OF BUFFALO.
  5. "COMPTROLLER" SHALL MEAN THE COMPTROLLER OF THE CITY OF BUFFALO.
  6. "COMMISSIONER OF ADMINISTRATION AND FINANCE" SHALL MEAN THE COMMIS-
SIONER OF ADMINISTRATION AND FINANCE OF THE CITY OF BUFFALO.
  7.  "BUDGET  DIRECTOR"  SHALL  MEAN THE BUDGET DIRECTOR OF THE CITY OF
BUFFALO.
  8. "DIVISION OF  RESIDENTIAL  DEVELOPMENT"  SHALL  MEAN  THE  OFFICER,
BOARD,  COMMISSION,  DEPARTMENT  OR  AGENCY  DESIGNATED  BY  THE CITY OF

S. 1238                             3

BUFFALO TO CARRY OUT THE PURPOSE AND PROVISIONS OF  ARTICLE  SIXTEEN  OF
THE GENERAL MUNICIPAL LAW.
  9.  "BONDS" AND "NOTES" SHALL MEAN REVENUE BONDS AND NOTES RESPECTIVE-
LY, ISSUED BY THE CORPORATION PURSUANT TO THIS ARTICLE.
  10. "REVENUES" SHALL MEAN THE FEES AND CHARGES MADE OR RECEIVED BY THE
CORPORATION, AND ALL OR ANY PART OF THE MONEYS RECEIVED  IN  PAYMENT  OF
MORTGAGE  LOANS  AND  INTEREST  THEREON, INCLUDING PREPAYMENTS AND OTHER
MONEYS RECEIVED OR TO BE RECEIVED.
  11. "OPERATING EXPENSES" SHALL MEAN ALL  COSTS  OF  ADMINISTERING  THE
CORPORATION,  INCLUDING  BUT NOT LIMITED TO SALARIES AND WAGES, EXPENSES
OF ADMINISTERING STAFF  FUNCTIONS,  FEES  OF  PROFESSIONAL  CONSULTANTS,
LEGAL  FEES,  CHARGES  INCURRED  FOR  SERVICING OF MORTGAGE LOANS, MONEY
MANAGEMENT,  OFFICE  RENTS,  UTILITY   CHARGES,   COSTS   OF   SUPPLIES,
FURNISHINGS,  EQUIPMENT, MACHINERY AND APPARATUS, MAINTENANCE AND REPAIR
OF PROPERTY AND OTHER EXPENSES INCURRED IN CONNECTION WITH  THE  FOREGO-
ING.
  12.  "MAXIMUM  CAPITAL RESERVE FUND REQUIREMENT" SHALL MEAN, AS OF ANY
PARTICULAR DATE OF COMPUTATION, AN AMOUNT OF MONEY EQUAL TO THE GREATEST
OF THE RESPECTIVE AMOUNTS, FOR THE THEN CURRENT  OR  ANY  FUTURE  FISCAL
YEAR OF THE CORPORATION, OF ANNUAL DEBT SERVICE OF THE CORPORATION, SUCH
ANNUAL  DEBT SERVICE FOR ANY FISCAL YEAR BEING THE AMOUNT OF MONEY EQUAL
TO THE AGGREGATE OF (A) ALL INTEREST PAYABLE DURING SUCH FISCAL YEAR  ON
ALL  BONDS  OF  THE  CORPORATION  SECURED BY THE CAPITAL RESERVE FUND OR
FUNDS FOR WHICH SUCH REQUIREMENT IS TO BE DETERMINED, OTHER  THAN  BONDS
ISSUED  PURSUANT TO SUBDIVISION TWO OF SECTION SEVEN HUNDRED TEN OF THIS
ARTICLE, OUTSTANDING ON SAID DATE OF COMPUTATION, PLUS (B) THE PRINCIPAL
AMOUNT OF ALL BONDS OF THE CORPORATION SECURED BY  THE  CAPITAL  RESERVE
FUND OR FUNDS FOR WHICH SUCH REQUIREMENT IS TO BE DETERMINED, OTHER THAN
BONDS ISSUED PURSUANT TO SUBDIVISION TWO OF SECTION SEVEN HUNDRED TEN OF
THIS  ARTICLE  OUTSTANDING  ON  SAID  DATE  OF COMPUTATION WHICH MATURES
DURING SUCH FISCAL YEAR, PLUS (C) THE AMOUNT OF ALL ANNUAL SINKING  FUND
PAYMENTS  PAYABLE  DURING  SUCH FISCAL YEAR WITH RESPECT TO ANY BONDS OF
THE CORPORATION SECURED BY THE CAPITAL RESERVE FUND OR FUNDS  FOR  WHICH
SUCH  REQUIREMENT  IS TO BE DETERMINED, OTHER THAN BONDS ISSUED PURSUANT
TO SUBDIVISION TWO  OF  SECTION  SEVEN  HUNDRED  TEN  OF  THIS  ARTICLE,
OUTSTANDING ON SAID DATE OF COMPUTATION.
  13. "ANNUAL SINKING FUND PAYMENT" SHALL MEAN THE AMOUNT OF MONEY SPEC-
IFIED IN THE RESOLUTION AUTHORIZING TERM BONDS AS PAYABLE INTO A SINKING
FUND  DURING  A  PARTICULAR FISCAL YEAR FOR THE RETIREMENT OF TERM BONDS
WHICH MATURE AFTER SUCH FISCAL YEAR, BUT SHALL NOT  INCLUDE  ANY  AMOUNT
PAYABLE BY REASON ONLY OF THE MATURITY OF A BOND.
  14.  "LENDING  INSTITUTION"  SHALL  MEAN  ANY BANK OR TRUST COMPANY OR
SAVINGS BANK, OR ANY CORPORATION, ASSOCIATION OR OTHER ENTITY  WHICH  IS
OWNED  OR  CONTROLLED  BY  ANY ONE OR MORE SUCH BANK OR TRUST COMPANY OR
SAVINGS BANK, OR ANY SAVINGS  AND  LOAN  ASSOCIATION,  INDUSTRIAL  BANK,
CREDIT  UNION,  FEDERAL  NATIONAL MORTGAGE ASSOCIATION APPROVED MORTGAGE
BANKER, NATIONAL BANKING ASSOCIATION, FEDERAL SAVINGS AND  LOAN  ASSOCI-
ATION,  PENSION  FUND,  INSURANCE COMPANY, FEDERAL CREDIT UNION OR OTHER
FINANCIAL INSTITUTION OR GOVERNMENTAL AGENCY OF THE UNITED STATES  WHICH
CUSTOMARILY MAKES, PURCHASES, HOLDS OR SERVICES RESIDENTIAL MORTGAGES.
  S  703.  BUFFALO  HOUSING  DEVELOPMENT CORPORATION. 1. THERE IS HEREBY
CREATED THE "BUFFALO HOUSING DEVELOPMENT CORPORATION".  THE  CORPORATION
SHALL  BE  A  CORPORATE  GOVERNMENTAL AGENCY, PERPETUAL IN DURATION, AND
SHALL CONSTITUTE A PUBLIC BENEFIT CORPORATION.    IT  SHALL  CONSIST  OF
SEVEN  MEMBERS  AS FOLLOWS:  THE DIRECTOR OF THE DIVISION OF RESIDENTIAL
DEVELOPMENT, WHO SHALL SERVE AS CHAIRPERSON, THE COMMISSIONER OF  ADMIN-

S. 1238                             4

ISTRATION  AND  FINANCE,  THE  BUDGET DIRECTOR, TWO PUBLIC MEMBERS TO BE
APPOINTED BY THE MAYOR AND TWO PUBLIC MEMBERS TO  BE  APPOINTED  BY  THE
GOVERNOR.  THE PUBLIC MEMBERS FIRST APPOINTED BY THE MAYOR OR THE GOVER-
NOR, AS MAY BE THE CASE, SHALL SERVE FOR TERMS ENDING TWO AND FOUR YEARS
RESPECTIVELY  FROM  JANUARY  FIRST  NEXT  SUCCEEDING  THE  DATE OF THEIR
APPOINTMENT.  THEIR SUCCESSORS SHALL SERVE FOR TERMS OF FOUR YEARS EACH.
MEMBERS SHALL CONTINUE  IN  OFFICE  UNTIL  THEIR  SUCCESSORS  HAVE  BEEN
APPOINTED  AND  QUALIFIED.    THE  MAYOR  OR THE GOVERNOR SHALL FILL ANY
VACANCY WHICH MAY OCCUR BY REASON OF DEATH, RESIGNATION OR OTHERWISE  IN
A  MANNER  CONSISTENT WITH THE ORIGINAL APPOINTMENT. A PUBLIC MEMBER MAY
BE REMOVED BY THE MAYOR OR THE GOVERNOR, WHOEVER APPOINTED SUCH  MEMBER,
FOR  CAUSE,  BUT  NOT WITHOUT AN OPPORTUNITY TO BE HEARD IN PERSON OR BY
COUNSEL, IN SUCH MEMBER'S DEFENSE, UPON NOT LESS THAN TEN DAYS' NOTICE.
  2. NOTWITHSTANDING ANY INCONSISTENT PROVISIONS OF THIS  OR  ANY  OTHER
GENERAL,  SPECIAL  OR LOCAL LAW, NO OFFICER OR EMPLOYEE OF THE STATE, OR
OF ANY CIVIL DIVISION THEREOF, OR OF ANY PUBLIC CORPORATION, AS  DEFINED
IN  THE  GENERAL  CONSTRUCTION LAW, SHALL BE DEEMED TO HAVE FORFEITED OR
SHALL FORFEIT  SUCH  PERSON'S  OFFICE  OR  EMPLOYMENT  OR  ANY  BENEFITS
PROVIDED  UNDER  THE  RETIREMENT  AND  SOCIAL  SECURITY LAW OR UNDER ANY
PUBLIC RETIREMENT SYSTEM MAINTAINED BY THE STATE OR BY THE  CIVIL  DIVI-
SIONS  THEREOF BY REASON OF SUCH PERSON'S ACCEPTANCE OF MEMBERSHIP ON OR
BY VIRTUE OF SUCH PERSON BEING AN OFFICER,  EMPLOYEE  OR  AGENT  OF  THE
CORPORATION.  A  MEMBER SHALL NOT RECEIVE A SALARY OR OTHER COMPENSATION
FOR SERVICES RENDERED PURSUANT TO THIS ARTICLE BUT SHALL BE ENTITLED  TO
REIMBURSEMENT  FOR  SUCH MEMBER'S ACTUAL AND NECESSARY EXPENSES INCURRED
IN THE PERFORMANCE OF SUCH SERVICES. THE MEMBERS MAY ENGAGE  IN  PRIVATE
EMPLOYMENT  OR  IN A PROFESSION OR BUSINESS, UNLESS OTHERWISE PROHIBITED
FROM DOING SO BY VIRTUE OF HOLDING ANOTHER PUBLIC OFFICE, SUBJECT TO THE
PROVISIONS OF ARTICLE EIGHTEEN OF THE GENERAL  MUNICIPAL  LAW.  FOR  THE
PURPOSES  OF  SUCH ARTICLE EIGHTEEN, THE CORPORATION SHALL BE A "MUNICI-
PALITY" AND A MEMBER SHALL BE A "MUNICIPAL OFFICER".
  3. THE POWERS OF THE CORPORATION SHALL BE VESTED IN AND  EXERCISED  BY
NO LESS THAN FOUR OF THE MEMBERS THEREOF THEN IN OFFICE. THE CORPORATION
MAY  DELEGATE TO ONE OR MORE OF ITS MEMBERS, OFFICERS, AGENTS OR EMPLOY-
EES SUCH POWERS AND DUTIES AS IT MAY DEEM PROPER.
  4. THE CORPORATION AND ITS CORPORATE EXISTENCE  SHALL  CONTINUE  UNTIL
TERMINATED BY LAW; PROVIDED, HOWEVER, THAT NO SUCH LAW SHALL TAKE EFFECT
SO LONG AS THE CORPORATION SHALL HAVE NOTES, BONDS, OR OTHER OBLIGATIONS
OUTSTANDING.    UPON TERMINATION OF THE EXISTENCE OF THE CORPORATION ALL
OF ITS RIGHTS AND PROPERTIES SHALL PASS TO AND BE VESTED IN THE CITY.
  S 704. POWERS OF THE CORPORATION. EXCEPT AS OTHERWISE LIMITED BY  THIS
ARTICLE, THE CORPORATION SHALL HAVE POWER:
  1. TO SUE AND BE SUED;
  2. TO HAVE A SEAL AND ALTER THE SAME AT PLEASURE;
  3. TO MAKE AND ALTER BY-LAWS FOR ITS ORGANIZATION AND INTERNAL MANAGE-
MENT AND, SUBJECT TO AGREEMENTS WITH NOTEHOLDERS OR BONDHOLDERS, TO MAKE
RULES AND REGULATIONS GOVERNING THE USE OF ITS PROPERTY AND FACILITIES;
  4.  TO  MAKE AND EXECUTE CONTRACTS AND ALL OTHER INSTRUMENTS NECESSARY
OR CONVENIENT FOR THE EXERCISE OF ITS POWERS AND  FUNCTIONS  UNDER  THIS
ARTICLE;
  5.  TO  ACQUIRE, HOLD AND DISPOSE OF REAL AND/OR PERSONAL PROPERTY FOR
ITS CORPORATE PURPOSES;
  6. TO APPOINT OFFICERS, AGENTS AND EMPLOYEES, PRESCRIBE  THEIR  DUTIES
AND QUALIFICATIONS AND FIX THEIR COMPENSATION, SUBJECT TO THE PROVISIONS
OF  THE  CIVIL SERVICE LAW AND THE RULES OF THE CIVIL SERVICE COMMISSION
OF THE CITY;

S. 1238                             5

  7. SUBJECT TO THE PROVISIONS OF  ANY  CONTRACT  WITH  NOTEHOLDERS  AND
BONDHOLDERS,  TO  MAKE  MORTGAGE  LOANS, TO PARTICIPATE WITH THE CITY OR
WITH ONE OR MORE ORGANIZATIONS MENTIONED  IN  SECTION  FIFTEEN  OF  THIS
CHAPTER  IN  MAKING  MORTGAGE LOANS AND TO UNDERTAKE COMMITMENTS TO MAKE
ANY  SUCH  MORTGAGE LOANS TO HOUSING COMPANIES, INCLUDING ANY SUBSIDIARY
OF THE CORPORATION, ON THE SAME TERMS AND OTHERWISE IN  ACCORDANCE  WITH
THE PROVISIONS OF ARTICLE TWO OF THIS CHAPTER GOVERNING LOANS BY A MUNI-
CIPALITY;
  8.  SUBJECT  TO  THE  PROVISIONS  OF ANY CONTRACT WITH NOTEHOLDERS AND
BONDHOLDERS, TO MAKE MORTGAGE LOANS, TO PARTICIPATE  WITH  THE  CITY  OR
WITH ONE OR MORE ORGANIZATIONS SET FORTH IN SECTION ONE HUNDRED ELEVEN-A
OF THIS CHAPTER IN MAKING MORTGAGE LOANS AND TO UNDERTAKE COMMITMENTS TO
MAKE  ANY SUCH MORTGAGE LOANS TO REDEVELOPMENT COMPANIES ORGANIZED UNDER
ARTICLE FIVE OF THIS CHAPTER;
  9. SUBJECT TO THE PROVISIONS OF  ANY  CONTRACT  WITH  NOTEHOLDERS  AND
BONDHOLDERS,  TO MAKE MORTGAGE LOANS INCLUDING PARTICIPATION AND INVEST-
MENT WITH THE CITY OR WITH ONE OR MORE  CORPORATIONS,  ORGANIZATIONS  OR
INDIVIDUALS  OF THE KIND MENTIONED IN SECTION FOUR HUNDRED SEVEN OF THIS
CHAPTER IN MAKING MORTGAGE LOANS AND TO UNDERTAKE  COMMITMENTS  TO  MAKE
MORTGAGE  LOANS  TO OWNERS OF EXISTING MULTIPLE DWELLINGS, INCLUDING ANY
SUBSIDIARY OF THE CORPORATION,  ON  THE  SAME  TERMS  AND  OTHERWISE  IN
ACCORDANCE  WITH THE PROVISIONS OF ARTICLE EIGHT OF THIS CHAPTER, EXCEPT
THAT SUCH LOANS SHALL IN ALL CASES BE SECURED BY A FIRST LIEN;
  10. SUBJECT TO THE PROVISIONS OF  ANY  CONTRACT  WITH  NOTEHOLDERS  OR
BONDHOLDERS,  TO PARTICIPATE WITH THE CITY OR ONE OR MORE PRIVATE INVES-
TORS AS DEFINED IN SECTION EIGHT HUNDRED ONE OF THIS CHAPTER OR WITH THE
CITY AND ONE OR MORE SUCH PRIVATE  INVESTORS  IN  MAKING  LOANS  TO  THE
OWNERS OF MULTIPLE DWELLINGS OR NON-RESIDENTIAL PROPERTY TO BE CONVERTED
INTO  MULTIPLE  DWELLINGS,  IN ACCORDANCE WITH THE PROVISIONS OF ARTICLE
FIFTEEN OF THIS CHAPTER;
  11. SUBJECT TO THE PROVISIONS OF ANY  CONTRACT  WITH  NOTEHOLDERS  AND
BONDHOLDERS,  TO  SELL, AT PUBLIC OR PRIVATE SALE, ANY MORTGAGE OR OTHER
OBLIGATION SECURING A MORTGAGE LOAN MADE BY THE CORPORATION;
  12. SUBJECT TO THE PROVISIONS OF ANY  CONTRACT  WITH  NOTEHOLDERS  AND
BONDHOLDERS, IN CONNECTION WITH THE MAKING OF MORTGAGE LOANS AND COMMIT-
MENTS THEREFOR, TO MAKE AND COLLECT SUCH FEES AND CHARGES, INCLUDING BUT
NOT  LIMITED  TO  REIMBURSEMENT  OF ALL COSTS OF FINANCING BY THE CORPO-
RATION, SERVICE CHARGES AND INSURANCE PREMIUMS, AS THE CORPORATION SHALL
DETERMINE TO BE REASONABLE;
  13. SUBJECT TO THE PROVISIONS OF ANY  CONTRACT  WITH  NOTEHOLDERS  AND
BONDHOLDERS,  TO  CONSENT  TO  THE MODIFICATION, WITH RESPECT TO RATE OF
INTEREST, TIME OF PAYMENT OF ANY INSTALLMENT OF PRINCIPAL  OR  INTEREST,
SECURITY,  OR  ANY  OTHER TERM, OF ANY MORTGAGE, MORTGAGE LOAN, MORTGAGE
LOAN COMMITMENT, CONTRACT OR AGREEMENT OF ANY KIND TO WHICH  THE  CORPO-
RATION IS A PARTY;
  14.  TO  FORECLOSE  ANY  MORTGAGE IN DEFAULT OR COMMENCE ANY ACTION TO
PROTECT OR ENFORCE ANY RIGHT CONFERRED UPON IT  BY  ANY  LAW,  MORTGAGE,
CONTRACT  OR  OTHER AGREEMENT, AND TO BID FOR AND PURCHASE SUCH PROPERTY
AT ANY FORECLOSURE OR AT ANY OTHER SALE, OR ACQUIRE OR  TAKE  POSSESSION
OF  ANY  SUCH  PROPERTY; AND IN SUCH EVENT THE CORPORATION MAY COMPLETE,
ADMINISTER, PAY  THE  PRINCIPAL  OF  AND  INTEREST  ON  ANY  OBLIGATIONS
INCURRED  IN  CONNECTION  WITH  SUCH PROPERTY, DISPOSE OF, AND OTHERWISE
DEAL WITH, SUCH PROPERTY, IN SUCH MANNER AS MAY BE NECESSARY OR  DESIRA-
BLE TO PROTECT THE INTERESTS OF THE CORPORATION THEREIN;
  15.  TO CREATE SUBSIDIARIES, AS PROVIDED IN SECTION SEVEN HUNDRED FIVE
OF THIS ARTICLE;

S. 1238                             6

  16. TO BORROW MONEY AND TO ISSUE NEGOTIABLE NOTES OR  BONDS  OR  OTHER
OBLIGATIONS  AND  TO  FUND  OR  REFUND  THE SAME, AND TO PROVIDE FOR THE
RIGHTS OF THE HOLDERS OF ITS OBLIGATIONS;
  17.  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, PARTICIPATION
CERTIFICATES  OF THE FEDERAL HOME LOAN MORTGAGE CORPORATION OR MORTGAGE-
BACKED SECURITIES OF THE FEDERAL NATIONAL MORTGAGE ASSOCIATION.
  18. SUBJECT TO THE PROVISIONS OF ANY  CONTRACT  WITH  NOTEHOLDERS  AND
BONDHOLDERS AND SUBJECT TO THE PROVISIONS OF SECTION SEVEN HUNDRED EIGHT
OF THIS ARTICLE, TO PURCHASE NOTES OR BONDS OF THE CORPORATION;
  19. TO PROCURE INSURANCE AGAINST ANY LOSS IN CONNECTION WITH ITS PROP-
ERTY  AND  OTHER  ASSETS  INCLUDING MORTGAGES AND MORTGAGE LOANS IN SUCH
AMOUNTS AND FROM SUCH INSURERS AS IT DEEMS DESIRABLE;
  20. TO ENGAGE THE SERVICES OF CONSULTANTS  ON  A  CONTRACT  BASIS  FOR
RENDERING  PROFESSIONAL  AND  TECHNICAL ASSISTANCE AND ADVICE; AND WHERE
THE CORPORATION SHALL JOIN WITH ONE OR MORE ORGANIZATIONS  MENTIONED  IN
SECTION  FIFTEEN,  ONE  HUNDRED  ELEVEN-A  OR FOUR HUNDRED SEVEN OF THIS
CHAPTER IN MAKING MORTGAGE LOANS, TO  MAKE  PROVISIONS,  EITHER  IN  THE
MORTGAGE  OR  MORTGAGES OR BY SEPARATE AGREEMENT, FOR THE PERFORMANCE OF
SUCH SERVICES AS ARE GENERALLY PERFORMED BY A  BANKING  ORGANIZATION  OR
INSURANCE COMPANY WHICH ITSELF OWNS AND HOLDS A MORTGAGE OR BY A TRUSTEE
UNDER  A  TRUST MORTGAGE, AND TO CONSENT TO THE APPOINTMENT OF A BANKING
ORGANIZATION TO ACT IN SUCH CAPACITY;
  21. TO CONTRACT FOR AND TO ACCEPT ANY GIFTS  OR  GRANTS  OR  LOANS  OF
FUNDS  OR  PROPERTY OR FEES FOR ADMINISTERING ANY FEDERAL RENTAL SUBSIDY
CONTRACT OR FINANCIAL OR OTHER AID IN ANY FORM, INCLUDING BUT NOT LIMIT-
ED TO MORTGAGE INSURANCE, FROM THE FEDERAL GOVERNMENT OR ANY  AGENCY  OR
INSTRUMENTALITY  THEREOF,  OR FROM THE STATE OR ANY AGENCY OR INSTRUMEN-
TALITY THEREOF, OR FROM ANY OTHER SOURCE AND TO COMPLY, SUBJECT  TO  THE
PROVISIONS OF THIS ARTICLE, WITH THE TERMS AND CONDITIONS THEREOF;
  22.  AS  SECURITY  FOR THE PAYMENT OF THE PRINCIPAL OF AND INTEREST ON
ANY BONDS SO ISSUED AND ANY AGREEMENTS MADE IN CONNECTION THEREWITH,  TO
PLEDGE ALL OR ANY PART OF ITS REVENUES;
  23.  NOTWITHSTANDING  THE  PROVISIONS  OF THIS CHAPTER OR OF ANY OTHER
LAW, GENERAL, SPECIAL OR LOCAL, WHENEVER THE CORPORATION SHALL FIND THAT
THE MAXIMUM RENTALS CHARGED TENANTS OF  THE  DWELLINGS  IN  ANY  PROJECT
FINANCED BY THE CORPORATION IN WHOLE OR IN PART SHALL NOT BE SUFFICIENT,
TOGETHER  WITH ALL OTHER INCOME OF THE MORTGAGOR, TO MEET WITHIN REASON-
ABLE LIMITS ALL NECESSARY PAYMENTS TO BE MADE BY THE  MORTGAGOR  OF  ALL
EXPENSES INCLUDING FIXED CHARGES, SINKING FUNDS, RESERVES AND DIVIDENDS,
TO REQUEST THE MORTGAGOR TO MAKE APPLICATION TO VARY THE RENTAL RATE FOR
SUCH  DWELLINGS  SO  AS TO SECURE SUFFICIENT INCOME, AND UPON FAILURE OF
THE MORTGAGOR TO TAKE SUCH ACTION WITHIN THIRTY DAYS  AFTER  RECEIPT  OF
WRITTEN  REQUEST FROM THE CORPORATION TO DO SO, TO REQUEST THE SUPERVIS-
ING AGENCY TO TAKE ACTION UPON SUCH AGENCY'S OWN MOTION SO TO VARY  SUCH
RENTAL  RATE,  AND  UPON  FAILURE  OF THE SUPERVISING AGENCY EITHER UPON
APPLICATION BY THE MORTGAGOR OR UPON ITS OWN  MOTION  SO  TO  VARY  SUCH
RENTAL  RATE WITHIN SIXTY DAYS AFTER RECEIPT OF WRITTEN REQUEST FROM THE

S. 1238                             7

CORPORATION TO DO SO, TO VARY SUCH RENTAL RATE BY ACTION OF  THE  CORPO-
RATION;
  24.  SUBJECT  TO  THE  PROVISIONS OF ANY CONTRACT WITH NOTEHOLDERS AND
BONDHOLDERS, TO ACQUIRE AND TO CONTRACT TO  ACQUIRE,  BY  ASSIGNMENT  OR
OTHERWISE,  OR  TO  TAKE AS COLLATERAL SECURITY, ANY MORTGAGE SECURING A
LOAN, INCLUDING ANY CONSTRUCTION LOAN, AND ANY NOTE OR  BOND  EVIDENCING
INDEBTEDNESS THEREON, MADE BY THE CITY IN ACCORDANCE WITH THE PROVISIONS
OF  ARTICLE TWO OF THIS CHAPTER AND ANY CONTRACT OR ARRANGEMENT, INCLUD-
ING ANY SUBSIDY CONTRACT OR ARRANGEMENT, RELATED TO SUCH  MORTGAGE,  AND
THE  RECEIPTS TO BE DERIVED FROM ANY OF THE FOREGOING, AND TO ASSUME AND
FULFILL AND CONTRACT TO ASSUME AND FULFILL THE OBLIGATIONS OF THE  MORT-
GAGEE  OR LENDER THEREUNDER, AND TO REASSIGN AND TO CONTRACT TO REASSIGN
TO THE CITY ANY SUCH MORTGAGE, NOTE, BOND, CONTRACT OR  ARRANGEMENT  AND
THE RECEIPTS TO BE DERIVED THEREFROM;
  25.  SUBJECT  TO  THE  PROVISIONS OF ANY CONTRACT WITH NOTEHOLDERS AND
BONDHOLDERS, TO ASSIGN OR PLEDGE ANY  MORTGAGE,  BOND,  NOTE,  CONTRACT,
SECURITY,  OR ARRANGEMENT AND THE RECEIPTS TO BE DERIVED FROM ANY OF THE
FOREGOING, ACQUIRED PURSUANT TO THIS SECTION;
  26. SUBJECT TO THE PROVISIONS OF ANY  CONTRACT  WITH  NOTEHOLDERS  AND
BONDHOLDERS,  TO  ACQUIRE  AND  TO CONTRACT TO ACQUIRE, BY ASSIGNMENT OR
OTHERWISE, ANY MORTGAGE SECURING  A  LOAN,  INCLUDING  ANY  CONSTRUCTION
LOAN,  AND ANY NOTE OR BOND EVIDENCING INDEBTEDNESS THEREON, MADE BY THE
CITY IN ACCORDANCE WITH THE PROVISIONS OF ARTICLE TWO  OF  THIS  CHAPTER
AND  ANY  CONTRACT  OR  ARRANGEMENT,  INCLUDING  ANY SUBSIDY CONTRACT OR
ARRANGEMENT, RELATED TO SUCH MORTGAGE, AND TO MODIFY OR TO SATISFY  SUCH
MORTGAGE  AND  ACCEPT  OR  MAKE  A  NEW  MORTGAGE OR MORTGAGES AND OTHER
INSTRUMENTS, INCLUDING MORTGAGES TO  SECURE  RESIDUAL  INDEBTEDNESS  AND
INSTRUMENTS  TO  EVIDENCE  RESIDUAL  RECEIPTS  OBLIGATIONS AS DEFINED IN
SECTION TWELVE OF  THIS  CHAPTER  AND  TO  ENTER  INTO  AMENDED  SUBSIDY
CONTRACTS,  AND  (A)  TO HOLD OR TO SELL, ASSIGN OR OTHERWISE DISPOSE OF
SUCH MORTGAGE OR MORTGAGES, INCLUDING THOSE MADE IN SUBSTITUTION THEREOF
AND ANY RELATED INSTRUMENTS, CONTRACTS AND  ARRANGEMENTS,  OR  TO  ISSUE
OBLIGATIONS  SECURED  BY SUCH MORTGAGE OR MORTGAGES, AND PAY TO THE CITY
THE PROCEEDS OF SUCH SALE, ASSIGNMENT OR OTHER DISPOSITION OF SUCH MORT-
GAGES AND THE PROCEEDS FROM THE ISSUANCE OF SUCH OBLIGATIONS, LESS LEGAL
AND OTHER FEES, COSTS AND EXPENSES AND OTHER AMOUNTS PAID OR INCURRED BY
THE CORPORATION, INCLUDING DISCOUNTS, COSTS INCURRED BY THE  CORPORATION
RELATED TO THE SALE OF SUCH MORTGAGES OR TO A SALE, IF ANY, OF ITS OBLI-
GATIONS,  FEES PAYABLE TO OTHER GOVERNMENTAL UNITS, THE COST INCURRED BY
THE CORPORATION UNDER AN AGREEMENT WITH THE FEDERAL GOVERNMENT  PURSUANT
TO  SUBDIVISION TWENTY-SEVEN OF THIS SECTION, AMOUNTS REQUIRED TO ESTAB-
LISH ESCROW ACCOUNTS OR RESERVES FOR THE ISSUANCE OF MORTGAGE INSURANCE,
THE COST OF SATISFYING SUCH MINIMUM PROPERTY STANDARDS OR OF  INSTALLING
SUCH  LIFE  SAFETY  DEVICES AS MAY BE REQUIRED BY THE FEDERAL GOVERNMENT
WHICH STANDARDS OR DEVICES ARE IN ADDITION TO ANY REQUIREMENT IMPOSED BY
THE CITY AS MORTGAGEE, AMOUNTS LOANED TO THE MORTGAGOR TO ESTABLISH SUCH
ESCROW ACCOUNTS OR RESERVES OR TO SATISFY SUCH MINIMUM  PROPERTY  STAND-
ARDS  OR  TO  INSTALL  SUCH LIFE SAFETY DEVICES, CLOSING AND OTHER COSTS
RELATED TO OBTAINING MORTGAGE INSURANCE FROM THE FEDERAL GOVERNMENT SUCH
OTHER COSTS AS THE FEDERAL GOVERNMENT MAY FROM TIME TO TIME IMPOSE,  ANY
AMOUNTS  NOT  PREVIOUSLY  ADVANCED UNDER MORTGAGES MODIFIED OR SATISFIED
UNDER THIS SUBDIVISION AS DETERMINED BY THE SUPERVISING AGENCY,  AND  AN
AMOUNT NOT TO EXCEED TWENTY MILLION DOLLARS AT ANY ONE TIME, WHICH SHALL
BE  HELD  IN  A  REVOLVING  ACCOUNT  FOR A PERIOD NOT TO EXCEED EIGHTEEN
MONTHS FROM THE TIME OF THE FIRST DEPOSIT THEREIN, TO PAY ANY OR ALL  OF
THE  COSTS,  FEES AND EXPENSES AND OTHER AMOUNTS ATTRIBUTABLE TO ISSUING

S. 1238                             8

OBLIGATIONS SECURED BY SUCH MORTGAGE OR  MORTGAGES,  OR  TO  MAKING  AND
INSURING MORTGAGES PURSUANT TO THIS SUBDIVISION, AND ANY BALANCE REMAIN-
ING  IN  SUCH  REVOLVING ACCOUNT SHALL BE PAID TO THE CITY NO LATER THAN
EIGHTEEN  MONTHS AFTER THE TIME OF THE FIRST DEPOSIT THEREIN, AND (B) TO
ASSIGN OR REASSIGN ANY  SUCH  MORTGAGE  OR  MORTGAGES,  INSTRUMENTS  AND
RELATED  CONTRACT  OR  ARRANGEMENT TO THE CITY. IF THE CORPORATION SELLS
ANY SUCH MORTGAGES FOR AN AMOUNT IN EXCESS OF THE PRINCIPAL AMOUNT THER-
EOF AT THE TIME OF SUCH SALE, OR IF THE CORPORATION  ISSUES  OBLIGATIONS
SECURED BY ANY SUCH MORTGAGES AND THE YIELD ON SUCH MORTGAGES IS GREATER
THAN  THE  YIELD  ON  SUCH  OBLIGATIONS (THE YIELD ON SUCH MORTGAGES AND
OBLIGATIONS HAVING  BEEN  CALCULATED  IN  ACCORDANCE  WITH  SECTION  ONE
HUNDRED  THREE  OF  THE  INTERNAL  REVENUE CODE OF THE UNITED STATES AND
REGULATIONS THEREUNDER), THE CORPORATION SHALL  PAY  TO  THE  CITY  SUCH
PREMIUM AND ANY SUCH DIFFERENTIAL, BUT ONLY TO THE EXTENT SUCH DIFFEREN-
TIAL  IS  NOT  PAID  TO  OR FOR THE BENEFIT OF THE HOLDERS OF SUCH OBLI-
GATIONS; AND SUCH PREMIUM AND DIFFERENTIAL, TO THE  EXTENT  SO  PAID  TO
SUCH  CITY,  SHALL  BE  USED AND CREDITED BY THE CITY IN ACCORDANCE WITH
SUBDIVISION FOUR-B OF SECTION TWENTY-THREE-A OF THIS CHAPTER AS IF  SUCH
CITY  HAD  SOLD  SUCH  MORTGAGES  OR ISSUED SUCH OBLIGATIONS PURSUANT TO
SECTION TWENTY-THREE-A OF THIS CHAPTER. THE CORPORATION SHALL NOT MODIFY
OR SATISFY A MORTGAGE PURSUANT TO THIS SUBDIVISION UNLESS SUCH MODIFICA-
TION OR SATISFACTION IS FIRST APPROVED BY THE SUPERVISING AGENCY;
  27. TO CONTRACT WITH THE FEDERAL GOVERNMENT FOR  THE  SHARING  OF  ANY
CLAIM  PAID  BY  THE FEDERAL GOVERNMENT ON ACCOUNT OF ANY INSURANCE OF A
MORTGAGE, PROVIDED THAT THE CORPORATION'S SHARE OF ANY SUCH CLAIM  SHALL
NOT  EXCEED  FIFTY PERCENT OF THE INSURANCE BENEFITS PAID BY THE FEDERAL
GOVERNMENT, AND FURTHER PROVIDED THAT THE CORPORATION'S  SHARE  OF  SUCH
CLAIMS  UNDER  ANY  SUCH  CONTRACT  SHALL NOT EXCEED FIVE PERCENT OF THE
OUTSTANDING PRINCIPAL AMOUNT OF ALL MORTGAGE LOANS  OF  THE  CORPORATION
INSURED BY THE FEDERAL GOVERNMENT AND INCLUDED WITHIN SUCH CONTRACT;
  28.  TO  MAKE  LOANS  SECURED BY MORTGAGES INSURED OR COINSURED BY THE
FEDERAL GOVERNMENT TO THE OWNERS OF MULTIPLE DWELLINGS IN  SUCH  AMOUNTS
AS MAY BE REQUIRED FOR THE REHABILITATION OF SUCH MULTIPLE DWELLINGS OR,
IF  SUCH  OWNER  ACQUIRES  THE MULTIPLE DWELLING FOR THE PURPOSE OF SUCH
REHABILITATION OR OWNS THE MULTIPLE DWELLING SUBJECT TO  AN  OUTSTANDING
INDEBTEDNESS,  IN  SUCH  AMOUNTS AS MAY BE REQUIRED FOR THE COST OF SUCH
ACQUISITION OR FOR THE REFINANCING OF SUCH OUTSTANDING INDEBTEDNESS, BUT
IN NO EVENT IN SUCH AMOUNTS AS WOULD EXCEED THE MORTGAGE LIMITS  IMPOSED
BY  THE FEDERAL GOVERNMENT, AND TO REGULATE OR RESTRICT SUCH OWNER AS TO
RENTS OR SALES, CHARGES, CAPITAL STRUCTURE, RATE OF RETURN AND METHOD OF
OPERATION AND TO MAKE LOANS SECURED BY MORTGAGES INSURED OR COINSURED BY
THE FEDERAL GOVERNMENT TO THE OWNERS OF PROJECTS IN SUCH AMOUNTS AS  MAY
BE  REQUIRED  FOR  THE  ACQUISITION, CONSTRUCTION OR IMPROVEMENT OF SUCH
PROJECTS, BUT IN NO EVENT IN SUCH AMOUNTS AS WOULD EXCEED  THE  MORTGAGE
LIMITS IMPOSED BY THE FEDERAL GOVERNMENT, OR NINETY PERCENT OF THE ACTU-
AL  COST  OF SUCH ACQUISITION, CONSTRUCTION OR IMPROVEMENT, WHICHEVER IS
LESS, AND TO REGULATE OR RESTRICT SUCH  OWNER  AS  TO  RENTS  OR  SALES,
CHARGES,  CAPITAL STRUCTURE, RATE OF RETURN AND METHOD OF OPERATION. THE
OWNER MAY, WITH THE APPROVAL OF THE CORPORATION, FIX MAXIMUM RENTALS  TO
BE  CHARGED TENANTS OF THE DWELLINGS IN ANY MULTIPLE DWELLING OR PROJECT
AIDED BY A LOAN PURSUANT TO THIS SUBDIVISION. THE CORPORATION, UPON  ITS
OWN  MOTION,  OR UPON APPLICATION BY THE OWNER OR BY THE FEDERAL GOVERN-
MENT, MAY VARY SUCH RENTAL RATE FROM TIME  TO  TIME  SO  AS  TO  SECURE,
TOGETHER  WITH  ALL  OTHER  INCOME  OF THE MULTIPLE DWELLING, SUFFICIENT
INCOME FOR IT TO MEET WITHIN REASONABLE LIMITS ALL NECESSARY PAYMENTS TO
BE MADE BY THE OWNER OF ALL EXPENSES; PROVIDED THAT NO  VARIATION  IN  A

S. 1238                             9

RENTAL  RATE  SHALL  BE EFFECTIVE UNLESS APPROVED BY THE FEDERAL GOVERN-
MENT. THE CORPORATION OR THE DIVISION OF RESIDENTIAL  DEVELOPMENT  SHALL
NOTIFY  OCCUPANTS  OF  THE  MULTIPLE  DWELLING,  IF THERE BE ANY, OF THE
CONTEMPLATED REHABILITATION AND SHALL ADVISE THEM OF THE EXPECTED RENTAL
INCREASE TO RESULT THEREFROM, AND A REPRESENTATIVE OF THE CORPORATION OR
THE  DIVISION  OF RESIDENTIAL DEVELOPMENT SHALL MEET OR OFFER TO MEET AT
LEAST ONCE WITH THE OCCUPANTS. THE  CORPORATION  SHALL  PROMULGATE  SUCH
RULES  AND  REGULATIONS  WITH RESPECT TO MULTIPLE DWELLINGS AND PROJECTS
FINANCED PURSUANT TO THIS SUBDIVISION AND THE OWNERS  OF  SUCH  MULTIPLE
DWELLINGS  AND  PROJECTS AS MAY BE NECESSARY TO CARRY OUT THE PROVISIONS
OF THIS SUBDIVISION, PROVIDED THAT  SUCH  RULES  AND  REGULATIONS  SHALL
CONTAIN  PROVISIONS  AS TO INCOME LIMITATIONS RELATING TO ADMISSION INTO
OCCUPANCY OF THE DWELLING UNITS OF SUCH PROJECTS TO THE SAME  EFFECT  AS
ARE CONTAINED IN SECTION THIRTY-ONE OF THIS CHAPTER AND FOR THE DWELLING
UNITS  OF  SUCH  OTHER  MULTIPLE  DWELLINGS  TO  THE  SAME EFFECT AS ARE
CONTAINED IN SUBDIVISION THREE OF SECTION FOUR HUNDRED ONE OF THIS CHAP-
TER. AS USED IN THIS SUBDIVISION, THE  TERM  "MULTIPLE  DWELLING"  SHALL
INCLUDE  AN EXISTING BUILDING OR STRUCTURE WHICH IS TO BE CONVERTED INTO
A CLASS A MULTIPLE DWELLING;
  29. SUBJECT TO THE PROVISIONS OF ANY  CONTRACT  WITH  NOTEHOLDERS  AND
BONDHOLDERS,  (A)  TO MAKE AND CONTRACT FOR THE MAKING OF MORTGAGE LOANS
FOR THE CONSTRUCTION OR REHABILITATION OF  PROJECTS  WHICH  THE  BUFFALO
CITY  HOUSING  AUTHORITY  HAS  AGREED  TO PURCHASE ON A TURNKEY BASIS IN
ACCORDANCE WITH A FEDERALLY  ASSISTED  PROGRAM  FOR  THE  PRODUCTION  OF
PUBLIC  HOUSING  AS AUTHORIZED BY THE UNITED STATES HOUSING ACT OF NINE-
TEEN HUNDRED THIRTY-SEVEN, UPON THE COMPLETION OF SUCH  CONSTRUCTION  OR
REHABILITATION,  AND (B) TO MAKE AND TO CONTRACT FOR THE MAKING OF LOANS
TO, OR TO PURCHASE LOANS FROM, BANKING OR OTHER LENDING INSTITUTIONS FOR
THE PURPOSE OF FINANCING SUCH CONSTRUCTION OR REHABILITATION;
  30. IN ORDER TO INCREASE THE AVAILABILITY OF SAFE AND SANITARY  DWELL-
ING ACCOMMODATIONS WITHIN THE FINANCIAL REACH OF FAMILIES AND PERSONS OF
LOW  INCOME,  TO  ACQUIRE  AND  TO CONTRACT TO ACQUIRE, BY ASSIGNMENT OR
OTHERWISE, OR TO TAKE AS COLLATERAL SECURITY, ANY  FEDERALLY  GUARANTEED
SECURITY  EVIDENCING INDEBTEDNESS ON A MORTGAGE SECURING A LOAN, INCLUD-
ING ANY CONSTRUCTION LOAN, AND THE RECEIPTS TO BE DERIVED THEREFROM  AND
TO  ASSIGN  OR  REASSIGN  AND TO CONTRACT TO ASSIGN OR REASSIGN ANY SUCH
SECURITY AND THE RECEIPTS TO BE DERIVED THEREFROM, SUBJECT IN EACH CASE,
TO THE PROVISIONS OF ANY CONTRACT WITH NOTEHOLDERS AND BONDHOLDERS;
  31. TO AND SHALL DEVELOP, PROMOTE AND  ENSURE  THAT,  WHERE  POSSIBLE,
MINORITY  GROUPS  WHICH TRADITIONALLY HAVE BEEN DISADVANTAGED, AND WOMEN
ARE AFFORDED EQUAL OPPORTUNITY FOR CONTRACTS IN CONNECTION WITH DEVELOP-
MENT  AND  CONSTRUCTION  CONTRACTS  FOR  DEVELOPMENTS,  FACILITIES   AND
PROJECTS  FINANCED BY THE ISSUANCE OF BONDS, NOTES AND OTHER OBLIGATIONS
OF THE CORPORATION;
  32. SUBJECT TO THE PROVISIONS OF ANY  CONTRACT  WITH  NOTEHOLDERS  AND
BONDHOLDERS,  TO  REFINANCE  OR ACQUIRE MORTGAGE LOANS MADE FOR MULTIPLE
DWELLINGS BY PRIVATE LENDERS PURSUANT  TO  ARTICLE  EIGHT-A  OR  ARTICLE
FIFTEEN  OF  THIS  CHAPTER;  PROVIDED  THAT THE CORPORATION SHALL NOT BE
PERMITTED PURSUANT TO THIS  SUBDIVISION  TO  ACQUIRE  A  MORTGAGE  LOAN,
UNLESS SUCH ACQUISITION IS IN CONNECTION WITH A REFINANCING OF THE PROP-
ERTY FOR WHICH SUCH MORTGAGE LOAN WAS MADE;
  33.  TO SERVICE MORTGAGE LOANS MADE BY PRIVATE OR GOVERNMENTAL LENDERS
FOR MULTIPLE DWELLINGS, PROVIDED THAT EACH SUCH MORTGAGE LOAN SHALL HAVE
BEEN MADE EITHER (A) PURSUANT TO THIS CHAPTER,  OR  (B)  IN  CONJUNCTION
WITH ANOTHER MORTGAGE LOAN MADE BY THE CITY;

S. 1238                            10

  34. TO CONTRACT WITH ANY OF ITS SUBSIDIARY CORPORATIONS TO RENDER SUCH
SERVICES  AS SUCH SUBSIDIARY CORPORATION MAY REQUEST, INCLUDING, BUT NOT
LIMITED TO, THE USE OF THE PREMISES, PERSONNEL AND PERSONAL PROPERTY  OF
THE  CORPORATION,  AND  TO  PROVIDE FOR REIMBURSEMENT TO THE CORPORATION
FROM  SUCH  SUBSIDIARY CORPORATION FOR ANY EXPENSES NECESSARILY INCURRED
BY THE CORPORATION IN CARRYING OUT THE TERMS OF ANY SUCH CONTRACT; AND
  35. TO DO ANY AND ALL THINGS NECESSARY OR CONVENIENT TO CARRY OUT  ITS
PURPOSES  AND  EXERCISE  THE  POWERS EXPRESSLY GIVEN AND GRANTED IN THIS
ARTICLE.
  S 705. SUBSIDIARIES; HOW CREATED. 1. THE CORPORATION BY RESOLUTION MAY
DIRECT ANY OF ITS MEMBERS, OFFICERS OR EMPLOYEES TO ORGANIZE  A  SUBSID-
IARY CORPORATION WHENEVER, IN THE SOLE DISCRETION OF THE CORPORATION, IT
HAS  BECOME  NECESSARY  TO  ACQUIRE  A PROJECT IN THE CASE OF SALE UNDER
FORECLOSURE OR IN LIEU OF FORECLOSURE AND IT IS BENEFICIAL TO EFFECTUATE
THE PURPOSE OF THIS CHAPTER FOR THE SUBSIDIARY  TO  HOLD  TITLE  TO  THE
PROJECT.
  2.  EACH  SUCH  SUBSIDIARY  CORPORATION  SHALL  BE WHOLLY OWNED BY THE
CORPORATION AND SHALL BE ORGANIZED PURSUANT TO THE BUSINESS  CORPORATION
LAW, THE NOT-FOR-PROFIT CORPORATION LAW OR ARTICLE TWO OR ARTICLE ELEVEN
OF THIS CHAPTER.
  3.  THE  CORPORATION  MAY  TRANSFER  TO ANY SUBSIDIARY CORPORATION ANY
MONEY, REAL OR PERSONAL OR MIXED  PROPERTY  OR  MAY  CONVEY  TO  IT  ANY
PROJECT  IN  ORDER  TO CARRY OUT THE PURPOSES OF THIS ARTICLE. EACH SUCH
SUBSIDIARY CORPORATION SHALL HAVE ALL THE  PRIVILEGES,  IMMUNITIES,  TAX
EXEMPTIONS  AND  OTHER  EXEMPTIONS  OF THE CORPORATION TO THE EXTENT THE
SAME ARE NOT INCONSISTENT WITH THE STATUTE OR STATUTES PURSUANT TO WHICH
SUCH SUBSIDIARY WAS INCORPORATED. EXCEPT AS MAY BE INCONSISTENT WITH THE
PROVISIONS OF THIS ARTICLE, SUCH SUBSIDIARY, IF  ORGANIZED  PURSUANT  TO
ARTICLE TWO OR ARTICLE ELEVEN OF THIS CHAPTER, SHALL HAVE ALL THE RIGHTS
AND POWERS GRANTED TO HOUSING COMPANIES BY THIS CHAPTER AND BY ANY OTHER
STATUTE PURSUANT TO WHICH SUCH SUBSIDIARY CORPORATION WAS ORGANIZED.
  4.  NO  MEMBER  OR  OFFICER OF THE CORPORATION SHALL RECEIVE ANY ADDI-
TIONAL COMPENSATION, EITHER DIRECT OR INDIRECT, OTHER THAN REIMBURSEMENT
FOR ACTUAL AND NECESSARY EXPENSES INCURRED IN THE  PERFORMANCE  OF  SUCH
PERSON'S  DUTIES, BY REASON OF SUCH PERSON'S SERVING AS A MEMBER, DIREC-
TOR, TRUSTEE OR OFFICER OF ANY SUBSIDIARY CORPORATION.
  S 706. HOUSING ASSISTANCE CORPORATION. 1. THERE IS HEREBY  ESTABLISHED
A  PUBLIC  BENEFIT  CORPORATION  KNOWN AS THE "HOUSING ASSISTANCE CORPO-
RATION" AS A SUBSIDIARY CORPORATION OF THE CORPORATION.
  2. SUCH SUBSIDIARY CORPORATION MAY (A) RECEIVE MONIES FROM THE  CORPO-
RATION, THE STATE, ANY PUBLIC BENEFIT CORPORATION, THE CITY, THE FEDERAL
GOVERNMENT  OR  ANY  OTHER  SOURCE  FOR  THE PURPOSE OF ASSISTING RENTAL
DEVELOPMENTS TO MAINTAIN RENTALS AFFORDABLE TO LOW AND  MODERATE  INCOME
PERSONS  FOR  WHOM  THE  ORDINARY OPERATION OF PRIVATE ENTERPRISE CANNOT
SUPPLY SAFE, SANITARY AND AFFORDABLE HOUSING ACCOMMODATIONS, (B)  TRANS-
FER,  LEND,  PLEDGE  OR  ASSIGN  MONIES (I) TO ANY RENTAL DEVELOPMENT IN
ORDER TO ASSIST SUCH DEVELOPMENT IN MAINTAINING RENTS AFFORDABLE TO SUCH
LOW AND MODERATE INCOME TENANTS OR (II) IN ORDER TO  ASSIST  THE  CORPO-
RATION  IN  FINANCING  SUCH DEVELOPMENTS, AND (C) ENTER INTO SUCH AGREE-
MENTS WITH THE OWNERS OF SUCH DEVELOPMENTS AS IT MAY DEEM APPROPRIATE TO
FURTHER THE OBJECTIVES OF  THIS  ARTICLE.  SUCH  SUBSIDIARY  CORPORATION
SHALL  HAVE  ALL  THE  PRIVILEGES,  IMMUNITIES, TAX EXEMPTIONS AND OTHER
EXEMPTIONS OF THE CORPORATION TO THE EXTENT THE SAME ARE NOT  INCONSIST-
ENT WITH THIS ARTICLE.
  3.  THE MEMBERSHIP OF SUCH SUBSIDIARY CORPORATION SHALL CONSIST OF THE
DIRECTOR OF THE DIVISION OF RESIDENTIAL DEVELOPMENT, WHO SHALL SERVE  AS

S. 1238                            11

CHAIRPERSON,  AND  TWO  PUBLIC MEMBERS APPOINTED BY AND WHO SERVE AT THE
PLEASURE OF THE MAYOR.  THE POWERS OF THE SUBSIDIARY  CORPORATION  SHALL
BE  VESTED  IN  AND EXERCISED BY NO LESS THAN TWO OF THE MEMBERS THERETO
THEN  IN  OFFICE. THE SUBSIDIARY CORPORATION MAY DELEGATE TO ONE OR MORE
OF ITS MEMBERS, OR ITS OFFICERS, AGENTS AND EMPLOYEES, SUCH  DUTIES  AND
POWERS AS IT MAY DEEM PROPER.
  4.  NO  OFFICER  OR  MEMBER OF THE CORPORATION SHALL RECEIVE ANY ADDI-
TIONAL COMPENSATION, EITHER DIRECT OR INDIRECT, OTHER THAN REIMBURSEMENT
FOR ACTUAL AND NECESSARY EXPENSES INCURRED IN THE  PERFORMANCE  OF  SUCH
PERSON'S DUTIES, BY REASON OF SUCH PERSON'S SERVING AS A MEMBER OR OFFI-
CER OF SUCH SUBSIDIARY CORPORATION.
  5.  THE  CORPORATION  MAY  TRANSFER TO SUCH SUBSIDIARY CORPORATION ANY
REAL, PERSONAL OR MIXED PROPERTY IN ORDER TO CARRY OUT THE  PURPOSES  OF
THIS SECTION.
  6. THE SUBSIDIARY CORPORATION SHALL HAVE THE POWER TO:
  (A) SUE AND BE SUED;
  (B) HAVE A SEAL AND ALTER THE SAME AT PLEASURE;
  (C)  MAKE  AND ALTER BY-LAWS FOR ITS ORGANIZATION AND INTERNAL MANAGE-
MENT AND MAKE RULES AND REGULATIONS GOVERNING THE USE  OF  ITS  PROPERTY
AND FACILITIES;
  (D)  MAKE AND EXECUTE CONTRACTS AND ALL OTHER INSTRUMENTS NECESSARY OR
CONVENIENT FOR THE EXERCISE OF  ITS  POWERS  AND  FUNCTIONS  UNDER  THIS
SECTION;
  (E)  ACQUIRE,  HOLD  AND  DISPOSE OF REAL OR PERSONAL PROPERTY FOR ITS
CORPORATE PURPOSES;
  (F) ENGAGE THE SERVICES OF PRIVATE CONSULTANTS ON A CONTRACT BASIS FOR
RENDERING PROFESSIONAL AND TECHNICAL ASSISTANCE AND ADVICE;
  (G) PROCURE INSURANCE AGAINST ANY LOSS IN CONNECTION WITH  ITS  ACTIV-
ITIES, PROPERTIES AND OTHER ASSETS IN SUCH AMOUNT AND FROM SUCH INSURERS
AS IT DEEMS DESIRABLE;
  (H) APPOINT OFFICERS, AGENTS AND EMPLOYEES, PRESCRIBE THEIR DUTIES AND
QUALIFICATIONS  AND  FIX THEIR COMPENSATION SUBJECT TO THE PROVISIONS OF
THE CIVIL SERVICE LAW AND THE RULES OF THE CIVIL SERVICE  COMMISSION  OF
THE CITY;
  (I) INVEST ANY FUNDS, OR OTHER MONIES UNDER ITS CUSTODY AND CONTROL IN
THE SAME MANNER AS THE CORPORATION; AND
  (J)  TO DO ANY AND ALL THINGS NECESSARY OR CONVENIENT TO CARRY OUT ITS
PURPOSES AND EXERCISE THE POWERS EXPRESSLY GIVEN  AND  GRANTED  IN  THIS
SECTION.
  7.  THE  SUBSIDIARY  CORPORATION  AND  ITS  CORPORATE  EXISTENCE SHALL
CONTINUE UNTIL TERMINATED BY LAW. UPON TERMINATION OF THE  EXISTENCE  OF
THE  SUBSIDIARY  CORPORATION ALL OF ITS RIGHTS AND PROPERTIES SHALL PASS
TO AND BE VESTED IN THE CITY. NO SUCH TERMINATION SHALL TAKE  EFFECT  AS
LONG AS OBLIGATIONS OF THE SUBSIDIARY CORPORATION REMAIN OUTSTANDING.
  8.  THE  CITY  AND THE CORPORATION SHALL HAVE THE POWER TO TRANSFER TO
SUCH SUBSIDIARY CORPORATION AGENTS, EMPLOYEES AND FACILITIES OF THE CITY
OR CORPORATION TO ENABLE IT TO FULFILL THE PURPOSES OF THIS SECTION.
  S 707. RESIDENTIAL MORTGAGE INSURANCE CORPORATION. 1. DEFINITIONS.  AS
USED  IN  THIS  SECTION,  THE  FOLLOWING  WORDS AND TERMS SHALL HAVE THE
FOLLOWING MEANINGS UNLESS THE CONTEXT SHALL INDICATE ANOTHER OR  DIFFER-
ENT MEANING OR INTENT:
  (A)  "CASH  EQUIVALENT". A LETTER OF CREDIT, INSURANCE POLICY, SURETY,
GUARANTEE, INDEMNITY OR OTHER SECURITY ARRANGEMENT.
  (B) "FINANCIAL INSTITUTION". (I) ANY  BANK,  TRUST  COMPANY,  NATIONAL
BANK,  STATE  OR FEDERAL SAVINGS BANK, STATE OR FEDERAL SAVINGS AND LOAN
ASSOCIATION, OR  STATE  OR  FEDERAL  CREDIT  UNION,  INSURANCE  COMPANY,

S. 1238                            12

PENSION  FUND  OR RETIREMENT SYSTEM OF ANY CORPORATION, ASSOCIATION, ANY
OTHER ENTITY WHICH IS OWNED OR CONTROLLED BY ANY  ONE  OR  MORE  OF  THE
ABOVE, PROVIDED SUCH BANK, TRUST COMPANY, NATIONAL BANK, STATE OR FEDER-
AL SAVINGS BANK, STATE OR FEDERAL SAVINGS AND LOAN ASSOCIATION, OR STATE
OR  FEDERAL  CREDIT UNION, INSURANCE COMPANY, PENSION FUND OR RETIREMENT
SYSTEM OF ANY CORPORATION OR ASSOCIATION, AND, IF  AN  ENTITY  WHICH  IS
OWNED  BY  ONE  OR  MORE  OF THE ABOVE, SUCH ENTITY, IS SUPERVISED BY OR
RESPONSIBLE TO ANY AGENCY OF THE  FEDERAL  GOVERNMENT,  THE  STATE,  ANY
DEPARTMENT THEREOF OR THE GOVERNING BODY OF ANY CITY, TOWN OR VILLAGE OF
THE  STATE,  OR  (II) ANY OTHER ENTITY APPROVED BY THE SUBSIDIARY CORPO-
RATION, OR (III) ANY ONE OR MORE OF THE ABOVE WHEN LAWFULLY ACTING AS  A
TRUSTEE OR OTHERWISE IN A FIDUCIARY CAPACITY. THE TERM "FINANCIAL INSTI-
TUTION"  SHALL  ALSO  INCLUDE THE NEW YORK STATE HOUSING FINANCE AGENCY,
THE NEW YORK STATE MEDICAL CARE FACILITIES FINANCE AGENCY, THE STATE  OF
NEW  YORK  MORTGAGE  AGENCY, THE NEW YORK STATE URBAN DEVELOPMENT CORPO-
RATION, THE CORPORATION, THE  COMMUNITY  PRESERVATION  CORPORATION,  ANY
GOVERNMENTAL  AGENCY  OF  THE  UNITED  STATES  WHICH  CUSTOMARILY MAKES,
PURCHASES OR HOLDS RESIDENTIAL MORTGAGES AND ANY PERSON WHO IS  APPROVED
AS  A MORTGAGE LENDER BY THE FEDERAL HOUSING ADMINISTRATION FOR PURPOSES
OF INSURANCE ISSUED BY SUCH ADMINISTRATION OR LICENSED BY THE  STATE  OF
NEW YORK AS A MORTGAGE BANKER.
  (C)  "HOUSING  ACCOMMODATION".  ANY EXISTING BUILDING, STRUCTURE, UNIT
THEREOF (INCLUDING  AN  OWNER-OCCUPIED  UNIT  IN  A  CONDOMINIUM  AND  A
LESSEE-OCCUPIED  DWELLING UNIT IN WHICH THE LESSEE RETAINS A PROPRIETARY
LEASE WITH RESPECT TO SUCH DWELLING UNIT AND HAS AN ALLOCABLE  OWNERSHIP
INTEREST  IN A COOPERATIVE HOUSING CORPORATION) OR UNIMPROVED REAL PROP-
ERTY, WHICH IS USED OR OCCUPIED, OR IS INTENDED TO BE USED  OR  OCCUPIED
AS  THE HOME OR RESIDENCE OF ONE OR MORE PERSONS, A PORTION OF WHICH MAY
ALSO BE USED FOR COMMERCIAL AND OTHER COMMUNITY FACILITIES ANCILLARY  TO
SUCH  RESIDENCE  PROVIDED THAT, IN THE CASE OF ANY HOUSING ACCOMMODATION
CONSISTING  OF  MORE  THAN  SIX  DWELLING  UNITS,  THE  FLOOR  AREA   OF
ABOVE-GROUND  COMMERCIAL  FACILITIES SHALL NOT EXCEED ONE-QUARTER OF THE
ABOVE-GROUND FLOOR AREA OF SUCH HOUSING ACCOMMODATION (INCLUSIVE OF SUCH
COMMERCIAL FACILITIES).
  (D) "HOUSING INSURANCE CONTRACTS". ALL CONTRACTS ENTERED INTO  BY  THE
SUBSIDIARY CORPORATION TO INSURE MORTGAGES PURSUANT TO THIS SECTION.
  (E)  "HOUSING  INSURANCE  FUND".  THE HOUSING INSURANCE FUND AS ESTAB-
LISHED PURSUANT TO SUBDIVISION TWELVE OF THIS SECTION.
  (F) "HOUSING INSURANCE FUND REQUIREMENT". AS OF ANY PARTICULAR DATE OF
COMPUTATION, AN AMOUNT EQUAL TO THE AGGREGATE OF  (I)  ONE  HUNDRED  PER
CENTUM  OF  THE INSURED AMOUNTS DUE AND PAYABLE BY THE SUBSIDIARY CORPO-
RATION PURSUANT TO HOUSING INSURANCE CONTRACTS,  PLUS  (II)  TWENTY  PER
CENTUM  OF  THE  INSURED AMOUNTS UNDER HOUSING INSURANCE CONTRACTS OTHER
THAN INSURED AMOUNTS WHICH ARE DUE AND PAYABLE PURSUANT TO  SUBPARAGRAPH
(I) OF THIS PARAGRAPH, PLUS (III) TWENTY PER CENTUM OF THE AMOUNTS TO BE
INSURED  UNDER  HOUSING  INSURANCE  CONTRACTS PURSUANT TO THE SUBSIDIARY
CORPORATION'S COMMITMENTS TO INSURE.
  (G) "MORTGAGE". A FIRST MORTGAGE ON REAL PROPERTY LOCATED  WITHIN  THE
CITY  SECURING A PRESERVATION LOAN OR A REHABILITATION LOAN, WITH A TERM
NOT TO EXCEED FORTY YEARS, ON REAL ESTATE, HELD IN FEE SIMPLE  OR  ON  A
LEASEHOLD  UNDER  A  LEASE HAVING A PERIOD OF YEARS TO RUN AT THE TIME A
MORTGAGE IS INSURED UNDER THIS SECTION OF AT  LEAST  TWENTY  PER  CENTUM
GREATER  DURATION  THAN  THE  REMAINING  TERM OF SUCH MORTGAGE; THE TERM
"FIRST MORTGAGE" MEANS SUCH FIRST LIENS AS ARE COMMONLY GIVEN TO  SECURE
ADVANCES ON, OR THE UNPAID PURCHASE PRICE OF, REAL ESTATE UNDER THE LAWS

S. 1238                            13

OF  THE  STATE,  TOGETHER  WITH  THE CREDIT INSTRUMENTS, IF ANY, SECURED
THEREBY.
  (H)  "MORTGAGE INSURANCE CONTRACTS". ALL CONTRACTS TO INSURE MORTGAGES
ENTERED INTO.
  (I) "MORTGAGE INSURANCE FUND". THE MORTGAGE INSURANCE FUND  AS  ESTAB-
LISHED PURSUANT TO SUBDIVISION TWELVE OF THIS SECTION.
  (J)  "MORTGAGE  INSURANCE FUND REQUIREMENT". AS OF ANY PARTICULAR DATE
OF COMPUTATION, AN AMOUNT EQUAL TO THE AGGREGATE OF (I) ONE HUNDRED  PER
CENTUM  OF  THE INSURED AMOUNTS DUE AND PAYABLE BY THE SUBSIDIARY CORPO-
RATION PURSUANT TO MORTGAGE INSURANCE CONTRACTS,  PLUS  (II)  AN  AMOUNT
EQUAL  TO THE GREATER OF (A) SEVEN MILLION FIVE HUNDRED THOUSAND DOLLARS
OR (B) TWENTY PER CENTUM OF THE INSURED AMOUNTS UNDER MORTGAGE INSURANCE
CONTRACTS OTHER THAN INSURED AMOUNTS WHICH ARE  DUE  AND  PAYABLE  UNDER
SUBPARAGRAPH  (I) OF THIS PARAGRAPH, PLUS (III) TWENTY PER CENTUM OF THE
AMOUNTS TO BE INSURED UNDER THE PREDECESSOR CORPORATION'S COMMITMENTS TO
INSURE; PROVIDED, HOWEVER, THAT NOTWITHSTANDING  THE  FOREGOING,  AT  NO
TIME  SHALL THE MORTGAGE INSURANCE FUND REQUIREMENT EXCEED THE AGGREGATE
OF (A) INSURED AMOUNTS DUE AND PAYABLE  BY  THE  SUBSIDIARY  CORPORATION
PURSUANT  TO  MORTGAGE  INSURANCE  CONTRACTS,  PLUS  (B) ONE HUNDRED PER
CENTUM OF THE INSURED AMOUNTS UNDER MORTGAGE INSURANCE  CONTRACTS  OTHER
THAN  INSURED AMOUNTS WHICH ARE DUE AND PAYABLE UNDER CLAUSE (A) OF THIS
SUBPARAGRAPH.
  (K) "MORTGAGEE". THE MORTGAGE LENDER UNDER A MORTGAGE INSURED  BY  THE
PREDECESSOR  CORPORATION  OR INSURED PURSUANT TO SUBDIVISION TEN OF THIS
SECTION, AND ITS SUCCESSORS AND ASSIGNS.
  (L) "MORTGAGE LOAN". A MORTGAGE LOAN SECURED BY A MORTGAGE.
  (M) "MORTGAGOR". THE ORIGINAL BORROWER UNDER A MORTGAGE  LOAN  INSURED
BY THE PREDECESSOR CORPORATION OR INSURED PURSUANT TO SUBDIVISION TEN OF
THIS SECTION, AND ITS SUCCESSORS AND ASSIGNS.
  (N) "MULTI-FAMILY HOUSING ACCOMMODATION". A HOUSING ACCOMMODATION WITH
FIVE OR MORE DWELLING UNITS.
  (O)  "OPERATING  EXPENSES".  ALL COSTS OF ADMINISTERING THE SUBSIDIARY
CORPORATION, INCLUDING, BUT NOT LIMITED TO, SALARIES AND WAGES, EXPENSES
OF ADMINISTERING STAFF  FUNCTIONS,  FEES  OF  PROFESSIONAL  CONSULTANTS,
LEGAL  FEES,  CHARGES  INCURRED  FOR  SERVICING OF MORTGAGE LOANS, MONEY
MANAGEMENT FEES, OFFICE  RENTS,  UTILITY  CHARGES,  COSTS  OF  SUPPLIES,
FURNISHINGS,  EQUIPMENT, MACHINERY AND APPARATUS, MAINTENANCE AND REPAIR
OF PROPERTY, PAYMENT TO THE CORPORATION FOR SERVICES  RENDERED,  AMOUNTS
DUE  AND  OWING  UNDER CONTRACTS VALIDLY ENTERED INTO BY THE PREDECESSOR
CORPORATION OR THE SUBSIDIARY CORPORATION, OTHER THAN MORTGAGE INSURANCE
CONTRACTS AND  HOUSING  INSURANCE  CONTRACTS,  RESPECTIVELY,  AND  OTHER
EXPENSES INCURRED IN CONNECTION WITH ANY OF THE FOREGOING.
  (P) "OTHER REAL PROPERTY". ANY BUILDING, STRUCTURE OR UNIMPROVED PROP-
ERTY  WHICH  IS USED OR OCCUPIED, OR IS INTENDED TO BE USED OR OCCUPIED,
PRIMARILY FOR EMERGENCY, TRANSITIONAL OR SHELTER HOUSING, A  PORTION  OF
WHICH  MAY  ALSO  BE  USED FOR COMMERCIAL AND OTHER COMMUNITY FACILITIES
ANCILLARY TO SUCH USE PROVIDED THAT,  THE  FLOOR  AREA  OF  ABOVE-GROUND
COMMERCIAL  FACILITIES  SHALL NOT EXCEED ONE-QUARTER OF THE ABOVE-GROUND
FLOOR AREA OF SUCH OTHER REAL PROPERTY  (INCLUSIVE  OF  SUCH  COMMERCIAL
FACILITIES).
  (Q)  "PRESERVATION  LOAN".  A  MORTGAGE  LOAN  EXTENDED BY A FINANCIAL
INSTITUTION WITH A TERM NOT TO EXCEED FORTY YEARS FOR  THE  PURPOSES  OF
REFINANCING  EXISTING INDEBTEDNESS SECURED BY ONE OR MORE MORTGAGES ON A
HOUSING ACCOMMODATION OR OTHER REAL PROPERTY  LOCATED  WITHIN  THE  CITY
AND/OR  FINANCING  THE  ACQUISITION  OF A HOUSING ACCOMMODATION OR OTHER

S. 1238                            14

REAL PROPERTY LOCATED WITHIN THE CITY AND WHICH OTHERWISE COMPLIES  WITH
THE CONDITIONS ESTABLISHED PURSUANT TO SUBDIVISION TEN OF THIS SECTION.
  (R)  "REHABILITATION". REPAIRS, ALTERATIONS OR IMPROVEMENTS OF A HOUS-
ING ACCOMMODATION OR OTHER REAL PROPERTY DESIGNED TO RAISE  THE  HOUSING
STANDARDS  THEREIN  OR,  IN THE CASE OF OTHER REAL PROPERTY, DESIGNED TO
PROVIDE NEEDED IMPROVEMENTS THEREIN. REHABILITATION SHALL  ALSO  INCLUDE
THE CONSTRUCTION OF A HOUSING ACCOMMODATION OR OTHER REAL PROPERTY.
  (S)  "REHABILITATION  LOAN".  A  MORTGAGE LOAN EXTENDED BY A FINANCIAL
INSTITUTION WITH A TERM NOT TO EXCEED FORTY YEARS WHICH MAY INCLUDE  THE
REFINANCING  OF  EXISTING  INDEBTEDNESS,  IF ANY, SECURED BY ONE OR MORE
MORTGAGES ON THE HOUSING ACCOMMODATION OR  OTHER  REAL  PROPERTY  TO  BE
REHABILITATED, OR FINANCING THE ACQUISITION OF THE HOUSING ACCOMMODATION
OR  OTHER REAL PROPERTY TO BE REHABILITATED, WHICH HOUSING ACCOMMODATION
OR OTHER REAL PROPERTY SHALL BE LOCATED WITHIN THE CITY AND WHICH OTHER-
WISE COMPLIES WITH THE CONDITIONS ESTABLISHED  PURSUANT  TO  SUBDIVISION
TEN  OF  THIS  SECTION,  PROVIDED, HOWEVER, THAT A SUM EQUAL TO AT LEAST
TWENTY-FIVE PERCENT OF THE AMOUNT OF THE MORTGAGE LOAN SHALL BE USED FOR
THE COST OF REHABILITATION OF, OR CONSTRUCTION  OF  IMPROVEMENTS  ON,  A
HOUSING ACCOMMODATION OR OTHER REAL PROPERTY.
  2. BUFFALO RESIDENTIAL MORTGAGE INSURANCE CORPORATION. THERE IS HEREBY
ESTABLISHED  A PUBLIC BENEFIT CORPORATION KNOWN AS THE RESIDENTIAL MORT-
GAGE INSURANCE CORPORATION AS A SUBSIDIARY  CORPORATION  OF  THE  CORPO-
RATION.  THE  PURPOSE  OF SUCH SUBSIDIARY CORPORATION SHALL BE TO INSURE
MORTGAGE LOANS IN ORDER TO PROMOTE  THE  PRESERVATION  OF  NEIGHBORHOODS
WHICH  ARE  BLIGHTED,  ARE  BECOMING BLIGHTED OR MAY BECOME BLIGHTED, TO
DISCOURAGE DISINVESTMENT AND ENCOURAGE THE INVESTMENT OF MORTGAGE  CAPI-
TAL  IN  SUCH NEIGHBORHOODS AND TO PROVIDE SAFE, SANITARY AND AFFORDABLE
HOUSING ACCOMMODATIONS TO PERSONS AND FAMILIES  FOR  WHOM  THE  ORDINARY
OPERATIONS OF PRIVATE ENTERPRISE CANNOT SUPPLY SUCH ACCOMMODATIONS.
  3.  ASSISTANCE; PRIVILEGES. (A) THE SUBSIDIARY CORPORATION MAY RECEIVE
MONEYS FROM THE CORPORATION, THE STATE, ANY PUBLIC BENEFIT  CORPORATION,
THE CITY, THE FEDERAL GOVERNMENT OR ANY OTHER SOURCE FOR PUBLIC PURPOSES
SET FORTH IN THIS SECTION.
  (B)  THE  SUBSIDIARY CORPORATION MAY CONTRACT FOR AND ACCEPT ANY GIFTS
OR GRANTS OR LOANS OF FUNDS OR PROPERTY OR FINANCIAL OR OTHER AID IN ANY
FORM FROM THE FEDERAL GOVERNMENT OR ANY AGENCY OR INSTRUMENTALITY THERE-
OF, OR FROM THE STATE OR ANY AGENCY OR INSTRUMENTALITY THEREOF,  INCLUD-
ING  THE  CITY  AND THE CORPORATION, OR FROM ANY OTHER SOURCE, PUBLIC OR
PRIVATE, AND TO COMPLY, SUBJECT TO THE PROVISIONS OF THIS SECTION,  WITH
THE TERMS AND CONDITIONS THEREOF.
  (C)  THE  CITY  AND THE CORPORATION ARE EACH HEREBY AUTHORIZED TO, BUT
NEITHER IS REQUIRED TO, MAKE GIFTS, GRANTS OR LOANS OF FUNDS OR PROPERTY
OR FINANCIAL OR OTHER AID IN ANY FORM TO THE SUBSIDIARY CORPORATION  AND
TO  ENTER  INTO  ANY  CONTRACTS  OR OTHER AGREEMENTS WITH THE SUBSIDIARY
CORPORATION, ON SUCH TERMS AND CONDITIONS AS  THE  CITY  OR  THE  CORPO-
RATION,  AS  APPLICABLE,  AND THE SUBSIDIARY CORPORATION MAY AGREE UPON,
ALL IN FURTHERANCE OF THE PUBLIC PURPOSES SET FORTH IN THIS SECTION.
  (D) ALL  DOMESTIC  CORPORATIONS  OR  ASSOCIATIONS  ORGANIZED  FOR  THE
PURPOSE  OF  CARRYING  ON  BUSINESS IN THIS STATE, PUBLIC BENEFIT CORPO-
RATIONS, PUBLIC EMPLOYEE PENSION FUNDS AND  ANY  OTHER  PERSONS,  CORPO-
RATIONS  OR  ASSOCIATIONS ARE HEREBY AUTHORIZED TO MAKE CONTRIBUTIONS TO
THE SUBSIDIARY CORPORATION.
  (E) THE SUBSIDIARY CORPORATION SHALL HAVE ALL THE PRIVILEGES,  IMMUNI-
TIES,  TAX  EXEMPTIONS  AND  OTHER  EXEMPTIONS OF THE CORPORATION TO THE
EXTENT THE SAME ARE NOT INCONSISTENT WITH THIS SECTION.

S. 1238                            15

  4. MEMBERSHIP. THE MEMBERSHIP OF  SUCH  SUBSIDIARY  CORPORATION  SHALL
CONSIST  OF  NINE  MEMBERS, SEVEN OF WHOM SHALL BE MEMBERS OF THE CORPO-
RATION AND TWO OF WHOM SHALL BE APPOINTED BY THE MAYOR. THE MEMBERS  WHO
ARE  NOT MEMBERS OF THE CORPORATION SHALL SERVE FOR TERMS ENDING TWO AND
FOUR  YEARS  RESPECTIVELY FROM JANUARY FIRST NEXT SUCCEEDING THE DATE OF
THEIR APPOINTMENT. THE SUCCESSORS OF THE MEMBERS WHO ARE NOT MEMBERS  OF
THE  CORPORATION  SHALL SERVE FOR TERMS OF FOUR YEARS EACH. A MEMBER WHO
IS NOT A MEMBER OF THE CORPORATION SHALL CONTINUE IN OFFICE UNTIL HIS OR
HER SUCCESSOR HAS BEEN APPOINTED AND  QUALIFIED.  WITH  RESPECT  TO  ANY
MEMBER  WHO IS NOT A MEMBER OF THE CORPORATION, THE MAYOR SHALL FILL ANY
VACANCY WHICH MAY OCCUR BY REASON OF DEATH, RESIGNATION OR OTHERWISE FOR
THE REMAINING UNEXPIRED TERM OF SUCH MEMBER.  A  MEMBER  WHO  IS  NOT  A
MEMBER OF THE CORPORATION MAY BE REMOVED BY THE MAYOR FOR CAUSE, BUT NOT
WITHOUT  AN  OPPORTUNITY  TO  BE  HEARD IN PERSON OR BY COUNSEL, IN SUCH
MEMBER'S DEFENSE, UPON NOT LESS THAN TEN DAYS' NOTICE. THE POWERS OF THE
SUBSIDIARY CORPORATION SHALL BE VESTED IN AND EXERCISED BY NO LESS  THAN
FIVE  OF  THE MEMBERS THEREOF THEN IN OFFICE. THE SUBSIDIARY CORPORATION
MAY DELEGATE TO ONE OR MORE OF ITS MEMBERS, OR ITS OFFICERS, AGENTS  AND
EMPLOYEES, SUCH DUTIES AND POWERS AS IT MAY DEEM PROPER. THE COMMISSION-
ER OF THE DIVISION OF RESIDENTIAL DEVELOPMENT SHALL SERVE AS CHAIRPERSON
OF  THE  SUBSIDIARY  CORPORATION. THE PRESIDENT OF THE CORPORATION SHALL
SERVE AS PRESIDENT OF THE SUBSIDIARY CORPORATION.
  5. COMPENSATION. NOTWITHSTANDING ANY INCONSISTENT PROVISIONS  OF  THIS
OR  ANY  OTHER  GENERAL, SPECIAL OR LOCAL LAW, NO OFFICER OR EMPLOYEE OF
THE CORPORATION, THE CITY OR THE STATE, OR OF ANY PUBLIC CORPORATION, AS
DEFINED IN THE  GENERAL  CONSTRUCTION  LAW,  SHALL  BE  DEEMED  TO  HAVE
FORFEITED  OR  SHALL  FORFEIT  SUCH PERSON'S OFFICE OR EMPLOYMENT OR ANY
BENEFITS PROVIDED UNDER THE RETIREMENT AND SOCIAL SECURITY LAW OR  UNDER
ANY  PUBLIC  RETIREMENT  SYSTEM  MAINTAINED BY THE STATE OR BY THE CIVIL
DIVISIONS THEREOF BY REASON OF SUCH PERSON'S ACCEPTANCE OF MEMBERSHIP ON
OR BY VIRTUE OF SUCH PERSON'S BEING AN OFFICER, EMPLOYEE OR AGENT OF THE
SUBSIDIARY CORPORATION. THE MEMBERS MAY ENGAGE IN PRIVATE EMPLOYMENT  OR
IN  A  PROFESSION OR BUSINESS, UNLESS OTHERWISE PROHIBITED FROM DOING SO
BY VIRTUE OF HOLDING ANOTHER PUBLIC OFFICE, SUBJECT TO THE PROVISIONS OF
ARTICLE EIGHTEEN OF THE GENERAL MUNICIPAL LAW. FOR THE PURPOSES OF  SUCH
ARTICLE  EIGHTEEN,  THE SUBSIDIARY CORPORATION SHALL BE A "MUNICIPALITY"
AND A MEMBER SHALL BE A "MUNICIPAL OFFICER". NO MEMBER OF THE SUBSIDIARY
CORPORATION SHALL RECEIVE  ADDITIONAL  COMPENSATION,  EITHER  DIRECT  OR
INDIRECT,  OTHER  THAN  REIMBURSEMENT  FOR ACTUAL AND NECESSARY EXPENSES
INCURRED IN THE PERFORMANCE OF SUCH PERSON'S DUTIES, BY REASON  OF  SUCH
PERSON SERVING AS A MEMBER OF THE SUBSIDIARY CORPORATION.
  6.  TRANSFER OF RESOURCES. THE CITY AND THE CORPORATION SHALL HAVE THE
POWER TO, BUT SHALL NOT BE OBLIGATED  TO,  TRANSFER  TO  THE  SUBSIDIARY
CORPORATION  SUCH  AGENTS,  EMPLOYEES AND FACILITIES, INCLUDING ANY REAL
AND/OR PERSONAL PROPERTY, IN ORDER TO CARRY OUT  THE  PURPOSES  OF  THIS
SECTION.
  7. TERMINATION. THE SUBSIDIARY CORPORATION AND ITS CORPORATE EXISTENCE
SHALL  CONTINUE UNTIL TERMINATED BY LAW; PROVIDED, HOWEVER, THAT NO SUCH
LAW SHALL TAKE EFFECT SO LONG AS THE SUBSIDIARY CORPORATION  SHALL  HAVE
CONTRACTS  TO  INSURE  MORTGAGES (INCLUDING MORTGAGE INSURANCE CONTRACTS
AND HOUSING INSURANCE CONTRACTS), COMMITMENTS TO INSURE,  NOTES,  BONDS,
OR  OTHER  OBLIGATIONS  OUTSTANDING,  UNLESS ADEQUATE PROVISION HAS BEEN
MADE FOR THE PAYMENT THEREOF. UPON TERMINATION OF THE EXISTENCE  OF  THE
SUBSIDIARY  CORPORATION  ALL  OF ITS RIGHTS AND PROPERTIES SHALL PASS TO
AND BE VESTED IN THE CORPORATION.
  8. POWERS. THE SUBSIDIARY CORPORATION SHALL HAVE THE POWER:

S. 1238                            16

  (A) TO SUE AND BE SUED;
  (B) TO HAVE A SEAL AND ALTER THE SAME AT PLEASURE;
  (C) TO MAKE AND ALTER BY-LAWS FOR ITS ORGANIZATION;
  (D)  TO  ADOPT,  AMEND OR RESCIND RULES AND REGULATIONS APPROPRIATE TO
CARRY OUT  ITS  CORPORATE  PURPOSES,  INCLUDING  RULES  AND  REGULATIONS
GOVERNING  THE  USE OF ITS PROPERTY AND FACILITIES AND TO ESTABLISH SUCH
REQUIREMENTS AND ENTER INTO SUCH AGREEMENTS TO ACHIEVE THE OBJECTIVES OF
THIS SECTION;
  (E) TO MAKE AND EXECUTE CONTRACTS AND ALL OTHER INSTRUMENTS  NECESSARY
OR  CONVENIENT  FOR  THE EXERCISE OF ITS POWERS AND FUNCTIONS UNDER THIS
SECTION;
  (F) TO ACQUIRE, HOLD AND DISPOSE OF REAL AND/OR PERSONAL PROPERTY  FOR
ITS CORPORATE PURPOSES;
  (G)  TO ENGAGE THE SERVICES OF PRIVATE CONSULTANTS ON A CONTRACT BASIS
FOR RENDERING PROFESSIONAL AND TECHNICAL ASSISTANCE AND ADVICE;
  (H) TO APPOINT OFFICERS, AGENTS AND EMPLOYEES, PRESCRIBE THEIR  DUTIES
AND QUALIFICATIONS AND FIX THEIR COMPENSATION;
  (I) TO INVEST ANY FUNDS, OR OTHER MONEYS UNDER ITS CUSTODY AND CONTROL
IN THE SAME MANNER AS THE CORPORATION;
  (J)  TO  ESTABLISH  AND  LEVY  FEES AND CHARGES IN CONNECTION WITH THE
PROCESSING OF APPLICATIONS FOR MORTGAGE INSURANCE AND FIX PREMIUM CHARG-
ES FOR MORTGAGE INSURANCE;
  (K) TO ENTER INTO COMMITMENTS TO INSURE  MORTGAGES  AND  CONTRACTS  OF
INSURANCE  AND  ENTER  INTO  ANY ADDITIONAL AGREEMENTS AS THE SUBSIDIARY
CORPORATION DEEMS APPROPRIATE TO FURTHER THE OBJECTIVES OF THIS SECTION;
  (L) TO FULFILL ITS  OBLIGATIONS  AND  ENFORCE  ITS  RIGHTS  UNDER  ANY
CONTRACT  OF INSURANCE, OR COMMITMENT TO INSURE SO FURNISHED AS PROVIDED
IN THIS SECTION AND SUCH RULES AND REGULATIONS AS MAY BE ADOPTED BY  THE
SUBSIDIARY CORPORATION;
  (M)  TO  PAY, PURSUE TO FINAL COLLECTION, COMPROMISE, WAIVE OR RELEASE
ANY RIGHT, TITLE, CLAIM, LIEN OR DEMAND, HOWEVER ACQUIRED, INCLUDING ANY
EQUITY OR RIGHT OF REDEMPTION;
  (N) TO FORECLOSE ANY MORTGAGE IN DEFAULT OR  COMMENCE  ANY  ACTION  TO
PROTECT  OR  ENFORCE  ANY  RIGHT CONFERRED UPON IT BY ANY LAW, MORTGAGE,
CONTRACT OR OTHER AGREEMENT, AND TO BID FOR AND PURCHASE  SUCH  PROPERTY
AT ANY FORECLOSURE OR AT ANY OTHER SALE, OR OTHERWISE TO ACQUIRE OR TAKE
POSSESSION OF ANY SUCH PROPERTY;
  (O)  TO  DEAL  WITH, HOLD, ADMINISTER, MANAGE, RENT, REPAIR, INSURE OR
SELL, LEASE OR OTHERWISE DISPOSE OF ANY PROPERTY CONVEYED TO OR ACQUIRED
BY THE SUBSIDIARY CORPORATION AND TO  ENTER  INTO  AGREEMENTS  WITH  THE
STATE,  THE  CITY,  OR  ANY  PERSON, FIRM, ENTITY, PARTNERSHIP OR CORPO-
RATION, EITHER PUBLIC OR PRIVATE, WITH REGARD THERETO;
  (P) TO PROCURE INSURANCE AGAINST ANY LOSS IN CONNECTION WITH ITS PROP-
ERTY AND OTHER ASSETS AND TO PROCURE REINSURANCE IN CONNECTION WITH  ITS
OBLIGATIONS,  ALL  IN  SUCH  AMOUNTS  AND FROM SUCH INSURERS AS IT DEEMS
NECESSARY OR DESIRABLE;
  (Q) TO CONSENT TO THE MODIFICATION, WITH RESPECT TO RATE OF  INTEREST,
TIME OF PAYMENT OF ANY INSTALLMENT OF PRINCIPAL OR INTEREST, SECURITY OR
ANY OTHER TERM, OF ANY MORTGAGE, MORTGAGE LOAN, CONTRACT OR AGREEMENT OF
ANY  KIND  WHICH  THE SUBSIDIARY CORPORATION HAS INSURED OR TO WHICH THE
SUBSIDIARY CORPORATION IS A PARTY;
  (R) TO SELL, AT PUBLIC OR PRIVATE SALE, ANY MORTGAGE, MORTGAGE PARTIC-
IPATION OR OTHER OBLIGATION HELD BY THE SUBSIDIARY CORPORATION;
  (S) TO PROCURE CASH EQUIVALENTS FOR DEPOSIT IN ITS FUNDS;
  (T) TO ENTER INTO CO-INSURANCE AGREEMENTS WITH ANY  ENTITY  AUTHORIZED
BY  LAW  TO  PROVIDE MORTGAGE INSURANCE WITH RESPECT TO PROPERTY LOCATED

S. 1238                            17

WITHIN THE CITY, INCLUDING, BUT NOT LIMITED TO THE  STATE  OF  NEW  YORK
MORTGAGE  AGENCY  AND  THE UNITED STATES DEPARTMENT OF HOUSING AND URBAN
DEVELOPMENT;
  (U)  TO DO ANY AND ALL THINGS NECESSARY OR CONVENIENT TO CARRY OUT ITS
PURPOSES AND EXERCISE THE POWERS EXPRESSLY GIVEN  AND  GRANTED  IN  THIS
SECTION.
  9.  CLASSIFICATION  OF  HOUSING  ACCOMMODATIONS. THE SUBSIDIARY CORPO-
RATION MAY CLASSIFY HOUSING ACCOMMODATIONS WITHIN THE CITY  AND  APPROVE
ANY  OF  SUCH CLASSES AS ELIGIBLE FOR INSURANCE PURSUANT TO THIS SECTION
AND ENACT SEPARATE GUIDELINES DEALING WITH THE PROVISION AND  EXTENT  OF
SUCH INSURANCE.
  10.  INSURANCE  OF  MORTGAGE  LOANS. (A) THE SUBSIDIARY CORPORATION IS
AUTHORIZED, SUBJECT TO THE PROVISIONS OF THIS SECTION, TO  MAKE  COMMIT-
MENTS  TO  INSURE  AND TO CONTRACT TO INSURE MORTGAGE LOANS ELIGIBLE FOR
INSURANCE HEREUNDER.
  (B) THE SUBSIDIARY CORPORATION SHALL LIMIT ITS INSURANCE ON A REHABIL-
ITATION OR PRESERVATION LOAN TO AN AMOUNT NOT IN  EXCESS  OF  FIFTY  PER
CENTUM  OF  THE  OUTSTANDING  PRINCIPAL INDEBTEDNESS, PROVIDED, HOWEVER,
THAT THE SUBSIDIARY CORPORATION MAY INSURE AN AMOUNT NOT  IN  EXCESS  OF
SEVENTY-FIVE  PER  CENTUM OF THE OUTSTANDING PRINCIPAL INDEBTEDNESS OF A
REHABILITATION LOAN IF IT SHALL FIND THAT THE EXTENT  OF  REHABILITATION
IS  SUFFICIENT  TO  JUSTIFY SUCH ADDITIONAL INSURANCE, PROVIDED FURTHER,
HOWEVER, THAT THE SUBSIDIARY CORPORATION MAY INSURE  AN  AMOUNT  NOT  TO
EXCEED  THE  FULL OUTSTANDING PRINCIPAL INDEBTEDNESS OF A REHABILITATION
OR PRESERVATION LOAN WHEN SUCH MORTGAGE LOAN HAS BEEN MADE BY  A  PUBLIC
BENEFIT CORPORATION OF THE STATE OF NEW YORK WHICH PUBLIC BENEFIT CORPO-
RATION  HAS  ISSUED  OR  WILL  ISSUE  BONDS OR NOTES, SOME OR ALL OF THE
PROCEEDS OF WHICH BONDS OR NOTES WERE USED OR WILL BE USED TO MAKE  SUCH
MORTGAGE  LOAN,  OR  WHEN  THE  MORTGAGE  LOAN HAS BEEN MADE BY A PUBLIC
EMPLOYEE PENSION FUND. THE FOREGOING NOTWITHSTANDING,  THE  SUM  OF  THE
PERCENTAGE  OF  ANY  MORTGAGE LOAN INSURED BY THE SUBSIDIARY CORPORATION
AND THE PERCENTAGE OF SUCH LOAN INSURED OR TO BE INSURED  BY  ANY  OTHER
PARTY SHALL NOT EXCEED ONE HUNDRED PER CENTUM OF THE OUTSTANDING PRINCI-
PAL INDEBTEDNESS OF SUCH MORTGAGE LOAN.
  (C)  THE SUBSIDIARY CORPORATION SHALL NOT ISSUE A COMMITMENT TO INSURE
OR A HOUSING INSURANCE CONTRACT UNLESS UPON THE ISSUANCE THEREOF AMOUNTS
ON DEPOSIT IN THE HOUSING INSURANCE FUND WILL AT LEAST EQUAL THE HOUSING
INSURANCE FUND REQUIREMENT.
  (D) EXCEPT FOR MORTGAGE INSURANCE CONTRACTS AND  EXCEPT  AS  OTHERWISE
PROVIDED  IN  PARAGRAPH  (E)  OF THIS SUBDIVISION, THE SUBSIDIARY CORPO-
RATION SHALL NOT ISSUE A COMMITMENT TO INSURE NOR SHALL  IT  INSURE  ANY
MORTGAGE  LOAN UNLESS IT SHALL FIRST FIND (I) THAT THE PROPERTY WHICH IS
THE SECURITY FOR SUCH MORTGAGE LOAN IS LOCATED IN A NEIGHBORHOOD  WITHIN
THE  CITY CHARACTERIZED BY A DEFICIENCY OF AVAILABLE MORTGAGE FINANCING;
(II) THAT SUCH DEFICIENCY HAS CAUSED OR THREATENS  TO  CAUSE  UNDERMAIN-
TAINED  AND  DETERIORATING  HOUSING  ACCOMMODATIONS  AND SUBSTANDARD AND
UNSANITARY NEIGHBORHOODS; (III) THAT THE GRANTING OF SUCH MORTGAGE  LOAN
WILL  AID  IN  THE PRESERVATION OR REHABILITATION OF THE NEIGHBORHOOD IN
WHICH SUCH PROPERTY IS LOCATED; (IV) THAT, IF THE PROPERTY WHICH IS  THE
SECURITY  FOR SUCH MORTGAGE LOAN IS OTHER REAL PROPERTY, THE GRANTING OF
SUCH MORTGAGE LOAN WILL ASSIST IN PREVENTING THE DETERIORATION OF  RESI-
DENTIAL  HOUSING  IN THE NEIGHBORHOOD IN WHICH SUCH PROPERTY IS LOCATED;
AND (V) THAT THE PROPERTY WHICH IS THE SECURITY FOR SUCH LOAN MEETS SUCH
OTHER REQUIREMENTS AS THE SUBSIDIARY CORPORATION MAY FROM TIME  TO  TIME
ESTABLISH  BY GUIDELINES ADOPTED BY THE SUBSIDIARY CORPORATION. ANY SUCH
DETERMINATION BY THE SUBSIDIARY  CORPORATION  SHALL  BE  CONCLUSIVE  AND

S. 1238                            18

FINAL AND SHALL NOT BE SUBJECT TO REVIEW OF ANY KIND OR NATURE OR IN ANY
MANNER  WHATSOEVER  AND SHALL NOT GIVE RISE TO ANY LIABILITY ON THE PART
OF THE SUBSIDIARY CORPORATION.
  (E)  THE  SUBSIDIARY  CORPORATION MAY ISSUE A COMMITMENT TO INSURE AND
MAY INSURE ANY MORTGAGE LOANS, NOTWITHSTANDING THE CRITERIA SET FORTH IN
SUBPARAGRAPH (I), (II), (III) OR (IV) OF PARAGRAPH (D) OF THIS  SUBDIVI-
SION  PROVIDED THAT IT SHALL FIND THE PROPERTY WHICH IS THE SECURITY FOR
SUCH MORTGAGE LOAN OR MORTGAGE LOANS IS EITHER: (I) LOCATED  WITHIN  THE
CITY  IN AN EMPIRE ZONE DESIGNATED PURSUANT TO ARTICLE EIGHTEEN-B OF THE
GENERAL MUNICIPAL LAW, OR (II) WILL PROVIDE SAFE, SANITARY AND  AFFORDA-
BLE HOUSING FOR PERSONS AND FAMILIES FOR WHOM THE ORDINARY OPERATIONS OF
PRIVATE  ENTERPRISE  CANNOT  SUPPLY  SUCH  HOUSING,  OR (III) THE ENTITY
PROVIDING THE MORTGAGE FINANCING WAS OR IS CREATED BY  LOCAL,  STATE  OR
FEDERAL LEGISLATION AND CERTIFIES TO THE SUBSIDIARY CORPORATION THAT THE
HOUSING  ACCOMMODATIONS  OR  OTHER  REAL PROPERTY ARE LOCATED WITHIN THE
CITY AND MEET THE PROGRAM CRITERIA APPLICABLE TO SUCH ENTITY.  IN  ADDI-
TION,  THE  SUBSIDIARY CORPORATION MAY ENTER INTO ANY MORTGAGE INSURANCE
CONTRACT, NOTWITHSTANDING THE CRITERIA SET FORTH  IN  SUBPARAGRAPH  (I),
(II), (III) OR (IV) OF PARAGRAPH (D) OF THIS SUBDIVISION.
  (F)  THE  SUBSIDIARY  CORPORATION MAY ISSUE A COMMITMENT TO INSURE AND
MAY INSURE AN EXISTING MORTGAGE LOAN, WHEN AN APPLICATION FOR SUCH MORT-
GAGE INSURANCE HAS BEEN SUBMITTED PRIOR TO THE MAKING OF  SUCH  MORTGAGE
LOAN, AND SIGNIFICANT CIRCUMSTANCES BEYOND THE REASONABLE CONTROL OF THE
MORTGAGOR  AND  MORTGAGEE  NECESSITATE  THE  MAKING OF THE MORTGAGE LOAN
PRIOR TO THE ISSUANCE OF THE COMMITMENT TO INSURE AND WHEN IT IS  DETER-
MINED  BY  THE  SUBSIDIARY CORPORATION THAT SUCH MORTGAGE LOAN WOULD NOT
HAVE BEEN MADE EXCEPT FOR THE REASONABLE EXPECTATION THAT THE SUBSIDIARY
CORPORATION WOULD INSURE THE MORTGAGE LOAN.
  (G) TO BE ELIGIBLE FOR INSURANCE UNDER THIS SECTION, A  MORTGAGE  LOAN
SHALL  BE  A PRESERVATION LOAN AND/OR A REHABILITATION LOAN AND (I) BEAR
INTEREST, EXCLUSIVE OF PREMIUM CHARGES FIXED BY  THE  SUBSIDIARY  CORPO-
RATION,  AT  A  RATE NOT IN EXCESS OF THE RATE OF INTEREST AUTHORIZED BY
LAW AND NOT IN EXCESS OF A MAXIMUM RATE OF INTEREST ESTABLISHED  BY  THE
SUBSIDIARY CORPORATION FROM TIME TO TIME. IN MAKING ITS DETERMINATION OF
APPROPRIATE MAXIMUM INTEREST RATE, THE SUBSIDIARY CORPORATION SHALL TAKE
INTO  ACCOUNT  THE  RATES  OF INTEREST PREVALENT IN THE MORTGAGE MARKET,
CURRENT DATA ON SECONDARY MARKET  YIELDS  AND  DISCOUNT  AND/OR  PREMIUM
LEVELS;  (II)  UNLESS  THE SUBSIDIARY CORPORATION IN ITS SOLE DISCRETION
SHALL OTHERWISE DETERMINE, PROVIDE FOR SUBSTANTIALLY EQUAL AND  CONSTANT
PERIODIC PAYMENTS OF PRINCIPAL AND INTEREST IN AMOUNTS SUFFICIENT TO PAY
ALL  INTEREST  AND EFFECT FULL REPAYMENT OF PRINCIPAL WITHIN THE TERM OF
THE MORTGAGE LOAN; (III) CONTAIN TERMS WITH RESPECT TO  THE  PREPAYMENT,
INSURANCE,  REPAIRS, ALTERATIONS, PAYMENT OF TAXES, SPECIAL ASSESSMENTS,
SERVICE CHARGES,  DEFAULT  RESERVES,  DELINQUENCY  CHARGES,  FORECLOSURE
PROCEEDINGS,  ADDITIONAL  AND SECONDARY LIENS, AND SUCH OTHER MATTERS AS
THE SUBSIDIARY CORPORATION MAY IN  ITS  DISCRETION  PRESCRIBE;  (IV)  BE
ACCOMPANIED  BY  CERTIFICATES, ISSUED BY SUCH OFFICERS OF THE MORTGAGEE,
INDEPENDENT APPRAISERS OR OTHER PERSONS AS  THE  SUBSIDIARY  CORPORATION
MAY  REQUIRE,  CERTIFYING THAT: (A) WHERE APPROPRIATE, THE ANNUAL INCOME
TO BE DERIVED FROM THE PROPERTY EQUALS NOT LESS THAN  ONE  HUNDRED  FIVE
PER  CENTUM  OF THE ANNUAL CHARGES AND EXPENSES, INCLUDING PROVISION FOR
RESERVES, SATISFACTORY TO THE SUBSIDIARY CORPORATION,  FOR  THE  AMORTI-
ZATION  OF  SUBORDINATE  MORTGAGE LOANS OVER THE REMAINING TERMS OF SUCH
MORTGAGE LOANS REGARDLESS OF WHETHER THE TERMS OF SUCH SUBORDINATE MORT-
GAGE LOANS INCLUDE SCHEDULED AMORTIZATION OF PRINCIPAL; (B) THE  REMAIN-
ING  USEFUL  LIFE  OF THE PROPERTY IS GREATER THAN THE TERM OF THE MORT-

S. 1238                            19

GAGE; AND (C) THE HOUSING ACCOMMODATION OR OTHER REAL PROPERTY DOES  NOT
CONTAIN  ANY  SUBSTANTIAL VIOLATIONS OF THE HOUSING CODE OR THE MULTIPLE
DWELLING LAW, EXCEPT THAT IN THE CASE OF A MORTGAGE  LOAN  MADE  TO  THE
OWNER  OF  A HOUSING ACCOMMODATION OR OTHER REAL PROPERTY CONTAINING ANY
SUCH VIOLATIONS, THE SUBSIDIARY CORPORATION  MAY  INSURE  OR  COMMIT  TO
INSURE  SUCH MORTGAGE LOAN IF THE MORTGAGEE AND THE OWNER HAVE SUBMITTED
A PLAN, SATISFACTORY TO THE SUBSIDIARY  CORPORATION  TO  ELIMINATE  SUCH
VIOLATIONS;  AND (V) SATISFY SUCH ADDITIONAL TERMS AND CONDITIONS AS THE
SUBSIDIARY CORPORATION MAY PRESCRIBE.
  (H) IN ADDITION TO THE CONDITIONS SET FORTH IN PARAGRAPHS (D)  THROUGH
(G) OF THIS SUBDIVISION, THE SUBSIDIARY CORPORATION SHALL NOT INSURE NOR
ISSUE  A  COMMITMENT  TO  INSURE ANY REHABILITATION LOAN UNLESS IT SHALL
FIND (I) THAT REHABILITATION IS NECESSARY TO UPGRADE THE PROPERTY,  (II)
THAT  REHABILITATION  WILL NOT NECESSITATE MORE THAN A MINIMUM AMOUNT OF
RELOCATION OF THE RESIDENTS OF ANY HOUSING ACCOMMODATION AND (III)  THAT
THE  REHABILITATION  UNDERTAKEN  WITH THE PROCEEDS OF THE REHABILITATION
LOAN HAS BEEN COMPLETED.
  (I) A FINANCIAL INSTITUTION MAY REQUEST INSURANCE BY WRITTEN  APPLICA-
TION  TO  THE  SUBSIDIARY  CORPORATION IN SUCH FORM AND MANNER, TOGETHER
WITH SUCH INFORMATION AND DOCUMENTS, AS THE SUBSIDIARY  CORPORATION  MAY
PRESCRIBE.  NO APPLICATION SHALL BE COMPLETE UNLESS AND UNTIL THE FINAN-
CIAL INSTITUTION HAS PAID SUCH PROCESSING FEES AND OTHER CHARGES AS  THE
SUBSIDIARY  CORPORATION  MAY IMPOSE IN CONNECTION THEREWITH. THE SUBSID-
IARY CORPORATION SHALL SIGNIFY ITS ACCEPTANCE OF  SUCH  APPLICATION  FOR
INSURANCE  BY ISSUANCE OF A COMMITMENT TO INSURE OR A CONTRACT OF INSUR-
ANCE.
  (J) THE SUBSIDIARY CORPORATION SHALL NOT ISSUE A COMMITMENT TO  INSURE
A  MORTGAGE  LOAN  EXTENDED BY THE CORPORATION UNLESS SUCH COMMITMENT TO
INSURE IS APPROVED BY AT LEAST TWO MEMBERS OF A  COMMITTEE  COMPOSED  OF
THE  CHAIRPERSON  OF  THE  SUBSIDIARY CORPORATION AND THE MEMBERS OF THE
SUBSIDIARY CORPORATION WHO ARE NOT MEMBERS OF THE CORPORATION.
  11. PAYMENT OF INSURANCE. THE SUBSIDIARY CORPORATION  SHALL  ESTABLISH
PROCEDURES TO BE FOLLOWED BY A MORTGAGEE IN THE EVENT OF A DEFAULT UNDER
THE  TERMS  OF  ANY  MORTGAGE  INSURED  BY  THE  SUBSIDIARY CORPORATION,
PROVIDED, HOWEVER, ANY MODIFICATION TO SUCH PROCEDURES  (OTHER  THAN  TO
CURE  ANY  AMBIGUITY,  DEFECT OR OMISSION) SHALL APPLY ONLY TO MORTGAGES
FOR WHICH COMMITMENTS HAVE BEEN ISSUED AFTER THE EFFECTIVE DATE OF  SUCH
MODIFICATION. THE SUBSIDIARY CORPORATION MAY ESTABLISH PREREQUISITES FOR
PAYMENT  OF AN INSURANCE CLAIM, INCLUDING, BUT NOT LIMITED TO, REQUIRING
THE MORTGAGEE TO TAKE SUCH ACTIONS WITH RESPECT TO THE PROPERTY SECURING
THE DEFAULTED MORTGAGE AS MAY BE SPECIFIED BY THE SUBSIDIARY CORPORATION
TO BE SATISFACTORY EVIDENCE OF A CONTINUING DEFAULT, INCLUDING  BUT  NOT
LIMITED TO THE FOLLOWING ACTIONS: (A) BECOMING LAWFULLY THE MORTGAGEE IN
POSSESSION THEREOF; (B) CAUSING A RECEIVER TO BE APPOINTED OF SUCH PROP-
ERTY;  (C)  OBTAINING  VOLUNTARY CONVEYANCE OF THE MORTGAGOR'S RIGHT AND
TITLE TO SUCH PROPERTY; OR (D) OBTAINING BY FORECLOSURE CLEAR AND  UNEN-
CUMBERED  TITLE  TO  SUCH PROPERTY, ALL IN SUCH MANNER AS THE SUBSIDIARY
CORPORATION MAY REQUIRE. FOLLOWING SUBMISSION  OF  A  VALID  CLAIM,  THE
SUBSIDIARY  CORPORATION  SHALL  PAY AN AMOUNT WHICH SHALL NOT EXCEED THE
LESSER OF: (1) THE THEN OUTSTANDING PRINCIPAL  AMOUNT  OF  THE  MORTGAGE
MULTIPLIED  BY  THE PER CENTUM OF SUCH OUTSTANDING AMOUNT INSURED BY THE
SUBSIDIARY CORPORATION PLUS THAT PER  CENTUM  OF  THE  MORTGAGEE'S  COST
ARISING  FROM  THE DEFAULT, INCLUSIVE OF PUBLIC LIENS AND DELINQUENT AND
UNPAID INTEREST, ALL AS THE SUBSIDIARY CORPORATION MAY FROM TIME TO TIME
ALLOW, WHICH PER CENTUM SHALL NOT EXCEED THE PER CENTUM OF THE OUTSTAND-
ING PRINCIPAL INDEBTEDNESS INSURED BY THE SUBSIDIARY CORPORATION OR  (2)

S. 1238                            20

THE  INSURED AMOUNT OF THE MORTGAGE LOAN AT THE DATE OF EXECUTION OF THE
CONTRACT OF INSURANCE OR ITS LATEST AMENDMENT, IF ANY, EXCEPT  THAT  THE
SUBSIDIARY  CORPORATION  SHALL  PAY  THE  GREATER  OF THE TWO AMOUNTS ON
CLAIMS  BY  A PUBLIC EMPLOYEE PENSION FUND OR BY A PUBLIC BENEFIT CORPO-
RATION FROM MORTGAGE LOANS FINANCED BY THE SALE OF NOTES OR BONDS ISSUED
BY SAID CORPORATION AND SUCH AMOUNT PAYABLE MAY, IF SO PROVIDED  IN  THE
CONTRACT  OF  INSURANCE, INCLUDE ACCRUED INTEREST TO THE DATE OF REDEMP-
TION FOR SUCH BONDS OR NOTES AND ANY COST ASSOCIATED WITH  SUCH  REDEMP-
TION, PROVIDED THAT NO MORE THAN THE ACTUAL LOSS SUFFERED BY SUCH PUBLIC
BENEFIT  CORPORATION OR PUBLIC EMPLOYEE PENSION FUND SHALL BE PAID. SUCH
PAYMENT MAY BE MADE BY THE SUBSIDIARY CORPORATION IN A LUMP SUM,  OR  IN
PARTIAL  PAYMENTS  MADE WITHIN SUCH PERIOD OF TIME, NOT IN EXCESS OF TWO
YEARS, AS MAY BE AGREED TO BETWEEN THE SUBSIDIARY  CORPORATION  AND  THE
MORTGAGEE,  ALL  IN  ACCORDANCE WITH PROCEDURES TO BE ESTABLISHED BY THE
SUBSIDIARY CORPORATION. THE SUBSIDIARY CORPORATION SHALL HAVE THE  POWER
TO  BID FOR AND PURCHASE THE PROPERTY SECURING THE DEFAULTED MORTGAGE AT
ANY FORECLOSURE OR OTHER SALE OF SUCH PROPERTY, OR TO OTHERWISE  ACQUIRE
OR  TAKE POSSESSION OF SUCH PROPERTY IN ACCORDANCE WITH OTHER PROVISIONS
OF LAW. IN THE EVENT OF ANY SUCH PURCHASE,  ACQUISITION,  OR  TAKING  OF
POSSESSION, THE SUBSIDIARY CORPORATION SHALL HAVE THE POWER TO COMPLETE,
ADMINISTER,  SELL, DISPOSE OF, AND OTHERWISE DEAL WITH SUCH PROPERTY, IN
SUCH MANNER AS MAY BE NECESSARY OR DESIRABLE TO PROTECT THE INTERESTS OF
THE SUBSIDIARY CORPORATION.
  12. MORTGAGE INSURANCE FUND, HOUSING INSURANCE FUND AND REMIC  PREMIUM
RESERVE  FUND. (A) THE SUBSIDIARY CORPORATION SHALL CREATE AND ESTABLISH
A FUND TO BE KNOWN AS THE "MORTGAGE INSURANCE FUND" WHICH SHALL BE  USED
AS A REVOLVING FUND FOR CARRYING OUT THE PROVISIONS OF THIS SECTION WITH
RESPECT  TO  MORTGAGE  INSURANCE CONTRACTS AND SHALL, UPON ITS CREATION,
PAY INTO SUCH FUND MONEYS MADE AVAILABLE TO THE  SUBSIDIARY  CORPORATION
FROM  THE  CORPORATION IN AN AMOUNT EQUAL TO THE MORTGAGE INSURANCE FUND
REQUIREMENT AS OF SUCH DATE FOR THE PURPOSE  OF  SUCH  FUND,  AND  SHALL
THEREAFTER,  PAY INTO SUCH FUND, UPON RECEIPT, (I) SUCH PORTION OF MORT-
GAGE INSURANCE CONTRACT PREMIUM PAYMENTS  IN  AN  AMOUNT  EQUAL  TO  THE
AMOUNT  NECESSARY  TO  BE  TRANSFERRED TO THE MORTGAGE INSURANCE FUND IN
ORDER THAT THE AMOUNT ON DEPOSIT THEREIN BE EQUAL TO THE MORTGAGE INSUR-
ANCE FUND REQUIREMENT (OR SUCH LESSER AMOUNT AS MAY BE AVAILABLE);  (II)
SUCH  PORTION  OF THE PROCEEDS RECEIVED BY THE SUBSIDIARY CORPORATION IN
CONNECTION WITH THE EXERCISE OF  SUCH  SUBSIDIARY  CORPORATION'S  RIGHTS
UNDER  ANY  MORTGAGE INSURANCE CONTRACT IN AN AMOUNT EQUAL TO THE AMOUNT
NECESSARY TO BE TRANSFERRED TO THE MORTGAGE INSURANCE FUND IN ORDER THAT
THE AMOUNT ON DEPOSIT THEREIN BE EQUAL TO THE  MORTGAGE  INSURANCE  FUND
REQUIREMENT  (OR  SUCH  LESSER  AMOUNT  AS  MAY BE AVAILABLE); (III) ANY
MONEYS APPROPRIATED, PAID OR OTHERWISE MADE AVAILABLE BY THE CITY OR THE
CORPORATION FOR THE PURPOSE OF SUCH FUND;  AND  (IV)  ANY  OTHER  MONEYS
WHICH  MAY  BE  MADE  AVAILABLE  TO  THE  SUBSIDIARY CORPORATION FOR THE
PURPOSE OF SUCH FUND FROM ANY OTHER SOURCE. ALL MONEYS HELD IN THE MORT-
GAGE INSURANCE FUND, EXCEPT AS HEREINAFTER PROVIDED, SHALL BE  USED,  AS
REQUIRED, SOLELY FOR THE PAYMENT OF THE SUBSIDIARY CORPORATION'S LIABIL-
ITIES ARISING FROM MORTGAGE INSURANCE CONTRACTS; PROVIDED, HOWEVER, THAT
MONEYS IN SUCH FUND SHALL NOT BE WITHDRAWN THEREFROM AT ANY TIME IN SUCH
AMOUNT AS WOULD REDUCE THE AMOUNT OF SUCH FUND TO LESS THAN THE MORTGAGE
INSURANCE  FUND  REQUIREMENT,  EXCEPT  FOR  THE  PURPOSES OF PAYING SUCH
LIABILITIES, AS THE SAME BECOME DUE AND FOR THE PAYMENT OF  WHICH  OTHER
MONEYS  OF  THE  SUBSIDIARY CORPORATION ARE NOT AVAILABLE. ANY INCOME OR
INTEREST EARNED BY, OR INCREMENT TO, THE MORTGAGE INSURANCE FUND DUE  TO
THE INVESTMENT THEREOF OR ANY AMOUNT IN EXCESS OF THE MORTGAGE INSURANCE

S. 1238                            21

FUND  REQUIREMENT  SHALL BE TRANSFERRED AT LEAST ANNUALLY BY THE SUBSID-
IARY CORPORATION TO THE REMIC PREMIUM RESERVE FUND OR,  AT  THE  WRITTEN
DIRECTION  OF  THE  CHAIRPERSON,  TO SUCH OTHER FUNDS OR ACCOUNTS OF THE
SUBSIDIARY  CORPORATION  TO  THE EXTENT IT DOES NOT REDUCE THE AMOUNT OF
THE MORTGAGE INSURANCE FUND BELOW THE MORTGAGE INSURANCE  FUND  REQUIRE-
MENT.
  (B) THE SUBSIDIARY CORPORATION SHALL CREATE AND ESTABLISH A FUND TO BE
KNOWN AS THE "HOUSING INSURANCE FUND" WHICH SHALL BE USED AS A REVOLVING
FUND  FOR  CARRYING  OUT  THE PROVISIONS OF THIS SECTION WITH RESPECT TO
HOUSING INSURANCE CONTRACTS AND SHALL, UPON ITS CREATION, PAY INTO  SUCH
FUND  ANY  MONEYS  OR  CASH EQUIVALENTS MADE AVAILABLE TO THE SUBSIDIARY
CORPORATION FROM THE CORPORATION FOR THE PURPOSE OF SUCH FUND, AND SHALL
THEREAFTER, PAY INTO SUCH FUND, UPON RECEIPT, (I) SUCH PORTION OF  HOUS-
ING INSURANCE CONTRACT PREMIUM PAYMENTS IN AN AMOUNT EQUAL TO THE AMOUNT
NECESSARY  TO BE TRANSFERRED TO THE HOUSING INSURANCE FUND IN ORDER THAT
THE AMOUNT ON DEPOSIT THEREIN BE EQUAL TO  THE  HOUSING  INSURANCE  FUND
REQUIREMENT  (OR  SUCH  LESSER  AMOUNT  AS  MAY BE AVAILABLE); (II) SUCH
PORTION OF THE  PROCEEDS  RECEIVED  BY  THE  SUBSIDIARY  CORPORATION  IN
CONNECTION  WITH  THE  EXERCISE  OF SUCH SUBSIDIARY CORPORATION'S RIGHTS
UNDER ANY HOUSING INSURANCE CONTRACT IN AN AMOUNT EQUAL  TO  THE  AMOUNT
NECESSARY  TO BE TRANSFERRED TO THE HOUSING INSURANCE FUND IN ORDER THAT
THE AMOUNT ON DEPOSIT THEREIN BE EQUAL TO  THE  HOUSING  INSURANCE  FUND
REQUIREMENT  (OR  SUCH  LESSER  AMOUNT  AS  MAY BE AVAILABLE); (III) ANY
MONEYS OR CASH EQUIVALENTS APPROPRIATED, PAID OR OTHERWISE  MADE  AVAIL-
ABLE  BY  THE  CITY,  THE  FEDERAL GOVERNMENT OR THE CORPORATION FOR THE
PURPOSE OF SUCH FUND; AND (IV) ANY  OTHER  MONEYS  OR  CASH  EQUIVALENTS
WHICH  MAY  BE  MADE  AVAILABLE  TO  THE  SUBSIDIARY CORPORATION FOR THE
PURPOSE OF SUCH FUND FROM ANY OTHER SOURCE. ALL MONEYS  OR  CASH  EQUIV-
ALENTS  HELD  IN  THE  HOUSING  INSURANCE  FUND,  EXCEPT  AS HEREINAFTER
PROVIDED, SHALL BE USED, AS REQUIRED, SOLELY  FOR  THE  PAYMENT  OF  THE
SUBSIDIARY  CORPORATION'S  LIABILITIES  ARISING  FROM  HOUSING INSURANCE
CONTRACTS; PROVIDED, HOWEVER, THAT MONEYS OR CASH  EQUIVALENTS  IN  SUCH
FUND  SHALL  NOT  BE  WITHDRAWN  THEREFROM AT ANY TIME IN SUCH AMOUNT AS
WOULD REDUCE THE AMOUNT OF SUCH FUND TO LESS THAN THE HOUSING  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
SUBSIDIARY  CORPORATION ARE NOT AVAILABLE. ANY INCOME OR INTEREST EARNED
BY, OR INCREMENT TO, THE HOUSING INSURANCE FUND DUE  TO  THE  INVESTMENT
THEREOF  OR  ANY AMOUNT IN EXCESS OF THE HOUSING INSURANCE FUND REQUIRE-
MENT SHALL BE TRANSFERRED AT LEAST ANNUALLY  BY  THE  SUBSIDIARY  CORPO-
RATION  TO THE REMIC PREMIUM RESERVE FUND OR AT THE WRITTEN DIRECTION OF
THE CHAIRPERSON, TO SUCH OTHER  FUNDS  OR  ACCOUNTS  OF  THE  SUBSIDIARY
CORPORATION  TO  THE EXTENT IT DOES NOT REDUCE THE AMOUNT OF THE HOUSING
INSURANCE FUND BELOW THE HOUSING INSURANCE FUND REQUIREMENT.
  (C)  THE  SUBSIDIARY  CORPORATION  SHALL  CREATE  AND  ESTABLISH  SUCH
ACCOUNTS WITHIN THE HOUSING INSURANCE FUND AS MAY BE NECESSARY OR DESIR-
ABLE FOR ITS CORPORATE PURPOSES.
  (D) THE SUBSIDIARY CORPORATION SHALL CREATE AND ESTABLISH A FUND TO BE
KNOWN  AS  THE "REMIC PREMIUM RESERVE FUND" FOR THE PURPOSE OF PROVIDING
FOR PAYMENT OF THE SUBSIDIARY CORPORATION'S LIABILITIES ARISING FROM ITS
OPERATIONS, ITS MORTGAGE INSURANCE CONTRACTS AND ITS  HOUSING  INSURANCE
CONTRACTS  AND  SHALL,  UPON  ITS CREATION, PAY INTO SUCH FUND MONEYS OR
CASH EQUIVALENTS MADE AVAILABLE TO THE SUBSIDIARY CORPORATION  FROM  THE
CORPORATION FOR THE PURPOSE OF SUCH FUND, AND SHALL THEREAFTER, PAY INTO
SUCH  FUND,  UPON  RECEIPT,  (I) THE BALANCE OF THE PREMIUM PAYMENTS, IF
ANY, RECEIVED BY THE SUBSIDIARY CORPORATION  WITH  RESPECT  TO  MORTGAGE

S. 1238                            22

INSURANCE  CONTRACTS  AND  HOUSING  INSURANCE CONTRACTS AFTER MAKING THE
DEPOSITS DESCRIBED IN SUBPARAGRAPH (I) OF PARAGRAPH (A) AND SUBPARAGRAPH
(I) OF PARAGRAPH (B) RESPECTIVELY, OF THIS SUBDIVISION; (II) THE BALANCE
OF  ANY  PROCEEDS  RECEIVED  BY THE SUBSIDIARY CORPORATION IN CONNECTION
WITH THE EXERCISE OF SUCH  SUBSIDIARY  CORPORATION'S  RIGHTS  UNDER  ANY
MORTGAGE  INSURANCE  CONTRACT OR HOUSING INSURANCE CONTRACT AFTER MAKING
THE DEPOSITS DESCRIBED IN SUBPARAGRAPH (II) OF PARAGRAPH (A) AND SUBPAR-
AGRAPH (II) OF PARAGRAPH (B) RESPECTIVELY, OF  THIS  SUBDIVISION;  (III)
ANY  MONEYS  OR  CASH  EQUIVALENTS  APPROPRIATED, PAID OR OTHERWISE MADE
AVAILABLE BY THE CITY, THE FEDERAL GOVERNMENT OR THE CORPORATION FOR THE
PURPOSE OF SUCH FUND; AND (IV) ANY  OTHER  MONEYS  OR  CASH  EQUIVALENTS
WHICH  MAY  BE  MADE  AVAILABLE  TO  THE  SUBSIDIARY CORPORATION FOR THE
PURPOSE OF SUCH FUND FROM ANY OTHER SOURCE.
  (E)  THE  SUBSIDIARY  CORPORATION  SHALL  CREATE  AND  ESTABLISH  SUCH
ACCOUNTS  WITHIN  THE REMIC PREMIUM RESERVE FUND AS MAY BE NECESSARY FOR
ITS CORPORATE PURPOSES.
  (F) EXCEPT AS OTHERWISE PROVIDED IN THIS SECTION, ALL MONEYS  RECEIVED
BY  THE  SUBSIDIARY  CORPORATION SHALL BE DEPOSITED IN THE REMIC PREMIUM
RESERVE FUND.
  (G) IF THE REMIC PREMIUM RESERVE FUND IS FUNDED IN WHOLE  OR  IN  PART
WITH  CASH,  THE  MONEYS  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 SUBSIDIARY CORPORATION. THE SUBSIDIARY
CORPORATION MAY INVEST ANY MONEYS IN SUCH FUND IN  THE  SAME  MANNER  AS
MONEYS  OF  THE  CORPORATION  MAY  BE INVESTED, PROVIDED THAT SUCH OBLI-
GATIONS SHALL BE PAYABLE WITHIN SUCH TIME AS THE PROCEEDS MAY BE  NEEDED
TO  MEET  EXPENDITURES ESTIMATED TO BE INCURRED BY THE SUBSIDIARY CORPO-
RATION. 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.
  (H)  THE  SUBSIDIARY CORPORATION SHALL TRANSFER FROM THE REMIC PREMIUM
RESERVE FUND SUCH MONEYS AS THE SUBSIDIARY CORPORATION,  BY  ITS  CHAIR-
PERSON, SHALL CERTIFY ARE REQUIRED FOR THE SUBSIDIARY CORPORATION TO PAY
ITS  OPERATING EXPENSES, TO PAY ANY LIABILITIES ARISING FROM THE SUBSID-
IARY CORPORATION'S MORTGAGE INSURANCE CONTRACTS  AND  HOUSING  INSURANCE
CONTRACTS,  AND  TO  RESTORE THE MORTGAGE INSURANCE FUND AND THE HOUSING
INSURANCE FUND TO THE MORTGAGE INSURANCE FUND  REQUIREMENT  AND  HOUSING
INSURANCE FUND REQUIREMENT, RESPECTIVELY.
  (I)  THE  SUBSIDIARY CORPORATION SHALL KEEP A SEPARATE ACCOUNT FOR THE
REMIC PREMIUM RESERVE FUND. SUCH ACCOUNT SHALL SHOW  (I)  THE  DATE  AND
AMOUNT  OF  EACH SUM PAID INTO THE FUND, (II) THE INTEREST EARNED BY THE
FUND, (III) THE CAPITAL GAINS OR  LOSSES  RESULTING  FROM  THE  SALE  OF
INVESTMENTS  OF  THE FUND, (IV) THE INTEREST OR CAPITAL GAINS WHICH HAVE
ACCRUED TO THE FUND, (V) THE AMOUNT AND DATE OF EACH WITHDRAWAL FROM THE
FUND, AND (VI) THE ASSETS OF THE FUND INDICATING THE CASH BALANCE THERE-
IN AND A SCHEDULE OF THE AMOUNTS INVESTED.
  (J) IN COMPUTING THE AMOUNT OF THE MORTGAGE INSURANCE FUND, THE  HOUS-
ING  INSURANCE  FUND AND THE REMIC PREMIUM RESERVE FUND FOR THE PURPOSES
OF THIS SECTION, SECURITIES IN WHICH ALL OR  A  PORTION  OF  SUCH  FUNDS
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 OR IF PURCHASED AT PAR, OR IF PURCHASED AT OTHER THAN
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

S. 1238                            23

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.
  (K)  THE  SUBSIDIARY CORPORATION SHALL CREATE AND ESTABLISH SUCH OTHER
FUND OR FUNDS AS  MAY  BE  NECESSARY  OR  DESIRABLE  FOR  ITS  CORPORATE
PURPOSES.
  13.  CHARGES  AND  FEES.  (A)  THE  SUBSIDIARY CORPORATION SHALL FIX A
PREMIUM CHARGE FOR ITS INSURANCE OF MORTGAGES PURSUANT TO  THIS  SECTION
WHICH  SHALL NOT BE LESS THAN THE MINIMUM AMOUNT NOR MORE THAN THE MAXI-
MUM AMOUNT THAT THE STATE OF NEW YORK MORTGAGE AGENCY  IS  PERMITTED  TO
CHARGE PURSUANT TO APPLICABLE PROVISIONS OF LAW.
  (B)  THE  SUBSIDIARY  CORPORATION  MAY  ESTABLISH  AND LEVY SUCH OTHER
CHARGES AND FEES IN CONNECTION WITH APPLICATIONS FOR MORTGAGE  INSURANCE
AND INSURANCE COMMITMENTS AS IT MAY DEEM APPROPRIATE AND NECESSARY.
  (C)  SUCH  PREMIUM  CHARGES  AND OTHER CHARGES SHALL BE PAYABLE BY THE
MORTGAGOR IN CASH IN SUCH MANNER AS MAY BE PRESCRIBED BY THE  SUBSIDIARY
CORPORATION.
  (D)  SUCH  PREMIUM  CHARGES  AND  OTHER  CHARGES AND FEES SHALL NOT BE
DEEMED TO BE INTEREST FOR THE PURPOSES OF SECTION 5-501 OF  THE  GENERAL
OBLIGATIONS LAW.
  14.  ASSISTANCE  BY THE CORPORATION. THE CORPORATION IS HEREBY AUTHOR-
IZED TO PERFORM SUCH FUNCTIONS  AND  SERVICES  IN  CONNECTION  WITH  ANY
LAWFUL  CORPORATE  PURPOSE  OF  THE  SUBSIDIARY  CORPORATION AS SHALL BE
REQUESTED BY THE  SUBSIDIARY  CORPORATION.  THE  SUBSIDIARY  CORPORATION
SHALL  PAY  TO  THE CORPORATION FROM ANY MONEYS OF THE SUBSIDIARY CORPO-
RATION AVAILABLE FOR SUCH PURPOSES SUCH AMOUNTS AS ARE NECESSARY TO  PAY
THE CORPORATION FOR THE SERVICES RENDERED BY THE CORPORATION PURSUANT TO
THIS SECTION.
  15.  ASSISTANCE BY THE DIVISION OF RESIDENTIAL DEVELOPMENT. THE DIREC-
TOR OF THE DIVISION OF RESIDENTIAL DEVELOPMENT AND THE DIVISION OF RESI-
DENTIAL DEVELOPMENT ARE HEREBY AUTHORIZED TO PERFORM SUCH FUNCTIONS  AND
SERVICES  IN CONNECTION WITH ANY LAWFUL CORPORATE PURPOSE OF THE SUBSID-
IARY CORPORATION AS SHALL BE REQUESTED BY  THE  SUBSIDIARY  CORPORATION.
THE  SUBSIDIARY  CORPORATION  SHALL  PAY  TO THE DIVISION OF RESIDENTIAL
DEVELOPMENT FROM ANY MONEYS OF THE SUBSIDIARY CORPORATION AVAILABLE  FOR
SUCH PURPOSES SUCH AMOUNTS AS ARE NECESSARY TO REIMBURSE THE DIVISION OF
RESIDENTIAL  DEVELOPMENT  FOR  THE  SERVICES  PROVIDED  PURSUANT TO THIS
SECTION.
  16. ANNUAL REPORT. THE SUBSIDIARY  CORPORATION  SHALL  SUBMIT  TO  THE
MAYOR,  THE  COMPTROLLER, THE BUDGET DIRECTOR AND THE CORPORATION WITHIN
NINETY DAYS AFTER THE END OF ITS FISCAL YEAR, A  COMPLETE  AND  DETAILED
REPORT  SETTING  FORTH:  (A) ITS OPERATIONS AND ACCOMPLISHMENTS; (B) ITS
RECEIPTS AND EXPENDITURES DURING SUCH FISCAL YEAR IN ACCORDANCE WITH THE
CATEGORIES OR CLASSIFICATIONS ESTABLISHED BY THE SUBSIDIARY  CORPORATION
FOR  ITS  OPERATING  AND CAPITAL OUTLAY PURPOSES; AND (C) ITS ASSETS AND
LIABILITIES AT THE END OF ITS FISCAL YEAR, INCLUDING A SCHEDULE OF MORT-
GAGES WHICH HAVE BEEN INSURED DURING SUCH YEAR, THE STATUS OF THE  MORT-
GAGE INSURANCE FUND, HOUSING INSURANCE FUND AND OTHER RESERVE OR SPECIAL
FUNDS ESTABLISHED BY THE SUBSIDIARY CORPORATION.
  17.  MONEYS  OF  THE  SUBSIDIARY  CORPORATION.  (A)  ALL MONEYS OF THE
SUBSIDIARY CORPORATION, EXCEPT AS OTHERWISE AUTHORIZED  OR  PROVIDED  IN
THIS  SECTION,  SHALL  BE DEPOSITED AS SOON AS PRACTICABLE IN A SEPARATE

S. 1238                            24

ACCOUNT OR ACCOUNTS IN BANKS OR TRUST COMPANIES ORGANIZED UNDER THE LAWS
OF THE STATE OR NATIONAL BANKING ASSOCIATION, IN EACH CASE  DOING  BUSI-
NESS  IN  THE  CITY.  THE  MONEYS  IN SUCH ACCOUNTS SHALL BE PAID OUT ON
CHECKS  SIGNED BY SUCH OFFICER OR EMPLOYEE OF THE SUBSIDIARY CORPORATION
AS THE SUBSIDIARY CORPORATION SHALL  AUTHORIZE.  ALL  DEPOSITS  OF  SUCH
MONEYS  SHALL,  IF REQUIRED BY THE SUBSIDIARY CORPORATION, BE SECURED BY
OBLIGATIONS OF THE UNITED STATES OR OF THE STATE OR OF  THE  CITY  OF  A
MARKET  VALUE  EQUAL  AT  ALL TIMES TO THE AMOUNT OF THE DEPOSIT AND ALL
BANKS AND TRUST COMPANIES ARE AUTHORIZED TO GIVE SUCH SECURITY FOR  SUCH
DEPOSITS.
  (B) THE SUBSIDIARY CORPORATION SHALL PRESCRIBE A SYSTEM OF ACCOUNTS.
  (C) THE COMPTROLLER, OR THE COMPTROLLER'S LEGALLY AUTHORIZED REPRESEN-
TATIVE,  IS HEREBY AUTHORIZED AND EMPOWERED FROM TIME TO TIME TO EXAMINE
THE BOOKS AND ACCOUNTS  OF  THE  SUBSIDIARY  CORPORATION  INCLUDING  ITS
RECEIPTS,   DISBURSEMENTS,  CONTRACTS,  RESERVE  FUNDS,  SINKING  FUNDS,
INVESTMENTS, AND ANY OTHER MATTERS RELATING TO ITS  FINANCIAL  STANDING.
SUCH  AN EXAMINATION SHALL BE CONDUCTED BY THE COMPTROLLER AT LEAST ONCE
IN EVERY FIVE YEARS; THE COMPTROLLER IS AUTHORIZED, HOWEVER,  TO  ACCEPT
FROM  THE  SUBSIDIARY  CORPORATION,  IN  LIEU OF SUCH AN EXAMINATION, AN
EXTERNAL EXAMINATION OF ITS BOOKS AND ACCOUNTS MADE AT  THE  REQUEST  OF
THE SUBSIDIARY CORPORATION.
  (D)  THE  SUBSIDIARY  CORPORATION SHALL SUBMIT TO THE MAYOR, THE COMP-
TROLLER AND THE CORPORATION WITHIN THIRTY DAYS OF THE RECEIPT THEREOF BY
THE SUBSIDIARY CORPORATION A COPY OF THE REPORT OF EVERY EXTERNAL  EXAM-
INATION  OF  THE  BOOKS AND ACCOUNTS OF THE SUBSIDIARY CORPORATION OTHER
THAN COPIES OF THE REPORTS OF SUCH EXAMINATIONS MADE BY THE COMPTROLLER.
  18. RENTALS. NOTWITHSTANDING THE  PROVISIONS  OF,  OR  ANY  REGULATION
PROMULGATED  PURSUANT  TO  LOCAL  LAW,  ALL DWELLING UNITS IN A MULTIPLE
DWELLING THE REHABILITATION OF WHICH COMMENCED  AFTER  JULY  FIRST,  TWO
THOUSAND  THREE  AND WHICH IS FINANCED BY A MORTGAGE LOAN INSURED BY THE
SUBSIDIARY CORPORATION (INCLUDING, BUT NOT LIMITED  TO,  MORTGAGE  LOANS
INSURED  PURSUANT  TO MORTGAGE INSURANCE CONTRACTS AND HOUSING INSURANCE
CONTRACTS), EXCEPT FOR DWELLING UNITS OCCUPIED BY REASON OF OWNERSHIP OF
STOCK IN A COOPERATIVE AND EXCEPT FOR  DWELLING  UNITS  THAT  CONSTITUTE
CONDOMINIUMS, SHALL BE SUBJECT TO APPLICABLE PROVISIONS OF THIS CHAPTER,
FOR  SUCH  DWELLING UNITS TO BECOME EFFECTIVE ON THE BASIS OF SUCH REHA-
BILITATION, PROVIDED THAT ANY OCCUPANT IN POSSESSION OF A DWELLING  UNIT
PURSUANT TO THIS SECTION SHALL BE OFFERED A TWO-YEAR LEASE NOTWITHSTAND-
ING  ANY  CONTRARY PROVISIONS OF, OR REGULATIONS ADOPTED PURSUANT TO THE
PROVISIONS OF THIS CHAPTER.
  19. EMPLOYEES OF THE SUBSIDIARY CORPORATION. (A)  NOTWITHSTANDING  ANY
INCONSISTENT  PROVISIONS  OF THIS SECTION, THE APPOINTMENT AND PROMOTION
OF ALL EMPLOYEES OF AND FOR THE SUBSIDIARY CORPORATION SHALL BE MADE  IN
ACCORDANCE WITH THE PROVISIONS OF THE CIVIL SERVICE LAW UNDER THE JURIS-
DICTION  OF  THE  CITY CIVIL SERVICE COMMISSION AND THE COMPENSATION FOR
SUCH EMPLOYEES SHALL BE FIXED BY THE SUBSIDIARY CORPORATION.
  (B) THE CITY, THE CORPORATION AND THE  PREDECESSOR  CORPORATION  SHALL
HAVE THE POWER TO PROVIDE FOR THE TRANSFER TO THE SUBSIDIARY CORPORATION
OF  AGENTS, EMPLOYEES AND FACILITIES OF THE CITY, THE CORPORATION OR THE
PREDECESSOR CORPORATION, AS THE CASE MAY BE, TO  ENABLE  THE  SUBSIDIARY
CORPORATION  TO  FULFILL  ITS CORPORATE PURPOSES. EMPLOYEES OF THE CITY,
THE CORPORATION OR THE PREDECESSOR CORPORATION TO BE TRANSFERRED TO  THE
SUBSIDIARY  CORPORATION  PURSUANT  TO THIS SECTION SHALL BE ELIGIBLE FOR
SUCH TRANSFER AND APPOINTMENT TO OFFICES AND POSITIONS OF THE SUBSIDIARY
CORPORATION WITHOUT FURTHER EXAMINATION, AND ALL SUCH EMPLOYEES WHO HAVE
BEEN APPOINTED TO POSITIONS IN  CITY  SERVICE  IN  ACCORDANCE  WITH  THE

S. 1238                            25

PROVISIONS  OF  THE  CIVIL SERVICE LAW UNDER THE RULES OF THE CITY CIVIL
SERVICE COMMISSION SHALL HAVE THE SAME STATUS WITH  RESPECT  THERETO  IN
THE  SERVICE  OF THE SUBSIDIARY CORPORATION AS THEY HAD IN CITY SERVICE.
EMPLOYEES  WHO  ARE  MEMBERS OR BENEFICIARIES OF ANY EXISTING PENSION OR
RETIREMENT SYSTEM SHALL CONTINUE TO HAVE SUCH RIGHTS, PRIVILEGES,  OBLI-
GATIONS  OR  STATUS  WITH  RESPECT  TO  SUCH  SYSTEM  OR  SYSTEMS AS ARE
PRESCRIBED BY LAW ON THE DATE THIS SECTION TAKES EFFECT,  AND  ALL  SUCH
EMPLOYEES  WHO  HAVE  BEEN  APPOINTED  TO  POSITIONS  IN CITY SERVICE IN
ACCORDANCE WITH THE PROVISIONS OF THE CIVIL SERVICE LAW UNDER THE  RULES
OF  THE  CITY  CIVIL  SERVICE COMMISSION SHALL HAVE THE SAME STATUS WITH
RESPECT THERETO IN THE SERVICE OF THE CORPORATION AS THEY  HAD  IN  CITY
SERVICE.
  20.  SUBSIDIARIES;  HOW  CREATED.  (A)  THE  SUBSIDIARY CORPORATION BY
RESOLUTION MAY DIRECT ANY OF  ITS  MEMBERS,  OFFICERS  OR  EMPLOYEES  TO
ORGANIZE  A  SUBSIDIARY  OF  THE SUBSIDIARY CORPORATION WHENEVER, IN THE
SOLE DISCRETION OF THE SUBSIDIARY CORPORATION, IT HAS  BECOME  NECESSARY
TO  ACQUIRE ONE OR MORE HOUSING ACCOMMODATIONS OR OTHER REAL PROPERTY IN
THE CASE OF SALE UNDER FORECLOSURE OR IN LIEU OF FORECLOSURE AND  IT  IS
BENEFICIAL  TO EFFECTUATE THE PURPOSE OF THIS CHAPTER FOR THE SUBSIDIARY
OF THE SUBSIDIARY CORPORATION TO HOLD TITLE  TO  SUCH  HOUSING  ACCOMMO-
DATIONS OR OTHER REAL PROPERTY.
  (B) EACH SUCH SUBSIDIARY OF THE SUBSIDIARY CORPORATION SHALL BE WHOLLY
OWNED  BY  THE SUBSIDIARY CORPORATION AND SHALL BE ORGANIZED PURSUANT TO
THE BUSINESS CORPORATION LAW,  THE  NOT-FOR-PROFIT  CORPORATION  LAW  OR
ARTICLE TWO OR ARTICLE ELEVEN OF THIS CHAPTER.
  (C)  THE  SUBSIDIARY CORPORATION MAY TRANSFER TO ANY SUBSIDIARY OF THE
SUBSIDIARY CORPORATION ANY MONEY, REAL AND/OR PERSONAL PROPERTY  OR  MAY
CONVEY  TO  IT ANY HOUSING ACCOMMODATION OR OTHER REAL PROPERTY IN ORDER
TO CARRY OUT THE PURPOSES OF THIS ARTICLE. EACH SUCH SUBSIDIARY  OF  THE
SUBSIDIARY  CORPORATION  SHALL  HAVE ALL THE PRIVILEGES, IMMUNITIES, TAX
EXEMPTIONS AND OTHER EXEMPTIONS OF THE  SUBSIDIARY  CORPORATION  TO  THE
EXTENT THE SAME ARE NOT INCONSISTENT WITH THE STATUTE OR STATUTES PURSU-
ANT  TO WHICH SUCH SUBSIDIARY OF THE SUBSIDIARY CORPORATION WAS INCORPO-
RATED. EXCEPT AS MAY BE INCONSISTENT WITH THE PROVISIONS OF  THIS  ARTI-
CLE,  SUCH  SUBSIDIARY,  IF ORGANIZED PURSUANT TO ARTICLE TWO OR ARTICLE
ELEVEN OF THIS CHAPTER, SHALL HAVE ALL THE RIGHTS AND POWERS GRANTED  TO
HOUSING  COMPANIES  BY THIS CHAPTER AND BY ANY OTHER STATUTE PURSUANT TO
WHICH SUCH SUBSIDIARY OF THE SUBSIDIARY CORPORATION WAS ORGANIZED.
  (D) NO MEMBER OR OFFICER OF THE SUBSIDIARY CORPORATION  SHALL  RECEIVE
ANY  ADDITIONAL  COMPENSATION,  EITHER  DIRECT  OR  INDIRECT, OTHER THAN
REIMBURSEMENT FOR ACTUAL AND NECESSARY EXPENSES INCURRED IN THE PERFORM-
ANCE OF SUCH PERSON'S DUTIES, BY REASON OF  SUCH  PERSON  SERVING  AS  A
MEMBER, DIRECTOR, TRUSTEE OR OFFICER OF ANY SUBSIDIARY OF THE SUBSIDIARY
CORPORATION.
  S  708.  NOTES  AND  BONDS  OF  THE CORPORATION. 1. (A) SUBJECT TO THE
PROVISIONS OF SECTION SEVEN HUNDRED TEN OF THIS ARTICLE, THE CORPORATION
SHALL HAVE POWER AND IS HEREBY AUTHORIZED TO ISSUE FROM TIME TO TIME ITS
NEGOTIABLE NOTES AND BONDS IN CONFORMITY WITH APPLICABLE  PROVISIONS  OF
THE  UNIFORM COMMERCIAL CODE IN SUCH PRINCIPAL AMOUNT AS THE CORPORATION
SHALL DETERMINE TO BE NECESSARY TO PROVIDE SUFFICIENT FUNDS FOR  ACHIEV-
ING  ITS CORPORATE PURPOSES, INCLUDING THE MAKING OF MORTGAGE LOANS, THE
PAYMENT OF INTEREST ON NOTES AND BONDS OF THE  CORPORATION,  THE  ESTAB-
LISHMENT  OF RESERVES TO SECURE SUCH NOTES AND BONDS, AND THE PAYMENT OF
ALL OPERATING EXPENSES OF THE CORPORATION INCIDENT TO  OR  NECESSARY  OR
CONVENIENT TO CARRY OUT ITS CORPORATE PURPOSES AND POWERS.

S. 1238                            26

  (B)  THE CORPORATION SHALL HAVE THE POWER, FROM TIME TO TIME, TO ISSUE
(I) NOTES TO RENEW NOTES AND (II) BONDS  TO  PAY  NOTES,  INCLUDING  THE
INTEREST  THEREON  AND, WHENEVER IT DEEMS REFUNDING EXPEDIENT, TO REFUND
ANY BONDS BY THE ISSUANCE OF NEW BONDS, WHETHER THE BONDS TO BE REFUNDED
HAVE OR HAVE NOT MATURED, AND TO ISSUE BONDS PARTLY TO REFUND BONDS THEN
OUTSTANDING  AND PARTLY FOR ANY OF ITS CORPORATE PURPOSES. THE REFUNDING
BONDS MAY BE EXCHANGED FOR THE BONDS TO BE  REFUNDED  OR  SOLD  AND  THE
PROCEEDS APPLIED TO THE PURCHASE, REDEMPTION OR PAYMENT OF SUCH BONDS.
  (C)  EXCEPT AS MAY OTHERWISE BE EXPRESSLY PROVIDED BY THE CORPORATION,
EVERY ISSUE OF ITS NOTES AND BONDS SHALL BE GENERAL OBLIGATIONS  OF  THE
CORPORATION PAYABLE OUT OF ANY REVENUES OF THE CORPORATION, SUBJECT ONLY
TO ANY AGREEMENTS WITH THE HOLDERS OF PARTICULAR NOTES OR BONDS PLEDGING
ANY PARTICULAR REVENUES.
  2.  THE  NOTES  AND  BONDS SHALL BE AUTHORIZED BY RESOLUTION OR RESOL-
UTIONS OF THE CORPORATION, SHALL BEAR  SUCH  DATE  OR  DATES  AND  SHALL
MATURE  AT  SUCH  TIME  OR  TIMES  AS SUCH RESOLUTION OR RESOLUTIONS MAY
PROVIDE, EXCEPT THAT NO NOTE OR ANY RENEWAL THEREOF  SHALL  MATURE  MORE
THAN  FIVE  YEARS,  AND  IN  THE CASE OF ANY NOTE OR ANY RENEWAL THEREOF
ISSUED FOR THE PURPOSES OF MAKING MORTGAGE LOANS SHALL MATURE MORE  THAN
NINE  YEARS,  AFTER  THE  DATE OF ISSUE OF THE ORIGINAL NOTE AND NO BOND
SHALL MATURE MORE THAN FIFTY YEARS FROM THE DATE  OF  ITS  ISSUE.    THE
BONDS MAY BE ISSUED AS SERIAL BONDS PAYABLE IN ANNUAL INSTALLMENTS OR AS
TERM  BONDS  OR AS A COMBINATION THEREOF. THE NOTES AND BONDS SHALL BEAR
INTEREST AT SUCH RATE OR RATES, BE IN SUCH  DENOMINATIONS,  BE  IN  SUCH
FORM,  EITHER  COUPON OR REGISTERED, CARRY SUCH REGISTRATION PRIVILEGES,
BE EXECUTED IN SUCH MANNER, BE PAYABLE IN SUCH  MEDIUM  OF  PAYMENT,  AT
SUCH PLACE OR PLACES, AND BE SUBJECT TO SUCH TERMS OF REDEMPTION AS SUCH
RESOLUTION  OR RESOLUTIONS MAY PROVIDE.  THE NOTES AND BONDS MAY BE SOLD
BY THE CORPORATION AT PUBLIC OR PRIVATE SALE, AT SUCH PRICE OR PRICES AS
THE CORPORATION SHALL DETERMINE; PROVIDED, HOWEVER, THAT THE CORPORATION
SHALL CONSULT WITH THE COMPTROLLER AS TO THE TIMING  OF  ANY  SALE;  AND
PROVIDED  FURTHER  THAT NO NOTES OR BONDS OF THE CORPORATION MAY BE SOLD
AT A PRIVATE SALE UNLESS SUCH SALE  AND  THE  TERMS  THEREOF  HAVE  BEEN
APPROVED  IN  WRITING  BY (A) THE COMPTROLLER, WHERE SUCH SALE IS NOT TO
THE COMPTROLLER, OR (B) THE DIRECTOR OF THE BUDGET, WHERE SUCH  SALE  IS
TO THE COMPTROLLER.
  3. ANY RESOLUTION OR RESOLUTIONS AUTHORIZING ANY NOTES OR BONDS OR ANY
ISSUE  THEREOF  MAY  CONTAIN  PROVISIONS,  WHICH  SHALL BE A PART OF THE
CONTRACT OR CONTRACTS WITH THE HOLDERS THEREOF, AS TO:
  (A) PLEDGING ALL OR ANY PART OF THE REVENUES TO SECURE THE PAYMENT  OF
THE  NOTES  OR BONDS OR OF ANY ISSUE THEREOF, SUBJECT TO SUCH AGREEMENTS
WITH NOTEHOLDERS OR BONDHOLDERS AS MAY THEN EXIST;
  (B) PLEDGING ALL OR ANY PART OF THE ASSETS OF THE CORPORATION, INCLUD-
ING MORTGAGES AND OBLIGATIONS SECURING THE SAME, TO SECURE  THE  PAYMENT
OF THE NOTES OR BONDS OR OF ANY ISSUE OF NOTES OR BONDS, SUBJECT TO SUCH
AGREEMENTS WITH NOTEHOLDERS OR BONDHOLDERS AS MAY THEN EXIST;
  (C)  THE  USE AND DISPOSITION OF THE GROSS INCOME FROM MORTGAGES OWNED
BY THE CORPORATION AND PAYMENT OF PRINCIPAL OF MORTGAGES  OWNED  BY  THE
CORPORATION;
  (D)  THE SETTING ASIDE OF RESERVES OR SINKING FUNDS AND THE REGULATION
AND DISPOSITION THEREOF;
  (E) LIMITATIONS ON THE PURPOSE TO WHICH THE PROCEEDS OF SALE OF  NOTES
OR BONDS MAY BE APPLIED AND PLEDGING SUCH PROCEEDS TO SECURE THE PAYMENT
OF THE NOTES OR BONDS OR OF ANY ISSUE THEREOF;

S. 1238                            27

  (F)  LIMITATIONS  ON  THE  ISSUANCE  OF ADDITIONAL NOTES OR BONDS; THE
TERMS UPON WHICH ADDITIONAL NOTES OR BONDS MAY BE  ISSUED  AND  SECURED;
AND THE REFUNDING OF OUTSTANDING OR OTHER NOTES OR BONDS;
  (G)  THE  PROCEDURE,  IF  ANY, BY WHICH THE TERMS OF ANY CONTRACT WITH
NOTEHOLDERS OR BONDHOLDERS MAY BE AMENDED OR ABROGATED,  THE  AMOUNT  OF
NOTES OR BONDS THE HOLDERS OF WHICH MUST CONSENT THERETO, AND THE MANNER
IN WHICH SUCH CONSENT MAY BE GIVEN;
  (H)  LIMITATIONS  ON THE AMOUNT OF MONEYS TO BE EXPENDED BY THE CORPO-
RATION FOR OPERATING EXPENSES OF THE CORPORATION;
  (I) VESTING IN A TRUSTEE OR TRUSTEES SUCH PROPERTY, RIGHTS, POWERS AND
DUTIES IN TRUST AS THE CORPORATION MAY DETERMINE, WHICH MAY INCLUDE  ANY
OR  ALL OF THE RIGHTS, POWERS AND DUTIES OF THE TRUSTEE APPOINTED BY THE
BONDHOLDERS PURSUANT TO THIS ARTICLE, AND  LIMITING  OR  ABROGATING  THE
RIGHT  OF  THE  BONDHOLDERS  TO  APPOINT A TRUSTEE UNDER THIS ARTICLE OR
LIMITING THE RIGHTS, POWERS AND DUTIES OF SUCH TRUSTEE;
  (J) THE ACTS OR OMISSIONS TO ACT WHICH SHALL CONSTITUTE A  DEFAULT  IN
THE  OBLIGATIONS  AND  DUTIES  OF  THE CORPORATION TO THE HOLDERS OF THE
NOTES OR BONDS AND PROVIDING FOR THE RIGHTS AND REMEDIES OF THE  HOLDERS
OF  THE NOTES OR BONDS IN THE EVENT OF SUCH DEFAULT, INCLUDING THE RIGHT
TO APPOINTMENT OF A RECEIVER; PROVIDING, HOWEVER, THAT SUCH  RIGHTS  AND
REMEDIES  SHALL  NOT  BE INCONSISTENT WITH THE GENERAL LAWS OF THE STATE
AND THE OTHER PROVISIONS OF THIS ARTICLE;
  (K) ANY OTHER MATTERS, OF LIKE OR DIFFERENT CHARACTER,  WHICH  IN  ANY
WAY  AFFECT  THE  SECURITY  OR PROTECTION OF THE HOLDERS OF THE NOTES OR
BONDS.
  4. ANY RESOLUTION OR RESOLUTIONS AUTHORIZING ANY NOTES OR BONDS OR ANY
ISSUE THEREOF SHALL CONTAIN PROVISIONS, WHICH SHALL BE  A  PART  OF  THE
CONTRACT  OR  CONTRACTS WITH THE HOLDERS THEREOF, ENSURING THAT NO MORT-
GAGE LOAN SHALL BE MADE BY THE CORPORATION FROM  THE  PROCEEDS  OF  SUCH
NOTES  OR  BONDS OR ISSUE THEREOF UNLESS THE ESTIMATED REVENUES FROM THE
MORTGAGED PROPERTY, INCLUDING ANY  SUBSIDIES,  SHALL  BE  SUFFICIENT  IN
AMOUNT  TO  SECURE REPAYMENT OF THE LOAN AND THE INTEREST THEREON AND TO
PAY ALL OTHER NECESSARY EXPENSES OF THE MORTGAGOR RELATING TO SUCH PROP-
ERTY.
  5. ANY PLEDGE MADE BY THE CORPORATION SHALL BE VALID AND BINDING  FROM
THE  TIME  WHEN  THE PLEDGE IS MADE; THE REVENUES OR PROPERTY SO PLEDGED
AND THEREAFTER RECEIVED BY THE CORPORATION SHALL IMMEDIATELY BE  SUBJECT
TO  THE  LIEN  OF  SUCH  PLEDGE WITHOUT ANY PHYSICAL DELIVERY THEREOF OR
FURTHER ACT, AND THE LIEN OF ANY SUCH PLEDGE SHALL BE VALID AND  BINDING
AS  AGAINST  ALL  PARTIES HAVING CLAIMS OF ANY KIND IN TORT, CONTRACT OR
OTHERWISE AGAINST THE CORPORATION, IRRESPECTIVE OF WHETHER SUCH  PARTIES
HAVE  NOTICE THEREOF. NEITHER THE RESOLUTION NOR ANY OTHER INSTRUMENT BY
WHICH A PLEDGE IS CREATED NEED BE RECORDED.
  6. NEITHER THE MEMBERS OF THE CORPORATION NOR ANY OTHER PERSON EXECUT-
ING SUCH NOTES OR BONDS SHALL BE SUBJECT TO ANY  PERSONAL  LIABILITY  OR
ACCOUNTABILITY BY REASON OF THE ISSUANCE THEREOF.
  7.  THE  CORPORATION,  SUBJECT  TO SUCH AGREEMENTS WITH NOTEHOLDERS OR
BONDHOLDERS AS MAY THEN EXIST, SHALL HAVE POWER OUT OF ANY FUNDS  AVAIL-
ABLE  THEREFOR,  TO  PURCHASE  NOTES  OR BONDS OF THE CORPORATION, WHICH
SHALL THEREUPON BE CANCELLED, AT A PRICE NOT EXCEEDING:
  (A) IF THE NOTES OR BONDS ARE THEN REDEEMABLE,  THE  REDEMPTION  PRICE
THEN  APPLICABLE PLUS ACCRUED INTEREST TO THE NEXT INTEREST PAYMENT DATE
THEREON, OR
  (B) IF THE NOTES OR BONDS ARE  NOT  THEN  REDEEMABLE,  THE  REDEMPTION
PRICE  APPLICABLE  ON  THE FIRST DATE AFTER SUCH PURCHASE UPON WHICH THE

S. 1238                            28

NOTES OR BONDS BECOME SUBJECT TO REDEMPTION  PLUS  ACCRUED  INTEREST  TO
SUCH DATE.
  8. IN THE DISCRETION OF THE CORPORATION, THE BONDS MAY BE SECURED BY A
TRUST  INDENTURE BY AND BETWEEN THE CORPORATION AND A CORPORATE TRUSTEE,
WHICH MAY BE ANY TRUST COMPANY OR BANK HAVING  THE  POWERS  OF  A  TRUST
COMPANY  IN THE STATE.  SUCH TRUST INDENTURE MAY CONTAIN SUCH PROVISIONS
FOR PROTECTING AND ENFORCING THE RIGHTS AND REMEDIES OF THE  BONDHOLDERS
AS  MAY  BE REASONABLE AND PROPER AND NOT IN VIOLATION OF LAW, INCLUDING
COVENANTS SETTING FORTH THE DUTIES OF THE CORPORATION IN RELATION TO THE
EXERCISE OF ITS CORPORATE  POWERS  AND  THE  CUSTODY,  SAFEGUARDING  AND
APPLICATION  OF  ALL  MONEYS.  THE CORPORATION MAY PROVIDE BY SUCH TRUST
INDENTURE FOR THE PAYMENT OF THE PROCEEDS OF THE BONDS AND THE  REVENUES
TO  THE  TRUSTEE UNDER SUCH TRUST INDENTURE OR OTHER DEPOSITORY, AND FOR
THE  METHOD  OF  DISBURSEMENT  THEREOF,   WITH   SUCH   SAFEGUARDS   AND
RESTRICTIONS AS IT MAY DETERMINE.  ALL EXPENSES INCURRED IN CARRYING OUT
SUCH  TRUST INDENTURE MAY BE TREATED AS A PART OF THE OPERATING EXPENSES
OF THE CORPORATION. IF THE BONDS SHALL BE SECURED BY A TRUST  INDENTURE,
THE BONDHOLDERS SHALL HAVE NO AUTHORITY TO APPOINT A SEPARATE TRUSTEE TO
REPRESENT THEM.
  9.  WHETHER  OR NOT THE NOTES AND BONDS ARE OF SUCH FORM AND CHARACTER
AS TO BE NEGOTIABLE INSTRUMENTS UNDER THE TERMS OF THE  UNIFORM  COMMER-
CIAL  CODE,  THE  NOTES AND BONDS ARE HEREBY MADE NEGOTIABLE INSTRUMENTS
WITHIN THE MEANING OF AND FOR ALL THE PURPOSES OF THE UNIFORM COMMERCIAL
CODE, SUBJECT ONLY TO THE PROVISIONS OF THE NOTES AND BONDS  FOR  REGIS-
TRATION.
  S 709. AUTHORIZATION OF CONTRACTS FOR TAXATION BY THE UNITED STATES OF
INTEREST  ON  OBLIGATIONS  GUARANTEED THEREBY. THE CORPORATION IS HEREBY
AUTHORIZED AND EMPOWERED, FROM TIME TO TIME AND AT  ANY  TIME  TO  ENTER
INTO  A CONTRACT OR CONTRACTS WITH THE UNITED STATES, ACTING THROUGH ANY
DEPARTMENT, OFFICER, AGENCY, OR INSTRUMENTALITY THEREOF, (A) PURSUANT TO
WHICH THE UNITED STATES (I) UNCONDITIONALLY GUARANTEES THE PAYMENT, WHEN
DUE, OF THE INTEREST ON, AND THE PRINCIPAL OF, BONDS,  NOTES,  OR  OTHER
OBLIGATIONS  ISSUED  OR  TO  BE ISSUED BY THE CORPORATION OR (II) PAYS A
PORTION OF THE INTEREST PAYABLE ON SUCH BONDS,  NOTES,  OR  OTHER  OBLI-
GATIONS  ISSUED  OR TO BE ISSUED BY THE CORPORATION AND (B) IN CONSIDER-
ATION OF WHICH THE CORPORATION COVENANTS AND CONSENTS THAT THE  INTEREST
ON SUCH BONDS, NOTES, OR OTHER OBLIGATIONS SHALL BE INCLUDIBLE UNDER THE
INTERNAL  REVENUE  CODE OF NINETEEN HUNDRED FIFTY-FOUR OR ANY SUBSEQUENT
CORRESPONDING INTERNAL REVENUE LAW OF THE UNITED  STATES  IN  THE  GROSS
INCOME  OF  THE  HOLDER  OR HOLDERS OF SUCH BONDS, NOTES, OR OTHER OBLI-
GATIONS TO THE SAME EXTENT AND IN THE SAME MANNER THAT THE  INTEREST  ON
BILLS,  BONDS, NOTES OR OTHER OBLIGATIONS OF THE UNITED STATES IS INCLU-
DIBLE IN THE GROSS INCOME OF THE HOLDER OR HOLDERS  THEREOF  UNDER  SAID
INTERNAL  REVENUE  CODE  OR  ANY SUCH SUBSEQUENT LAW. THE CORPORATION IS
HEREBY FURTHER AUTHORIZED AND EMPOWERED TO INCLUDE IN SUCH BONDS, NOTES,
OR OTHER OBLIGATIONS AND ANY DOCUMENTS RELATED  THERETO  SUCH  REFERENCE
TO, OR SUMMARY OF, THE CONTRACT OR CONTRACTS AS SHALL BE SATISFACTORY TO
SUCH  DEPARTMENT,  OFFICER,  AGENCY,  OR  INSTRUMENTALITY  OF THE UNITED
STATES. THE POWERS HEREIN CONFERRED SHALL BE IN ADDITION TO  THE  POWERS
CONFERRED  BY  ANY OTHER LAW AND SUCH POWERS SHALL NOT BE SUBJECT TO THE
LIMITATIONS OR RESTRICTIONS OF ANY  OTHER  LAW,  BUT  NOTHING  CONTAINED
HEREIN OR IN ANY SUCH CONTRACT OR CONTRACTS SHALL BE CONSTRUED TO COVEN-
ANT OR CONSENT, OR TO AUTHORIZE ANY COVENANT OR CONSENT, TO THE APPLICA-
TION  OF  ANY OTHER PROVISION OF ANY OTHER LAW, FEDERAL OR STATE, TO THE
CORPORATION OR TO SUCH BONDS, NOTES, OR OTHER  OBLIGATIONS,  OR  TO  THE
ELIMINATION OR MODIFICATION IN ANY WAY OF ANY OTHER EXEMPTION (INCLUDING

S. 1238                            29

WITHOUT  LIMITATION  EXEMPTION FROM TAXATION UNDER SECTION SEVEN HUNDRED
SEVENTEEN OF THIS ARTICLE), PRIVILEGE, OR IMMUNITY THEREOF.
  S  710. RESERVE FUNDS AND APPROPRIATIONS. 1. (A) THE CORPORATION SHALL
CREATE AND ESTABLISH SPECIAL FUNDS (REFERRED TO IN THIS SECTION AS CAPI-
TAL RESERVE FUNDS) AND SHALL PAY INTO SUCH A CAPITAL  RESERVE  FUND  (I)
ANY  MONEYS APPROPRIATED AND MADE AVAILABLE BY THE STATE OR CITY FOR THE
PURPOSE OF SUCH FUND, (II) ANY PROCEEDS OF SALE OF NOTES  OR  BONDS,  TO
THE  EXTENT PROVIDED IN THE RESOLUTION OR RESOLUTIONS OF THE CORPORATION
AUTHORIZING THE ISSUANCE THEREOF, AND (III) ANY OTHER MONEYS  WHICH  MAY
BE  MADE  AVAILABLE TO THE CORPORATION FOR THE PURPOSE OF SUCH FUND FROM
ANY OTHER SOURCE OR SOURCES. ALL MONEYS HELD IN A CAPITAL RESERVE  FUND,
EXCEPT  AS  HEREINAFTER PROVIDED, SHALL BE USED, AS REQUIRED, SOLELY FOR
THE PAYMENT OF THE PRINCIPAL OF BONDS AS THE SAME MATURE OR  THE  ANNUAL
SINKING  FUND PAYMENTS, THE PURCHASE OR REDEMPTION OF BONDS, THE PAYMENT
OF INTEREST ON BONDS OR THE PAYMENT OF ANY REDEMPTION  PREMIUM  REQUIRED
TO  BE  PAID  WHEN  SUCH BONDS ARE REDEEMED PRIOR TO MATURITY; PROVIDED,
HOWEVER, THAT MONEYS IN SUCH FUND SHALL NOT BE  WITHDRAWN  THEREFROM  AT
ANY  TIME IN SUCH AMOUNT AS WOULD REDUCE THE AMOUNT OF SUCH FUND TO LESS
THAN THE MAXIMUM  CAPITAL  RESERVE  FUND  REQUIREMENT,  EXCEPT  FOR  THE
PURPOSES  OF  PAYING  INTEREST  ON  BONDS, PRINCIPAL OF BONDS AND ANNUAL
SINKING FUND PAYMENTS, AS THE SAME BECOME DUE AND  FOR  THE  PAYMENT  OF
WHICH  OTHER  MONEYS OF THE CORPORATION ARE NOT AVAILABLE. ANY INCOME OR
INTEREST EARNED BY, OR INCREMENT TO, A CAPITAL RESERVE FUND DUE  TO  THE
INVESTMENT  THEREOF  OR  ANY  AMOUNT  IN  EXCESS  OF THE MAXIMUM CAPITAL
RESERVE FUND REQUIREMENT MAY BE TRANSFERRED BY THE CORPORATION TO  OTHER
FUNDS  OR  ACCOUNTS  OF THE CORPORATION TO THE EXTENT IT DOES NOT REDUCE
THE AMOUNT OF SUCH  CAPITAL  RESERVE  FUND  BELOW  THE  MAXIMUM  CAPITAL
RESERVE FUND REQUIREMENT.
  (B) THE CORPORATION SHALL NOT ISSUE BONDS AT ANY TIME IF UPON ISSUANCE
THE  AMOUNT  IN  THE  CAPITAL RESERVE FUND WILL BE LESS THAN THE MAXIMUM
CAPITAL RESERVE FUND REQUIREMENT, UNLESS THE CORPORATION, AT THE TIME OF
ISSUANCE OF SUCH BONDS, SHALL DEPOSIT IN SUCH FUND FROM THE PROCEEDS  OF
THE  BONDS SO TO BE ISSUED, OR OTHERWISE, AN AMOUNT WHICH, TOGETHER WITH
THE AMOUNT THEN IN SUCH FUND, WILL NOT BE LESS THAN THE MAXIMUM  CAPITAL
RESERVE FUND REQUIREMENT.
  (C)  NO BONDS OR NOTES OF THE CORPORATION SHALL BE ISSUED IF UPON SUCH
ISSUANCE THE AGGREGATE PRINCIPAL AMOUNT OF BONDS AND NOTES OF THE CORPO-
RATION THEN OUTSTANDING EXCEEDS THE LESSER OF THREE BILLION ONE  HUNDRED
FIFTY  MILLION DOLLARS OR SUCH AMOUNT AS WOULD CAUSE THE MAXIMUM CAPITAL
RESERVE FUND REQUIREMENT TO EXCEED EIGHTY-FIVE MILLION DOLLARS; PROVIDED
THAT, IN DETERMINING SUCH AGGREGATE PRINCIPAL  AMOUNTS  THERE  SHALL  BE
DEDUCTED  (I)  ALL  SUMS THEN AVAILABLE FOR THE PAYMENT OF SUCH BONDS OR
NOTES EITHER AT MATURITY OR THROUGH THE OPERATION  OF  A  SINKING  FUND;
(II)  THE  AGGREGATE PRINCIPAL AMOUNT OF OUTSTANDING BONDS ISSUED (A) TO
REFUND NOTES AND (B)  TO  REFUND  BONDS,  THERETOFORE  ISSUED  AND  THEN
OUTSTANDING;  AND  (III)  THE  AGGREGATE PRINCIPAL AMOUNT OF OUTSTANDING
NOTES ISSUED TO RENEW NOTES THERETOFORE ISSUED AND THEN OUTSTANDING. THE
PROVISIONS OF THE PRIOR SENTENCE NOTWITHSTANDING, THE CORPORATION  SHALL
NOT  ISSUE  BONDS  IF SUCH ISSUANCE SHALL CAUSE THE MAXIMUM RESERVE FUND
REQUIREMENT TO EXCEED THIRTY MILLION DOLLARS UNLESS PRIOR TO SUCH  ISSU-
ANCE  THE SENATE AND ASSEMBLY SHALL HAVE ADOPTED A CONCURRENT RESOLUTION
PASSED BY THE VOTES OF A MAJORITY OF ALL THE  MEMBERS  ELECTED  TO  EACH
SUCH HOUSE AND, SUBSEQUENT THERETO, THE GOVERNOR SHALL EVIDENCE IN WRIT-
ING  THE GOVERNOR'S AGREEMENT WITH SUCH RESOLUTION TO THE CHAIRPERSON OF
THE CORPORATION, WHICH RESOLUTION SHALL BE IN FULL FORCE AND  EFFECT  ON
THE  DATE  OF  ISSUANCE  OF  THE  BONDS,  PERMITTING THE MAXIMUM CAPITAL

S. 1238                            30

RESERVE FUND REQUIREMENT TO EQUAL OR EXCEED THE AMOUNT  OF  THE  MAXIMUM
CAPITAL RESERVE FUND REQUIREMENT WHICH WOULD BE EFFECTIVE UPON THE ISSU-
ANCE  OF THE BONDS IN QUESTION, BUT IN NO EVENT, SHALL THE MAXIMUM CAPI-
TAL RESERVE FUND REQUIREMENT EXCEED EIGHTY-FIVE MILLION DOLLARS.
  (D) IN COMPUTING THE AMOUNT OF A CAPITAL RESERVE 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 PREMIUM 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.
  (E) TO ASSURE THE CONTINUED OPERATION AND SOLVENCY OF THE  CORPORATION
FOR  THE  CARRYING  OUT  OF ITS CORPORATE PURPOSES, PROVISION IS MADE IN
PARAGRAPH (A) OF THIS SUBDIVISION FOR THE ACCUMULATION IN  EACH  CAPITAL
RESERVE  FUND  OF  AN  AMOUNT  EQUAL TO THE MAXIMUM CAPITAL RESERVE FUND
REQUIREMENT. IN ORDER TO FURTHER ASSURE SUCH MAINTENANCE OF EACH CAPITAL
RESERVE FUND, THERE SHALL BE PAID BY THE CITY  TO  THE  CORPORATION  FOR
DEPOSIT  IN  EACH  CAPITAL  RESERVE  FUND  ON OR BEFORE THE FIRST DAY OF
APRIL, IN EACH YEAR, SUCH AMOUNT, IF ANY,  NEEDED  FOR  THE  PURPOSE  OF
RESTORING  EACH SUCH CAPITAL RESERVE FUND TO THE MAXIMUM CAPITAL RESERVE
FUND REQUIREMENT FOR SUCH FUND, AS SHALL BE CERTIFIED BY THE CHAIRPERSON
OF THE CORPORATION TO THE MAYOR AND THE BUDGET DIRECTOR ON OR BEFORE THE
FIRST DAY OF DECEMBER NEXT PRECEDING;  PROVIDED  THAT  ANY  SUCH  AMOUNT
SHALL  HAVE BEEN FIRST APPROPRIATED BY OR ON BEHALF OF THE CITY FOR SUCH
PURPOSE OR SHALL HAVE BEEN OTHERWISE MADE AVAILABLE FROM THE PROCEEDS OF
NOTES OR BONDS OF THE CITY AUTHORIZED AND ISSUED PURSUANT TO  THE  LOCAL
FINANCE LAW FOR SUCH PURPOSE, WHICH IS HEREBY DETERMINED TO BE A SPECIF-
IC  OBJECT  OR  PURPOSE  HAVING  A PERIOD OF PROBABLE USEFULNESS OF FIVE
YEARS. IN THE EVENT OF THE FAILURE OR INABILITY OF THE CITY TO PAY  OVER
TO  THE  CORPORATION,  IN FULL, ON OR BEFORE SUCH FIRST DAY OF APRIL THE
AMOUNT SO CERTIFIED THE CHAIRPERSON OF THE CORPORATION  SHALL  FORTHWITH
CERTIFY TO THE COMPTROLLER OF THE STATE OF NEW YORK THE AMOUNT REMAINING
UNPAID AND THEREUPON THE STATE COMPTROLLER SHALL PAY TO THE CORPORATION,
OUT  OF  THE  FIRST MONEYS AVAILABLE FOR THE NEXT SUCCEEDING PAYMENTS OF
(I) STATE AID APPORTIONED TO THE CITY AS PER CAPITA AID FOR THE  SUPPORT
OF  LOCAL GOVERNMENT PURSUANT TO SECTION FIFTY-FOUR OF THE STATE FINANCE
LAW OR (II) SUCH OTHER AID OR ASSISTANCE PAYABLE BY  THE  STATE  TO  THE
CITY  AND  NOT OTHERWISE ALLOCATED AS SHALL SUPERSEDE OR SUPPLEMENT SUCH
STATE PER CAPITA AID, INCLUDING FEDERAL MONEYS APPORTIONED TO  THE  CITY
BY  THE STATE, SUCH AMOUNT REMAINING UNPAID, AFTER GIVING WRITTEN NOTICE
TO THE BUDGET DIRECTOR OF EACH AMOUNT TO BE PAID OUT OF SUCH STATE  AID,
UNTIL  THE  AMOUNT  IN EACH SUCH CAPITAL RESERVE FUND IS RESTORED TO THE
MAXIMUM CAPITAL RESERVE FUND  REQUIREMENT  THEREOF;  PROVIDED,  HOWEVER,
THAT  PRIOR  TO  THE  ISSUANCE  OF ANY NOTES OR BONDS OF THE CORPORATION
PURSUANT TO THIS ARTICLE THE CITY SHALL HAVE ENACTED A LOCAL LAW AUTHOR-
IZING PAYMENTS FROM SUCH SOURCES INTO SUCH A FUND SO LONG AS  ANY  NOTES
OR  BONDS OF THE CORPORATION SHALL BE OUTSTANDING AND UNPAID. ANY AMOUNT
SO PAID OVER TO THE CORPORATION SHALL BE DEDUCTED FROM THE CORRESPONDING
APPORTIONMENT OF SUCH PER CAPITA STATE  AID  OTHERWISE  PAYABLE  TO  THE

S. 1238                            31

CITY,  AND  SHALL NOT OBLIGATE THE STATE TO MAKE NOR ENTITLE THE CITY TO
RECEIVE ANY ADDITIONAL APPORTIONMENT OR PAYMENT OF PER CAPITA STATE AID.
ALL AMOUNTS PAID OVER TO THE CORPORATION AS PROVIDED IN THIS  PARAGRAPH,
INCLUDING  AMOUNTS PAID BY THE STATE COMPTROLLER OUT OF PAYMENTS OF SUCH
STATE AID, SHALL CONSTITUTE AND BE ACCOUNTED FOR AS NON-INTEREST BEARING
LOANS BY THE CITY TO  THE  CORPORATION  AND,  SUBJECT,  SUBORDINATE  AND
JUNIOR  TO THE RIGHTS OF THE HOLDERS OF ANY NOTES OR BONDS OF THE CORPO-
RATION THERETOFORE OR THEREAFTER ISSUED, SHALL BE  REPAID  TO  THE  CITY
FROM  (A)  MONEYS  IN SUCH CAPITAL RESERVE FUND IN EXCESS OF THE MAXIMUM
CAPITAL RESERVE FUND REQUIREMENT THEREOF OR (B) ANY MONEYS OF THE CORPO-
RATION NOT REQUIRED FOR ANY OTHER OF ITS CORPORATE PURPOSES.
  (F) IN THE EVENT THE CHAIRPERSON OF THE CORPORATION SHALL  CERTIFY  TO
THE  MAYOR  AND  BUDGET  DIRECTOR OR TO THE STATE COMPTROLLER ANY AMOUNT
NECESSARY TO RESTORE A CAPITAL  RESERVE  FUND  TO  THE  MAXIMUM  CAPITAL
RESERVE  FUND  REQUIREMENT  THEREOF  PURSUANT TO SUBDIVISION (E) OF THIS
SECTION, THE CHAIRPERSON SHALL SIMULTANEOUSLY DELIVER TO SUCH PERSONS  A
STATEMENT OF THE CAUSE OR CAUSES OF SUCH CAPITAL RESERVE FUND DEFICIENCY
AND THE MEASURES TO BE TAKEN BY THE CORPORATION OR THE DIVISION OF RESI-
DENTIAL DEVELOPMENT TO INSURE REPAYMENT OF ANY LOANS MADE BY THE CITY TO
THE  CORPORATION, INCLUDING AMOUNTS PAID BY THE STATE COMPTROLLER OUT OF
PAYMENTS OF STATE AID, FOR THE PURPOSE OF RESTORING SUCH CAPITAL RESERVE
FUND TO THE MAXIMUM CAPITAL RESERVE  FUND  REQUIREMENT  THEREOF  AND  TO
PREVENT THE RECURRENCE OF ANY SUCH DEFICIENCY.
  2.  NOTWITHSTANDING THE PROVISIONS OF SUBDIVISION ONE OF THIS SECTION,
THE CORPORATION MAY ISSUE BONDS FOR ANY OF ITS CORPORATE PURPOSES, WITH-
OUT MAKING ANY DEPOSIT IN A CAPITAL RESERVE FUND AND THE  PROVISIONS  OF
SUBDIVISION  ONE  OF  THIS SECTION SHALL NOT APPLY TO SUCH BONDS AND THE
PRINCIPAL OF AND INTEREST ON SUCH BONDS SHALL NOT  BE  PAYABLE  FROM  OR
SECURED BY ANY CAPITAL RESERVE FUND.
  3. THE CORPORATION SHALL CREATE AND ESTABLISH SUCH OTHER FUND OR FUNDS
AS MAY BE NECESSARY OR DESIRABLE FOR ITS CORPORATE PURPOSES.
  S  711.  AGREEMENT WITH THE STATE. THE STATE DOES HEREBY PLEDGE TO AND
AGREE WITH THE HOLDERS OF ANY NOTES OR BONDS ISSUED UNDER  THIS  ARTICLE
THAT  THE  STATE WILL NOT LIMIT OR ALTER THE RIGHTS HEREBY VESTED IN THE
CORPORATION TO FULFILL THE TERMS OF ANY AGREEMENTS MADE  WITH  THE  SAID
HOLDERS  THEREOF,  OR  IN ANY WAY IMPAIR THE RIGHTS AND REMEDIES OF SUCH
HOLDERS UNTIL SUCH NOTES AND BONDS, TOGETHER WITH THE INTEREST  THEREON,
WITH  INTEREST ON ANY UNPAID INSTALLMENTS OF INTEREST, AND ALL COSTS AND
EXPENSES IN CONNECTION WITH ANY ACTION OR PROCEEDING BY OR ON BEHALF  OF
SUCH  HOLDERS,  ARE FULLY MET AND DISCHARGED. THE CORPORATION IS AUTHOR-
IZED TO INCLUDE THIS PLEDGE AND AGREEMENT OF THE STATE IN ANY  AGREEMENT
WITH THE HOLDERS OF SUCH NOTES OR BONDS.
  S  712. STATE AND CITY NOT LIABLE ON NOTES AND BONDS. THE NOTES, BONDS
OR OTHER OBLIGATIONS OF THE CORPORATION SHALL NOT BE A  DEBT  OF  EITHER
THE STATE OF NEW YORK OR OF THE CITY, AND NEITHER THE STATE NOR THE CITY
SHALL  BE  LIABLE  THEREON,  NOR  SHALL THEY BE PAYABLE OUT OF ANY FUNDS
OTHER THAN THOSE OF THE CORPORATION; AND  SUCH  NOTES  AND  BONDS  SHALL
CONTAIN ON THE FACE THEREOF A STATEMENT TO SUCH EFFECT.
  S  713.  CITY'S RIGHT TO REQUIRE REDEMPTION OF BONDS.  NOTWITHSTANDING
AND IN ADDITION TO ANY PROVISIONS FOR THE REDEMPTION OF BONDS WHICH  MAY
BE  CONTAINED  IN  ANY  CONTRACT WITH THE HOLDERS OF THE BONDS, THE CITY
MAY, UPON FURNISHING SUFFICIENT FUNDS THEREFOR, REQUIRE THE  CORPORATION
TO  REDEEM,  PRIOR  TO  MATURITY,  AS A WHOLE, ANY ISSUE OF BONDS ON ANY
INTEREST PAYMENT DATE NOT LESS THAN TWENTY YEARS AFTER THE DATE  OF  THE
BONDS  OF  SUCH ISSUE AT ONE HUNDRED FIVE PER CENTUM OF THEIR FACE VALUE
AND ACCRUED INTEREST OR  AT  SUCH  LOWER  REDEMPTION  PRICE  AS  MAY  BE

S. 1238                            32

PROVIDED  IN  THE  BONDS IN CASE OF THE REDEMPTION THEREOF AS A WHOLE ON
THE REDEMPTION DATE. NOTICE OF SUCH REDEMPTION SHALL BE PUBLISHED IN  AT
LEAST  TWO  NEWSPAPERS  PUBLISHED  AND  CIRCULATING IN THE CITY AT LEAST
TWICE,  THE FIRST PUBLICATION TO BE AT LEAST THIRTY DAYS BEFORE THE DATE
OF REDEMPTION.
  S 714. REMEDIES OF NOTEHOLDERS AND BONDHOLDERS. 1. IN THE  EVENT  THAT
THE CORPORATION SHALL DEFAULT IN THE PAYMENT OF PRINCIPAL OF OR INTEREST
ON  ANY ISSUE OF NOTES OR BONDS AFTER THE SAME SHALL BECOME DUE, WHETHER
AT MATURITY OR UPON CALL FOR REDEMPTION, AND SUCH DEFAULT SHALL CONTINUE
FOR A PERIOD OF THIRTY DAYS, OR IN THE EVENT THAT THE CORPORATION  SHALL
FAIL  OR  REFUSE TO COMPLY WITH THE PROVISIONS OF THIS ARTICLE, OR SHALL
DEFAULT IN ANY AGREEMENT MADE WITH THE HOLDERS OF ANY ISSUE OF NOTES  OR
BONDS,  THE  HOLDERS  OF  TWENTY-FIVE  PER CENTUM IN AGGREGATE PRINCIPAL
AMOUNT OF THE NOTES OR BONDS OF SUCH ISSUE THEN OUTSTANDING, BY  INSTRU-
MENT  OR  INSTRUMENTS  FILED IN THE OFFICE OF THE CLERK OF THE COUNTY OF
ERIE AND PROVED OR ACKNOWLEDGED IN THE SAME  MANNER  AS  A  DEED  TO  BE
RECORDED,  MAY  APPOINT A TRUSTEE TO REPRESENT THE HOLDERS OF SUCH NOTES
OR BONDS FOR THE PURPOSES PROVIDED IN THIS SECTION.
  2. SUCH TRUSTEE MAY, AND UPON WRITTEN REQUEST OF THE HOLDERS OF  TWEN-
TY-FIVE  PER  CENTUM  IN  PRINCIPAL  AMOUNT  OF SUCH NOTES OR BONDS THEN
OUTSTANDING SHALL, IN SUCH TRUSTEE'S OWN NAME:
  (A) BY SUIT, ACTION OR PROCEEDING IN ACCORDANCE WITH THE  CIVIL  PRAC-
TICE  LAW  AND RULES, ENFORCE ALL RIGHTS OF THE NOTEHOLDERS OR BONDHOLD-
ERS, INCLUDING THE RIGHT TO REQUIRE THE CORPORATION  TO  CARRY  OUT  ANY
AGREEMENT  WITH  SUCH HOLDERS AND TO PERFORM ITS DUTIES UNDER THIS ARTI-
CLE;
  (B) BRING SUIT UPON SUCH NOTES OR BONDS;
  (C) BY ACTION OR SUIT, REQUIRE THE CORPORATION TO  ACCOUNT  AS  IF  IT
WERE  THE  TRUSTEE  OF AN EXPRESS TRUST FOR THE HOLDERS OF SUCH NOTES OR
BONDS;
  (D) BY ACTION OR SUIT, ENJOIN ANY ACTS OR THINGS WHICH MAY BE UNLAWFUL
OR IN VIOLATION OF THE RIGHTS OF THE HOLDERS OF SUCH NOTES OR BONDS;
  (E) DECLARE ALL SUCH NOTES OR  BONDS  DUE  AND  PAYABLE,  AND  IF  ALL
DEFAULTS  SHALL  BE  MADE GOOD, THEN, WITH THE CONSENT OF THE HOLDERS OF
TWENTY-FIVE PER CENTUM OF THE PRINCIPAL AMOUNT OF SUCH  NOTES  OR  BONDS
THEN OUTSTANDING, ANNUL SUCH DECLARATION AND ITS CONSEQUENCES.
  3.  THE  SUPREME  COURT SHALL HAVE JURISDICTION OF ANY SUIT, ACTION OR
PROCEEDING BY THE TRUSTEE ON BEHALF OF SUCH NOTEHOLDERS OR  BONDHOLDERS.
THE  VENUE  OF  ANY SUCH SUIT, ACTION OR PROCEEDING SHALL BE LAID IN THE
COUNTY OF ERIE.
  4. BEFORE DECLARING THE PRINCIPAL OF NOTES OR BONDS DUE  AND  PAYABLE,
THE  TRUSTEE  SHALL  FIRST  GIVE  THIRTY  DAYS' NOTICE IN WRITING TO THE
CORPORATION.
  S 715. ASSISTANCE TO THE CORPORATION.  THE  STATE  OR  CITY  MAY  MAKE
GRANTS OF MONEY OR PROPERTY TO THE CORPORATION FOR THE PURPOSE OF ENABL-
ING  IT  TO CARRY OUT ITS CORPORATE PURPOSES AND FOR THE EXERCISE OF ITS
POWERS, INCLUDING, BUT NOT LIMITED TO, DEPOSITS TO  THE  RESERVE  FUNDS.
THIS  SECTION  SHALL NOT BE CONSTRUED TO LIMIT ANY OTHER POWER THE STATE
OR CITY MAY HAVE TO MAKE SUCH GRANTS TO THE CORPORATION.
  S 716. NOTES AND BONDS AS LEGAL INVESTMENTS. THE NOTES  AND  BONDS  OF
THE  CORPORATION ARE HEREBY MADE SECURITIES IN WHICH ALL PUBLIC OFFICERS
AND BODIES OF THIS STATE AND ALL MUNICIPALITIES AND  MUNICIPAL  SUBDIVI-
SIONS, ALL INSURANCE COMPANIES AND ASSOCIATIONS AND OTHER PERSONS CARRY-
ING  ON  AN  INSURANCE  BUSINESS,  ALL  BANKS, BANKERS, TRUST COMPANIES,
SAVINGS BANKS AND SAVINGS ASSOCIATIONS, INCLUDING SAVINGS AND LOAN ASSO-
CIATIONS, BUILDING AND LOAN ASSOCIATIONS, INVESTMENT COMPANIES AND OTHER

S. 1238                            33

PERSONS CARRYING ON A BANKING BUSINESS, ALL  ADMINISTRATORS,  GUARDIANS,
EXECUTORS, TRUSTEES AND OTHER FIDUCIARIES, AND ALL OTHER PERSONS WHATSO-
EVER WHO ARE NOW OR MAY HEREAFTER BE AUTHORIZED TO INVEST IN BONDS OR IN
OTHER  OBLIGATIONS  OF THE STATE, MAY PROPERLY AND LEGALLY INVEST FUNDS,
INCLUDING CAPITAL, IN THEIR CONTROL OR BELONGING TO THEM. THE NOTES  AND
BONDS  ARE  ALSO  HEREBY MADE SECURITIES WHICH MAY BE DEPOSITED WITH AND
MAY BE RECEIVED BY ALL PUBLIC OFFICERS AND BODIES OF THE STATE  AND  ALL
MUNICIPALITIES  AND  PUBLIC  CORPORATIONS  FOR ANY PURPOSE FOR WHICH THE
DEPOSIT OF BONDS OR OTHER OBLIGATIONS OF THE STATE IS NOW OR  MAY  HERE-
AFTER BE AUTHORIZED.
  S 717. EXEMPTION FROM TAXATION. 1. THE PROPERTY OF THE CORPORATION AND
ITS INCOME AND OPERATIONS SHALL BE EXEMPT FROM TAXATION.
  2.  IT IS HEREBY DETERMINED THAT THE CREATION OF THE CORPORATION IS IN
ALL RESPECTS FOR THE BENEFIT OF THE PEOPLE OF  THE  STATE  AND  FOR  THE
IMPROVEMENT  OF THEIR HEALTH, SAFETY, WELFARE, COMFORT AND SECURITY, AND
THAT SAID PURPOSES ARE PUBLIC PURPOSES AND THAT THE CORPORATION WILL  BE
PERFORMING  AN  ESSENTIAL  GOVERNMENTAL  FUNCTION IN THE EXERCISE OF THE
POWERS CONFERRED UPON IT BY THIS ARTICLE. THE STATE COVENANTS  WITH  THE
PURCHASERS AND ALL SUBSEQUENT HOLDERS AND TRANSFEREES OF NOTES AND BONDS
ISSUED  BY  THE  CORPORATION,  IN CONSIDERATION OF THE ACCEPTANCE OF AND
PAYMENT FOR THE NOTES AND BONDS, THAT THE NOTES AND BONDS OF THE  CORPO-
RATION  ISSUED PURSUANT TO THIS ARTICLE AND THE INCOME THEREFROM AND ALL
ITS FEES, CHARGES, GIFTS, GRANTS, REVENUES, RECEIPTS, AND  OTHER  MONEYS
RECEIVED OR TO BE RECEIVED, PLEDGED TO PAY OR SECURE THE PAYMENT OF SUCH
NOTES  OR  BONDS  SHALL  AT  ALL TIMES BE FREE FROM TAXATION, EXCEPT FOR
ESTATE AND GIFT TAXES AND TAXES ON TRANSFERS. THE CORPORATION IS AUTHOR-
IZED TO INCLUDE THIS COVENANT OF THE STATE IN  ANY  AGREEMENT  WITH  THE
HOLDERS OF SUCH NOTES OR BONDS.
  S 718. EMPLOYEES OF THE CORPORATION. 1. NOTWITHSTANDING ANY INCONSIST-
ENT  PROVISIONS  OF  THIS  CHAPTER, THE APPOINTMENT AND PROMOTION OF ALL
EMPLOYEES OF AND FOR THE CORPORATION SHALL BE MADE  IN  ACCORDANCE  WITH
THE  PROVISIONS OF THE CIVIL SERVICE LAW AND THE RULES OF THE CITY CIVIL
SERVICE COMMISSION AND THE COMPENSATION  FOR  SUCH  EMPLOYEES  SHALL  BE
FIXED BY THE CORPORATION.
  2.  THE  CITY  AND THE CORPORATION SHALL HAVE THE POWER TO PROVIDE FOR
THE TRANSFER TO THE CORPORATION OF AGENTS, EMPLOYEES AND  FACILITIES  OF
THE  CITY  TO  ENABLE THE CORPORATION TO FULFILL ITS CORPORATE PURPOSES.
EMPLOYEES OF THE CITY TO BE TRANSFERRED TO THE CORPORATION  PURSUANT  TO
THIS  ARTICLE SHALL BE ELIGIBLE FOR SUCH USE IN OFFICES AND POSITIONS OF
THE CORPORATION WITHOUT FURTHER EXAMINATION, AND ALL SUCH EMPLOYEES  WHO
HAVE  BEEN APPOINTED TO POSITIONS IN CITY SERVICE IN ACCORDANCE WITH THE
PROVISIONS OF THE CIVIL SERVICE LAW UNDER THE RULES OF  THE  CITY  CIVIL
SERVICE  COMMISSION  SHALL  HAVE THE SAME STATUS WITH RESPECT THERETO IN
THE SERVICE OF THE CORPORATION AS THEY HAD IN CITY SERVICE.    EMPLOYEES
WHO  ARE  MEMBERS OR BENEFICIARIES OF ANY EXISTING PENSION OR RETIREMENT
SYSTEM SHALL CONTINUE TO HAVE SUCH RIGHTS,  PRIVILEGES,  OBLIGATIONS  OR
STATUS  WITH  RESPECT TO SUCH SYSTEM OR SYSTEMS AS ARE PRESCRIBED BY LAW
ON THE DATE THIS ARTICLE TAKES EFFECT, AND ALL SUCH EMPLOYEES  WHO  HAVE
BEEN  APPOINTED  TO  POSITIONS  IN  CITY  SERVICE IN ACCORDANCE WITH THE
PROVISIONS OF THE CIVIL SERVICE LAW UNDER THE RULES OF  THE  CITY  CIVIL
SERVICE  COMMISSION  SHALL  HAVE THE SAME STATUS WITH RESPECT THERETO IN
THE SERVICE OF THE CORPORATION AS THEY HAD IN CITY SERVICE.
  S 719. ASSISTANCE BY THE  DIVISION  OF  RESIDENTIAL  DEVELOPMENT.  THE
DIRECTOR  OF THE DIVISION OF RESIDENTIAL DEVELOPMENT AND THE DIVISION OF
RESIDENTIAL DEVELOPMENT ARE HEREBY DESIGNATED TO ACT FOR AND  IN  BEHALF
OF  THE  CORPORATION IN SERVICING MORTGAGE LOANS OF THE CORPORATION, AND

S. 1238                            34

SHALL PERFORM SUCH FUNCTIONS AND SERVICES IN CONNECTION WITH THE MAKING,
SERVICING AND COLLECTION OF SUCH LOANS AS  SHALL  BE  REQUESTED  BY  THE
CORPORATION.  THE  CORPORATION  SHALL PAY TO THE DIVISION OF RESIDENTIAL
DEVELOPMENT  FROM  ANY  MONEYS  OF  THE  CORPORATION  AVAILABLE FOR SUCH
PURPOSES SUCH AMOUNTS AS ARE NECESSARY  TO  REIMBURSE  THE  DIVISION  OF
RESIDENTIAL   DEVELOPMENT  FOR  THE  REASONABLE  COST  OF  THE  SERVICES
PERFORMED BY THE DIRECTOR OF THE DIVISION OF RESIDENTIAL DEVELOPMENT AND
BY THE DIVISION OF RESIDENTIAL DEVELOPMENT PURSUANT TO THIS SECTION.
  S 720. MONEYS OF THE CORPORATION. 1. ALL MONEYS  OF  THE  CORPORATION,
EXCEPT  AS  OTHERWISE  AUTHORIZED  OR PROVIDED IN THIS ARTICLE, SHALL BE
DEPOSITED AS SOON AS PRACTICABLE IN A SEPARATE ACCOUNT  OR  ACCOUNTS  IN
BANKS  OR  TRUST  COMPANIES  ORGANIZED  UNDER  THE  LAWS OF THE STATE OR
NATIONAL BANKING ASSOCIATION DOING BUSINESS IN THE CITY. THE  MONEYS  IN
SUCH  ACCOUNTS  SHALL  BE  PAID  OUT ON CHECKS SIGNED BY SUCH OFFICER OR
EMPLOYEE OF THE CORPORATION AS  THE  CORPORATION  SHALL  AUTHORIZE.  ALL
DEPOSITS  OF  SUCH  MONEYS  SHALL,  IF  REQUIRED  BY THE CORPORATION, BE
SECURED BY OBLIGATIONS OF THE UNITED STATES OR OF THE STATE  OR  OF  THE
CITY  OF  A MARKET VALUE EQUAL AT ALL TIMES TO THE AMOUNT OF THE DEPOSIT
AND ALL BANKS AND TRUST COMPANIES ARE AUTHORIZED TO GIVE  SUCH  SECURITY
FOR SUCH DEPOSITS.
  NOTWITHSTANDING  THE PROVISIONS OF THIS SECTION, THE CORPORATION SHALL
HAVE POWER TO CONTRACT WITH THE HOLDERS OF ANY OF ITS NOTES OR BONDS  AS
TO  THE  CUSTODY,  COLLECTION,  SECURING,  INVESTMENT AND PAYMENT OF ANY
MONEYS OF THE CORPORATION AND OF ANY MONEYS HELD IN TRUST  OR  OTHERWISE
FOR  THE  PAYMENT  OF  NOTES  OR  BONDS, AND TO CARRY OUT SUCH CONTRACT.
MONEYS HELD IN TRUST OR OTHERWISE FOR THE PAYMENT OF NOTES OR  BONDS  OR
IN  ANY  WAY TO SECURE NOTES OR BONDS AND DEPOSITS OF SUCH MONEYS MAY BE
SECURED IN THE SAME MANNER AS MONEYS OF THE CORPORATION, AND  ALL  BANKS
AND TRUST COMPANIES ARE AUTHORIZED TO GIVE SUCH SECURITY FOR SUCH DEPOS-
ITS.
  2.  SUBJECT  TO  THE  PROVISIONS  OF ANY CONTRACT WITH NOTEHOLDERS AND
BONDHOLDERS AND THE APPROVAL OF THE COMPTROLLER, THE  CORPORATION  SHALL
PRESCRIBE A SYSTEM OF ACCOUNTS.
  3. THE COMPTROLLER, OR HIS LEGALLY AUTHORIZED REPRESENTATIVE, IS HERE-
BY  AUTHORIZED  AND EMPOWERED FROM TIME TO TIME TO EXAMINE THE BOOKS AND
ACCOUNTS OF  THE  CORPORATION  INCLUDING  ITS  RECEIPTS,  DISBURSEMENTS,
CONTRACTS,  RESERVE  FUNDS,  SINKING  FUNDS,  INVESTMENTS, AND ANY OTHER
MATTERS RELATING TO ITS FINANCIAL STANDING. SUCH AN EXAMINATION SHALL BE
CONDUCTED BY THE COMPTROLLER AT LEAST ONCE  IN  EVERY  FIVE  YEARS;  THE
COMPTROLLER  IS  AUTHORIZED, HOWEVER, TO ACCEPT FROM THE CORPORATION, IN
LIEU OF SUCH AN EXAMINATION, AN EXTERNAL EXAMINATION OF  ITS  BOOKS  AND
ACCOUNTS MADE AT THE REQUEST OF THE CORPORATION.
  4. THE CORPORATION SHALL SUBMIT TO THE MAYOR AND THE COMPTROLLER WITH-
IN  THIRTY  DAYS OF THE RECEIPT THEREOF BY THE CORPORATION A COPY OF THE
REPORT OF EVERY EXTERNAL EXAMINATION OF THE BOOKS AND  ACCOUNTS  OF  THE
CORPORATION  OTHER  THAN COPIES OF THE REPORTS OF SUCH EXAMINATIONS MADE
BY THE COMPTROLLER.
  S 721. ACTIONS.  1. EXCEPT IN AN ACTION FOR  WRONGFUL  DEATH,  IN  ANY
CASE  FOUNDED  UPON TORT A NOTICE OF CLAIM SHALL BE REQUIRED AS A CONDI-
TION PRECEDENT TO THE COMMENCEMENT OF AN ACTION  OR  SPECIAL  PROCEEDING
AGAINST  THE  CORPORATION,  ANY  OF  ITS SUBSIDIARY CORPORATIONS, OR ANY
OFFICER, APPOINTEE OR EMPLOYEE THEREOF, AND THE  PROVISIONS  OF  SECTION
FIFTY-E  OF  THE  GENERAL  MUNICIPAL LAW SHALL GOVERN THE GIVING OF SUCH
NOTICE. AN ACTION FOR WRONGFUL DEATH SHALL BE  COMMENCED  IN  ACCORDANCE
WITH  THE NOTICE OF CLAIM AND TIME LIMITATION PROVISIONS OF TITLE ELEVEN
OF ARTICLE NINE OF THE PUBLIC AUTHORITIES LAW.

S. 1238                            35

  2. EXCEPT AS MAY OTHERWISE BE EXPRESSLY PROVIDED BY  THE  CORPORATION,
THE  CORPORATION  SHALL  NOT BE LIABLE FOR ANY DEBTS, LIABILITIES, OBLI-
GATIONS, AGREEMENTS, CONTRACTS OR COVENANTS OF  ANY  OF  ITS  SUBSIDIARY
CORPORATIONS. NO ACTION OR SPECIAL PROCEEDING OF ANY KIND MAY BE BROUGHT
AGAINST THE CORPORATION BY ANY PERSON HAVING CLAIMS AGAINST OR CONTRACTS
WITH  ANY  OF  ITS  SUBSIDIARY  CORPORATIONS  (INCLUDING ANY PREDECESSOR
CORPORATION OF ANY OF ITS SUBSIDIARY CORPORATIONS)  IF  THE  CORPORATION
WAS NOT A PARTY TO THE MATTER GIVING RISE TO SUCH CLAIMS OR CONTRACTS.
  S  722.  ANNUAL REPORT. THE CORPORATION SHALL SUBMIT TO THE MAYOR, THE
COMPTROLLER AND THE BUDGET DIRECTOR WITHIN NINETY DAYS AFTER THE END  OF
ITS  FISCAL  YEAR, A COMPLETE AND DETAILED REPORT SETTING FORTH: (1) ITS
OPERATIONS AND ACCOMPLISHMENTS; (2) ITS RECEIPTS AND EXPENDITURES DURING
SUCH FISCAL YEAR IN ACCORDANCE WITH THE  CATEGORIES  OR  CLASSIFICATIONS
ESTABLISHED  BY  THE  CORPORATION  FOR  ITS OPERATING AND CAPITAL OUTLAY
PURPOSES, INCLUDING A LISTING OF ALL PRIVATE CONSULTANTS ENGAGED BY  THE
CORPORATION ON A CONTRACT BASIS AND A STATEMENT OF THE TOTAL AMOUNT PAID
TO  EACH  SUCH PRIVATE CONSULTANT; (3) ITS ASSETS AND LIABILITIES AT THE
END OF ITS FISCAL YEAR, INCLUDING A SCHEDULE OF ITS MORTGAGE  LOANS  AND
COMMITMENTS AND THE STATUS OF RESERVE, SPECIAL OR OTHER FUNDS; AND (4) A
SCHEDULE  OF  ITS  NOTES  AND BONDS OUTSTANDING AT THE END OF ITS FISCAL
YEAR, TOGETHER WITH A STATEMENT OF THE  AMOUNTS  REDEEMED  AND  INCURRED
DURING SUCH FISCAL YEAR.
  S 723. SEVERABILITY. IF ANY SECTION, SUBDIVISION, PARAGRAPH, SENTENCE,
CLAUSE  OR  PROVISION OF THIS ARTICLE SHALL BE UNCONSTITUTIONAL OR INEF-
FECTIVE, IN WHOLE OR IN PART, TO THE EXTENT THAT IT IS  NOT  UNCONSTITU-
TIONAL  OR  INEFFECTIVE  IT  SHALL  BE  VALID AND EFFECTIVE AND NO OTHER
SECTION, SUBDIVISION, PARAGRAPH, SENTENCE, CLAUSE OR PROVISION SHALL  ON
ACCOUNT THEREOF BE DEEMED INVALID OR INEFFECTIVE.
  S  724.  INCONSISTENT PROVISIONS IN OTHER LAWS SUPERSEDED.  INSOFAR AS
THE PROVISIONS OF THIS ARTICLE ARE INCONSISTENT WITH THE  PROVISIONS  OF
ANY OTHER LAW, GENERAL, SPECIAL OR LOCAL, THE PROVISIONS OF THIS ARTICLE
SHALL BE CONTROLLING.
  S  2.  Subdivision  1-a  of section 405 of the private housing finance
law, as added by chapter 599 of the laws of 1975, is amended to read  as
follows:
  1-a.  Notwithstanding  the  provisions  of  subdivision  one  of  this
section, and subject to the provisions of subdivision twenty of  section
six  hundred  fifty-four  OR  SUBDIVISION  TWENTY-THREE OF SECTION SEVEN
HUNDRED FOUR of this chapter, where the housing  accommodations  in  any
multiple  dwelling  are aided pursuant to this article by a loan made by
the New York city housing development corporation OR THE BUFFALO HOUSING
DEVELOPMENT CORPORATION, maximum rents during  the  life  of  such  loan
shall  be  prescribed by the agency and the rental rate may be varied by
the agency from time to time upon application by the owner or by the New
York city housing development corporation OR THE BUFFALO HOUSING  DEVEL-
OPMENT  CORPORATION so as to secure, together with all other income from
such property, sufficient income to meet within reasonable  limits,  all
necessary  payments  to  be  made by the owner of all expenses including
fixed charges, sinking funds, reserves and dividends.
  S 3. Subdivisions 1 and 3  of  section  407  of  the  private  housing
finance law, subdivision 1 as amended by chapter 599 of the laws of 1975
and  subdivision  3  as  amended by chapter 449 of the laws of 1986, are
amended to read as follows:
  1.   One or more  banking  institutions,  foundations,  labor  unions,
employers'  associations,  veterans' organizations, insurance companies,
trustees, fiduciaries or any combination of the  foregoing,  shall  have

S. 1238                            36

the  power  to participate and invest, singly or jointly, with a munici-
pality or the New York  city  housing  development  corporation  OR  THE
BUFFALO  HOUSING  DEVELOPMENT  CORPORATION  in a bond or note and single
participating  mortgage,  or  in  separate  bonds or notes and mortgages
pursuant to and in accordance with the provisions of  this  article.  As
used  in  this  section,  the  terms  "trustees" and "fiduciaries" shall
include any fiduciary or fiduciaries holding funds for investment.
  3. Where one or more banking institutions, foundations, labor  unions,
employers'  associations,  veterans' organizations, insurance companies,
trustees or fiduciaries participates and invests with a municipality  or
the New York city housing development corporation OR THE BUFFALO HOUSING
DEVELOPMENT  CORPORATION as provided in subdivision one OF THIS SECTION,
the interest of each need not be equal as to priority of lien,  interest
rate, time or rate of amortization or otherwise.
  S  4. Subdivision 2 of section 802 of the private housing finance law,
as amended by chapter 761 of the laws of 1985, is  amended  to  read  as
follows:
  2. A municipality may utilize federal grant funds or state grant funds
or  any  municipal funds to finance its participation or investment in a
loan pursuant to this article. This subdivision shall not apply  to  any
participation  in a loan by the New York city housing development corpo-
ration OR  THE  BUFFALO  HOUSING  DEVELOPMENT  CORPORATION  pursuant  to
section eight hundred five of this article.
  S 5. Section 805 of the private housing finance law, as added by chap-
ter 562 of the laws of 1977, is amended to read as follows:
  S  805. Participation of New York city housing development corporation
OR BUFFALO HOUSING DEVELOPMENT CORPORATION.  1. The New York city  hous-
ing  development  corporation  may  participate with one or more private
investors or with the city of New York or with both  in  making  a  loan
pursuant  to  the  provisions  of  this  article. Where such corporation
participates in making such a loan, the term  municipality  as  used  in
this article shall include such corporation with respect to such partic-
ipation.
  2.  THE  BUFFALO  HOUSING DEVELOPMENT CORPORATION MAY PARTICIPATE WITH
ONE OR MORE PRIVATE INVESTORS OR WITH THE CITY OF BUFFALO OR  WITH  BOTH
IN  MAKING A LOAN PURSUANT TO THE PROVISIONS OF THIS ARTICLE. WHERE SUCH
CORPORATION PARTICIPATES IN MAKING SUCH A LOAN, THE TERM MUNICIPALITY AS
USED IN THIS ARTICLE SHALL INCLUDE SUCH CORPORATION WITH RESPECT TO SUCH
PARTICIPATION.
  S 6. This act shall take effect on the one hundred twentieth day after
it shall have become a law.

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Senate Bill S1238

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Sponsored By

Antoine M. Thompson

Archive: Last Bill Status - In Senate Committee Housing, Construction And Community Development Committee

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George Onorato

2009-S1238 (ACTIVE) - Details

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