Senate Bill S7412

Signed By Governor

2015-2016 Legislative Session

Authorizes the state of New York mortgage agency to invest fund in Government National Mortgage Association mortgage backed securities

download bill text pdf

Archive: Last Bill Status Via A10497 - Signed by Governor

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

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Actions

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Date of Action	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jul 21, 2016	signed chap.158
Jul 13, 2016	delivered to governor
Jun 15, 2016	returned to assembly passed senate 3rd reading cal.1824 substituted for s7412
Jun 15, 2016	substituted by a10497 ordered to third reading cal.1824 committee discharged and committed to rules
Apr 29, 2016	referred to corporations, authorities and commissions

Votes

- Jun 15, 2016 - Floor Vote
  A10497
  
  Aye
  
  62
  
  Nay
  
  0
  
  Absent
  
  0
  
  Excused
  
  1
  
  Abstained
  
  0
  - - Floor Vote: Jun 15, 2016
      
      aye (62)
      
      Addabbo Jr.
      
      Akshar
      
      Amedore
      
      Avella
      
      Bonacic
      
      Boyle
      
      Breslin
      
      Carlucci
      
      Comrie
      
      Croci
      
      DeFrancisco
      
      Dilan
      
      Espaillat
      
      Farley
      
      Felder
      
      Flanagan
      
      Funke
      
      Gallivan
      
      Gianaris
      
      Golden
      
      Griffo
      
      Hamilton
      
      Hannon
      
      Hassell-Thompson
      
      Hoylman-Sigal
      
      Kaminsky
      
      Kennedy
      
      Klein
      
      Krueger
      
      LaValle
      
      Lanza
      
      Larkin
      
      Latimer
      
      Little
      
      Marcellino
      
      Marchione
      
      Martins
      
      Montgomery
      
      Murphy
      
      Nozzolio
      
      O'Mara
      
      Ortt
      
      Panepinto
      
      Parker
      
      Peralta
      
      Perkins
      
      Persaud
      
      Ranzenhofer
      
      Ritchie
      
      Rivera
      
      Robach
      
      Sanders Jr.
      
      Savino
      
      Serino
      
      Serrano
      
      Seward
      
      Squadron
      
      Stavisky
      
      Stewart-Cousins
      
      Valesky
      
      Venditto
      
      Young
      
      excused (1)
      
      Diaz
  Jun 15, 2016 - Rules Committee Vote
  S7412
  
  Aye
  
  22
  
  Nay
  
  0
  
  Aye with Reservations
  
  1
  
  Absent
  
  2
  
  Excused
  
  0
  
  Abstained
  
  0
  - - Rules Committee Vote: Jun 15, 2016
      
      aye (22)
      
      Bonacic
      
      Breslin
      
      Carlucci
      
      DeFrancisco
      
      Dilan
      
      Farley
      
      Flanagan
      
      Gianaris
      
      Hannon
      
      Hassell-Thompson
      
      Krueger
      
      LaValle
      
      Lanza
      
      Little
      
      Marcellino
      
      Nozzolio
      
      Parker
      
      Perkins
      
      Robach
      
      Seward
      
      Stewart-Cousins
      
      Valesky
      
      aye wr (1)
      
      Montgomery
      
      absent (2)
      
      Espaillat
      
      Larkin

2015-S7412 (ACTIVE) - Details

See Assembly Version of this Bill:: A10497
Law Section:: Public Authorities Law
Laws Affected:: Amd §§2427 & 2429-b, Pub Auth L

2015-S7412 (ACTIVE) - Summary

Authorizes the state of New York mortgage agency to invest funds in Government National Mortgage Association mortgage backed securities.

2015-S7412 (ACTIVE) - Sponsor Memo

                                 BILL NUMBER:  S7412

 TITLE OF BILL :

An act to amend the public authorities law, in relation to modernizing
the investment powers of the state of New York mortgage agency

 PURPOSE OF THE BILL :

The bill would add one investment vehicle to the State of New York
Mortgage Agency Mortgage Insurance Fund ("MIF") to permit the MIF to
invest in Government National Mortgage Association mortgage backed
securities.

 SUMMARY OF PROVISIONS :

Section 1 of the bill would amend subdivision (9) of section 2427 of
the SONYMA statute to expand SONYMA's MIF authority to invest in
Government National Mortgage Association mortgage backed securities.

Section 2 of the bill would amend subdivision (4) of section 2429-b of
the SONYMA statute to provide the MIF's mortgage insurance fund
account with authority to invest in Government National Mortgage
Association mortgage backed securities.

Section 3 of the bill would provide for an immediate effective date.

 STATEMENT IN SUPPORT :

The MIF's mission, to provide mortgage insurance in support of
affordable housing in New York State, has never been more important.
The MIF generates premiums and invests them, and also invests its
required reserves. The types of investments that are authorized under
its operating statutes are similar to those found in the sections of
the SONYMA statute dealing with the mortgage program activities, and
have not been revised in decades.

As a result, the MIF's investments have typically been the most
conservative investments available. Regardless of investment cycles,
the MIF has invested most of its funds in U.S. Treasury securities.
The earnings have been minimal, particularly during the recent
investment cycle. The MIF's ability to support affordable housing
would be enhanced by being able to invest its funds in investments
that produce greater revenues. The current authorized investments,
unchanged for years, do not suffice.

This bill would authorize the MIF to invest in Government National
Mortgage Association mortgage backed securities ("Ginnie Mae
securities"). Ginnie Mae securities are explicitly backed by the full
faith and credit of the U.S. Government; and Ginnie Mae is a
self-sustaining, profitable and wholly-owned government corporation
located within the U.S. Department of Housing and Urban Development
(HUD). A number of public authorities in the State are authorized to
invest in Ginnie Mae securities. They include the Battery Park City
Authority, the New York State Thruway Authority, the New York State
Environmental Facilities Corporation, as well as the New York City
Housing Development Corporation.

 PRIOR LEGISLATIVE HISTORY :

In 2013, a bill was introduced proposing a limited expansion in
investment authority only with respect to MIF (A.3007-C of 2013). In
2007, a bill proposing a limited expansion in investment authority
only with respect to SONYMA (S.3969) was referred to the Senate
Corporations, Authorities and Commissions Committee.

 LOCAL IMPACT :

This bill would have no impact on local governments.

 FISCAL IMPLICATIONS :

None.

 EFFECTIVE DATE :
This bill would take effect immediately.

2015-S7412 (ACTIVE) - Bill Text download pdf

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

                                  7412

                            I N  S E N A T E

                             April 29, 2016
                               ___________

Introduced  by  Sen.  LITTLE -- (at request of the Division of Housing &
  Community Renewal) -- read twice and ordered printed, and when printed
  to be committed to the  Committee  on  Corporations,  Authorities  and
  Commissions

AN  ACT  to amend the public authorities law, in relation to modernizing
  the investment powers of the state of New York mortgage agency

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

  Section  1.  Subdivision  9  of section 2427 of the public authorities
law, as amended by chapter 788 of the laws of 1978, is amended  to  read
as follows:
  9.  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
agency, in obligations of the state [of] OR federal government or of any
city of the state, the principal and interest of which are guaranteed by
the state or federal government, obligations of agencies of the  federal
government,  OR  IN  GOVERNMENT  NATIONAL  MORTGAGE ASSOCIATION MORTGAGE
BACKED SECURITIES, or special  time  deposits  in,  or  certificates  of
deposit  issued by, a bank or trust company authorized to do business in
the state and secured by a pledge of obligations of the United States of
America or obligations of the state, any city of the state, other munic-
ipal corporation, school district or district corporation of  the  state
or  obligations of agencies of the federal government, provided that any
such investment from time to  time  (1)  may  be  legally  purchased  by
savings  banks of the state as investments of funds belonging to them or
in their control and (2) shall be approved by the comptroller.
  S 2. Subdivision 4 of section 2429-b of the public authorities law, as
amended by chapter 3 of the laws of 2004, is amended to read as follows:
  4. Moneys in such fund may be invested (a)  in  special  time  deposit
accounts  in, or certificates of deposit issued by, a bank, trust compa-
ny, savings bank or savings and loan association located and  authorized
to  do business in this state, provided, however, that such time deposit
account or certificate of deposit shall be payable within such  time  as
the proceeds may be needed to meet expenditures estimated to be incurred

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

                                                           LBD14275-01-6

S. 7412                             2

by  the  agency  and  provided further that such time deposit account or
certificate of deposit be secured by a  pledge  of  obligations  of  the
United  States  of  America or obligations of the state, any city of the
state,  or  other  municipal  corporation,  school  district or district
corporation of the state or  obligations  of  agencies  of  the  federal
government; or (b) in obligations of the United States of America or the
state  which may from time to time be legally purchased by savings banks
within the state as an investment of funds belonging to them or in their
control, or in obligations of the Federal National Mortgage Association,
OR (C) IN GOVERNMENT NATIONAL MORTGAGE ASSOCIATION MORTGAGE BACKED SECU-
RITIES, provided such obligations shall be payable or redeemable at  the
option  of  the owner within such times as the proceeds may be needed to
meet expenditures estimated to be incurred by the agency.
  S 3. This act shall take effect immediately.

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Senate Bill S7412

Signed By Governor

Sponsored By

Archive: Last Bill Status Via A10497 - Signed by Governor

Actions

Votes

Jun 15, 2016 - Floor Vote

Floor Vote: Jun 15, 2016

Jun 15, 2016 - Rules Committee Vote

Rules Committee Vote: Jun 15, 2016

2015-S7412 (ACTIVE) - Details

2015-S7412 (ACTIVE) - Summary

2015-S7412 (ACTIVE) - Sponsor Memo

2015-S7412 (ACTIVE) - Bill Text download pdf

Comments

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Senate Bill S7412

Signed By Governor

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Sponsored By

Betty Little

Archive: Last Bill Status Via A10497 - Signed by Governor

Actions

Votes

2015-S7412 (ACTIVE) - Details

2015-S7412 (ACTIVE) - Summary

2015-S7412 (ACTIVE) - Sponsor Memo

2015-S7412 (ACTIVE) - Bill Text download pdf

Comments