NY State Senate Bill 2019-S6173

Senate Bill S6173

2019-2020 Legislative Session

Grants the state of New York mortgage agency authority to purchase, originate, sell and modify mortgage loans and to originate chattel loans

download bill text pdf

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

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

Please enter your contact information

First Name

Last Name

Email Address

A valid email address is required.

Home address is used to determine the senate district in which you reside. Your support or opposition to this bill is then shared immediately with the senator who represents you.

Optional services from the NY State Senate:

Create an account. An account allows you to officially support or oppose key legislation, sign petitions with a single click, and follow issues, committees, and bills that matter to you. When you create an account, you agree to this platform's terms of participation.

Include a custom message for your Senator? (Optional)

Enter a message to your senator. Many New Yorkers use this to share the reasoning behind their support or opposition to the bill. Others might share a personal anecdote about how the bill would affect them or people they care about.

Actions

View Actions

	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 08, 2020	referred to corporations, authorities and commissions
May 21, 2019	referred to corporations, authorities and commissions

2019-S6173 (ACTIVE) - Details

See Assembly Version of this Bill:: A8426
Current Committee:: Senate Corporations, Authorities And Commissions
Law Section:: Public Authorities Law
Laws Affected:: Amd §§2401, 2402, 2404 & 2405-b, add §2405-g, Pub Auth L

2019-S6173 (ACTIVE) - Summary

Grants the state of New York mortgage agency authority to purchase mortgage loans from a broader pool of non-depository lenders, purchase mortgages secured by new construction loans, originate mortgage loans, originate chattel loans, sell its mortgages at private sales, and modify its mortgages to assist financially distressed homeowners.

2019-S6173 (ACTIVE) - Sponsor Memo

                                
 
BILL NUMBER: S6173

SPONSOR: MAY
 
TITLE OF BILL:  An act to amend the public authorities law, in
relation to granting the state of New York mortgage agency authority to
purchase mortgage loans from a broader pool of non-depository lenders,
purchase mortgages secured by new construction loans, originate mortgage
and chattel loans, sell its mortgages at private sales, and modify its
mortgages to assist financially distressed homeowners

 
PURPOSE OF THE BILL:

This bill would grant the State of New York Mortgage Agency ("SONYMA")
authority to (i) purchase mortgages loans from a broader pool of non-de-
pository lenders, (ii) purchase mortgages secured by new construction
loans, and (iii) modify its mortgages to assist financially distressed
homeowners.

 
SUMMARY OF PROVISIONS:

Section 2 of the bill amends Sections 2402(2), (5) and (12) of the

Public Authorities Law to allow SONYMA to purchase mortgages from
certain non-depository lenders in addition to those lenders approved by
the Federal National Mortgage Association or by the Federal Home Loan
Mortgage Corporation and to purchase mortgages secured by new
construction loans.

Section 3 of the bill amends Sections 2404(7) and (14) of the Public
Authorities Law to give SONYMA authority to purchase mortgages secured
by new construction loans and give SONYMA authority to modify mortgage
terms to assist borrowers in financial distress.

Section 4 of the bill amends Section 2404 by renumbering subdivision
(33) as subdivision (34) and by adding a new subdivision (33) to give
SONYMA authority to purchase and undertake chattel mortgages.

Section 5 of the bill amends section 2405-b of the Public Authorities
Law by incorporating provisions governing SONYMA's requested authority
to purchase mortgages secured by new construction loans.

Section 6 of the bill provides for an immediate effective date.

 
JUSTIFICATION:

Eligible bank lenders

SONYMA is authorized to purchase mortgages from depository institutions
and from certain other non-depository lenders, including but not limited
to New York state licensed mortgage bankers and domestic not-for-profit
corporations whose public purposes include combatting community deteri-
oration. Such non-depository institutions are required to be approved as
a mortgage lender by the Federal National Mortgage Association or by the
Federal Home Loan Mortgage Corporation. However, most of these not-for-
profit housing agencies 'lack the net worth to be approved by Federal
National Mortgage Association or by the Federal Home Loan Mortgage
Corporation, and their participation as SONYMA lenders is critical to
the initiative to increase homeownership for very low-income borrowers.
Eliminating such requirement will expand SONYMA's ability to purchase

mortgages from a broader pool of non-depository lenders and will enable
SONYMA to better meet its legislative goals.

Construction loans

SONYMA is authorized to purchase only mortgages secured by real property
with pre-existing residential structures. Due to a lack of capital
access in the market for construction funding, there are few options
'available to low income borrowers to build new residences, and SONYMA's
ability to satisfy the legislative goal of applying one-sixth in dollar
amount of new mortgages purchased under SONYMA's mortgage program
towards newly constructed residences has been greatly diminished.

An expansion of SONYMA's authority to purchase mortgages secured by
construction loans which will fund the new construction of residences
will enable SONYMA to better meet the legislative goal of supporting the
purchase of newly constructed residences in New York State thereby bene-
fiting not only the persons and families of low and moderate income who
will reside in the newly constructed residences, but also helping to
address the legislative goals of supporting the construction industry,
decreasing unemployment and under employment for those in the
construction industry, and improving the economic and physical develop-
ment of municipalities in New York State.

Loan modifications

The legislature has found and determined that there is a need to assist
homeowners in New York State who are either delinquent on their mortgage
payments or are in danger of going into default, who may lose their
homes to foreclosure, or who may have abandoned their homes due to
economic hardship. In 2016, the SONYMA legislation was amended to create
a subsidiary of SONYMA whose purpose is to assist New York State home-
owners in these areas.

But the SONYMA statute has a provision that prevents SONYMA from acting
in ways that provide similar assistance to its own borrowers.  SONYMA
has the authority to renegotiate, waive any default or consent to the
modification of the terms of any mortgage, but only in such a manner as
may be necessary to protect the interests of SONYMA and the holders of
SONYMA's bonds and notes.

This proposal would allow SONYMA to renegotiate, waive any default or
consent to the modification of the terms of 'any mortgage in a manner
which would not violate any existing agreements or contracts SONYMA has
with the holders of its bonds and notes, but which would serve to assist
homeowners who are delinquent on their mortgage payments or in danger of
going into default so foreclosure or abandonment may be avoided.

Chattel mortgages

SONYMA is currently authorized to purchase only those mortgages secured
by real property. However, a substantial need exists for financing the
purchase of manufactured homes in manufactured home parks, which does
not meet the definition of real property.

An expansion of SONYMA's authority to purchase and undertake mortgages
on chattel would allow SONYMA to help make affordable safe, sanitary

housing to this substantial, undeserved population of low income borrow-
ers.

 
PRIOR LEGISLATIVE HISTORY:

None.

 
FISCAL IMPLICATIONS:

None.

 
EFFECTIVE DATE:
Immediate

2019-S6173 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   6173
 
                        2019-2020 Regular Sessions
 
                             I N  S E N A T E
 
                               May 21, 2019
                                ___________
 
 Introduced  by  Sen.  MAY -- (at request of the New York State Homes and
   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 granting the
   state of New York mortgage agency authority to purchase mortgage loans
   from a broader pool  of  non-depository  lenders,  purchase  mortgages
   secured  by  new  construction  loans,  originate mortgage and chattel
   loans, sell its mortgages at private sales, and modify  its  mortgages
   to assist financially distressed homeowners
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Section 2401 of the public authorities law  is  amended  by
 adding a new undesignated paragraph to read as follows:
   IT  IS  FURTHER  FOUND  AND  DETERMINED  THAT  THERE  IS A SHORTAGE OF
 ADEQUATE FUNDS TO ASSIST IN THE NEW CONSTRUCTION OF MODULAR AND MANUFAC-
 TURED HOUSING.
   § 2. Subdivisions 2, 5, and 12 of section 2402 of the public  authori-
 ties  law,  subdivision 2 as amended by chapter 806 of the laws of 1990,
 subdivision 5 as amended by chapter 151 of the laws of 2013, and  subdi-
 vision  12  as  added by chapter 915 of the laws of 1982, are amended to
 read as follows:
   (2) "Bank". Any bank or trust company, savings bank, savings and  loan
 association,  industrial  bank,  credit  union, national banking associ-
 ation, federal savings and loan association,  federal  savings  bank  or
 federal  credit  union  which  is  located in the state. The term "bank"
 shall also include a New York  state  licensed  mortgage  banker,  or  a
 domestic   not-for-profit  corporation  whose  public  purposes  include
 combatting community deterioration and which is an  exempt  organization
 as  defined  in paragraph (e) of subdivision one of section five hundred
 ninety of the banking law, or an entity exempt from licensing provisions

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

                                                            LBD09478-01-9

 S. 6173                             2
 
 in accordance with paragraph (a) of  subdivision  two  of  section  five
 hundred  ninety  of  such  law[, which in any such case is approved as a
 mortgage lender by the Federal National Mortgage Association or  by  the
 Federal Home Loan Mortgage Corporation].
   (5) "Mortgage". A loan owed to a bank secured by a first lien on a fee
 simple  or  leasehold  estate  in real property located in the state and
 improved by a residential structure OR ON WHICH A RESIDENTIAL  STRUCTURE
 SHALL  BE  CONSTRUCTED  USING  THE PROCEEDS OF SUCH LOAN, whether or not
 insured or guaranteed by the United States  of  America  or  any  agency
 thereof.  The  term  "mortgage" shall also include a loan owed to a bank
 secured by a second lien on a fee simple or  leasehold  estate  in  real
 property located in the state and improved by a residential structure OR
 ON WHICH A RESIDENTIAL STRUCTURE SHALL BE CONSTRUCTED USING THE PROCEEDS
 OF  THE  RELATED LOAN DESCRIBED IN PARAGRAPH (A) OR (B) OF THIS SUBDIVI-
 SION, whether or not insured or guaranteed by the United States of Amer-
 ica or any agency thereof, provided, however, that such second lien: (a)
 secures a loan purchased by the agency, and (b) is made at the same time
 as a first lien securing a loan purchased by the agency pursuant to  its
 programs  or by a government sponsored enterprise or is made at the same
 time as a new housing loan purchased by the agency pursuant  to  section
 twenty-four  hundred five-c of this part. The term "mortgage" shall also
 include loans made by the agency and secured by a second lien on  a  fee
 simple  or  leasehold  estate  in real property located in the state and
 improved by a residential structure OR ON WHICH A RESIDENTIAL  STRUCTURE
 SHALL  BE  CONSTRUCTED  USING  THE PROCEEDS OF SUCH LOAN, whether or not
 insured or guaranteed by the United States  of  America  or  any  agency
 thereof,  provided however, that the loan made by the agency and secured
 by such second lien is made at the same time as a first lien securing  a
 mortgage  loan  purchased by the agency pursuant to its programs or by a
 government sponsored enterprise.    In  the  case  of  any  second  lien
 purchased  or  made  hereunder,  the  mortgagor  shall  be  obligated to
 contribute from his or her own verifiable funds an amount not less  than
 such  percentage  as  the  agency  shall  determine, of the lower of the
 purchase price or appraised value of the property subject to  the  first
 lien.  "Real  property"  as  used  in this subdivision shall include air
 rights.
   For the purposes of this title and of section [one hundred ninety  and
 subsection  (a)  of  section  one  thousand  four hundred fifty-six] ONE
 HUNDRED EIGHTY-SEVEN of the tax law, "mortgage"  shall  include  housing
 loans  as defined below. Except for the purposes of subdivision seven of
 section two thousand four hundred five and subdivision eight of  section
 two  thousand  four  hundred  five-b of this part, "mortgage" shall also
 include a loan owed to a bank by an individual borrower incurred for the
 purpose of financing the purchase of  certificates  of  stock  or  other
 evidence of ownership of an interest in, and a proprietary lease from, a
 cooperative  housing  corporation  formed for the purpose of the cooper-
 ative ownership of residential real estate in the state, secured  by  an
 assignment  or  transfer  of the benefits of such cooperative ownership,
 and containing such terms and conditions as the agency may approve.
   (12)  "Forward  commitment  mortgage".  A  mortgage,   INCLUDING   NEW
 CONSTRUCTION  LOANS, for which a commitment to advance funds is made not
 earlier than the date the agency issues an invitation to purchase  mort-
 gages or such later date as specified in the invitation. A mortgage made
 in  satisfaction  of  the obligation of a bank under section twenty-four
 hundred five of this title is not a forward commitment mortgage.

 S. 6173                             3
 
   § 3. Subdivisions 7, 9 and 14 of section 2404 of the  public  authori-
 ties  law,  subdivision 7 as amended by chapter 782 of the laws of 1992,
 subdivision 9 as amended by chapter 1023 of the laws of 1971, and subdi-
 vision 14 as added by chapter 612 of the laws of 1970,  are  amended  to
 read as follows:
   (7)  To (a) acquire, and contract to acquire, existing mortgages owned
 by banks and to enter into advance commitments to banks for the purchase
 of said mortgages, all subject to the provisions of section two thousand
 four hundred five of this title, (b) acquire, and contract  to  acquire,
 forward  commitment  mortgages  made  by banks and to enter into advance
 commitments to banks for the purchase of said mortgages, all subject  to
 the  provisions  of  section  two  thousand  four hundred five-b of this
 title, (c) acquire, and contract to acquire, new housing loans  made  by
 banks and to enter into advance commitments to banks for the purchase of
 said  housing  loans, all subject to the provisions of section two thou-
 sand four hundred five-c  of  this  title,  [and]  (d)  to  acquire  and
 contract  to  acquire  mortgages pursuant to section twenty-four hundred
 five-d of this title, AND (E) ACQUIRE,  AND  CONTRACT  TO  ACQUIRE,  NEW
 CONSTRUCTION  MORTGAGE  LOANS  OWNED  BY BANKS AND TO ENTER INTO ADVANCE
 COMMITMENTS TO BANKS FOR THE PURCHASE OF SAID MORTGAGES, ALL SUBJECT  TO
 THE PROVISIONS OF SECTION TWO THOUSAND FOUR HUNDRED FIVE-B OF THIS PART;
   (9)  Subject to any agreement with bondholders or noteholders, to sell
 any mortgages or other personal  property  acquired  by  the  agency  at
 public  or  private  sale and at such price or prices as it shall deter-
 mine[, provided, however, that a private sale shall  be  limited  to  an
 agency  of the federal government, the federal national mortgage associ-
 ation, or a sale of a mortgage to a bank from which  it  was  originally
 purchased]. If the agency determines to sell mortgages at public sale, a
 notice  of such sale shall be published at least once at least five days
 prior to the date of such sale  in  a  financial  newspaper  or  journal
 published in the city of New York;
   (14) To renegotiate, refinance or foreclose, or contract for the fore-
 closure  of, any mortgage in default; to waive any default or consent to
 the modification of the terms of any mortgage; to 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; to operate, manage, lease, dispose of, and other-
 wise deal with such property, [in such manner as  may  be  necessary  to
 protect  the  interests  of  the agency and the holders of its bonds and
 notes] SUBJECT TO ANY AGREEMENT WITH ITS BONDHOLDERS OR NOTEHOLDERS;
   § 4. Subdivision 33 of section 2404 of the public authorities law,  as
 renumbered  by chapter 72 of the laws of 2016, is renumbered subdivision
 35 and two new subdivisions 33 and 34 are added to read as follows:
   (33) TO MAKE, AND UNDERTAKE COMMITMENTS TO MAKE, TO PERSONS AND  FAMI-
 LIES  OF  LOW  AND MODERATE INCOME MORTGAGE LOANS SECURED BY (A) A FIRST
 LIEN ON A FEE SIMPLE OR LEASEHOLD ESTATE IN REAL PROPERTY LOCATED IN THE
 STATE AND IMPROVED BY A RESIDENTIAL STRUCTURE OR ON WHICH A  RESIDENTIAL
 STRUCTURE  SHALL BE CONSTRUCTED USING THE PROCEEDS OF SUCH LOAN, WHETHER
 OR NOT INSURED OR GUARANTEED BY THE UNITED  STATES  OF  AMERICA  OR  ANY
 AGENCY  THEREOF OR (B) A SECOND LIEN ON A FEE SIMPLE OR LEASEHOLD ESTATE
 IN REAL PROPERTY LOCATED IN THE STATE  AND  IMPROVED  BY  A  RESIDENTIAL
 STRUCTURE OR ON WHICH A RESIDENTIAL STRUCTURE SHALL BE CONSTRUCTED USING
 THE  PROCEEDS  OF SUCH LOAN, WHETHER OR NOT INSURED OR GUARANTEED BY THE
 UNITED STATES OF AMERICA OR ANY AGENCY THEREOF, PROVIDED, HOWEVER,  THAT
 SUCH SECOND LIEN SECURES A MORTGAGE LOAN ALREADY ORIGINATED OR PURCHASED

 S. 6173                             4
 
 BY THE AGENCY PURSUANT TO ITS PROGRAMS, ALL SUBJECT TO THE PROVISIONS OF
 SECTION TWO THOUSAND FOUR HUNDRED FIVE-G OF THIS PART.
   (34)  TO MAKE, AND UNDERTAKE COMMITMENTS TO MAKE, TO PERSONS AND FAMI-
 LIES OF LOW AND MODERATE INCOME MORTGAGES ON CHATTEL, INCLUDING, BUT NOT
 LIMITED TO, MANUFACTURED HOMES AFFIXED TO REAL PROPERTY.
   § 5. Subdivisions 3 and 5 and paragraphs (a), (f), and (h) of subdivi-
 sion 8 of section 2405-b of the public authorities law,  subdivisions  3
 and  5  and  paragraphs (a) and (h) of subdivision 8 as added by chapter
 915 of the laws of 1982, paragraph  (h)  of  subdivision  8  as  further
 amended  by  section 104 of part A of chapter 62 of the laws of 2011 and
 paragraph (f) of subdivision 8 as amended by chapter 432 of the laws  of
 2009, are amended to read as follows:
   (3)  In  conducting its program of purchasing forward commitment mort-
 gages, the agency shall be governed by the provisions of  paragraph  (b)
 of subdivision three of section twenty-four hundred five of this [title]
 PART;  HOWEVER, WITH RESPECT TO NEW CONSTRUCTION LOANS, THE AGENCY SHALL
 BE GOVERNED BY THE PROVISIONS OF ONLY SUBPARAGRAPH  (III)  OF  PARAGRAPH
 (B)  OF  SUBDIVISION  THREE  OF SECTION TWENTY-FOUR HUNDRED FIVE OF THIS
 PART.
   (5) Notwithstanding the  maximum  interest  rate,  if  any,  fixed  by
 section  5-501  of  the  general  obligations  law  or any other law not
 specifically amending or applicable to this section, the agency may  set
 the  interest rate to be borne by forward commitment mortgages purchased
 by the agency from banks at a rate or rates which the agency  from  time
 to  time  shall determine [to], PROVIDED HOWEVER, THAT IF SUCH MORTGAGES
 ARE FINANCED THROUGH THE ISSUANCE OF THE AGENCY'S BONDS  OR  NOTES,  THE
 INTEREST  RATE  SHALL  be  at  least sufficient, together with any other
 available monies, to provide for the payment of its bonds and notes, and
 forward commitment mortgages bearing such interest  rate  shall  not  be
 deemed to violate any such law or to be unenforceable if originated by a
 bank  in  good  faith  pursuant  to  an undertaking with the agency with
 respect to the sale thereof notwithstanding any  subsequent  failure  of
 the  agency  to purchase the mortgage or any subsequent sale or disposi-
 tion of the mortgage by the agency to such bank or any other person.
   (a) OTHER THAN WITH RESPECT TO NEW CONSTRUCTION  LOANS,  the  mortgage
 was  not made in satisfaction of an obligation of the bank under section
 twenty-four hundred five of this title;
   (f) the mortgage constitutes a valid first lien, or second  lien  WITH
 RESPECT  TO  MORTGAGES  OTHER  THAN  NEW CONSTRUCTION LOANS, on the real
 property described to the agency in accordance with subdivision five  of
 section  twenty-four hundred two of this part subject only to real prop-
 erty taxes not yet due, installments of assessments  not  yet  due,  and
 easements and restrictions of record which do not adversely affect, to a
 material  degree,  the use or value of the real property or improvements
 thereon;
   (h) the improvements to, OR NEW CONSTRUCTION OF,  the  mortgaged  real
 property  are  covered  by  a  valid  and subsisting policy of insurance
 issued by a  company  authorized  by  the  superintendent  of  financial
 services  to  issue such policies in the state of New York and providing
 fire and extended coverage to an amount not less than eighty percent  of
 the  insurable value of the improvements to, OR NEW CONSTRUCTION OF, the
 mortgaged real property.
   § 6. The public authorities law is amended by  adding  a  new  section
 2405-g to read as follows:
   §  2405-G. ORIGINATION OF NEW MORTGAGE LOANS. (1) THE AGENCY IS HEREBY
 AUTHORIZED TO THE EXTENT IT FINDS PRACTICABLE, TO  ESTABLISH  A  PROGRAM

 S. 6173                             5

 WHEREBY  IT  ORIGINATES MORTGAGE LOANS TO PERSONS AND FAMILIES OF LOW OR
 MODERATE INCOME. IT IS HEREBY FOUND AND DECLARED THAT SUCH ACTIVITIES BY
 THE AGENCY WILL ALLEVIATE A CONDITION IN THIS STATE WHICH IS CONTRARY TO
 THE  PUBLIC HEALTH, SAFETY AND GENERAL WELFARE AND WHICH HAS CONSTITUTED
 IN THE PAST AND FROM TIME TO TIME IN  THE  FUTURE  CAN  BE  EXPECTED  TO
 CONSTITUTE  A  PUBLIC  EMERGENCY.  IT IS FURTHER FOUND AND DECLARED THAT
 SUCH PURPOSES ARE IN ALL RESPECTS FOR THE BENEFIT OF THE PEOPLE  OF  THE
 STATE  OF  NEW  YORK  AND  THE AGENCY SHALL BE REGARDED AS PERFORMING AN
 ESSENTIAL GOVERNMENTAL FUNCTION IN CARRYING  OUT  ITS  PURPOSES  AND  IN
 EXERCISING THE POWERS GRANTED BY THIS TITLE.
   (2)  THE  AGENCY SHALL ORIGINATE SUCH MORTGAGE LOANS AT SUCH REPAYMENT
 TERMS AND CONDITIONS AS IT SHALL DETERMINE; PROVIDED, HOWEVER, THAT EACH
 BORROWER RECEIVING A MORTGAGE LOAN ORIGINATED BY THE AGENCY SHALL  BE  A
 PERSON OR FAMILY OF LOW OR MODERATE INCOME.
   (3)  THE TOTAL MORTGAGE LOAN AMOUNT ORIGINATED BY THE AGENCY SHALL NOT
 EXCEED ONE HUNDRED PERCENT OF THE SALE PRICE OR MARKET VALUE OF THE REAL
 PROPERTY AND RESIDENTIAL STRUCTURE SECURING THE MORTGAGE, AS  DETERMINED
 OR APPROVED BY OR ON BEHALF OF THE AGENCY.  THE AGENCY MAY ALSO DISBURSE
 ADDITIONAL AMOUNTS TO FINANCE SUCH CLOSING COSTS AND FEES AS IT MAY DEEM
 NECESSARY OR APPROPRIATE.
   (4) IN CONDUCTING ITS PROGRAM OF ORIGINATING MORTGAGE LOANS, THE AGEN-
 CY  SHALL  NOT  BE GOVERNED OR LIMITED BY THE PROVISIONS OF SUBPARAGRAPH
 (I) OR (II) OF PARAGRAPH (B) OF SUBDIVISION THREE OF SECTION TWENTY-FOUR
 HUNDRED FIVE OF THIS PART HOWEVER, THE AGENCY SHALL BE GOVERNED  BY  THE
 PROVISIONS  OF  SUBPARAGRAPH (III) OF PARAGRAPH (B) OF SUBDIVISION THREE
 OF SECTION TWENTY-FOUR HUNDRED FIVE OF THIS PART;
   (5) NOTWITHSTANDING THE  MAXIMUM  INTEREST  RATE,  IF  ANY,  FIXED  BY
 SECTION  5-501  OF  THE  GENERAL  OBLIGATIONS  LAW  OR ANY OTHER LAW NOT
 SPECIFICALLY AMENDING OR APPLICABLE TO THIS SECTION, THE AGENCY MAY  SET
 THE INTEREST RATE TO BE BORNE BY MORTGAGE LOANS ORIGINATED BY THE AGENCY
 AT  A  RATE  OR RATES WHICH THE AGENCY FROM TIME TO TIME SHALL DETERMINE
 PROVIDED, HOWEVER, THAT IF SUCH MORTGAGES ARE FINANCED THROUGH THE ISSU-
 ANCE OF THE AGENCY'S BONDS OR NOTES, THE INTEREST RATE SHALL BE AT LEAST
 SUFFICIENT, TOGETHER WITH ANY OTHER AVAILABLE MONIES, TO PROVIDE FOR THE
 PAYMENT OF ITS BONDS AND NOTES, AND MORTGAGE LOANS BEARING SUCH INTEREST
 RATE SHALL NOT BE DEEMED TO VIOLATE ANY SUCH LAW OR TO BE  UNENFORCEABLE
 NOTWITHSTANDING  ANY SUBSEQUENT SALE OR DISPOSITION OF THE MORTGAGE LOAN
 BY THE AGENCY TO ANY OTHER PARTY.
   (6) THE INSTRUMENT EVIDENCING THE  MORTGAGE  LOAN  ORIGINATED  BY  THE
 AGENCY  AND ALL RELATED DOCUMENTATION SHALL CONTAIN THE TERMS AND CONDI-
 TIONS, AND BE IN THE FORM, PRESCRIBED OR APPROVED BY THE AGENCY, AND THE
 AGENCY MAY REQUIRE ANY RECIPIENT OF A MORTGAGE LOAN TO  EXECUTE  CERTIF-
 ICATIONS, GUARANTEES OR OTHER AGREEMENTS RELATING TO THE USE, OCCUPANCY,
 MAINTENANCE  AND  SALE OF THE SINGLE-FAMILY RESIDENTIAL HOUSING FINANCED
 BY THE MORTGAGE LOAN ORIGINATED BY THE AGENCY.
   (7) EACH BORROWER OF A MORTGAGE LOAN ORIGINATED BY THE AGENCY SHALL BE
 LIABLE TO THE AGENCY FOR ANY DAMAGES SUFFERED BY THE AGENCY BY REASON OF
 THE UNTRUTH OF ANY REPRESENTATION OR  THE  BREACH  OF  ANY  WARRANTY  OR
 AGREEMENT  MADE BY THE BORROWER IN CONNECTION WITH ITS APPLICATION FOR A
 MORTGAGE.
   § 7. This act shall take effect immediately; provided, however, that:
   a. the amendments made to subdivisions 2, 5 and 12 of section 2402  of
 the  public  authorities  law  made by section two of this act shall not
 affect the expiration of such subdivisions and shall be  deemed  expired
 therewith;

 S. 6173                             6
 
   b.  the amendments made to subdivision 7 of section 2404 of the public
 authorities law made by section three of this act shall not  affect  the
 expiration  of  such  subdivision and shall be deemed expired therewith;
 and
   c. the amendments made to section 2405-b of the public authorities law
 made  by  section  five  of this act shall not affect the repeal of such
 section and shall be deemed repealed therewith.

Comments

Open Legislation is a forum for New York State legislation. All comments are subject to review and community moderation is encouraged.

Comments deemed off-topic, commercial, campaign-related, self-promotional; or that contain profanity, hate or toxic speech; or that link to sites outside of the nysenate.gov domain are not permitted, and will not be published. Attempts to intimidate and silence contributors or deliberately deceive the public, including excessive or extraneous posting/posts, or coordinated activity, are prohibited and may result in the temporary or permanent banning of the user. Comment moderation is generally performed Monday through Friday. By contributing or voting you agree to the Terms of Participation and verify you are over 13.

Create an account. An account allows you to sign petitions with a single click, officially support or oppose key legislation, and follow issues, committees, and bills that matter to you. When you create an account, you agree to this platform's terms of participation.