N.Y. General Municipal Law § 696-f: Servicing

§ 696-f. Servicing. An agency may make provision in a note and loan

agreement or by separate agreement for the performance of loan or grant

servicing functions, including, but not limited to, functions related to

lending or providing a grant for construction, as may generally be

performed by an institutional lender. Such agency may act in such

capacity or appoint or consent to the appointment of a financial

institution or other qualified entity, as determined by such agency, to

act in such capacity on behalf of such agency. Such agency may pay a

reasonable and customary fee to such financial institution or other

qualified entity appointed by such agency, or to whose appointment such

agency provided consent, for the performance of such loan or grant

servicing functions.