N.Y. Insurance Law § 7607: Management and investment of funds

§ 7607. Management and investment of funds. (a) Each of the two funds

governed by this article shall be separate and apart. Each fund shall

also be separate and apart from any other fund and from all other state

moneys, and the faith and credit of the state of New York is pledged for

their safekeeping. The commissioner shall be the custodian of the funds.

All disbursements shall be made by the commissioner upon vouchers signed

by the superintendent, or his deputy. The moneys of the funds may be

invested by the commissioner in obligations of the United States or of

this state and in interest bearing certificates of deposit of a bank or

trust company located and authorized to do business in this state, or of

a national bank located in this state, secured by a pledge of direct

obligations of the United States or of the state of New York in an

amount equal to the amount of such certificates of deposit, or in

accordance with the provisions of section ninety-eight-a of the state

finance law.

(b) With respect to the moneys in the property/casualty insurance

security fund the commissioner may also invest in:

(1) obligations of public benefit corporations whose obligations are

legal for investment by public officers and bodies of this state;

(2) up to thirty-three and one-third percent of the net value of the

fund in mortgage loans or deeds of trust on real property improved by

one, two, three or four family residences owned by one or more

individuals and occupied by an owner and located in this state. The

amount invested in mortgage loans and deeds of trust may not exceed the

lesser of ninety percent of the appraised value of the real property or

thirty-five thousand dollars if a one-family residence, forty thousand

dollars if a two-family residence, forty-five thousand dollars if a

three-family residence, or fifty thousand dollars if a four-family

residence. The mortgage or deed of trust shall provide for monthly

principal and interest payments in amounts sufficient to pay all

interest and effect full repayment of principal within seventy-five

percent of the estimated remaining useful life of the building or thirty

years, whichever is less.

(c) The commissioner may sell any investment of either fund, if

advisable, for proper administration or in the best interests of the

fund.