N.Y. Local Finance Law § 154.00: Disposition of proceeds resulting from the satisfaction of certain mortgages

§ 154.00 Disposition of proceeds resulting from the satisfaction of

certain mortgages. a. Notwithstanding any general, special or local law

to the contrary, upon the modification or satisfaction by the city of

New York or the New York city housing development corporation, pursuant

to section twenty-three-a, twenty-three-b or subdivision twenty-two-a of

section six hundred fifty-four of the private housing finance law, of a

mortgage loan made to a housing company, the entire proceeds resulting

from such modification or satisfaction (not including any premium or

differential referred to in section twenty-three-a or subdivision

twenty-two-a of section six hundred fifty-four of the private housing

finance law), less any fees, costs, expenses and other amounts paid or

incurred by such city or corporation, shall be deposited in a reserve

fund established for the purpose of retiring outstanding notes issued by

such city and the proceeds therein shall be expended only for the

payment of all or part of the said outstanding indebtedness.

Notwithstanding any general, special or local law to the contrary, if

the moneys in such fund shall exceed the sum of all principal of or

interest on such indebtedness or if, when all such outstanding notes

have been retired, any moneys remain unexpended in the reserve fund,

such excess moneys may be used for any lawful municipal purpose.

b. As used in this section:

1. The term "fees, costs, expenses and other amounts" shall mean legal

and other fees, costs, expenses and amounts described in subdivision

four-b of section twenty-three-a or subdivision twenty-two-a of section

six hundred fifty-four of the private housing finance law;

2. The term "housing company" shall mean a housing company organized

pursuant to article two of the private housing finance law; and

3. The term "outstanding notes" shall mean revenue anticipation notes,

tax anticipation notes and bond anticipation notes of the city of New

York issued prior to November fourteenth, nineteen hundred seventy-five

and presented for payment prior to January first, nineteen hundred

seventy-eight, other than (i) notes paid by such city prior to the

effective date of this paragraph, (ii) notes held by the municipal

assistance corporation for the city of New York (including but not

limited to notes exchanged for bonds of such corporation), and (iii)

notes with respect to which the holders thereof executed agreements to

postpone or withhold demand for payment or enforcement of such notes.