N.Y. Private Housing Finance Law § 218: Mortgages

§ 218. Mortgages. 1. Any redevelopment corporation may borrow funds

and secure the repayment thereof by mortgage. Every such mortgage shall

contain reasonable amortization provisions and shall be a lien upon no

other real property except that forming the whole or a part of a single

development area.

2. Certificates, bonds and notes, or part interests therein, or any

part of an issue thereof, which are issued by a redevelopment

corporation and secured by a first mortgage on the real property of the

redevelopment corporation, or any part thereof, shall be securities in

which all the following persons, partnerships or corporations and public

bodies or public officers may legally invest the funds within their

control, provided that the principal amount thereof shall not exceed the

limits, if any, imposed by law for such investments by the person,

partnership, corporation, public body or public officer making the same:

every executor, administrator, trustee, guardian, committee, conservator

or other person or corporation holding trust funds or acting in a

fiduciary capacity; the state, its subdivisions, cities, all other

public bodies, all public officers; persons, partnerships and

corporations organized under or subject to the provisions of the banking

law (including savings banks, savings and loan associations, trust

companies, bankers and private banking corporations); the superintendent

of financial services as conservator, liquidator or rehabilitator of any

such person, partnership or corporation; persons, partnerships or

corporations organized under or subject to the provisions of the

insurance law; and the superintendent of financial services as

conservator, liquidator or rehabilitator of any such person, partnership

or corporation.

3. Any mortgage on the real property in a development area, or any

part thereof, may create a first lien, or a second or other junior lien,

upon such real property.

4. The limits as to principal amount secured by mortgage referred to

in paragraph two of this section two hundred eighteen shall not apply to

certificates, bonds and notes, or part interests therein, or any part of

an issue thereof, which are secured by first mortgage on real property

in a development area, or any part thereof, which the federal housing

administrator has insured or has made a commitment to insure under the

national housing act. Any such person, partnership, corporation, public

body or public officer may receive and hold any debentures, certificates

or other instruments issued or delivered by the federal housing

administrator, pursuant to the national housing act, in compliance with

the contract of insurance of a mortgage on real property in the

development area, or any part thereof.