N.Y. Private Housing Finance Law § 407: Participation by certain corporations and individuals

§ 407. Participation by certain corporations and individuals. 1. One

or more banking institutions, foundations, labor unions, employers'

associations, veterans' organizations, insurance companies, trustees,

fiduciaries or any combination of the foregoing, shall have the power to

participate and invest, singly or jointly, with a municipality or the

New York city housing development corporation in a bond or note and

single participating mortgage, or in separate bonds or notes and

mortgages pursuant to and in accordance with the provisions of this

article. As used in this section, the terms "trustees" and "fiduciaries"

shall include any fiduciary or fiduciaries holding funds for investment.

2. Banking institutions and insurance companies may exercise such

power on such conditions as may be prescribed or authorized by the

superintendent of financial services.

3. Where one or more banking institutions, foundations, labor unions,

employers' associations, veterans' organizations, insurance companies,

trustees or fiduciaries participates and invests with a municipality or

the New York city housing development corporation as provided in

subdivision one, the interest of each need not be equal as to priority

of lien, interest rate, time or rate of amortization or otherwise.

4. Where a municipality joins with one or more corporations

organizations or individuals of the kind hereinabove mentioned in making

a loan secured by a single participating mortgage or by separate

mortgages, the municipality may make provision, either in the mortgage

or mortgages or by separate agreement, for the performance of such

services as are generally performed by a banking institution or

insurance company which itself owns and holds a mortgage or by a trustee

under a trust mortgage. The agency is hereby authorized to act as

trustee or to consent to the appointment of a banking institution to act

in such capacity.