N.Y. Private Housing Finance Law § 57: Insured mortgage reserve fund

§ 57. Insured mortgage reserve fund. 1. The agency shall create and

establish a special fund, to be known as the insured mortgage reserve

fund, and shall pay into such fund all monies appropriated and made

available by the state for the purposes of such fund and any other

monies from any other source or sources available therefor. The monies

held in such fund shall be used (1) to meet the agency's obligations

under an agreement with the federal government pursuant to subdivision

twenty-eight of section forty-four of this article, (2) to meet the

agency's obligations to pay the principal of and interest on notes

issued for the purpose of making a mortgage loan to a company which

mortgage loan or a subsequent mortgage loan to such company has been

insured by the federal government, only however to the extent that all

other revenues of the agency, including the proceeds of any sale,

assignment or other disposition of a mortgage loan insured by the

federal government, available for such purposes are not sufficient to

meet such obligations of the agency, (3) to establish escrow accounts as

may be required by the federal government as a condition for the

issuance of mortgage insurance, (4) to pay for installation of such life

safety devices as may be required by the federal government which

devices are in addition to and not in substitution for any requirement

heretofore imposed on the company, and (5) to pay closing costs arising

out of the company's obtaining mortgage insurance from the federal

government. Any income or interest earned by, or increment to the

insured mortgage reserve fund may be used for authorized purposes

including, but not limited to, the addition of such income or interest

earned, or increment to the monies held in such fund for the purposes

herein provided, the repayment of appropriation expenditures made to the

credit of such fund, or to secure the payment of the principal of and

interest on notes or revenue housing bonds. Any portion of the monies

held in such fund shall, if the federal government so requires, be

segregated from any other portion thereof and applied solely to meet the

agency's obligations under any agreement made pursuant to subdivision

twenty-eight of section forty-four, provided that the amount so

segregated shall not exceed the maximum obligation under any such

contract or contracts.