N.Y. Public Authorities Law § 2404: Powers of the agency

§ 2404. Powers of the agency. Except as otherwise limited by this

title, the agency shall have power:

(1) To sue and be sued;

(2) To have a seal and alter the same at pleasure;

(3) To make and execute contracts and all other instruments necessary

or convenient for the exercise of its powers and functions under this

title;

(4) To make and alter by-laws for its organization and internal

management;

(5) To acquire, hold and dispose of real and personal property for its

corporate purposes;

(6) To appoint officers, agents and employees, prescribe their duties

and qualifications and fix their compensation;

* (7) To (a) acquire, and contract to acquire, existing mortgages

owned by banks and to enter into advance commitments to banks for the

purchase of said mortgages, all subject to the provisions of section

twenty-four hundred five of this part, (b) acquire, and contract to

acquire, forward commitment mortgages made by banks and to enter into

advance commitments to banks for the purchase of said mortgages, all

subject to the provisions of section twenty-four hundred five-b of this

part, (c) acquire, and contract to acquire, new housing loans made by

banks and to enter into advance commitments to banks for the purchase of

said housing loans, all subject to the provisions of section twenty-four

hundred five-c of this part, (d) to acquire and contract to acquire

mortgages pursuant to section twenty-four hundred five-d of this title,

and (e) acquire, and contract to acquire, new construction mortgage

loans for single-family modular or manufactured housing purchased and

sited on land owned by banks and to enter into advance commitments to

banks for the purchase of such mortgages, all subject to the provisions

of section twenty-four hundred five-b of this part;

* NB Effective until July 23, 2027

* (7) To acquire, and contract to acquire, mortgages owned by banks

and to enter into advance commitments to banks for the purchase of said

mortgages, all subject to the provisions of section two thousand four

hundred five of this title;

* NB Effective July 23, 2027

(8) Subject to any agreement with bondholders or noteholders, to

invest moneys of the agency not required for immediate use, including

proceeds from the sale of any bonds or notes, in obligations of the

state or the United States of America or obligations the principal and

interest of which are guaranteed by the state or the United States of

America or in certificates of deposit or time deposits secured in such

manner as the agency shall determine, or in obligations of any agency of

the state or the United States of America which may from time to time be

legally purchased by savings banks within the state as an investment of

funds belonging to them or in their control, or in obligations of the

Federal National Mortgage Association.

(9) Subject to any agreement with bondholders or noteholders, to sell

any mortgages or other personal property acquired by the agency at

public or private sale and at such price or prices as it shall

determine, provided, however, that a private sale shall be limited to an

agency of the federal government, the federal national mortgage

association, or a sale of a mortgage to a bank from which it was

originally purchased. If the agency determines to sell mortgages at

public sale, a notice of such sale shall be published at least once at

least five days prior to the date of such sale in a financial newspaper

or journal published in the city of New York;

(10) Subject to any agreement with bondholders or noteholders, to

purchase bonds or notes of the agency, which shall thereupon be

cancelled, at a price not exceeding (a) if the bonds or notes are then

redeemable, the redemption price then applicable plus accrued interest

to the next interest payment date thereon, or (b) if the bonds or notes

are not then redeemable, the redemption price applicable on the first

date after such purchase upon which the notes or bonds become subject to

redemption at the option of the agency plus accrued interest to said

date;

(11) To borrow money and to issue negotiable bonds and notes and to

provide for the rights of the holders thereof;

(12) To engage the services of private consultants on a contract basis

for rendering professional and technical assistance and advice;

(13) To make and execute contracts for the servicing of mortgages

acquired by the agency pursuant to this title, and to pay the reasonable

value of services rendered to the agency pursuant to those contracts;

(14) To renegotiate, refinance or foreclose, or contract for the

foreclosure of, any mortgage in default; to waive any default or consent

to the modification of the terms of any mortgage; to commence any action

to protect or enforce any right conferred upon it by any law, mortgage,

contract or other agreement, and to bid for and purchase such property

at any foreclosure or at any other sale, or acquire or take possession

of any such property; to operate, manage, lease, dispose of, and

otherwise deal with such property, in such manner as would further the

purposes of the agency, subject to any agreement with its bondholders or

noteholders;

(15) To contract for and to accept any gifts or grants or loans of

funds or property or financial or other aid in any form from the federal

government or any agency or instrumentality thereof, or from the state

or any agency or instrumentality thereof, or from any other source and

to comply, subject to the provisions of this title, with the terms and

conditions thereof;

(16) To enter into agreements, in its discretion, to pay annual sums

in lieu of taxes to any municipality or taxing district of the state in

respect of any real property which is owned by the agency and located in

such municipality or taxing district, provided, however, that the amount

so paid for any year upon such property shall not exceed the sum last

paid as taxes on such property to such municipality or taxing district

prior to the time of its acquisition by the agency;

(17) Make and contract to make loans and purchase and contract to

purchase loans made by banks, pension funds, credit unions, colleges or

vocational institutions, all subject to the provisions of section

twenty-four hundred five-a of this title;

(18) Procure or require the procurement of a policy or policies of

group life insurance to insure repayment of loans made or acquired by

the agency in event of the death of the borrower;

(19) Subject to provisions of section two thousand four hundred five-a

and any agreement with bondholders or noteholders, renegotiate or

refinance any loan in default; waive any default or consent to the

modification of the terms of any loan; forgive all or part of any

indebtedness; and commence any action or proceeding to protect or

enforce any right conferred upon it by law, loan agreement, contract or

other agreement;

(20) Prescribe standards and criteria for the granting of applications

for loans and loan purchases, insofar as such standards and criteria are

not inconsistent with this title;

(21) Make and execute contracts for the administration or servicing of

any loan made or acquired by the agency and pay the reasonable value of

services rendered to the agency pursuant to such contracts;

(22) Subject to any agreement with bondholders or noteholders, sell

any loans made or acquired by the agency at public or private sale and

at such price or prices and on such terms as the agency shall determine;

(23) Establish, revise from time to time, charge and collect such

premiums or fees in connection with loans and purchases, as the agency

shall determine.

(23-a) To and shall develop, promote and ensure that, where possible,

minority groups which traditionally have been disadvantaged, and women

are afforded equal opportunity for contracts in connection with

development and construction contracts for developments, facilities and

projects financed by the issuance of bonds, notes and other obligations

of the agency.

(24) To establish and administer a mortgage credit certificate

program, as defined in the internal revenue code of the United States,

in conformity with that and other applicable provisions of such code and

any regulations issued thereunder by the United States department of the

treasury, to issue mortgage credit certificates pursuant to such

program, and to make all elections and determinations relating to such

program, including without limitation, an election not to issue all or

any portion of the private activity bond volume allocated to the agency.

(25) In connection with the issuance of bonds for the purpose of

furthering forward commitment mortgage programs described in section

twenty-four hundred five-b of this title, where the mortgagor is to

receive mortgage credit certificates issued by the agency, to covenant

and consent that the interest on any of its bonds shall be includible,

under the United States Internal Revenue Code of nineteen hundred

eighty-six, as amended or any subsequent corresponding internal revenue

law of the United States, in the gross income of the holders of the

bonds to the same extent and in the same manner that the interest on

bills, bonds, notes or other obligations of the United States is

includible in the gross income of the holders thereof under said

Internal Revenue Code or any such subsequent law.

(26) Participation in housing programs. Subject to any agreement with

bondholders and noteholders, the agency is hereby authorized, at the

direction of the director of the budget, to transfer to the state

comptroller for deposit in the New York state infrastructure trust fund

to the credit of the housing reserve account established by section

eighty-eight of the state finance law, as an expense of the agency, any

payment, less applicable expenses, received on account of interest and

principal on any mortgages owned by the agency pursuant to the agency

additional mortgage loan fund established pursuant to the homeowner

mortgage revenue bonds general resolution and not pledged (i) to pay

principal of and interest on bonds and notes pursuant to any resolution

or trust indenture under which bonds or notes of the agency are

authorized to be issued, (ii) to the payment of losses upon the

foreclosure, default or delinquency of mortgage loans pledged under any

resolution or trust indenture under which bonds or notes of the agency

are authorized to be issued and (iii) to pay the reimbursement

obligation of the agency to any providers of credit enhancement with

respect to (i) or (ii) above in connection with any resolution. Such

transfer shall be made in such amounts and at such times as specified in

an agreement executed between the agency and the director of the budget,

provided, however, that no further transfers for deposit shall be made

to such housing reserve account from the agency after the sum of (i) the

cumulative total of such deposits and (ii) the payments of the aggregate

reserve amount of the agency made pursuant to section seven of the

chapter of the laws of nineteen hundred eighty-eight adding this

subdivision, equals eighty million dollars.

(27) Additional participation in housing or other state programs. (a)

Subject to any agreement with bondholders and noteholders, the agency is

hereby authorized, at the direction of the director of the budget, to

transfer to the state comptroller for deposit in such fund or account as

provided in such direction as an expense of the agency, an amount not to

exceed twenty-two million dollars, provided that such amount is made

available to the agency directly or indirectly pursuant to (i) the

agency's defeasance of its home mortgage revenue bonds, series one

through four and/or (ii) the issuance of bonds or notes, proceeds of

which will be transferred to the state and used for the purpose of state

programs, which bonds or notes shall be payable in whole or in part from

assets made available to the agency pursuant to such defeasance. Such

transfer shall be made in such amounts and at such times as specified in

an agreement or agreements executed between the agency and the director

of the budget, with copies to be provided to the chairman of the

assembly ways and means committee and the chairman of the senate finance

committee.

(b) The provisions of section seventeen of the public officers law

shall apply to members of the board of directors, officers, employees

and agents of the agency in connection with any and all claims, demands,

suits, actions or proceedings which may be made or brought against any

of them arising out of any determinations made or actions taken or

omitted to be taken in compliance with any undertakings under or

pursuant to the terms of this subdivision. The provisions of this

paragraph shall be in addition to and shall not supplant any

indemnification or other benefits heretofore or hereafter conferred upon

members of the board of directors, officers, employees and agents of the

agency, by action of such agency or otherwise.

(c) The state shall and hereby agrees to and does indemnify and save

harmless the agency from and against any and all liability, loss,

damage, interest, judgments and liens growing out of, and any and all

costs and expenses (including, but not limited to, counsel fees and

disbursements) arising out of or incurred in connection with any and all

claims, demands, suits, actions or proceedings which may be made or

brought against it arising out of any determinations made or actions

taken or omitted to be taken or compliance with any obligations under or

pursuant to the terms of this subdivision; except for fraudulent acts,

actions taken in bad faith, gross negligence or willful misconduct.

(28) To establish and administer a lease-purchase program or programs

in accordance with section twenty-four hundred five-d of this title.

(29) To pay or reimburse any federal recapture income tax payable by a

borrower in connection with a mortgage loan;

(30) To make loans secured by mortgages secured by a second lien on a

fee simple or leasehold estate in real property located in the state and

improved by a residential structure, whether or not insured or

guaranteed by the United States of America or any agency thereof,

provided however, that the loan made by the agency and secured by such

second lien is made at the same time as a first lien securing a mortgage

loan purchased by the agency pursuant to its programs or by a government

sponsored enterprise.

(31) To administer the fund and operate the program set forth in

section twenty-four hundred five-f of this part.

(32) To form a subsidiary to be known as "the state of New York

mortgage agency community restoration fund" for the purpose of using

funds available to the agency under the program set forth in section

twenty-four hundred five-f of this part and of owning and holding any

residences, mortgages and mortgage notes acquired by the agency, and to

otherwise carry out the purposes of section twenty-four hundred five-f

of this part. Such subsidiary created pursuant to this subdivision may

exercise and perform one or more of the purposes, powers, duties,

functions, rights and responsibilities of the agency, other than the

issuance of indebtedness, in connection with real and personal property

with respect to which the agency holds or held a mortgage, security

interest or other collateral. Such subsidiary shall have the power to

own, acquire and dispose of real property, and to acquire, own and hold,

service and dispose of mortgages and mortgage notes. It shall have the

right to foreclose or contract to foreclose on any mortgage acquired by

such subsidiary, under the laws of the state, to commence any action to

protect or to enforce the rights conveyed to it by law, contract or any

agreement and to dispose of any such property and to otherwise proceed

with any action as may be necessary to protect the interests of said

subsidiary. Notwithstanding any other provision of law to the contrary,

the transfer of title to such subsidiary or any other actions taken by

the agency or such subsidiary to enforce the agency's rights under the

mortgage, security interest or other collateral interest or to protect,

acquire, own, manage or dispose of the property shall be deemed to be a

corporate purpose of the agency granted to it to carry out the purposes

of section twenty-four hundred five-f of this part. Such subsidiary

shall be established in the form of a public benefit corporation by

executing and filing with the secretary of state a certificate of

incorporation which shall identify the agency as the entity organizing

such subsidiary and set forth the name of such subsidiary public benefit

corporation, its duration, the location of its principal office and its

corporate purposes as provided in this subdivision and which certificate

may be amended from time to time by the filing of amendments thereto

with the secretary of state, provided that the subsidiary created

hereunder shall cease to exist at such time as the program authorized

under section twenty-four hundred five-f of this part is no longer in

existence. Such subsidiary shall be organized as a public benefit

corporation, shall be a body politic and corporate, and shall have all

the privileges, immunities, tax exemptions and other exemptions of the

agency. The members of such subsidiary shall be the same as the members

of the agency.

(33) To do any and all things necessary or convenient to carry out its

purposes and exercise the powers given and granted in this title.