N.Y. Public Authorities Law § 2428-a: Development corporation credit support account as source of development corporation credit support

§ 2428-a. Development corporation credit support account as source of

development corporation credit support. 1. The agency is authorized,

subject to the provisions of this title, to provide the development

corporation credit support account as a source or potential source of

payment of development corporation credit support. The agency may

provide the development corporation credit support account as a source

or potential source of payment of all or any development corporation

credit support upon the terms (which shall include a requirement to

repay to the mortgage insurance fund any amounts transferred to the

corporation or the convention center development fund) and under the

conditions it shall set forth in the applicable contracts between the

agency and such other parties (including the corporation) as the agency

shall deem appropriate with respect to the applicable reserve and

financial support funds which are to receive the benefit of such

development corporation credit support. The agency may not execute a

contract to provide development corporation credit support if, at the

time such contract is executed, such execution would impair any

then-existing credit rating of the single family pool insurance account

or the project pool insurance account.

2. For purposes of determining the mortgage insurance fund requirement

with respect to the development corporation credit support account, the

board of directors of the agency, by a vote of a majority of all of its

members, shall approve or authorize the applicable contracts which shall

establish the amount of the required or permitted deposits in each

reserve and financial support fund (which may be determined by reference

to percentages of such required or permitted amounts) for which the

development corporation credit support account is or will be a source or

potential source of development corporation credit support. Such amounts

(or percentages) may be different for each reserve and financial support

fund.

3. For purposes of section twenty-four hundred eleven of this title, a

development corporation credit support agreement shall be deemed and

regarded as a mortgage insurance contract for the benefit of parties to

such agreement.