New York Laws
Article 6 - Urban Redevelopment Corporations
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.