New York Laws
Part 1
2404 - Powers of the Agency.

(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, 2025
* (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, 2025
(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.