New York Laws
Part 2
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.