(b) The aggregate amount of each such participation loan shall not
exceed the cost of the rehabilitation, conversion or construction, plus
the costs of any or all undertakings necessary for the planning,
financing, acquisition, satisfaction of tax liens and other municipal
liens and encumbrances, construction, equipment and development in
connection therewith, provided that, if any portion of such loan is used
for the cost of acquisition or for refinancing, the amount of a
municipality's portion of such loan shall not exceed one and one-half
times the cost of rehabilitation, conversion or construction.
(c) The amount of any such loan, together with the amount of all prior
liens and encumbrances, shall not exceed, except in the case of a loan
made to a non-profit company, a mutual company, or a housing development
fund company, ninety per centum of value unless the agency makes a
written determination that the owner has insufficient resources to pay
for the remaining ten per centum of value, in which case such loan shall
not exceed ninety-five per centum of value. The amount of any such loan,
together with the amount of all prior liens and encumbrances, made to a
non-profit company, a mutual company, or a housing development fund
company shall not exceed value, provided that when after completion of
such rehabilitation, conversion or construction, such multiple dwelling
is, or is to be operated, exclusively for the benefit of persons and
families who are entitled to occupancy by reason of ownership of stock
in the corporate owners, such loan shall not exceed ninety-eight per
centum of value unless the agency makes a written determination that the
owner has insufficient resources to pay for the remaining two per centum
of value, in which case such loan shall not exceed value.
4. Each such bond or note and mortgage or bonds or notes and mortgages
shall be repaid over or within a period of thirty years in such manner
as may be provided in such bond or note and mortgage or bonds or notes
and mortgages but in no case shall the term of such loan exceed the
probable life of the multiple dwelling which is hereby determined to be
thirty years. Such bond or note and mortgage or bonds or notes and
mortgages and any contract in connection with such permanent and
temporary loans may contain such other terms and provisions not
inconsistent with the provisions of this article as the local
legislative body or the agency may deem necessary or desirable to secure
repayment of the loan, the interest thereon and other charges in
connection therewith and to carry out the purposes and provisions of
this article.
5. The bond or note or the bonds or notes issued by the owner and the
mortgage or mortgages relating thereto may authorize such owner, with
the consent of the agency and the private investor, to prepay the
principal of the loan subject to such terms and conditions as therein
provided. Such bond or note and mortgage or bonds or notes and mortgages
may contain such other clauses and provisions as the agency shall
require.
6. Where a municipality joins with one or more private investors in
making a participation loan secured by a single participating mortgage
or by separate mortgages, the agency may make provision, either in the
mortgage or mortgages or by separate agreement, for the performances of
such services as are generally performed by a banking institution or
insurance company which itself owns and holds a mortgage or by a trustee
under a trust mortgage and for the imposition of reasonable fees for
financing, regulation, supervision and audit of such multiple dwelling.
The agency is hereby authorized to act as trustee or to consent to the
appointment of a banking institution or any subsidiary thereof to act in
such capacity and to provide such services as are generally performed by
any such bank itself or its subsidiary owning and holding such a
mortgage.
7. Banking organizations and insurance companies may exercise such
power only to the extent and on such conditions as may be authorized by
the state superintendent of financial services.
8. Notwithstanding the provisions of any other law, a savings bank may
invest to an amount not exceeding ninety per centum of the value of any
real property when jointly participating or investing in a loan pursuant
to the provisions of this article or not exceeding ninety-five per
centum of the value of any real property when jointly participating or
investing in a loan pursuant to the provisions of article fourteen of
this chapter.