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New York NYS Project Finance Agency Act7/75

Chapter 7 of the laws of 1975
                               NEW YORK STATE
                         PROJECT FINANCE AGENCY ACT
   Section 1.   Short title.
           2.   Declaration of policy and statement of purposes.
           3.   Definitions.
           4.   New York state project finance agency.
           5.   Powers of the agency.
           6.   Bonds and notes of the agency.
           7.   Reserve funds and appropriations.
           8.   Bonds and notes as legal investments.
           9.   Exemption from taxation of property and income.
           10.  Exemption from taxation of notes and bonds.
           11.  Agreement with the state.
           12.  State's right to require redemption of bonds.
           13.  Remedies of noteholders and bondholders.
           14.  Monies of the agency.
           15.  Supervision of projects.
           16.  Assistance  by  state  officers,  departments,  boards and
                  commissions.
           17.  Annual report.
           18.  Maximum authorization.
           19.  Partial invalidity.
           20.  Inconsistent provisions in other laws superseded.
           21.  Certain special proceedings.
           21-a.Actions against corporation.
           22.  Construction.
            § 1. Short title.
            This act may be cited as the "New York state  project  finance
          agency act."
            § 2. Declaration of policy and statement of purposes.
            The  legislature  has  heretofore  created  the New York state
          urban development corporation to engage in the  construction  of
          projects   to   fulfill  essential  public  purposes  which  are
          necessary for the health, safety and welfare of  the  people  of
          this  state,  as  found by the legislature in section two of the
          New York state urban development corporation act.
            In order to assist in the completion of projects to which  the
          corporation  is  contractually  obligated,  to  provide  for the
          orderly marketing of obligations to finance such completion, and
          to provide for the  orderly  payment  of  debt  service  of  the
          corporation,  it  is  hereby  found and declared that a separate
          corporate governmental agency, to be  known  as  the  "New  York
          state  project  finance  agency,"  should be created as a single
          purpose agency to provide long-term financing to  the  New  York
          state  urban  development  corporation,  by acquiring funds from
          appropriations by the state and  from  sale  of  its  notes  and
          bonds.
            It  is  hereby  declared  that the aforementioned purposes are
          public uses and public purposes for which public  money  may  be
          loaned  and  tax  exemptions  granted,  and  that the powers and
          duties  of  the  New  York  state  project  finance  agency,  as
          hereinafter  prescribed are necessary and proper for the purpose
          of achieving the ends here recited.
            § 3. Definitions.
            As used in  this  act,  unless  a  different  meaning  clearly
          appears from the context:

            1.  "Agency"  shall  mean  the  corporate  governmental agency
          created by section four of this act.
            2.   "Bonds"   and   "notes"   shall  mean  bonds  and  notes,
          respectively, issued by the agency pursuant to this act.
            3. "Commissioner" shall mean the commissioner of  housing  and
          community renewal of the state.
            4. "Comptroller" shall mean the comptroller of the state.
            5.   "Corporation"   shall  mean  the  New  York  state  urban
          development corporation.
            6. "Corporation first mortgage" shall mean a first mortgage on
          a corporation project securing a loan by the corporation.
            7. "Corporation project" shall mean a residential  project  as
          defined in the New York state urban development corporation act.
            8.  "Eligible  loan"  shall  mean  a loan by the agency to the
          corporation, approved by the commissioner as  provided  in  this
          act,  evidenced  by  the  issuance to the agency of notes of the
          corporation  (which  for  this  purpose  may  be  negotiable  or
          non-negotiable and may have any term not exceeding fifty years),
          and  secured by the pledge and assignment of a corporation first
          mortgage and any contract or  arrangement  for  the  payment  of
          subsidy to the corporation on account of the corporation project
          securing  such mortgage, as well as by the pledge and assignment
          of such other existing and future assets  and  revenues  of  the
          corporation  and  the receipts to be derived therefrom as may be
          determined by the commissioner to be required in order  for  the
          agency to obtain borrowings to finance such eligible loan.
            9.  "Eligible  purchase" shall mean the purchase by the agency
          from the corporation of a corporation  first  mortgage  and  the
          assignment  to the agency of any contract or arrangement for the
          payment  of  subsidy  to  the  corporation  on  account  of  the
          corporation project securing such mortgage.
            § 4. New York state project finance agency.
            1.  There is hereby created the New York state project finance
          agency.  The agency shall be  a  corporate  governmental  agency
          constituting  a public benefit corporation. Its membership shall
          consist  of  the  commissioner  of  taxation  and  finance,  the
          commissioner,  the  director  of the budget, the chairman of the
          New York state housing finance agency and three  members  to  be
          appointed  by  the  governor  with the advice and consent of the
          senate. The members first appointed by the governor shall  serve
          for  terms  ending  two,  four and six years, respectively, from
          January  first  next   succeeding   their   appointment.   Their
          successors  shall  serve  for  terms of six years each.  Members
          shall continue  in  office  until  their  successors  have  been
          appointed  and  have  qualified.  In  the  event  of  a  vacancy
          occurring in the office of any member by death,  resignation  or
          otherwise,  the  governor  shall  appoint  a  successor with the
          advice and consent of the senate to serve for the balance of the
          unexpired term. The provisions of  section  thirty-nine  of  the
          public officers law shall apply to such members. The chairman of
          the  New  York  state  housing  finance  agency  shall  serve as
          chairman of the agency.
            2. The powers of the agency shall be vested in  and  exercised
          by a majority of the members then in office. The commissioner of
          taxation  and finance, the commissioner, and the director of the
          budget  each  may  appoint  a  person  from   their   respective
          department,   office  or  division  to  represent  such  member,
          respectively, at all meetings of  the  agency  from  which  such

          member  may  be  absent.  Any  such representative so designated
          shall have the power to attend and to vote at any meeting of the
          agency  from  which  the  member  so  designating   him   as   a
          representative  is  absent  with the same force and effect as if
          the  member  designating  him  were  present  and  voting.  Such
          designation  shall  be by written notice filed with the chairman
          of the agency by each of the said members.  The  designation  of
          such persons shall continue until revoked at any time by written
          notice  to  the  chairman  by  the  respective member making the
          designation. Such designation shall not be deemed to  limit  the
          power of the appointing member to attend and vote at any meeting
          of the agency.
            3.   The   members   shall   serve  without  salary  or  other
          compensation, but each member shall be entitled to reimbursement
          for actual and necessary expenses incurred in the performance of
          his or her official duties.
            4. Such members, except as  otherwise  provided  by  law,  may
          engage  in  private  employment, or in a profession or business.
          The members, officers and  employees  of  the  agency  shall  be
          deemed  to  be  state  officers or employees for the purposes of
          sections seventy-three and seventy-four of the  public  officers
          law. Notwithstanding the provisions of the preceding sentence or
          of any other law, any state instrumentality (including any state
          agency,  trust fund or public benefit corporation other than the
          agency) may purchase  from,  sell  to,  borrow  from,  loan  to,
          contract  with  or  otherwise  deal with any corporation, trust,
          association, partnership or other entity in which any member  of
          the agency has a financial interest, direct or indirect, and the
          agency  may  engage in any such transaction with any other state
          instrumentality  with  which  any  member  of  the   agency   is
          affiliated  as  a state officer or employee, provided that prior
          to such transaction such interest or affiliation is disclosed to
          such other state instrumentality and is disclosed in the minutes
          of the agency, and provided further that no member  having  such
          an  affiliation  (except  such  an affiliation with the New York
          state housing finance agency) shall participate in any  decision
          of the agency affecting such transaction.
            5.  The  chief  executive  officer  of the agency shall be the
          executive director of the New York state housing finance agency.
            6.  Notwithstanding  any  inconsistent  provisions   of   law,
          general,  special  or local, no officer or employee of the state
          or of any  civil  division  thereof  shall  be  deemed  to  have
          forfeited or shall forfeit his office or employment by reason of
          his  acceptance  of  membership  on  the  agency created by this
          section; provided, however, that a member who holds  such  other
          public   office   or  employment  shall  receive  no  additional
          compensation or allowance for services rendered pursuant to this
          act, but shall be entitled to reimbursement for his  actual  and
          necessary expenses incurred in the performance of such services.
            7.  The  governor  may  remove any member appointed by him for
          inefficiency, neglect of duty  or  misconduct  in  office  after
          giving  him a copy of the charges against him and an opportunity
          to be heard, in person or by counsel in his  defense,  upon  not
          less than ten days' notice. If any such member shall be removed,
          the governor shall file in the office of the department of state
          a complete statement of charges made against such member and his
          findings  thereon,  together  with  a  complete  record  of  the
          proceeding.

            8. The agency and its corporate existence shall  terminate  on
          the  first  date  subsequent  to  the  thirtieth  day  of April,
          nineteen hundred  seventy-seven,  which  is  thirty  days  after
          payment  in  full  of  all its bonds, notes or other obligations
          (other  than  obligations  for repayment of appropriations), and
          may be sooner terminated by law, provided, however, that no such
          law shall take effect so long as the agency  shall  have  bonds,
          notes or other obligations (other than obligations for repayment
          of  appropriations)  outstanding,  unless adequate provision has
          been made for the  payment  thereof.  Upon  termination  of  the
          existence  of  the  agency,  all its rights and properties shall
          pass to and be vested in the corporation as  transferee  of  the
          agency's    obligations   for   repayment   of   appropriations,
          theretofore transferred by the state to the corporation pursuant
          to a chapter of the laws of nineteen hundred  seventy-five,  and
          any remaining obligations of the agency for such repayment shall
          be cancelled.
            9.  A  majority  of  the  members of the agency then in office
          shall constitute a quorum for the transaction of any business or
          the exercise of any power or function of the agency. The  agency
          may  delegate  to  one  or more of its members, or its officers,
          agents or employees, such powers  and  duties  as  it  may  deem
          proper.
            10.  The  state  shall  save harmless and indemnify directors,
          officers  and  employees  of  the  agency  pursuant  to  section
          seventeen  of the public officers law against any claim, demand,
          suit or judgment arising by reason of any act or omission to act
          by such director, officer or employee occurring in the discharge
          of his duties and within the scope of his service on  behalf  of
          the  agency. In the event of any claim, demand, suit or judgment
          based on allegations that financial loss was  sustained  by  any
          person  in  connection  with  the  acquisition,  disposition  or
          holding of securities or other obligations  of  the  agency  (or
          those  of  any  other  public corporation if such loss allegedly
          resulted from its dealing with the agency), a director,  officer
          or   employee   of  the  agency  shall  be  saved  harmless  and
          indemnified, notwithstanding the limitations of subdivision  one
          of  section  seventeen  of  the public officers law, unless such
          individual is found by a final  judicial  determination  not  to
          have  acted,  in  good  faith, for a purpose which he reasonably
          believed to be in the best interests of the  agency  or  not  to
          have  had  reasonable  cause  to  believe  that  his conduct was
          lawful.
            § 5. Powers of the agency.
            Except as otherwise limited by this act  and  subject  to  the
          provisions  of any contract with noteholders or bondholders, the
          agency shall have power:
            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 act;
            4. To make and alter by-laws for its organization and internal
          management;
            5. To acquire, hold and dispose of real or  personal  property
          (whether tangible or intangible) for its corporate purposes;
            6.  To appoint officers, agents and employees, prescribe their
          duties and qualifications and fix their compensation;

            7. To borrow money  and  issue  negotiable  or  non-negotiable
          notes,  bonds or other obligations and to provide for the rights
          of the holders thereof, and as security for the payment  of  the
          principal  of  and  interest on any notes or bonds so issued and
          any agreements made in connection therewith, to assign or pledge
          any  or  all  existing and future assets or revenues owned by or
          assigned or pledged to the agency and the receipts to be derived
          therefrom;
            8. To accept appropriations made to it by  the  state  and  to
          apply  the  proceeds  of  such appropriations, together with the
          proceeds of  borrowings  by  the  agency  and  any  other  funds
          available  to  it,  for  the purposes set forth in this act, and
          from time to time to enter into a repayment agreement  with  the
          state  in  respect  of  such  appropriations  on  such terms and
          conditions  as  the  director  of  the  budget  determines   are
          appropriate  for  the  repayment of any and all outstanding sums
          then owed in such respect by the agency and each such  agreement
          shall  supersede  all  prior such agreements, provided that such
          repayment agreements shall require payments  thereunder  in  any
          fiscal  year  of the agency only to the extent that the agency's
          revenues and receipts  from  operations  (excluding  borrowings,
          proceeds  of  sales  of  assets  and  appropriations) during its
          preceding fiscal year shall exceed the aggregate amount  payable
          by the agency during such preceding year for expenses (including
          reasonable reserves for contingencies) and debt service (without
          regard to any refunding of debt) plus the amount of any eligible
          purchases and eligible loans made during either such year out of
          any balance of such revenues and receipts from operations;
            9.  To  invest  any funds held in reserve or sinking funds, or
          any funds not required for immediate use or disbursement, at the
          discretion of the agency, in obligations of the state or federal
          government, obligations the principal and interest of which  are
          guaranteed by the state or federal government, or obligations of
          agencies of the federal government, or special time deposits in,
          or  certificates  of  deposit issued by, a bank or trust company
          authorized to do business in this state and secured by a  pledge
          of obligations of the United States of America or obligations of
          the state or obligations the principal and interest of which are
          guaranteed  by the state or federal government or obligations of
          agencies of the  federal  government,  provided  that  any  such
          investment  is  one  which  may  from  time  to  time be legally
          purchased by savings banks of the state as investments of  funds
          belonging to them or in their control;
            10.  To  make eligible purchases at such purchase price as the
          commissioner shall approve (including  a  purchase  price  at  a
          premium  over the par value of the corporation first mortgage to
          be purchased) which shall be determined on the basis  that  such
          purchase price is to be amortized over the remaining term of the
          corporation   first  mortgage  at  the  corporation's  estimated
          average cost of borrowing (as determined by the commissioner  in
          accordance  with  any  accepted  method)  utilizing  the  annual
          payments of principal and interest called for by such  mortgage,
          and  otherwise  on  such  terms and conditions, not inconsistent
          with this act, as are satisfactory to the agency; provided  that
          no  eligible purchase shall be made by the agency unless, except
          as  otherwise  permitted  by  contract   with   bondholders   or
          noteholders, the commissioner finds that

            (a)  the  mortgage  purchased is (or in the case of a purchase
          not involving the use of funds acquired through the issuance  of
          bonds  or  notes of the agency, can reasonably be anticipated to
          become) a valid first mortgage lien  on  a  corporation  project
          free  and  clear of all other liens and encumbrances which would
          materially affect  the  value  or  usefulness  of  the  property
          secured  thereby  (or  that  arrangements  satisfactory  to  the
          commissioner for the discharge of such  liens  and  encumbrances
          have  been  made) and that such first mortgage has been executed
          and recorded in accordance with  the  requirements  of  existing
          laws; and
            (b)  the  estimated  net revenues of such corporation project,
          after provision has been made to cover  all  probable  costs  of
          operation  and  maintenance,  of  fixed  charges  and  operating
          reserves  and  depreciation  reserves,  if  any,  including  any
          subsidy payments attributable to such corporation project, shall
          be  sufficient to pay the estimated principal of and interest on
          all bonds or notes of the agency issued or to  be  issued  which
          are  allocated  or  re-allocated  by  the  commissioner  to  the
          financing of the purchase of such mortgage (after giving  effect
          to such estimated net revenues related to mortgages purchased or
          acquired   as  security  for  eligible  loans  made  with  state
          appropriations or other available funds which  are  concurrently
          allocated  or  re-allocated  to such financing) and any fees and
          charges of the agency applicable to such eligible purchase.
            Subject to the provisions of any contract of the agency or the
          corporation with their respective  noteholders  or  bondholders,
          (i)  the  corporation shall have authority to make an additional
          mortgage loan, pursuant to the private housing finance  law  and
          the  New  York  state urban development corporation act, for any
          corporation project the corporation first mortgage on which  has
          been  purchased  by  the  agency,  such  loan  to  be made on an
          additional mortgage junior and subordinate only to the  mortgage
          that  was  purchased by the agency but otherwise equivalent to a
          corporation first mortgage, (ii) the agency shall have authority
          to make an eligible purchase, pursuant  to  this  act,  of  such
          additional mortgage notwithstanding that it is not a corporation
          first  mortgage, at any time at or after the making of the first
          advance on such additional mortgage by the corporation, with the
          purchase price (including any applicable premium) to be  payable
          at  such  times  and  in  such amounts as shall be agreed by the
          agency and the corporation, and (iii) upon such  a  purchase  by
          the agency such additional mortgage may be consolidated with the
          corporation first mortgage previously purchased by the agency;
            11.  To  make eligible loans on such terms and conditions, not
          inconsistent with this act, as are satisfactory to  the  agency;
          provided  that  no  eligible  loan  shall  be made by the agency
          unless,  except  as  otherwise  permitted   by   contract   with
          bondholders or noteholders, the commissioner finds that
            (a) the mortgage securing the eligible loan is (or in the case
          of  a  loan  not involving the use of funds acquired through the
          issuance of bonds or notes of  the  agency,  can  reasonably  be
          anticipated  to  become)  a  valid  first  mortgage  lien  on  a
          corporation project free  and  clear  of  all  other  liens  and
          encumbrances   which   would  materially  affect  the  value  or
          usefulness of the property secured thereby (or that arrangements
          satisfactory to the commissioner for the discharge of such liens
          and encumbrances have been made) and that  such  first  mortgage

          has   been   executed   and  recorded  in  accordance  with  the
          requirements of existing laws; and
            (b)  the  estimated  net revenues of such corporation project,
          after provision has been made to cover  all  probable  costs  of
          operation  and  maintenance,  of  fixed  charges  and  operating
          reserves  and  depreciation  reserves,  if  any,  including  any
          subsidy payments attributable to such corporation project, shall
          be  sufficient to pay the estimated principal of and interest on
          all bonds or notes of the agency issued or to  be  issued  which
          are  allocated  or  re-allocated  by  the  commissioner  to  the
          financing of such eligible loan (after  giving  effect  to  such
          estimated   net  revenues  related  to  mortgages  purchased  or
          acquired  as  security  for  eligible  loans  made  with   state
          appropriations  or  other available funds which are concurrently
          allocated or re-allocated to such financing) and  any  fees  and
          charges of the agency applicable to such eligible loan;
            12.  To  use  and  apply  all monies received by the agency on
          account of the corporation  first  mortgages  purchased  by  the
          agency  or  on  account  of  the corporation first mortgages and
          other assets or revenues assigned or pledged to it  as  security
          for eligible loans:
            (a)  In the case of such corporation first mortgages and other
          assets or revenues assigned or pledged by the agency as security
          for outstanding  bonds  of  the  agency,  to  meet  payments  of
          principal  and  interest  on such outstanding bonds and any fees
          and charges of the agency related to the respective  corporation
          first  mortgages,  and any excess shall be applied in accordance
          with paragraph (d) of this subdivision;
            (b) In the case of such corporation first mortgages and  other
          assets or revenues assigned or pledged by the agency as security
          for  outstanding  notes  of  the  agency,  to  meet  payments of
          principal and interest on such outstanding notes (including  the
          redemption  of  any note payment certificates delivered pursuant
          to subdivision three of section seven of this act) and any  fees
          and  charges of the agency related to the respective corporation
          first mortgages, and any excess shall be applied  in  accordance
          with paragraph (d) of this subdivision;
            (c)  In  the  case of any such corporation first mortgages and
          other assets or revenues assigned or pledged by  the  agency  as
          security  for  its  guaranty  of obligations of the corporation,
          pursuant to  subdivision  twenty-one  of  this  section,  to  be
          applied  in accordance with the provisions of such guaranty, and
          any excess shall be applied in accordance with paragraph (d)  of
          this subdivision; and
            (d)  In  the  case of any such corporation first mortgages and
          other assets or revenues not assigned or pledged by  the  agency
          as  security, and in the case of excess amounts to be applied in
          accordance with this paragraph as provided above, first, to meet
          payments of principal and interest on any outstanding  bonds  or
          notes  of  the  agency  (including  the  redemption  of any note
          payment certificates delivered pursuant to subdivision three  of
          section  seven  of  this  act)  and  the fees and charges of the
          agency, irrespective of the corporation project or projects from
          which such monies are derived, and, second, any balance shall be
          applied as follows: (i) in the case of any such monies  received
          on  account of such corporation first mortgages and other assets
          or revenues that had been assigned or pledged to the  agency  as
          security  for  eligible  loans,  to pay over such balance to the

          corporation in accordance with the terms and conditions of  such
          eligible loans; and (ii) in the case of any such monies received
          on  account  of  such  corporation first mortgages that had been
          purchased  by  the agency, to make further eligible purchases or
          eligible  loans  to  the  extent  deemed  appropriate   by   the
          commissioner, to pay any remaining balance to the corporation in
          reduction   of   the   agency's  obligations  for  repayment  of
          appropriations theretofore  transferred  by  the  state  to  the
          corporation  pursuant  to  a  chapter  of  the  laws of nineteen
          hundred seventy-five, and, in the event of payment  in  full  by
          the  agency  of such obligations, to apply any remaining balance
          as the members of the agency,  in  their  discretion,  with  the
          approval  of the commissioner, shall determine to be in the best
          interests of the agency and the corporation and their respective
          bondholders and noteholders.
            13. To sell, at  public  or  private  sale,  any  obligations,
          property  or  rights  representing,  embodying  or  securing  an
          eligible loan made by the agency  or  acquired  in  an  eligible
          purchase;
            14.  In  connection  with  the  making  of eligible purchases,
          eligible loans and commitments therefor,  to  make  and  collect
          such   fees   and   charges,   including   but  not  limited  to
          reimbursements of all costs of financing by the agency,  service
          charges and insurance premiums, as the agency shall determine to
          be reasonable;
            15.  To  consent  to the modification, with respect to rate of
          interest, time of payment of any  installment  of  principal  or
          interest,  security,  or  any  other term, of any eligible loan,
          eligible loan commitment, eligible purchase,  eligible  purchase
          commitment,  contract  or  agreement  of  any  kind to which the
          agency is a party;
            16. To exercise exclusively all rights of the mortgagee  under
          any  corporation  first  mortgage  purchased  by  the  agency or
          assigned to secure  any  eligible  loan,  to  foreclose  on  any
          property  subject  to  such  mortgage  or 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; and in such
          event the agency may complete, administer, pay the principal  of
          and interest on any obligations incurred in connection with such
          property, dispose of, and otherwise deal with, such property, in
          such  manner  as  may  be  necessary or desirable to protect the
          interests of the agency therein;
            17. To procure insurance against any loss in  connection  with
          its  property and other assets (including mortgages and mortgage
          loans) in such amounts, and from  such  insurers,  as  it  deems
          desirable;
            18.  To  accept  any  gifts  or  grants  or  loans of funds or
          property or financial or other aid in any  form,  including  but
          not  limited  to mortgage insurance, from the federal government
          or any agency or instrumentality thereof or from  the  state  or
          from  any  other source and to comply, subject to the provisions
          of this act, with the terms and conditions thereof;
            19. To  engage  the  services  of  private  consultants  on  a
          contract   basis   for   rendering  professional  and  technical
          assistance and advice;

            20. To enter into a contract with the New York  state  housing
          finance  agency to market and service any agency bonds and notes
          approved by the agency and to contract with the New  York  state
          housing  finance  agency  to  render  such other services as the
          agency  may request, including but not limited to the use of the
          premises, personnel and personal property of the New York  state
          housing  finance agency, and to provide for reimbursement to the
          New York state housing finance agency from the  agency  for  any
          expenses  necessarily  incurred  by  the  New York state housing
          finance agency in carrying out the terms of any  such  contract.
          Any  such  contract shall be subject to the separate approval of
          the director of the budget;
            21. To guarantee obligations of the corporation and to  assign
          or  pledge  as  security for any such guaranty any or all of the
          obligations,  property  or  rights  representing,  embodying  or
          securing  an  eligible loan made by the agency or acquired in an
          eligible purchase;
            22. To do any and all things necessary or convenient to  carry
          out  its  purposes  and  exercise the powers expressly given and
          granted in this act.
            § 6. Bonds and notes of the agency.
            1. (a) The agency shall have power and  is  hereby  authorized
          from  time  to  time  to  issue its negotiable or non-negotiable
          bonds and notes in such principal amount as, in the  opinion  of
          the  agency,  shall be necessary to provide sufficient funds for
          achieving  its  corporate  purposes,  including  the  making  of
          eligible  purchases  and eligible loans, the payment of interest
          on bonds and notes of the agency, establishment of  reserves  to
          secure  such  bonds and notes, and all other expenditures of the
          agency incident to and necessary or convenient to carry out  its
          corporate purposes and powers;
            (b)  The  agency shall have power, from time to time, to issue
          renewal notes, to issue bonds to  pay  notes  and,  whenever  it
          deems  refunding  expedient, to refund any bonds by the issuance
          of new bonds, whether the bonds to be refunded have or have  not
          matured,  and  to  issue  bonds  partly  to  refund  bonds  then
          outstanding and partly for  any  other  purpose.  The  refunding
          bonds  shall  be  sold and the proceeds applied to the purchase,
          redemption or payment of the bonds to be refunded;
            (c) Except as may  otherwise  be  expressly  provided  by  the
          agency,  every  issue  of  its  notes  or bonds shall be general
          obligations of the agency payable out of any revenues or  monies
          of  the  agency, subject only to any agreements with the holders
          of particular notes or bonds pledging any particular receipts or
          revenues or other property.
            2. The notes and bonds shall be authorized  by  resolution  of
          the  members, shall bear such date or dates, and shall mature at
          such time or times, in  the  case  of  any  such  note,  or  any
          renewals thereof, not exceeding ten years from the date of issue
          of  such  original  note,  and  in the case of any such bond not
          exceeding fifty years from the date of issue, as such resolution
          or resolutions may provide.  The  notes  and  bonds  shall  bear
          interest  at  such  rates,  be in such denominations, be in such
          form, either  coupon  or  registered,  carry  such  registration
          privileges,  be  executed  in  such  manner,  be payable in such
          medium of payment, at such place or places  and  be  subject  to
          such  terms  of redemption as such resolution or resolutions may
          provide. The notes and bonds of the agency may be  sold  by  the

          agency,  at  public  or private sale, at such price or prices as
          the agency shall determine. No notes or bonds of the agency  may
          be sold by the agency at private sale, however, unless such sale
          and  the  terms thereof have been approved in writing by (a) the
          comptroller, where such sale is not to the comptroller,  or  (b)
          the   director  of  the  budget,  where  such  sale  is  to  the
          comptroller.
            3. Any resolution or  resolutions  authorizing  any  notes  or
          bonds  or  any issue thereof may contain provisions, which shall
          be a part of the contract with the holders thereof, as to:
            (a) pledging all or any part of the fees and charges  made  or
          received  by  the agency, and all or any part of the payments to
          be received in respect of corporation first mortgages  purchased
          by  the  agency or in respect of eligible loans, and any amounts
          realized on account of the corporation first mortgages and other
          assets or revenues pledged or  assigned  as  security  for  such
          eligible  loans, and other monies received or to be received, to
          secure the payment of bonds or notes or of  any  issue  thereof,
          subject  to  such  agreements with bondholders or noteholders as
          may then exist;
            (b) pledging all or any part of the assets or revenues of  the
          agency,  including  mortgages and other obligations, owned by or
          pledged or assigned to the agency, to secure the payment of  the
          bonds  or  notes, subject to such agreements with bondholders or
          noteholders as may then exist;
            (c) the use and disposition of payments received on account of
          mortgages and other obligations owned by or pledged or  assigned
          to the agency;
            (d)  the  setting  aside  of reserves or sinking funds and the
          regulation and disposition thereof;
            (e) limitations on the purpose to which the proceeds  of  sale
          of  notes  or bonds may be applied and pledging such proceeds to
          secure the payment of  the  notes  or  bonds  or  of  any  issue
          thereof;
            (f)  limitations on the issuance of additional notes or bonds;
          the terms upon which additional notes or bonds may be issued and
          secured; the refunding of outstanding or other notes or bonds;
            (g) the procedure, if any, by which the terms of any  contract
          with noteholders or bondholders may be amended or abrogated, the
          amount  of  notes  or  bonds  the  holders of which must consent
          thereto, and the manner in which such consent may be given;
            (h) limitations on the amount of monies to be expended by  the
          agency  for  operating,  administrative or other expenses of the
          agency;
            (i) vesting in a trustee or trustees or an  agent  or  agents,
          for  bondholders  or  noteholders, such property, rights, powers
          and duties in trust or as security as the agency may  determine,
          which  may,  but not by way of limitation, include any or all of
          the rights, powers and  duties  of  the  trustee  which  may  be
          appointed  by  bondholders  or  noteholders  pursuant to section
          thirteen  of  this  act,  and   limiting   or   abrogating   the
          applicability  of  section  thirteen of this act to the affected
          bonds or notes, the holders thereof or any trustee or agent  for
          such holders;
            (j)  any  other matters, of like or different character, which
          in any way affect the security or protection of  the  notes  and
          bonds.

            4.  It  is  the intention hereof that any pledge or assignment
          for security made by the agency shall be valid and binding  from
          the  time  when the same is made; that the monies or property so
          pledged or assigned and then held or thereafter received by  the
          agency  shall  immediately  be  subject  to the lien or security
          interest of such  pledge  or  assignment  without  any  physical
          delivery  thereof  or further act; and that the lien or security
          interest of any such pledge or assignment  shall  be  valid  and
          binding  as  against  all  parties  having claims of any kind in
          tort, contract or otherwise against the agency, irrespective  of
          whether such parties have notice thereof. Neither the resolution
          nor  any other instrument by which any such pledge or assignment
          is created need be recorded, and no filing with respect to  such
          pledge  or  assignment need be made under the uniform commercial
          code.
            5. Neither the members of the agency nor any person  executing
          the  notes  or  bonds shall be liable personally on the notes or
          bonds or be subject to any personal liability or  accountability
          by reason of the issuance thereof.
            6. The agency, subject to such agreements with noteholders and
          bondholders as may then exist, shall have power out of any funds
          available  therefor  to  purchase  notes or bonds of the agency,
          which shall thereupon be cancelled, at a price not exceeding (a)
          if the notes or bonds are then redeemable, the redemption  price
          then  applicable  plus  accrued  interest  to  the next interest
          payment date thereon, or (b) if the notes or bonds 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 plus accrued interest to such date.
            7. The state shall not be liable on  notes  or  bonds  of  the
          agency  and  such  notes  and  bonds  shall not be a debt of the
          state, and such notes  and  bonds  shall  contain  on  the  face
          thereof a statement to such effect.
            § 7. Reserve funds and appropriations.
            1.  (a)  For  the  purposes  of  the issuance by the agency of
          bonds, the term "capital reserve fund requirement"  shall  mean,
          as  of  any particular date of computation, with respect to each
          capital reserve fund of the agency an amount of money  equal  to
          the  greatest of the respective amounts, for the then current or
          any succeeding calendar year, of annual debt service payments of
          the agency on the bonds secured by such  capital  reserve  fund,
          such annual debt service payments for any calendar year being an
          amount  of  money  equal  to the aggregate of the following with
          respect to all such bonds of the agency outstanding on said date
          of computation; (i) all interest payable  during  such  calendar
          year,  plus  (ii) the principal amount which matures (net of any
          sinking fund  payments  payable  in  prior  years)  during  such
          calendar  year,  plus  (iii)  the  amount  of  all  sinking fund
          payments  payable  during  such  calendar  year;  and  the  term
          "sinking  fund payment" shall mean the amount of money specified
          in the resolution authorizing  term  bonds  as  payable  into  a
          sinking fund for the amortization of such term bonds. The agency
          may  create  and establish one or more special funds to be known
          as capital reserve funds and may pay into each such reserve fund
          (1) any monies appropriated and made available by the state  for
          the  purposes of such fund, (2) any proceeds of sale of notes or
          bonds, to the extent provided in the resolution  of  the  agency
          authorizing the issuance thereof, and (3) any other monies which

          may  be  made  available  to the agency for the purposes of such
          fund from any other source or sources. The  monies  held  in  or
          credited  to  any  capital  reserve  fund established under this
          subdivision,  except  as  hereinafter  provided,  shall  be used
          solely for the payment of the principal of bonds of  the  agency
          secured  by  such reserve fund, as the same mature, sinking fund
          payments with respect to such bonds of the agency, the  purchase
          of  such  bonds  of  the agency, the payment of interest on such
          bonds of the agency, or the payment of  any  redemption  premium
          required  to  be  paid  when  such  bonds  are redeemed prior to
          maturity; provided, however, that monies in any such fund  shall
          not  be  withdrawn therefrom at any time in such amount as would
          reduce the amount of such fund to less than the capital  reserve
          fund requirement, except for the purpose of paying principal and
          interest on the bonds of the agency secured by such reserve fund
          maturing  and  becoming  due  or  any sinking fund payments with
          respect to such bonds and for the payment of which other  monies
          of  the  agency are not available. Any income or interest earned
          by, or increment  to,  any  capital  reserve  fund  due  to  the
          investment  thereof  may  be  transferred  to  any other fund or
          account of the agency to the  extent  it  does  not  reduce  the
          amount  of  such  capital reserve fund below the capital reserve
          fund requirement.
            (b) The agency shall not issue  bonds  at  any  time  if  upon
          issuance,  the  amount in the capital reserve fund securing such
          bonds will be less than the  capital  reserve  fund  requirement
          unless  the  agency, at the time of issuance of such bonds shall
          deposit in such reserve fund from the proceeds of the  bonds  so
          to  be  issued,  or otherwise, an amount which together with the
          amount then in such reserve fund, will  be  not  less  than  the
          capital reserve fund requirement.
            (c)  To  assure  the  continued  operation and solvency of the
          agency for the carrying out of the public purposes of this  act,
          provision  is  made in paragraph (a) of this subdivision for the
          accumulation in each capital reserve fund of an amount equal  to
          the  capital  reserve  fund  requirement.    In order further to
          assure the maintenance of each such capital reserve fund,  there
          shall be annually apportioned and paid to the agency for deposit
          in  each  capital  reserve  fund  such  sum, if any, as shall be
          certified by the chairman of the  agency  to  the  governor  and
          director of the budget as necessary to restore such reserve fund
          to  an amount equal to the capital reserve fund requirement. The
          chairman of the agency shall annually,  on  or  before  December
          first,  make  and  deliver  to  the governor and director of the
          budget his certificate stating the sum or sums, if any, required
          to  restore  each  such  capital  reserve  fund  to  the  amount
          aforesaid   and   the  sums  so  certified,  if  any,  shall  be
          apportioned and paid to the agency during the then current state
          fiscal year.
            (d) In computing any capital reserve fund for the purposes  of
          this  section,  securities  in  which  all  or a portion of such
          reserve fund shall  be  invested  shall  be  valued  at  par  if
          purchased  at  par,  or  if  purchased  at  other  than  par, at
          amortized value. As used herein "amortized  value"  shall  mean,
          when  used  with  respect  to  securities purchased at a premium
          above or a discount below par, the value as of  any  given  date
          obtained by dividing the total amount of the premium or discount
          at  which  such  securities were purchased by the number of days

          remaining to maturity on such securities at  the  time  of  such
          purchase  and  by  multiplying  the  amount so calculated by the
          number of days having passed since the date  of  such  purchase;
          and  (a)  in  the  case of securities purchased at a premium, by
          deducting the product thus obtained from the purchase price, and
          (b) in the case of securities purchased at a discount, by adding
          the product thus obtained to the purchase price.
            2. The agency may create and establish  one  or  more  special
          funds  (herein  each  referred to as a general reserve fund) and
          shall pay into  each  such  fund,  to  the  extent  required  by
          agreements  with holders of bonds or notes secured by such fund,
          all fees  and  charges  collected  by  the  agency  pursuant  to
          subdivision  fourteen of section five of this act and any monies
          which the agency shall transfer from the related capital reserve
          fund pursuant to the provisions of paragraph (a) of  subdivision
          one  of this section. Such monies and any other monies paid into
          a general reserve fund may, in the discretion of the agency, but
          subject to agreement with bondholders or noteholders, be used by
          the agency (a) for the repayment of advances from the  state  in
          accordance  with  the provisions of repayment agreements between
          the agency and the director of the budget, (b) to reimburse  the
          division  of  housing and community renewal the reasonable costs
          of the services performed by the commissioner and  the  division
          pursuant  to  the  provisions of this act, (c) to pay all costs,
          expenses and charges of financing, including fees  and  expenses
          of  trustees and paying agents, (d) for transfers to the related
          capital reserve fund, (e)  for  the  payment  of  principal  and
          interest  on  bonds or notes issued by the agency and secured by
          such general reserve fund when the same shall become due whether
          at maturity or on call for redemption and for the payment of any
          redemption premium required to be paid where such bonds or notes
          are redeemed prior to their stated maturities  and  any  sinking
          fund payments, and to purchase such bonds or notes issued by the
          agency,  or  (f) for such other corporate purposes of the agency
          as the agency in its discretion shall determine and provide.
            3. (a) This subdivision shall  be  applicable  if  the  agency
          shall issue notes (herein called "secured notes") secured by the
          pledge  and assignment of assets or revenues of the agency, with
          provision under certain circumstances for  amortization  of  the
          principal  amount of such notes over a period of years. Upon the
          issuance of any secured notes, and if necessary upon the  actual
          commencement  of  amortization  of  principal,  the agency shall
          determine the amount which, notwithstanding the actual terms  of
          such  notes  for  payment  of  interest and principal or for the
          application thereto of  receipts  from  the  pledged  assets  or
          revenues,  would then be required to be provided as hypothetical
          monthly level debt service payments in order to pay  the  stated
          interest  on and to amortize the maximum principal amount of the
          secured notes over the longest period of years then allowed  for
          full  amortization  of  principal under the terms of the secured
          notes. The aggregate for all secured notes  of  the  portion  of
          such  hypothetical  level  debt  service  payments that would be
          payable in any twelve consecutive months during such  period  of
          amortization  thereof,  but  in  no event an amount greater than
          twenty per cent of the maximum principal amount of  the  secured
          notes,  as  of  any  particular  date  of computation, is herein
          called the "note service requirement" of the agency.

            (b) The agency shall create and establish a special fund to be
          known as the "note service reserve fund," and upon the  issuance
          of  any  secured  notes  shall  create  and deposit therein note
          payment certificates (herein called "note payment certificates")
          in  an  aggregate  principal  amount  equal  to the note service
          requirement as then computed. Any note payment certificates that
          are  in  excess  of  the  note  service   requirement   upon   a
          recomputation  of  such requirement shall be withdrawn from such
          fund  and  cancelled.  Note  payment   certificates   shall   be
          obligations  of  the  agency,  issuable  and  re-issuable in any
          denominations, deliverable as further evidence of  and  security
          for  unpaid  amounts  of  interest or principal on secured notes
          which are not paid when due because the agency has  insufficient
          funds  available to make such payments in cash, bearing interest
          to the  same  extent  as  the  unpaid  amounts  of  interest  or
          principal on the secured notes in connection with which they are
          delivered  continue  to  accrue  interest, and redeemable by the
          agency upon payment in cash  of  the  principal  amount  of  the
          redeemed  note  payment  certificates  plus any interest accrued
          thereon from date of delivery to date of  redemption.  Any  note
          payment  certificates  so redeemed, or an equal principal amount
          of  certificates  created  in  replacement  thereof,  shall   be
          redeposited  in  the  note  service  reserve fund, to the extent
          necessary to  cause  the  principal  amount  deposited  in  such
          reserve  fund  to  equal  the  note service requirement, as then
          computed, and any  excess  note  payment  certificates  redeemed
          shall  be  cancelled.  The  note  service  reserve  fund  may be
          maintained with any trustee or agent for the holders of  secured
          notes  and  the  note payment certificates may be deposited with
          such trustee or agent to be held  in  trust  prior  to  delivery
          thereof  as  further security for the payment of principal of or
          interest on the secured notes when due. Such  trustee  or  agent
          shall  have  no obligation to realize upon any pledged assets or
          revenues either prior to delivering  note  payment  certificates
          upon the failure of the agency to pay interest or principal when
          due  or thereafter and prior to redemption of such certificates.
          However, any realization upon any pledged assets or revenues and
          any other payments made on account of the secured notes shall be
          applied to the payments of  principal  of  or  interest  on  the
          secured  notes  (including  redemption of delivered note payment
          certificates) in the order in  which  such  payments  originally
          became  due.    The  proceeds of each redemption of note payment
          certificates shall be applied as payment of an equivalent amount
          of overdue principal of or interest on the secured notes.
            (c) In order to assure the availability of funds  to  maintain
          the  note  service  reserve  fund at an amount equal to the note
          service requirement of  the  agency,  there  shall  be  annually
          apportioned  and paid to the agency, for application exclusively
          to the redemption of delivered note payment  certificates,  such
          sum, if any, as shall be certified by the chairman of the agency
          to  the  governor  and director of the budget as estimated to be
          necessary to redeem by the end of the then current state  fiscal
          year all note payment certificates theretofore delivered and not
          redeemed  by payment in full of the principal amount thereof and
          any interest accrued thereon. The chairman of the  agency  shall
          annually,  on  or before December first, make and deliver to the
          governor and director of the budget his certificate stating  the
          sum,  if  any,  estimated to be required to redeem all such note

          payment certificates as aforesaid by the end of the then current
          state fiscal year, and the sum so certified, if  any,  shall  be
          apportioned and paid to the agency during the then current state
          fiscal  year.  Upon  its receipt of such payment from the state,
          the agency shall immediately apply such payment, to  the  extent
          thereof,   to   the   redemption  of  outstanding  note  payment
          certificates.
            § 8. Bonds and notes as legal investments.
            The bonds and notes of the agency are hereby  made  securities
          in  which  all  public officers and bodies of this state and all
          municipalities  and  municipal   subdivisions,   all   insurance
          companies  and  associations,  and  other persons carrying on an
          insurance business, all banks, bankers, trust companies, savings
          banks and  savings  associations,  including  savings  and  loan
          associations,   building   and   loan  associations,  investment
          companies and other persons carrying on a banking business,  all
          administrators,   guardians,   executors,   trustees  and  other
          fiduciaries, and all other persons whatsoever who are now or may
          hereafter be authorized to invest in bonds or other  obligations
          of  the  state, may properly and legally invest funds, including
          capital, in their control or belonging to them.
            § 9. Exemption from taxation of property and income.
            The property of the agency and its income and operations shall
          be exempt from taxation.
            § 10. Exemption from taxation of notes and bonds.
            It is hereby determined that the creation of the agency is  in
          all  respects for the benefit of the people of the state and for
          the improvement of their health, safety,  welfare,  comfort  and
          security,  and  that  said purposes are public purposes and that
          the agency will be performing an essential governmental function
          in the exercise of the powers conferred upon it by this act. The
          state covenants with the purchasers and all  subsequent  holders
          and  transferees  of  notes  and  bonds issued by the agency, in
          consideration of the acceptance of and payment for the notes and
          bonds, that the notes and bonds of the agency,  issued  pursuant
          to  this act and the income therefrom and all its fees, charges,
          gifts, grants, revenues, receipts, and other monies received  or
          to  be  received,  pledged  to pay or secure the payment of such
          notes or bonds shall at all times be free from taxation,  except
          for estate and gift taxes and taxes on transfers.
            § 11. Agreement with the state.
            The  state does hereby pledge to and agree with the holders of
          any notes or bonds issued under this act, that  the  state  will
          not  limit  or  alter  the rights hereby vested in the agency to
          fulfill the terms  of  any  agreements  made  with  the  holders
          thereof,  or  in  any way impair the rights and remedies of such
          holders until such notes or bonds, together  with  the  interest
          thereon,  with  interest on any unpaid installments of interest,
          and all costs and expenses in  connection  with  any  action  or
          proceeding  by  or  on behalf of such holders, are fully met and
          discharged. The agency is authorized to include this pledge  and
          agreement of the state in any agreement with the holders of such
          notes or bonds.
            § 12. State's right to require redemption of bonds.
            Notwithstanding  and  in  addition  to  any provisions for the
          redemption of bonds which may be contained in any contract  with
          the  holders  of  the  bonds,  the  state  may,  upon furnishing
          sufficient funds therefor, require the agency to  redeem,  prior

          to  maturity,  as  a  whole,  any issue of bonds on any interest
          payment date not less than twenty years after the  date  of  the
          bonds of such issue at one hundred five per centum of their face
          value  and accrued interest or at such lower redemption price as
          may be provided in the bonds in case of the  redemption  thereof
          as  a  whole  on the redemption date.  Notice of such redemption
          shall be published at least  twice  in  each  of  at  least  one
          newspaper publishing and circulating in the county of Albany and
          at least one newspaper publishing and circulating in the city of
          New  York,  the  first  publication  to  be at least thirty days
          before the date of redemption.
            § 13. Remedies of noteholders and bondholders.
            1. In the event that the agency shall default in  the  payment
          of principal of or interest on any issue of notes or bonds after
          the  same shall become due, whether at maturity or upon call for
          redemption, and such default shall  continue  for  a  period  of
          thirty  days,  or  in  the  event  that the agency shall fail or
          refuse to comply with the  provisions  of  this  act,  or  shall
          default  in any agreements made with the holders of any issue of
          notes or  bonds,  the  holders  of  twenty-five  per  centum  in
          aggregate  principal  amount of the notes or bonds of such issue
          then outstanding, by instrument  or  instruments  filed  in  the
          office  of  the  clerk  of  the  county  of Albany and proved or
          acknowledged in the same manner as a deed to  be  recorded,  may
          appoint  a  trustee  to  represent  the holders of such notes or
          bonds for the purposes herein provided.
            2. Such trustee may, and upon written request of  the  holders
          of  twenty-five  per centum in principal amount of such notes or
          bonds then outstanding shall, in his or its own name:
            (a) by suit, action or proceeding in accordance with the civil
          practice law and rules, enforce all rights of the noteholders or
          bondholders, including  the  right  to  require  the  agency  to
          collect  fees and charges and interest and amortization payments
          on mortgages purchased and eligible loans made by it adequate to
          carry out any agreement as to,  or  pledge  of,  such  fees  and
          charges and interest and amortization payments on such mortgages
          and  loans  and  other  properties  and to require the agency to
          carry out any other agreements with the holders of such notes or
          bonds and to perform its duties under this act;
            (b) bring suit upon such notes or bonds;
            (c) by action or suit, require the agency to account as if  it
          were  the  trustee  of  an express trust for the holders of such
          notes or bonds;
            (d) by action or suit, enjoin any acts or things which may  be
          unlawful  or  in  violation of the rights of the holders of such
          notes or bonds;
            (e) declare all such notes or bonds due and payable and if all
          defaults shall be made good,  then,  with  the  consent  of  the
          holders  of  twenty-five  per  centum of the principal amount of
          such notes or bonds then outstanding, to annul such  declaration
          and its consequences.
            3.  Such  trustee  shall in addition to the foregoing have and
          possess all of the  powers  necessary  or  appropriate  for  the
          exercise  of  any  functions  specifically  set  forth herein or
          incident  to  the  general  representation  of  bondholders   or
          noteholders in the enforcement and protection of their rights.
            4.  The  supreme  court  shall  have jurisdiction of any suit,
          action  or  proceeding  by  the  trustee  on  behalf   of   such

          noteholders  or bondholders.  The venue of any such suit, action
          or proceeding shall be laid in the county of Albany.
            5.  Before declaring due and payable the principal of notes or
          bonds issued in connection with any mortgage  purchased  by  the
          agency  or  securing  an  eligible  loan made by the agency, the
          trustee shall first give thirty days' notice in writing  to  the
          governor, to the agency, to the commissioner and to the attorney
          general of the state.
            § 14. Monies of the agency.
            1. All monies of the agency, except as otherwise authorized or
          provided  in  this  act,  shall  be  paid to the commissioner of
          taxation and finance as agent  of  the  agency,  who  shall  not
          commingle  such  monies with any other monies. Such monies shall
          be deposited in a separate bank account or accounts. The  monies
          in  such  accounts  shall  be  paid  out on checks signed by the
          commissioner of taxation  and  finance  on  requisition  of  the
          chairman  of  the agency or of such other officer or employee as
          the  agency  shall  authorize  to  make  such  requisition.  All
          deposits  of  such monies shall, if required by the commissioner
          of taxation and finance or the agency, be secured by obligations
          of the United States or of the state of a market value equal  at
          all  times  to the amount of the deposit and all banks and trust
          companies  are  authorized  to  give  such  security  for   such
          deposits.
            2.  Subject to agreements with noteholders and bondholders and
          the approval of the comptroller, the agency  shall  prescribe  a
          system of accounts.
            Notwithstanding  the  provisions  of  this section, the agency
          shall have power, subject to the approval of the commissioner of
          taxation and finance, to contract with the holders of any of its
          notes  or  bonds  as  to  the  custody,  collection,   securing,
          investment  and  payment  of  any  monies  of the agency, of any
          monies held in trust or otherwise for the payment  of  notes  or
          bonds,  and  to carry out such contract. Monies held in trust or
          otherwise for the payment of notes or bonds or  in  any  way  to
          secure notes or bonds and deposits of such monies may be secured
          in  the  same  manner as monies of the agency, and all banks and
          trust companies are authorized to give such  security  for  such
          deposits.
            3.  The comptroller, or his legally authorized representative,
          is hereby authorized and empowerd from time to time  to  examine
          the  books  and  accounts  of the agency including its receipts,
          disbursements,  contracts,   reserve   funds,   sinking   funds,
          investments,  and  any  other  matters relating to its financial
          standing.  Such  an  examination  shall  be  conducted  by   the
          comptroller  at  least once in every five years; the comptroller
          is authorized, however, to accept from the agency,  in  lieu  of
          such  an  examination,  an external examination of its books and
          accounts made at the request of the agency.
            4. The agency shall submit to the governor,  chairman  of  the
          senate  finance  committee,  chairman  of  the assembly ways and
          means committee and the comptroller, within thirty days  of  the
          receipt  thereof  by  the  agency, a copy of the report of every
          external examination of the books and  accounts  of  the  agency
          other than copies of the reports of such examination made by the
          comptroller.
            § 15. Supervision of projects.

            Notwithstanding any provision of law to the contrary, and upon
          the  issuance by the commissioner of a certificate of assumption
          of supervision, any corporation project a mortgage on which  has
          been  purchased  by  the  agency  or assigned as security for an
          eligible loan shall be subject to the supervision and control of
          the  commissioner and the New York state division of housing and
          community  renewal,  which  shall  have  the  same  powers   and
          responsibilities with respect to such project as they would have
          if  such  project were aided by a loan from the state or the New
          York state housing finance  agency  under  article  two  of  the
          private   housing   finance  law  and  which  shall  assume  the
          additional powers and  responsibilities  with  respect  to  such
          project  theretofore  conferred  on  the  corporation  by law or
          contract. The corporation and the commissioner shall  take  such
          actions  and  execute  such  documents  as  may  be necessary to
          implement this section.
            § 16. Assistance by state officers,  departments,  boards  and
          commissions.
            1.  The  department  of  audit and control, department of law,
          division of housing and community renewal and  all  other  state
          officers,  departments,  boards,  divisions  and commissions may
          render such services  to  the  agency  within  their  respective
          functions as may be requested by the agency.
            2.  The commissioner and the division of housing and community
          renewal are hereby designated to act for and in  behalf  of  the
          agency in servicing the corporation first mortgages purchased by
          the  agency  or securing eligible loans of the agency, and shall
          perform such additional functions  and  services  in  connection
          with the making, servicing and collection of such eligible loans
          as  shall  be  requested by the agency.  The agency shall pay to
          the division of housing and community renewal from any monies of
          the agency available for  such  purpose,  such  amounts  as  are
          necessary  to  reimburse  the  division of housing and community
          renewal for the reasonable cost of the services performed by the
          commissioner and the division of housing and  community  renewal
          pursuant to this section.
            § 17. Annual report.
            The  agency  shall submit to the governor, the chairman of the
          senate finance committee, the chairman of the assembly ways  and
          means  committee, the comptroller and the director of the budget
          within one hundred eighty days after the end of its fiscal year,
          a  complete  and  detailed  report  setting  forth:    (1)   its
          operations   and   accomplishments;   (2)   its   receipts   and
          expenditures during such fiscal  year  in  accordance  with  the
          categories   or   classifications  established  by  the  agency,
          including a listing of all private consultants  engaged  by  the
          agency  on  a contract basis and a statement of the total amount
          paid to  each  such  private  consultant;  (3)  its  assets  and
          liabilities  at the end of its fiscal year, including a schedule
          of its eligible purchases, eligible loans  and  commitments  and
          the  status  of  reserve,  special  or  other  funds;  and (4) a
          schedule of its bonds and notes outstanding at the  end  of  its
          fiscal  year,  together with a statement of the amounts redeemed
          and incurred during such fiscal year.
            § 18. Maximum authorization.
            The agency shall not issue bonds and  notes  in  an  aggregate
          principal  amount  exceeding three hundred five million dollars,

          excluding bonds and notes issued to refund  or  otherwise  repay
          outstanding bonds and notes of the agency or of the corporation.
            § 19. Partial invalidity.
            If  any  provision  of this act, or the application thereof to
          any person or circumstance, shall be adjudged by  any  court  of
          competent  jurisdiction  to  be  invalid  or unenforceable, such
          judgment shall not affect, impair or invalidate the remainder of
          this act or the application  of  such  provision  to  any  other
          person  or  circumstance, but shall be confined in its operation
          to the provision, person and circumstance directly  involved  in
          the controversy in which such judgment shall have been rendered.
            § 20. Inconsistent provisions in other laws superseded.
            Insofar  as  the  provisions of this act are inconsistent with
          the provisions of any other law, general, special or local,  the
          provisions of this act shall be controlling.
            § 21. Certain special proceedings.
            In  the  event  that  the agency or the corporation shall have
          occasion at any time to seek declaratory relief  in  the  courts
          with   respect   to   any   matters   relating  to  transactions
          contemplated by this act, any request for such relief  shall  be
          brought as a special proceeding and conducted in accordance with
          article  four  of  the  civil  practice  law and rules. Any such
          special proceeding shall  be  preferred  over  all  other  civil
          causes  except election causes in all courts of the state of New
          York and shall be heard and  determined  in  preference  to  all
          other  civil  business  pending  therein except election causes,
          irrespective of position on the calendar. In  any  such  special
          proceeding, the court hearing the matter shall have authority in
          its   discretion   to  award,  as  against  the  agency  or  the
          corporation, the reasonable counsel fees and expenses of a party
          or intervenor opposing such declaratory  relief,  based  on  the
          court's  determination  as to the contribution made to the sound
          and orderly resolution of the proceeding by the participation of
          such party or intervenor therein,  and  the  court  hearing  the
          matter  may  in  its  discretion  appoint counsel to represent a
          class  of  persons  having  interests  in  opposition  to   such
          declaratory relief being sought and may award reasonable counsel
          fees   and   expenses   as   aforesaid   on   account   of  such
          representation.
            § 21-a. Actions against corporation. Except in an  action  for
          wrongful  death, in any case founded upon tort a notice of claim
          shall be required as a condition precedent to  the  commencement
          of  an  action  or special proceeding against the agency and the
          provisions of section fifty-e of the general municipal law shall
          govern the giving of  such  notice.  No  such  action  shall  be
          commenced  more than one year and ninety days after the cause of
          action therefor shall have accrued. An action for wrongful death
          shall be commenced in accordance with the notice  of  claim  and
          time  limitation  provisions  of title eleven of article nine of
          the public authorities law.
            § 22. Construction.
            This act, being necessary for the welfare of the state and its
          inhabitants, shall be liberally construed so  as  to  effectuate
          its purposes.

  
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Last modified: September 11, 2016