57. Insured mortgage reserve fund. 1. The agency shall create and establish a special fund, to be known as the insured mortgage reserve fund, and shall pay into such fund all monies appropriated and made available by the state for the purposes of such fund and any other monies from any other source or sources available therefor. The monies held in such fund shall be used (1) to meet the agency's obligations under an agreement with the federal government pursuant to subdivision twenty-eight of section forty-four of this article, (2) to meet the agency's obligations to pay the principal of and interest on notes issued for the purpose of making a mortgage loan to a company which mortgage loan or a subsequent mortgage loan to such company has been insured by the federal government, only however to the extent that all other revenues of the agency, including the proceeds of any sale, assignment or other disposition of a mortgage loan insured by the federal government, available for such purposes are not sufficient to meet such obligations of the agency, (3) to establish escrow accounts as may be required by the federal government as a condition for the issuance of mortgage insurance, (4) to pay for installation of such life safety devices as may be required by the federal government which devices are in addition to and not in substitution for any requirement heretofore imposed on the company, and (5) to pay closing costs arising out of the company's obtaining mortgage insurance from the federal government. Any income or interest earned by, or increment to the insured mortgage reserve fund may be used for authorized purposes including, but not limited to, the addition of such income or interest earned, or increment to the monies held in such fund for the purposes herein provided, the repayment of appropriation expenditures made to the credit of such fund, or to secure the payment of the principal of and interest on notes or revenue housing bonds. Any portion of the monies held in such fund shall, if the federal government so requires, be segregated from any other portion thereof and applied solely to meet the agency's obligations under any agreement made pursuant to subdivision twenty-eight of section forty-four, provided that the amount so segregated shall not exceed the maximum obligation under any such contract or contracts.
Last modified: February 3, 2019