Section 7607. Management and investment of funds

(a) Each of the two funds
  governed by this article shall be separate and apart.  Each  fund  shall
  also  be separate and apart from any other fund and from all other state
  moneys, and the faith and credit of the state of New York is pledged for
  their safekeeping. The commissioner shall be the custodian of the funds.
  All disbursements shall be made by the commissioner upon vouchers signed
  by the superintendent, or his deputy. The moneys of  the  funds  may  be
  invested  by  the commissioner in obligations of the United States or of
  this state and in interest bearing certificates of deposit of a bank  or
  trust company located and authorized to do business in this state, or of
  a  national  bank  located  in this state, secured by a pledge of direct
  obligations of the United States or of the  state  of  New  York  in  an
  amount  equal  to  the  amount  of  such  certificates of deposit, or in
  accordance with the provisions of section ninety-eight-a  of  the  state
  finance law.
    (b)  With  respect  to  the  moneys in the property/casualty insurance
  security fund the commissioner may also invest in:
    (1) obligations of public benefit corporations whose  obligations  are
  legal for investment by public officers and bodies of this state;
    (2)  up  to thirty-three and one-third percent of the net value of the
  fund in mortgage loans or deeds of trust on real  property  improved  by
  one,  two,  three  or  four  family  residences  owned  by  one  or more
  individuals and occupied by an owner and  located  in  this  state.  The
  amount  invested in mortgage loans and deeds of trust may not exceed the
  lesser of ninety percent of the appraised value of the real property  or
  thirty-five  thousand  dollars if a one-family residence, forty thousand
  dollars if a two-family residence,  forty-five  thousand  dollars  if  a
  three-family  residence,  or  fifty  thousand  dollars  if a four-family
  residence. The mortgage or deed  of  trust  shall  provide  for  monthly
  principal  and  interest  payments  in  amounts  sufficient  to  pay all
  interest and effect full  repayment  of  principal  within  seventy-five
  percent of the estimated remaining useful life of the building or thirty
  years, whichever is less.
    (c)  The  commissioner  may  sell  any  investment  of either fund, if
  advisable, for proper administration or in the  best  interests  of  the
  fund.