Section 2404. Powers of the agency

Except as otherwise limited by this
  title, 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
  title;
    (4) To make and  alter  by-laws  for  its  organization  and  internal
  management;
    (5) To acquire, hold and dispose of real and personal property for its
  corporate purposes;
    (6)  To appoint officers, agents and employees, prescribe their duties
  and qualifications and fix their compensation;
    * (7) To (a) acquire, and  contract  to  acquire,  existing  mortgages
  owned  by  banks  and to enter into advance commitments to banks for the
  purchase of said mortgages, all subject to the provisions of section two
  thousand four hundred five of this title, (b) acquire, and  contract  to
  acquire,  forward  commitment  mortgages made by banks and to enter into
  advance commitments to banks for the purchase  of  said  mortgages,  all
  subject to the provisions of section two thousand four hundred five-b of
  this title, (c) acquire, and contract to acquire, new housing loans made
  by banks and to enter into advance commitments to banks for the purchase
  of  said  housing  loans,  all  subject to the provisions of section two
  thousand four hundred five-c of this  title,  and  (d)  to  acquire  and
  contract  to  acquire  mortgages pursuant to section twenty-four hundred
  five-d of this title;
    * NB Effective until July 16, 2010
    * (7) To acquire, and contract to acquire, mortgages  owned  by  banks
  and  to enter into advance commitments to banks for the purchase of said
  mortgages, all subject to the provisions of section  two  thousand  four
  hundred five of this title;
    * NB Effective July 16, 2010
    (8)  Subject  to  any  agreement  with  bondholders or noteholders, to
  invest moneys of the agency not required for  immediate  use,  including
  proceeds  from  the  sale  of  any bonds or notes, in obligations of the
  state or the United States of America or obligations the  principal  and
  interest  of  which  are guaranteed by the state or the United States of
  America or in certificates of deposit or time deposits secured  in  such
  manner as the agency shall determine, or in obligations of any agency of
  the state or the United States of America which may from time to time be
  legally  purchased by savings banks within the state as an investment of
  funds belonging to them or in their control, or in  obligations  of  the
  Federal National Mortgage Association.
    (9)  Subject to any agreement with bondholders or noteholders, to sell
  any mortgages or other personal  property  acquired  by  the  agency  at
  public  or  private  sale  and  at  such  price  or  prices  as it shall
  determine, provided, however, that a private sale shall be limited to an
  agency  of  the  federal  government,  the  federal  national   mortgage
  association,  or  a  sale  of  a  mortgage  to  a bank from which it was
  originally purchased. If the agency  determines  to  sell  mortgages  at
  public  sale,  a notice of such sale shall be published at least once at
  least five days prior to the date of such sale in a financial  newspaper
  or journal published in the city of New York;
    (10)  Subject  to  any  agreement  with bondholders or noteholders, to
  purchase bonds  or  notes  of  the  agency,  which  shall  thereupon  be
  cancelled,  at  a price not exceeding (a) if the bonds or notes are then
  redeemable, the redemption price then applicable plus  accrued  interest
  to  the next interest payment date thereon, or (b) if the bonds or notes

  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  at  the  option  of the agency plus accrued interest to said
  date;
    (11)  To  borrow  money and to issue negotiable bonds and notes and to
  provide for the rights of the holders thereof;
    (12) To engage the services of private consultants on a contract basis
  for rendering professional and technical assistance and advice;
    (13) To make and execute contracts  for  the  servicing  of  mortgages
  acquired by the agency pursuant to this title, and to pay the reasonable
  value of services rendered to the agency pursuant to those contracts;
    (14)  To  renegotiate,  refinance  or  foreclose,  or contract for the
  foreclosure of, any mortgage in default; to waive any default or consent
  to the modification of the terms of any mortgage; to 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;  to  operate,  manage,  lease,  dispose of, and
  otherwise deal with such property, in such manner as may be necessary to
  protect the interests of the agency and the holders  of  its  bonds  and
  notes;
    (15)  To  contract  for  and to accept any gifts or grants or loans of
  funds or property or financial or other aid in any form from the federal
  government or any agency or instrumentality thereof, or from  the  state
  or  any  agency or instrumentality thereof, or from any other source and
  to comply, subject to the provisions of this title, with the  terms  and
  conditions thereof;
    (16)  To  enter into agreements, in its discretion, to pay annual sums
  in lieu of taxes to any municipality or taxing district of the state  in
  respect of any real property which is owned by the agency and located in
  such municipality or taxing district, provided, however, that the amount
  so  paid  for  any year upon such property shall not exceed the sum last
  paid as taxes on such property to such municipality or  taxing  district
  prior to the time of its acquisition by the agency;
    (17)  Make  and  contract  to  make loans and purchase and contract to
  purchase loans made by banks, pension funds, credit unions, colleges  or
  vocational  institutions,  all  subject  to  the  provisions  of section
  twenty-four hundred five-a of this title;
    (18) Procure or require the procurement of a  policy  or  policies  of
  group  life  insurance  to insure repayment of loans made or acquired by
  the agency in event of the death of the borrower;
    (19) Subject to provisions of section two thousand four hundred five-a
  and any  agreement  with  bondholders  or  noteholders,  renegotiate  or
  refinance  any  loan  in  default;  waive  any default or consent to the
  modification of the terms of any  loan;  forgive  all  or  part  of  any
  indebtedness;  and  commence  any  action  or  proceeding  to protect or
  enforce any right conferred upon it by law, loan agreement, contract  or
  other agreement;
    (20) Prescribe standards and criteria for the granting of applications
  for loans and loan purchases, insofar as such standards and criteria are
  not inconsistent with this title;
    (21) Make and execute contracts for the administration or servicing of
  any  loan made or acquired by the agency and pay the reasonable value of
  services rendered to the agency pursuant to such contracts;
    (22) Subject to any agreement with bondholders  or  noteholders,  sell
  any  loans  made or acquired by the agency at public or private sale and
  at such price or prices and on such terms as the agency shall determine;

    (23) Establish, revise from time to  time,  charge  and  collect  such
  premiums  or  fees in connection with loans and purchases, as the agency
  shall determine.
    (23-a)  To and shall develop, promote and ensure that, where possible,
  minority groups which traditionally have been disadvantaged,  and  women
  are   afforded  equal  opportunity  for  contracts  in  connection  with
  development and construction contracts for developments, facilities  and
  projects  financed by the issuance of bonds, notes and other obligations
  of the agency.
    (24)  To  establish  and  administer  a  mortgage  credit  certificate
  program,  as  defined in the internal revenue code of the United States,
  in conformity with that and other applicable provisions of such code and
  any regulations issued thereunder by the United States department of the
  treasury,  to  issue  mortgage  credit  certificates  pursuant  to  such
  program,  and  to make all elections and determinations relating to such
  program, including without limitation, an election not to issue  all  or
  any portion of the private activity bond volume allocated to the agency.
    (25)  In  connection  with  the  issuance  of bonds for the purpose of
  furthering forward commitment mortgage  programs  described  in  section
  twenty-four  hundred  five-b  of  this  title, where the mortgagor is to
  receive mortgage credit certificates issued by the agency,  to  covenant
  and  consent  that the interest on any of its bonds shall be includible,
  under the United  States  Internal  Revenue  Code  of  nineteen  hundred
  eighty-six,  as amended or any subsequent corresponding internal revenue
  law of the United States, in the gross income  of  the  holders  of  the
  bonds  to  the  same  extent and in the same manner that the interest on
  bills, bonds, notes  or  other  obligations  of  the  United  States  is
  includible  in  the  gross  income  of  the  holders  thereof under said
  Internal Revenue Code or any such subsequent law.
    (26) Participation in housing programs. Subject to any agreement  with
  bondholders  and  noteholders,  the  agency is hereby authorized, at the
  direction of the director of  the  budget,  to  transfer  to  the  state
  comptroller  for deposit in the New York state infrastructure trust fund
  to the credit of the housing  reserve  account  established  by  section
  eighty-eight  of the state finance law, as an expense of the agency, any
  payment, less applicable expenses, received on account of  interest  and
  principal  on  any  mortgages owned by the agency pursuant to the agency
  additional mortgage loan fund  established  pursuant  to  the  homeowner
  mortgage  revenue  bonds  general  resolution and not pledged (i) to pay
  principal of and interest on bonds and notes pursuant to any  resolution
  or  trust  indenture  under  which  bonds  or  notes  of  the agency are
  authorized to be  issued,  (ii)  to  the  payment  of  losses  upon  the
  foreclosure,  default or delinquency of mortgage loans pledged under any
  resolution or trust indenture under which bonds or notes of  the  agency
  are  authorized  to  be  issued  and  (iii)  to  pay  the  reimbursement
  obligation of the agency to any providers  of  credit  enhancement  with
  respect  to  (i)  or  (ii) above in connection with any resolution. Such
  transfer shall be made in such amounts and at such times as specified in
  an agreement executed between the agency and the director of the budget,
  provided, however, that no further transfers for deposit shall  be  made
  to such housing reserve account from the agency after the sum of (i) the
  cumulative total of such deposits and (ii) the payments of the aggregate
  reserve  amount  of  the  agency  made  pursuant to section seven of the
  chapter of  the  laws  of  nineteen  hundred  eighty-eight  adding  this
  subdivision, equals eighty million dollars.
    (27)  Additional participation in housing or other state programs. (a)
  Subject to any agreement with bondholders and noteholders, the agency is
  hereby authorized, at the direction of the director of  the  budget,  to

  transfer to the state comptroller for deposit in such fund or account as
  provided in such direction as an expense of the agency, an amount not to
  exceed  twenty-two  million  dollars,  provided that such amount is made
  available  to  the  agency  directly  or  indirectly pursuant to (i) the
  agency's defeasance of its  home  mortgage  revenue  bonds,  series  one
  through  four  and/or  (ii)  the issuance of bonds or notes, proceeds of
  which will be transferred to the state and used for the purpose of state
  programs, which bonds or notes shall be payable in whole or in part from
  assets made available to the agency pursuant to  such  defeasance.  Such
  transfer shall be made in such amounts and at such times as specified in
  an  agreement or agreements executed between the agency and the director
  of the budget, with copies  to  be  provided  to  the  chairman  of  the
  assembly ways and means committee and the chairman of the senate finance
  committee.
    (b)  The  provisions  of  section seventeen of the public officers law
  shall apply to members of the board of  directors,  officers,  employees
  and agents of the agency in connection with any and all claims, demands,
  suits,  actions  or proceedings which may be made or brought against any
  of them arising out of any  determinations  made  or  actions  taken  or
  omitted  to  be  taken  in  compliance  with  any  undertakings under or
  pursuant to the terms  of  this  subdivision.  The  provisions  of  this
  paragraph   shall   be  in  addition  to  and  shall  not  supplant  any
  indemnification or other benefits heretofore or hereafter conferred upon
  members of the board of directors, officers, employees and agents of the
  agency, by action of such agency or otherwise.
    (c) The state shall and hereby agrees to and does indemnify  and  save
  harmless  the  agency  from  and  against  any  and all liability, loss,
  damage, interest, judgments and liens growing out of, and  any  and  all
  costs  and  expenses  (including,  but  not limited to, counsel fees and
  disbursements) arising out of or incurred in connection with any and all
  claims, demands, suits, actions or proceedings  which  may  be  made  or
  brought  against  it  arising  out of any determinations made or actions
  taken or omitted to be taken or compliance with any obligations under or
  pursuant to the terms of this subdivision; except for  fraudulent  acts,
  actions taken in bad faith, gross negligence or willful misconduct.
    (28)  To establish and administer a lease-purchase program or programs
  in accordance with section twenty-four hundred five-d of this title.
    (29) To pay or reimburse any federal recapture income tax payable by a
  borrower in connection with a mortgage loan;
    (30) To do any and all things necessary or convenient to carry out its
  purposes and exercise the powers given and granted in this title.