Section 2429-B. Mortgage insurance fund

* 1. (a) The agency shall create
  and establish a mortgage insurance fund. Within such  fund,  the  agency
  shall  establish:  (i)  a  special  account, which shall be divided into
  sub-accounts for each region as defined in subdivision nine  of  section
  twenty-four  hundred twenty-six of this title; (ii) a single family pool
  insurance account; (iii) a project pool insurance account;  and  (iv)  a
  development  corporation  credit support account. The single family pool
  insurance account shall  be  used  for  all  business  relating  to  the
  insurance  of  mortgages  on properties with one to four dwelling units,
  the project pool insurance  account  shall  be  used  for  all  business
  relating  to  the  insurance of mortgages on properties other than those
  with one to four dwelling units, and the development corporation  credit
  support  account  shall be used for all business relating to development
  corporation credit support. Separate  sub-accounts  may  be  established
  within  the  special  account,  the  pool  insurance  accounts,  and the
  development corporation credit support account as deemed appropriate  by
  the agency.
    (b)  (i) The mortgage insurance fund shall be used as a revolving fund
  for carrying out the provisions of this title with respect to  mortgages
  insured and development corporation credit support, provided thereunder.
  (ii)  The  agency  shall pay into such fund all moneys which may be made
  available to the agency for the purposes of such fund from  any  source,
  including but not limited to the moneys received from recording officers
  pursuant  to  the  provisions  of subdivision two of section two hundred
  sixty-one of the tax law. The agency shall credit the amount  of  moneys
  received  from  the  recording  officer  of  each  county,  pursuant  to
  subdivision two of section two hundred sixty-one of the tax law, to  the
  special  account.  In  any fiscal year, no more than fifty per centum of
  the amount received from the recording officers during  the  consecutive
  twelve  month  period  ending on the preceding March thirty-first may be
  used by the agency for the purpose of  insuring  mortgages  on  property
  located  in any one region pursuant to section two thousand four hundred
  twenty-eight of this part, provided, however, that this provision  shall
  not  include or be applied to pool insurance of mortgage loans purchased
  by the agency. The agency shall credit any other  moneys  which  may  be
  made  available  to  the  agency  for the purposes of such fund from any
  other source to the special account, the single  family  pool  insurance
  account,   the  project  pool  insurance  account,  or  the  development
  corporation credit  support  account,  as  appropriate.  Any  income  or
  interest  earned by, or increment to, the mortgage insurance fund due to
  the investment thereof shall be credited to  the  special  account,  the
  applicable pool insurance account, or the development corporation credit
  support account, as appropriate.
    (c)  The  agency  may  credit  from  the special account to the single
  family pool insurance account, to the project pool insurance account and
  to the development corporation credit support account such moneys as are
  required to satisfy the mortgage  insurance  fund  requirement  of  such
  accounts,  except  that  during  any twelve-month period ending on March
  thirty-first  the  aggregate  amount   credited   to   the   development
  corporation  credit  support account (excluding amounts described in the
  last sentence of paragraph (b) of this subdivision) shall not exceed the
  lesser of (i) fifty million dollars or (ii) the aggregate of the amounts
  required  under  the  contracts  executed  by  the  agency  to   provide
  development corporation support.
    (d)  Moneys,  investments and cash equivalents of the special account,
  the single family pool insurance account,  the  project  pool  insurance
  account  and the development corporation credit support account shall be
  kept separate and shall not be commingled with each other  or  with  any

  other  accounts  which  may  be established from time to time, except as
  otherwise authorized by this section.
    (e)  Moneys,  investments  and  cash equivalents of the pool insurance
  accounts and the development corporation credit support account shall be
  excluded from the excess balance calculation set  forth  in  subdivision
  two of this section. However, if at any time the moneys, investments and
  cash  equivalents  (valued  as  determined by the agency) of either pool
  insurance account or the development corporation credit support  account
  exceed the amount necessary to attain and maintain the credit rating or,
  with   respect   to   development  corporation  credit  support,  credit
  worthiness (as determined by the  agency)  required  to  accomplish  the
  purposes  of  such  account the agency shall transfer such excess to the
  special account and such excess shall be included in the excess  balance
  calculation.
    * NB Effective until July 16, 2011
    * 1.  The agency shall create and establish a mortgage insurance fund.
  Within such fund, the agency shall establish a  special  account,  which
  shall  be  divided  into  sub-accounts  for  each  region  as defined in
  subdivision nine of section twenty-four hundred twenty-six of this  part
  and  a  development  corporation credit support account. The development
  corporation credit support  account  shall  be  used  for  all  business
  related to development corporation credit support. Separate sub-accounts
  may  be  established  within  the development corporation credit support
  account as deemed appropriate by the agency. The mortgage insurance fund
  shall be used as a revolving fund for carrying  out  the  provisions  of
  this title with respect to mortgages insured and development corporation
  support  provided  thereunder.  The  agency shall pay into such fund all
  moneys which may be made available to the agency  for  the  purposes  of
  such  fund  from  any  source,  including  but not limited to the moneys
  received  from  recording  officers  pursuant  to  the   provisions   of
  subdivision  two  of  section  two hundred sixty-one of the tax law. The
  agency shall credit the amount of moneys  received  from  the  recording
  officer  of  each  county,  pursuant  to  subdivision two of section two
  hundred sixty-one of the  tax  law,  to  the  special  account.  In  any
  calendar year, no more than fifty per centum of the amount received from
  the  recording  officers  and credited to the special account during the
  consecutive  twelve  month  period  ending  on  the  preceding  December
  thirty-first  may  be  used  by  the  agency for the purpose of insuring
  mortgages on property located in any one region pursuant to section  two
  thousand four hundred twenty-eight of this part. The agency shall credit
  any  other  moneys  which  may  be  made available to the agency for the
  purposes of such fund from any other source to the  special  account  or
  the  development corporation credit support account, as appropriate. Any
  income or interest earned by, or increment to,  the  mortgage  insurance
  fund  due  to  the  investment  thereof shall be credited to the special
  account or the development corporation credit account, as appropriate.
    * NB Effective July 16, 2011
    * 1-a. All moneys held in  the  mortgage  insurance  fund,  except  as
  hereinafter provided, shall be used, as required, solely for the payment
  of  the  agency's liabilities arising from mortgages insured as provided
  in section twenty-four hundred twenty-nine-a of this part and  from  the
  provision  of  development  corporation  credit  support  as provided in
  section twenty-four  hundred  twenty-eight-a  of  this  part;  provided,
  however,  that no moneys shall be withdrawn from any account at any time
  in such amount as would reduce the amount of, as applicable, the special
  account, either pool insurance account or  the  development  corporation
  credit  support  account  to less than its applicable mortgage insurance
  fund requirement, except for the purpose of paying such  liabilities  as

  the  same  become  due  and for the payment of which other moneys of the
  agency are not available. All payments pursuant to  section  twenty-four
  hundred  twenty-nine-a  of  this part, and expenses attributable thereto
  shall  be  debited  to  the  special  account  or the single family pool
  insurance  account  or  the  project  pool  insurance  account  or   the
  development  corporation  credit support account, as appropriate, within
  the mortgage insurance fund. All other operating expenses of the  agency
  with  respect  to  insurance  of  mortgages  and  providing  development
  corporation credit support shall be debited to the special account,  the
  single family pool insurance account, the project pool insurance account
  or  the  development  corporation  credit  support  account  within  the
  mortgage insurance fund, as appropriate.
    * NB Effective until July 16, 2011
    * 1-a. All moneys held in  the  mortgage  insurance  fund,  except  as
  hereinafter provided, shall be used, as required, solely for the payment
  of  the  agency's liabilities arising from mortgages insured as provided
  in section twenty-four hundred twenty-nine-a of this part and  from  the
  provision  of  development  corporation  credit  support  as provided in
  section twenty-four  hundred  twenty-eight-a  of  this  part;  provided,
  however,  that no moneys shall be withdrawn from any account at any time
  in such amount as would reduce the amount of, as applicable, the special
  account or the development corporation credit support  account  to  less
  than  its applicable mortgage insurance fund requirement, except for the
  purpose of paying such liabilities as the same become due  and  for  the
  payment  of  which  other  moneys  of  the agency are not available. All
  payments pursuant to section twenty-four hundred twenty-nine-a  of  this
  part,  and expenses attributable thereto shall be debited to the special
  account or the development corporation credit support account within the
  mortgage insurance fund. All other operating expenses of the agency with
  respect to insurance of mortgages and providing development  corporation
  credit   support  shall  be  debited  to  the  special  account  or  the
  development corporation  credit  support  account  within  the  mortgage
  insurance fund, as appropriate.
    * NB Effective July 16, 2011
    2.  On  or before March twentieth in each year, the board of directors
  of the agency shall determine the amount estimated to be received by the
  agency from the additional tax imposed pursuant to subdivision one-a  of
  section  two  hundred  fifty-three  of  the tax law and deposited in the
  mortgage insurance fund and credited to the  special  account  plus  any
  other  monies  deposited  in  such  account  plus the amount of reserves
  available in such special account with respect to  mortgage  loans  that
  were  previously  insured in accordance with section twenty-four hundred
  twenty-eight  or  development  corporation  credit  support   previously
  provided  pursuant to section twenty-four hundred twenty-eight-a of this
  part  under  contracts  or  commitments  that  have  been  satisfied  or
  cancelled,  pursuant  to subdivision one of this section, except charges
  and fees levied by the agency pursuant to  section  twenty-four  hundred
  twenty-nine-c of this part, which shall be added in the computation only
  when  such a commitment is cancelled or expires or when the insurance or
  contractual  arrangement  to  provide  development  corporation   credit
  support applied for is declared effective. Such determination made on or
  before  March  twentieth  in each year shall be made for the consecutive
  twelve-month period ending on the  subsequent  March  thirty-first.  The
  board shall then determine the estimated excess balance, if any, in such
  special  account  by determining the amount by which such credits exceed
  twenty per centum, or such other per centums or amounts as may have been
  established by  the  board  of  directors  of  the  agency  pursuant  to
  subdivision  seven  of  section twenty-four hundred twenty-eight of this

  part, of the amounts insured or committed to be insured and the  amounts
  of  development  corporation  credit support established by the board of
  directors  of  the  agency  pursuant  to  section  twenty-four   hundred
  twenty-eight-a  of  this  part  to  be provided during such twelve-month
  period plus any payments by the agency during such  twelve-month  period
  on  account  of  a  mortgage  or  development corporation credit support
  contract entered into during such twelve-month  period  ending  on  such
  March  thirty-first,  plus  the  operating expenses of the agency during
  such twelve-month period with  respect  to  insurance  of  mortgages  or
  provision  of  development  corporation credit support, which amount may
  not exceed an amount determined and certified by  the  director  of  the
  budget,  with  notification  to  the  chairman  of  the  senate  finance
  committee and chairman of the assembly ways and means committee.  On  or
  before  May  fifteenth,  the board shall determine any adjustment to the
  estimated excess balance necessary to  reflect  the  variance,  if  any,
  between  such  estimated  excess  balance  and the actual excess balance
  computed as of March thirty-first, and shall certify such adjustment  to
  the  director of the budget. The agency shall include such adjustment in
  the estimated excess balance  determination  for  the  following  fiscal
  year,  unless  otherwise  instructed  by the director of the budget. The
  agency shall submit to the director of the budget an  estimate  of  such
  operating  expenses on or before the tenth business day in March of each
  year and the director of the budget shall make such certification before
  March twentieth of each year.
    Upon making the determination of the  estimated  excess  balance,  the
  agency  shall  certify such determination to the director of the budget,
  the chairmen of the senate finance committee and the assembly  ways  and
  means  committee,  and  the  comptroller.  Payment  of  such  actual  or
  estimated excess balance shall be made within ninety  days  after  March
  twentieth.  The  agency  shall,  at the direction of the director of the
  budget, pay such estimated or actual excess balance, if  any,  from  the
  special  account  to  the  comptroller  for deposit to the state general
  fund; provided, however, that if the aggregate  amount  in  the  special
  account  as  of  such  date  is  less  than  the mortgage insurance fund
  requirement, the agency shall retain all or that  portion  of  any  such
  estimated  or actual excess balance in such special account necessary to
  increase the aggregate amount in such special account  to  the  mortgage
  insurance  fund requirement. The director of the budget shall notify the
  chairmen of the senate finance committee and the assembly ways and means
  committee ten days prior to the issuance of the directive in respect  to
  the  payment  of  the  estimated or actual excess balance to the general
  fund.
    Further provided, however, that the budget  to  be  submitted  to  the
  legislature   by   the   governor  pursuant  to  article  seven  of  the
  constitution shall separately state the  amount  of  such  estimated  or
  actual  excess  balance  determined  as  hereinabove prescribed, if any,
  which shall be included in the  monies  and  revenues  estimated  to  be
  available during the current and ensuing fiscal years, respectively.
    3.  The moneys in such fund shall be deposited in one or more banks or
  trust  companies  designated  in  the  manner  provided   by   law,   as
  depositories of the funds of the state. The agency may invest the moneys
  in  such  fund  in  obligations  specified  in  subdivision four of this
  section. Any interest earned or capital gain realized on  the  money  so
  deposited  or invested shall accrue to and become part of such fund. The
  separate identity of such fund shall be maintained  whether  its  assets
  consist of cash or investments or both.
    4.  Moneys  in  such  fund may be invested (a) in special time deposit
  accounts in, or  certificates  of  deposit  issued  by,  a  bank,  trust

  company,  savings  bank  or  savings  and  loan  association located and
  authorized to do business in this state, provided,  however,  that  such
  time  deposit  account or certificate of deposit shall be payable within
  such  time  as the proceeds may be needed to meet expenditures estimated
  to be incurred by the agency and provided further that such time deposit
  account or certificate of deposit be secured by a pledge of  obligations
  of the United States of America or obligations of the state, any city of
  the  state,  or other municipal corporation, school district or district
  corporation of the state or  obligations  of  agencies  of  the  federal
  government; or (b) in obligations of the United States of America or the
  state  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
  provided  such  obligations shall be payable or redeemable at the option
  of the owner within such times as the proceeds may  be  needed  to  meet
  expenditures estimated to be incurred by the agency.
    5.  In  computing  the  amount  of the mortgage insurance fund for the
  purposes of this section, securities in which all or a portion  of  such
  fund shall be invested shall be valued at par if purchased at par, or if
  purchased  at  other than par, at amortized value. Amortized value, when
  used with respect to securities  purchased  at  a  premium  above  or  a
  discount  below  par, shall mean the value as of any given date obtained
  by dividing the total premiums or discount at which such securities were
  purchased by the number of interest payments remaining  to  maturity  on
  such  securities  after  such  purchase and by multiplying the amount so
  calculated by the number of interest payment dates having  passed  since
  the  date  of such purchase; and (i) in the case of securities purchased
  at a premium by deducting the product thus obtained  from  the  purchase
  price,  and  (ii)  in  the case of securities purchased at a discount by
  adding the product thus obtained to the purchase price.
    6. The agency may create and establish such other fund or funds as may
  be necessary  or  desirable  for  the  carrying  out  of  its  corporate
  purposes.