Section 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.