* § 2405. Purchase of existing mortgages. (1) A purpose of the agency\nshall be to purchase existing mortgages from banks within the state\nduring periods when there is an inadequate supply of credit available\nfor new residential mortgages and to require such banks to invest an\namount equal to the proceeds thereof as rapidly as possible in new\nmortgages on residential real property for family units within the\nstate.\n It is hereby found and declared that such activities by the agency\nwill alleviate a condition of affairs in this state which is contrary to\nthe public health, safety and general welfare and which has constituted\nin the past and from time to time in the future can be expected to\nconstitute a public emergency. It is further found and declared that\nsuch purposes are in all respects for the benefit of the people of the\nstate of New York and the agency shall be regarded as performing an\nessential governmental function in carrying out its purposes and in\nexercising the powers granted by this title.\n (2) The agency shall purchase existing mortgages from banks at such\nprices and upon such terms and conditions as it shall determine;\nprovided, however, that the total purchase price for all existing\nmortgages which the agency commits to purchase from a bank at any one\ntime shall in no event be more than the total of the unpaid principal\nbalances thereof, plus accrued interest thereon.\n (3) (a) The agency shall require as a condition of purchase of\nexisting mortgages from banks that such banks shall, within such period\nas may be approved by the agency not in excess of ninety days of receipt\nof the purchase price, enter into written commitments to loan and shall,\nwithin such period as may be approved by the agency, loan an amount\nequal to the entire purchase price of such existing mortgages on new\nmortgages within the state having such terms as the agency may\nprescribe.\n (b) (i) The proportionate dollar amount of commitments from each\nagency issue of bonds or notes used to purchase mortgages from banks in\neach region of the state, as such regions are set forth in subdivision\nnine of section twenty-four hundred twenty-six of this title shall,\nsubject to subparagraph (ii) hereof, reflect the proportion that the\nnumber of families in each region bears to the number of families in the\nstate as a whole.\n (ii) To the extent that the reasonable demand by banks in any region\nis insufficient to accommodate the proportion of an agency issue of\nbonds or notes determined pursuant to subparagraph (i) hereof for such\nregion, the agency shall use reasonable efforts to purchase mortgages\nsuch that the excess funds from such region are distributed among the\nother regions in proportion to the relative reasonable demand. In\ndetermining reasonable demand, the agency shall consider, among other\nthings, historical demand for mortgages in such regions, the dollar\namount of offers by banks to sell mortgages to the agency and the\nreasonableness of such offers, considering the size, mortgage history,\ntotal assets, liquidity and financial ability of the bank to conform to\nthe contract of sale and the bank's record of compliance with agency\nrequirements.\n (iii) The agency shall use its best efforts to the end that not less\nthan one-sixth in dollar amount of new mortgages resulting from its\nprogram of purchasing mortgages shall be on newly constructed\nresidences. A newly constructed residence is defined as a one to four\nfamily dwelling not previously occupied.\n (iv) During the time that the agency is accepting offers to sell\nmortgages from banks, the agency shall advertise, in newspapers of\ngeneral circulation within the state, the fact that it is accepting\noffers from banks, and such other information as the agency determines\nto be helpful in generating maximum participation by banks and potential\nmortgagors. All banks within each such region shall be invited by the\nagency to participate i
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